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Hashgard Rating Review

Stable+

Investment Rating

Expiry date 07 Dec 2018 07 Sep 2018

Based on the analysis performed and issues identified we have assigned the Hashgard project a “Stable+” rating. As of the report date Testnet (MVP) is already available which may indicate the serious intentions of the team.

The project is currently vulnerable and dependent upon favorable business, financial, and economic conditions to meet the commitments on the project’s deliverables. In the event of adverse business, financial, or economic conditions, the team is not likely to have the capacity to meet its commitments on the project. This outlook assesses the potential direction of the project; in determining a rating, consideration is given to any changes in economic and/or fundamental business conditions. This outlook is not necessarily a precursor of a rating change or future team actions. The following are the strengths of the project:

 

  • First version of the Hashgard Asset Management Platform has been developed and tested;

  • Ambitious and great idea;

  • Very strong advisors and partners with strong blockchain experience;

  • Strong relationships with well-known investors;

  • Good hype.

 

However, the following are significant risks associated with this Project:


 

Lack of information about token metrics

 

The token metrics are not specified in the white paper or on the project website. We understand that this is due to the fact that there will be no public sale or ICO. We also understand that the crowdsale smart contract code is usually published only when the token metrics are known, but nevertheless, special attention should be given about its absence at the time of the report date. The current smart contract address, provided on Etherscan, states that 82% of tokens are at the one address, as some investors keep their GARD tokens in an exchange wallet, which might be transferred to the cold wallet of the exchange, and the other 18% are divided between 9 addresses (as the 15% of the tokens from private placement and approximately 3% of the tokens for advisors have been unlocked). But, still, the important information as vesting periods, token distribution timelines, etc., cannot be verified.

 

Legal risks

The legislative bodies of most countries have not yet issued corresponding regulations, and even if regulations are introduced, they fail to reach a consensus. Digital assets have the property of “self-financing”. In theory, the issuing and trading of assets can bypass the traditional financial system, and thus supervision is difficult.

 

Whitepaper is not comprehensive

The whitepaper does not include market/competitor analysis, token and project economics are unclear. Details regarding the project’s economics, financial forecasts are provided to the investors directly.

 

Development

The project is still under development and may undergo significant changes over time. Although it is intended for the project to follow the specifications set forth in this document, and the Foundation will endeavor to work towards those ends (subject to internal business considerations), changes may be required to be made to the specifications of the project for any number of reasons.


Based on the analysis performed and taking into consideration all risks associated with Hashgard project as of August 2018, we have assigned the Hashgard project a “Stable+” rating. When further MVP/alpha/beta versions of the product are publicly released and feedback for the first platform are released, the rating will need to be reassessed.

After the July 2016’s events related to the DAO hacking and subsequent events, it became clear that many problems in the digital asset management field cannot be solved by just building a crowdfunding smart contract on Ethereum, there is also a need for more realistic solutions.

Hashgard is a distributed, trusted asset management protocol and a high functionality next generation digital finance public chain.

Hashgard provides a one-stop blockchain solution for asset management in digital finance. Hashgard has a large number of business modules, including operational-level on-chain data, advanced versions of asset management autonomous organization, a smart contract system tailored for asset management, able to systematically support the issuing, management, trusteeship, settlement, audit, process control, and dispute arbitration of decentralized assets.

There will be no ICO or public sale.

Website

Whitepaper

Medium

Reddit

Twitter

Telegram

LinkedIn

Facebook

 

The private sale, which was open only to institutions, has already closed and been fulfilled.

The following information regarding the presale is available:

Presale information: Hashgard had only one round of private placement with the same price of 1 ETH = 1,250,000 GARD to all institutional investors. 24,000 ETH was raised in the private placement from over 50 of the top investment funds in the world, including Fenbushi Capital and BKFUND. The strategic investors of the project are: Gobi Partners, Bibox, Node Capital, Alphabit Fund, Frees Fund, Transference Fund, Fang Fund Partners, Linkvc, LD Capital, IMO Ventures, PreAngel, 8Decimal Capital, Stars Capital, Milestone Capital, Next Blockchain Capital, Blockwater Capital, Bitrise Capital, Hello Capital, Code Link, Vulpe Capital, Spark Capital, CHI Capital, Scry.Info Foundation, IRIS Foundation, Delphy Foundation, MDS Foundation, Primas Foundation, Genesis Capital, W Fund, and more.

There will not be public sale nor ICO.

Country of legislation – Singapore.

KYC procedures are planned.

There are 100 billion native built-in crypto-tokens called GARD (ERC20).

The project announces the following information regarding token distribution:

40% is allocated to the Foundation for R&D, marketing and ecosystem building. Among the 40%, 10% will be allocated for community awards/market promotions, 10%-15% for R&D, and 15%-20% for ecosystem building.

Initial Circulating supply: 15–16%

Note: 15 percent comes from half of the 30% allocated to strategic investors. The extra 1 percent are previous airdrops to the community. The Hashgard team has no control over the circulating supply.

Specially for the Russian-speaking community, the launch of the company's mini-bounty was announced - an overview in Russian should have been written, or some talks about the project in the social networks should have been conducted.

The top 15 publications have received a reward of 35,000 GARD tokens, and 35 other winners have received 3000 GARD tokens.

The team has also launched several rounds of airdrops in the Hashgard SaaS system through which the team shares 200 million GARD Tokens with all participants. All details are available on the official Medium account.

The team has specified the following terms:

  • Strategic investors and partners: Among the 30%, 50% of the tokens will be delivered to the purchaser upon listing, the other 50% will be locked for 6 months;
  • Founding team members: 6 months after mainnet launch over 24 months;
  • Intellectual property contribution team: a year after the listing;
  • Early contributors: a year after the listing;
  • Foundation and scientific research & advisors: no information regarding vesting terms.

 

Given that the project roadmap states that a stable release is expected by Q3 2018, vesting terms for the team and the Eloncity lab cover almost all milestones on the roadmap, so at least it covers the period that the project and the token need to stabilize.

According to the information received from the team, these are the following forecasted use of proceeds:

Considering the project’s specifics, such fund allocation looks reasonable.

As the underlying infrastructure of the digital financial industry, Hashgard has a complete distributed ledger technology system, including distributed network technologies, consensus mechanisms, smart contracts, application layer interfaces(API) and so on.

Hashgard has fully considered the need for the protection and transaction of many different types of assets in the future when designing the system, and technically supports the cross-chain interaction of various public chains.

Hashgard engages with eco-partners such as decentralized data storage, decentralized asset custody, decentralized asset issuance, and decentralized asset lending. Hashgard connects with eco-partners on lower-layer interfaces to support developers to build various application services under different scenarios.

Hashgard builds its own blockchain with its own native token.

Hashgard will operate on the Delegated Proof of Stake (DPoS) consensus mechanism and the Byzantine Fault Tolerance (BFT) mechanism. DPoS is an algorithm for achieving a consensus in a decentralized environment, which is an alternative to consensus PoW and PoS. Briefly, the basic principle of DPoS is the division of voting and validating participants. As a result, network participants who have the right to vote in the system (coin holders) are not the transaction validators. Thus, one subset of the participants selects another subset, which in turn will generate the blocks.

BFT is the characteristic which defines a system that tolerates the class of failures that belong to the Byzantine Generals’ Problem. Byzantine Failure is the most difficult class of failure modes. It implies no restrictions, and makes no assumptions about the kind of behavior a node can have (e.g. a node can generate any kind of arbitrary data while posing as an honest participant).

DPoS and BFT Pros & Cons

DPoS is designed in such a way that it maintains a high frequency of generating new blocks and is capable of processing a large number of transactions per unit of time compared to other consensus algorithms that work in a distributed environment without trust. DPoS is well suited for the design of open access systems where no user identification is required.

In the absence of BFT, a peer is able to transmit and post false transactions effectively nullifying the blockchain’s reliability. To make things worse, there is no central authority to take over and repair the damage.

To sum up, these types of consensuses are more suitable for building an ecosystem that includes both regular users (mobile customers) and companies (full nodes that can play the role of validators).

Hashgard is an open and highly-expansive ecosystem. They will have in-depth collaborations with other ecosystems in terms of identity authentication, content distribution, predicting markets, asset lending, trusted data validation, cross-chain collaboration and so on to jointly build an infrastructure in the digital finance field and provide complete functional modules for decentralized applications on the chain. New modules based on the needs of applications will continue to be expanded.

Hashgard will solve the pain points in digital finance and protect investors' assets through technological innovation and ecological construction in an effort to ultimately achieve distributed inclusive finance.

The project provides information about the following ecological ecosystem :

Here is the list of services provided by Hashgard:

  • Asset management SaaS

Provides digital asset investors with professional asset management, investment management, risk control, financial management, team collaboration and other functions;

  • Digital asset fund exchange

A platform for digital asset fund investors to subscribe, redeem and trade fund shares;

  • Fund evaluation, audits;
  • Asset management DAO

Fund investors, managers, custodians, etc. may form a DAO-style autonomous organization to ensure the standardization of fund operations through smart contracts;

  • Decentralized fund

Supporting DAO model and various decentralized financial products;

  • Decentralized fund company

Individuals empower technology, link global talents and build more operationally efficient asset management DACS;

  • Decentralized custodian

Ensures asset security through cross-chain agreements and custody service providers;

  • Decentralized arbitration institutions

Supporting the creation of an arbitration DAO to resolve business disputes in the community.

The team provides the following Roadmap:


As of the report date, the first version of the Hashgard SaaS Asset Management Platform has been developed and tested internally. The first version of the Hashgard SaaS digital asset management platform (Ginnunga) has been officially launched in July and professional digital asset management capabilities also will be provided soon. The follow-up asset management system will also provide exchange docking, risk control management, team collaboration and other functions.

Testnet goes live on public chain in Q4 2018.

Mainnet goes live in Q2 2019.

According to the information received from the team, there is an even more detailed roadmap, which is privately provided information. It includes technical, marketing and community management plans on a monthly basis, but it is not for public use.

Market overview:

In recent years, with digital assets such as Bitcoin gradually entering the mainstream view, its influence has been increasing day by day. It has become an asset category that institutions and individuals cannot ignore. The total market value has reached a maximum of 800 billion US dollars. With the gradual enrichment of digital assets, there are more and more value-creating activities related to it. The management of digital assets is one of them.

The exponential growth of the cryptocurrency market, its capitalization, and asset volatility attract investors interested in making exponential profits, which are common in the crypto sphere. Therefore, the emergence of adapted financial institutions, such as funds involved in crypto market investments, is not surprising.

Against this background, the digital assets fund (token fund) has sprung up around the globe. According to incomplete statistics, the current number of digital asset funds has reached hundreds worldwide, and the asset management scale is more than 4 billion US dollars.

We believe that with the institutionalization and professionalization of investors in the digital asset market, the construction of the infrastructure of this industry will become the focus of market.

The amount of managed capital of funds (mln USD)

The growth of the capital funds management market can be estimated at 93.07%.                      

The following main reasons for the increase in the number of crypto funds, as well as their managed capital, can be highlighted: first, the growing popularity of crypto funds, high market volatility of cryptocurrency, tokens, high profitability of existing asset management and crypto currency funds. There are also some tools of the classical financial market as well as investment strategies that are worth borrowing and adapting to the cryptomarket’s modern trends, therefore, the need for new, more effective strategies leads to the emergence of new funds.

Competitive landscape:

We will use Porter’s Five Forces framework to perform an initial competition assessment for the Hashgard project.

Bargaining power of customers –  Medium/ Low

Hashgard has a large number of business modules, including operational-level on-chain data, advanced versions of an asset management autonomous organization, a smart contract system tailored for asset management, which is able to systematically support the issuing, management, trusteeship, settlement, audit, process control, and dispute arbitration of decentralized assets. The key factor for an ecosystem like Hashgard is its popularity among both organizations and specialists. Buyers are often a demanding lot. They want to buy the best offerings available by paying the lowest price possible. This puts pressure on Hashgard profitability in the long run. The smaller and more powerful the customer base is for Hashgard, the higher the bargaining power of the customers and the higher their ability to seek increasing discounts and offers will be.

Bargaining power of suppliers – Medium/ Low

All most all the companies in the Asset Management industry buy their raw material from numerous suppliers. Suppliers in dominant positions can decrease the margins Hashgard can earn in the market. Powerful suppliers in the Financial sector use their negotiating power to extract higher prices from the firms in the Asset Management field. The overall impact of higher supplier bargaining power is that it lowers the overall profitability of Asset Management.

Threats of new entrants – Medium

The threat of new entrants is medium, as all key management protocol developers must conduct their design and development activities at a high level of sophistication relative to security threats. New entrants in Asset Management brings innovation, new ways of doing things and put pressure on Hashgard through lower pricing strategy, reducing costs, and providing new value propositions to the customers. Hashgard has to manage all of these challenges and build effective barriers to safeguard its competitive edge.

The market is developing and there are not many major players at the moment; barriers for new entrants are relatively low.

Threat of substitutes – Medium / High

When a new product or service meets similar customer needs in different ways, industry profitability suffers.

The exponentially positive dynamics pertaining to an increase in the number of asset management funds/protocols and the need to adapt existing classical investment strategies will increase in the near future. The threat of a substitute product or service is high if it offers a value proposition that is uniquely different from present offerings of the industry. As Hashgard pretends to create more general projects than its counterparties, the risk can be assessed as Medium-to-High.

Industry rivalry: Medium

 

The rivalry among the existing players in an industry is intense; it will drive down prices and decrease the overall profitability of the industry. Hashgard operates in a very competitive Asset Management industry. This competition does take a toll on the overall long term profitability of the organization. The most prominent counterparty is DigixDAO, as it provides the most unique product (with its physical part of the token). At the same time, Hashgard has a more “perfect” platform as the “outcome”, as it’s build on DAO basis but improved.

Overall, Hashgard plans to unite with the platforms of counterparties to create a better product.

 

Hashgard

Iconomi

Wanchain

DigixDAO

Ticker

GARD

ICN

WAN

DGD,DGX

Description of services and features

One-stop blockchain solution for asset management in digital finance with a large number of business modules. Will operate on DPoS & BFT.

Technical service that takes care of the Digital assets management process using diversified baskets of digital assets called Digital Asset Arrays (DAAs). Fully decentralized.

Distributed financial platform allowing the execution of smart contracts between different blockchain networks. The platform helps others manage their wallets, ledgers and smart contracts through Wanchain.

Software protocol fully on chain, fully decentralized and autonomous. DGD provides a use case for the tokenization and documentation of physical assets through its new PoA protocol (PoP). Makes it possible to buy gold in an efficient manner via cryptocurrency by providing investors with a tokenized version of gold so you don’t have to physically own or store it.

Key users

Organizations, developers, benefiters, witnesses, common users

Organizations, developers, investors, common users

Organizations, developers, investors, common users

Users, developers, organizations

Development stage

Beta is developed and tested internally

MVP released

MVP released

Beta released

ICO status

No ICO or public sale. Airdrop is inbound

Ended

Ended

Ended

Funds collected as of ICO date/Hard cap)

USD 10 mln/ Unknown

USD 10 mln/ Unknown

USD 35,9 mln/USD 36 mln

USD 5,5 mln/ USD 5,5 mln

Total tokens

100,000,000,000

100,000,000

210,000,000

2,000,000

Tokens for sale

zero

85%

51%

Unknown

Valuation at ICO date (Hardcap/% of tokens for sale )

Unknown

Unknown

~ USD 70.6 mln

Unknown

Market cap

N/a yet

USD 50.2 mln

USD 141.5 mln

USD 105.9 mln

 

Blockchain is drawing significant focus and investments from many financial institutions in the industry. Asset management firms are seeking opportunities to harness the benefits of blockchain as well as key challenges to adopting this technology.

Iconomi, a fin-tech startup based in Slovenia is building a decentralized management platform to allow funds of tokens to be managed for digital assets. Their goal is to allow any user to create and manage groups of tokens and crypto assets and allow anyone to invest. In exchange for creating and managing these funds, the managers will be paid fees through the platform.

Iconomi’s mission is to provide an opportunity for investors looking for high profits not possible in the old economy. It does so through a simple and trustworthy entry point, providing them with a high level of experience, which is crucial for keeping them invested in the new economy. Iconomi is creating the missing link between the old and the new economy. Speaking the language of the old economy and acting by the principles of the new one, Iconomi’s transparent management is provided by an EU legislation which is a compliant and regulated service operator.

Wanchain is kind of a narrow industry leader. It is creating a new financial market of digital assets by implementing cross-chain transfers across different blockchains. With the number of various coins, tokens, and blockchains currently in the ecosystem, there is not currently an efficient, decentralized way to exchange value between them. Wanchain's vision is to rebuild finance as we know it by bringing the world's digital assets onto one blockchain. Wanchain's blockchain brings together the unique capabilities of privacy, cross-chain and smart contracts.

Privacy is built into the Wanchain protocol through the integration of ring signatures and one-time stealth addresses. To support Cross-chain capabilities, Wanchain leverages the latest research in cryptographic theories to create a non-proprietary protocol that makes it easy for any public, private or consortium chains to connect into Wanchain and thus exchange digital assets amongst them.

The DigixDao’s distinction from the competitors above is that the idea behind the DGX token ties it to the price of an already stable commodity – gold – and the price of the token will remain stable as well. The consensus mechanism used for the DGX token will be a Proof of Provenance (PoP) system (actually, the protocol is called Proof-of-Asset). In this system, each gold bar will have its information recorded on the Ethereum blockchain. The information will include the time it was created, the serial number, its custody history, and the fees associated with it.

Hashgard is the first project initiated and managed by Fenbushi Capital, China’s premier blockchain VC, ranked as one of the top most active in the world. This fact can be considered as one of the advantages of the project, as It builds a strong intellectual base.

Hashgard is developing both a protocol and high-performance public blockchain to serve as a “one stop” solution for digital asset management.

Hashgard envisions a vibrant financial ecosystem built upon the Hashgard public chain and interoperability with other public blockchains.

The inclusion of Decentralized Autonomous Organization (DAO) functionality will allow any individual or organization to form investment funds. Hashgard will also offer a decentralized arbitration service to resolve conflicts as they arise.

Also, one of the most promising aspects of Hashgard is the fact that 50 investment funds have invested in the company.

As these investment funds are likely struggling with the same infrastructure and management issues surrounding digital assets, and considering their investment relationship with Hashgard, they are very likely to provide an instant ecosystem and be the first clients when the platform goes live.

Hashgard is a distributed, trusted asset management protocol and a high functionality next generation digital finance public chain, which is really technically complicated. Therefore, it is important to be sure that the team members’ experience is sufficient.

 

Tom Huang

Charlie Xu

Position

Co-founder

Founder

Total experience

5+ years

10+ years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Senior analyst @Fenbushi Capital

Managing partner at BKFUND

LinkedIn

Yes

Yes

Connections

500+

500+

Endorsements / Recommendations

No

No

 

Frank Yang

Cindy Fang

Position

Co-founder, CTO

Financial Manager

Total experience

10+ years

3 years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

-

BKFUND Co-founder, Finance manager @ Fenbushi capital

LinkedIn

Yes

Yes

Connections

57

159

Endorsements / Recommendations

No

No

 

Victor Wu

    Grace Zhong

Position

PM

Executive Office Manager

Total experience

No data

2 years

Relevant experience

No data

Yes

Relevant education

Yes

Yes

Professional achievements

-

-

LinkedIn

Yes

Yes

Connections

68

5

Endorsements / Recommendations

No

No

       

 

 

Iris Li

Mika Ye

Position

HR/PR Manager

UI Designer

Total experience

5+ years

5+ years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

-

-

LinkedIn

Yes

Yes

Connections

10

17

Endorsements / Recommendations

No

No

 

Shawn Yang

    Vicky Wang

Position

Developer

Community Manager

Total experience

5+ years

No data

Relevant experience

Yes

No data

Relevant education

Yes

Yes

Professional achievements

-

-

LinkedIn

Yes

Yes

Connections

35

67

Endorsements / Recommendations

No

No

         

 

 

Keren Yin

Joe He

Position

BD Manager

Developer

Total experience

2 years

No data

Relevant experience

Yes

No data

Relevant education

Yes

No data

Professional achievements

Analyst @BKFUND

-

LinkedIn

Yes

Yes

Connections

500+

14

Endorsements / Recommendations

No

No

 

As it can be seen above, the team composition is quite diverse. The full Hashgard team includes 14 members with a variety of skill sets, including software development, finance, and business development. In general, the team seems quite complete and professional, as the disadvantages we can note are the unpopularity of some accounts (very few contacts and the lack of recommendations), which may be related to the fact that most of the team members are Chinese citizens, and it is quite complicated to verify the sufficiency of their expertise and professionalism via LinkedIn.

Advisors & Partners

 

Bo Shen

James Gong

Total experience

25+ years

15+ years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Founding partner of Fenbushi Capital

Founder of CYBEX, Longhash & Blockchain Pencil, etc.

LinkedIn

Yes

Yes

Connections

500+

500+

Endorsements / Recommendations

No

No

       

 

 

David Lee

Haifeng Xi

Total experience

15+ years

No data

Relevant experience

Yes

Yes

Relevant education

Yes

No data

Professional achievements

Professor at Singapore University of Social Sciences

Former CTO of WanCloud, Co-founder of IRIS

LinkedIn

Yes

No data

Connections

500+

No data

Endorsements / Recommendations

No

No data

         

 

 

Kevin Wu

Min Zhang

Total experience

No data

No data

Relevant experience

Yes

Yes

Relevant education

Yes

No data

Professional achievements

Founding partner & CEO of PreIPO Capital Partners

Managing partner of Heli Investment

LinkedIn

No data

No data

Connections

No data

No data

Endorsements / Recommendations

No data

No data

 

 

Sunny Lu

Eva Foo

Total experience

15+ years

No data

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Co-founder and CEO of VeChain;

CCIE/CBCP Certificate

Founder of Scry.info

LinkedIn

Yes

No data

Connections

500+

No data

Endorsements / Recommendations

Yes

No data

 

 

Shuo Bai

Huawei Kong

Total experience

No data

No data

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Former Chief Engineer of Shanghai Stock Exchange

Director of Shanghai Branch of Institute of Computing Technology, Chinese Academy of Sciences

LinkedIn

No data

No data

Connections

No data

No data

Endorsements / Recommendations

No data

No data

 

 

Cindy Deng

Total experience

5+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Associate Professor in Finance at SHUFE

LinkedIn

Yes

Connections

20

Endorsements / Recommendations

No

 

All the advisors are well-known professionals, and the unpopularity of most accounts on LinkedIn (very few contacts and lack of recommendations) or even the lack of LinkedIn accounts, may be related to the fact that most of the advisors are Chinese citizens and it is quite complicated to verify the sufficiency of their expertise and professionalism via LinkedIn.

The Hashgard project was internally incubated by Fenbushi capital in March 2018. It is Fenbushi capital that sees many pain points in the process of asset management and fundraising, and hopes to build a perfect digital financial ecosystem. To solve the current problems in asset management and digital finance, and thus incubate high-quality projects. Second, the Hashgard management team comes from Fenbushi capital and has played an important role in Fenbushi capital.

Third, GF Network is a blockchain group company consisting of Shen Bo and a distributed capital management team. Its business covers equity investment funds, overseas certification funds, global incubators, etc., and Hashgard is GF Network Ecology.

Also, the project has already established the following partnerships: SCRY.info, Irisnet, Charter, Wookong, MyToken, etc. The team is looking forward to future collaborations.

Tokens are an essential utility that power the economics of the Hashgard ecosystem. The token is also used as gas to pay for transactions and serves as a reward to consensus nodes and for DApp developers and content creators.

The private sale is only for institutional investors.

During the fundraising period, Hashgard Foundation received investment intentions from hundreds of well-known financial institutions and investment institutions around the world. Due to the limited amount of financing available, it was unable to meet the investment offers of all interested institutions. For those who have not participated in this round of financing, the team members hope that they will be able to establish in-depth cooperation at the capital and business levels in the future.

Economic system.

  • Purpose of deposit: within the Hashgard system, in such scenarios as the issuing of fund equity assets, creating a DAO and a DAC etc., users are required to freeze tokens generated by the system as a deposit. When users violate the agreement, the corresponding deposit will be deducted by the smart contract as a penalty.
  • Purpose of burning GAS: the Hashgard token will be used as GAS (as a token) for trading fuel, partially distributed to consensus nodes, and partially allocated to contract creators to motivate the community.
  • Ecological building purpose: the Hashgard Foundation will distribute token rewards to DAPP developers based on criteria such as fund management practices, smart contract creation and usage, to encourage more users to participate in the digital finance ecosystem.

Token appreciation logic: the total amount of tokens generated by Hashgard system is fixed. Therefore, the total economic value of the community will be greater with more users, and, at the same time, more tokens are frozen, resulting in a continuous reduction in the amount of liquidity while the demand is increasing, resulting in an increase in expected value of tokens.

At this stage, the token/ICO metrics and economy of the platform (size of commission, etc.) are unknown, so we can only discuss fundamental factors for the price:

FACTOR

DESCRIPTION

PRICE EFFECT

Demand for the service

Mainnet - Hosting blockchain-based asset issuance, asset management, asset custody, and other functions. In terms of development planning, Hashgard plans to establish a digital asset management financial ecosystem and connect the ecological components of the industry, such as identity authentication (KYC), forecasting market, and reliable data verification, and build an infrastructure for digital finance. It has in-depth cooperation with projects such as Scry.Info, a blockchain underlying development project, and Irisnet, a developer of cross-chain service underlying protocols.

⬆⬆⬇

Development and release of new products according to the roadmap

There will be no presale/ICO, but, according to the Roadmap, there are a lot of platform development stages, which will lead to the Mainnet release in Q2 2019.

Whether or not the team is meeting those milestones, the degree of the product development at each stage will drive the token price up or down.

⬆⬇

Volatility of cryptomarket

One of the reasons for the popularity of the crypto market is its high volatility, which attracts investors that prefer highly speculative investments. Many earning opportunities also contribute to the emergence of new crypto funds.

⬆⬇

Limited token supply

Assuming that the company develops as intended and the demand for the solution is sufficient, a limited token supply can result in a long-term deflation of the token price.

RISK

DESCRIPTION

LEVEL

Lack of information about token metrics.

The token metrics are not specified in the white paper or on the project website. We understand that it is due to the fact that there will be no public sale or ICO. We also understand that the crowdsale smart contract code is usually published only when the token metrics are known, but nevertheless, we draw attention to its absence at the time of writing as of the report date. The current smart contract address, provided on Etherscan, states that 82% of tokens are at the one address, as some investors keep their GARD tokens in an exchange wallet, which might be transferred to the cold wallet of the exchange, and the other 18% are divided between 9 addresses (as the 15% of the tokens from private placement and approximately 3% of the tokens for advisors have been unlocked). But, still, the important information like vesting periods, token distribution timelines, etc., cannot be verified.

Medium/ High

 

 

 

 

Legal/Commercial risks

The legislative bodies of most countries have not yet issued corresponding regulations, and even if regulations are introduced, they fail to reach a consensus. Digital assets have the property of “self-financing”. In theory, the issuing and trading of assets can bypass the traditional financial system, and its supervision is difficult.

 Medium

 

 

 

 

 

 

 

Development risks

The project is still under development and may undergo significant changes over time. Although it is intended for the project to follow the specifications set forth in this document, and the Foundation will endeavor to work towards those ends (subject to internal business considerations), changes may be required to be made to the specifications of the project for any number of reasons.

 

Medium/

Low

 

 

 

RISK

DESCRIPTION

LEVEL

 

 

 

 

 

 

MVP

The first version of the Hashgard SaaS digital asset management platform (Ginnunga) was officially launched in July, and reached more than 120,000 registered users worldwide in one week. At of the moment, the risk level will be assessed from Medium to Low.

Medium/

Low

 

Incomprehensive whitepaper

  • Absence of market / competitor analysis in Whitepaper;
  • Unclear token and project economics.

The project economics are to be provided only to investors in a separate document. As there was only the private sale and no public ICO, some information such as financial models, financial forecast were provided to investors at private meetings and standalone documents. The risk is more Low than Medium for potential investors.

Medium/

Low

 

 

Market/commercial risks

Despite the presence of competitors in the market, we believe that Hashgard’s approach to the asset management has its competitive advantages, which is improved DAO “asset economy” and “hype” around this project.

Medium/

Low

 

Unclear ICO details, terms and conditions.

 

Private sale, which was open only to institutions, has already closed and been fulfilled. The fundraising policy was one of the most transparent in the crypto market as all investors paid the same price for the tokens. Investors had all the insights of the ICO details.

There will not be a public sale nor ICO.

Low

 

 

Team composition

The team has ambitious plans in terms of product complexity. Overall, the team is complete and professional and the advisors of the project are experienced professionals as well.

Low

 

Token price decrease

There are no fundamental factors indicating that the token price will face significant pressure, and the bonuses are relatively low.

Low

 

 

 

The information contained in the document is for informational purposes only. The views ex-pressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.

Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.

We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.