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IAGON Rating Review

Stable+

Investment Rating

Expiry date: Expired 31 Aug 2018

We assign the IAGON project a "Stable +” rating.

The IAGON project is a modern decentralized cloud platform that supports both cloud storage services and cloud computing. Decentralization helps create a secure operation; this is still an issue for many potential customers when choosing from the large centralized platforms. The main stated innovation of the IAGON platform is its complete use of AI for more efficient grid management, which is an important step forward for the industry.

The IAGON project is presented by a strong team with undeniable competence. The project is headed by strong professionals with extensive experience in the technical sector. It is notable that the project is supported by a large number of advisors, and we hope that their expertise will help create a better service.

IAGON has positive feedback from the community arising from a balanced marketing campaign. The information presented in the documentation corresponds to best corporate practices. IAGON has an extensive financial plan that is fully published. The project team discloses a five-year P & L (with a monthly breakdown in the first year), a revenue structure, cash flows, a breakeven analysis, etc. Such a range of quantitative information is very useful for investors, as it enables increased transparency for the project and the team’s strategy.

The main risk for the IAGON platform is its powerful competitive environment. A major portion of the market is already divided between online giants, led by Amazon. At the same time, the market remains flexible enough and may be quickly restructured to meet the needs of customers.

In addition to the leaders in the centralized market, competition is also evident amongst blockchain start-ups. There are several well-known names the community has high expectations of, and IAGON still needs to position itself in the industry.

In such a dense competitive environment as has developed in the cloud services market, the time factor will play a decisive role, and quality and convenience will help retain customers on a specific platform.

IAGON is a open source cloud platform with an ecosystem connecting buyers and sellers of computer power. In fact, IAGON is a cloud platform for storing and calculating data. As an analogy, we can give an example of the well-known Google Cloud, Amazon Web Services, etc. The key differences of this project from such services are its p2p nature, decentralization and extensive application of AI.

Standard platforms provide their own capacities but recently the trend for a sharing economy involving the use of crowd computer resources has become relevant. The task of the IAGON platform is to bring buyers and sellers of these resources together. The platform is developed on a decentralized basis as a DApp; its architecture uses advanced AI technologies and machine learning, and the core is the Alexandria Protocol, an intelligent system that manages the entire data flow process.

The IAGON ecosystem also runs on the public Ethereum blockchain and the IAG token, creating IAGON's token economy. It is an autonomous system based on a smart device, server and data center owners, operating on the basis of virtual tokens.

The project is conducted by IAGON AS, incorporated in Norway. IAGON AS has the following ownership structure: Dr. Navjit Dhaliwal and Bogna Kaczmarek-Dhaliwal own 65% of company shares, Dr. Elad Harison has 25% and others own 10%. In the documentation, the emphasis is on the legal aspects and a description of the current structure of the company. The organizational structure is also presented:

At the seed stage of investment, the company was financed to the amount of 190,000 Euros by its founders, and $2.6 million was attracted within the framework of private funding.

The project’s ICO is taking place in two stages - a public pre-sale and a crowdsale. All token sale parameters are standard, except for the fact that unsold tokens will be distributed to token holders. The situation with the hard cap is unclear; this is declared as $50 million, but it exceeds $70 million by calculation. The ICO’s parameters could be changed at any point before the start date.

Presale

Start date: May 27, 2018

End date: June 26, 2018

Price:

  • 0.06 USD per IAG token - for contributions > 25 ETH.

  • 0.07 USD per IAG token - for contributions > 10 ETH.

  • 0.08 USD per IAG token - for contributions > 5 ETH.

  • 0.09 USD per IAG token - for contributions > 0.1 ETH.

Minimum investment: $1000

ICO

Start date: July 7, 2018

End date: After 30-60 days

Soft cap: $5,000,000

Hard Cap: $50,000,000

Price: 0.12 USD = 1 IAG

 

Token: IAG, standard ERC-20

Accepted currency: ETH

Total emission: 1,000,000,000 IAG

50% - crowdsale

20% - presale

10% - team

10% - advisors and bounty program

10% - development

On sale: 700,000,000 IAG

  • Freezing periods for tokens not distributed at the main sale are not announced

  • 70% of team tokens are locked until mainnet launch (Q1 2019)

  • The CEO's (Dr. Navjit Dhaliwal) tokens are locked in the following way: 30% for one year and 70% for two years. The CEO owns 65% of team tokens.

The IAGON project is based on the provision of cloud services: computing resources and virtual storage, i.e. the IAGON platform is limited to these two services.

Despite a fairly simple idea, the architecture of the project is complex and based on advanced digital technologies and AI systems. Separately, it is worth mentioning the project’s blockchain. In addition to the progressive idea in terms of centralized technologies (AI, neural networks, etc.), distributed networks of different natures are used so much so that the team announces the IAGON platform as fully decentralized, with the use of public and private blockchains.

Eventually, the developed IAGON platform will enable the following:

  • Storing files in the cloud on a secure and decentralized basis, or providing virtual storage on devices on behalf of IAGON in return for a reward.

  • Safe use of computing power to solve personal tasks, or providing computing power by devices for IAGON in return for a reward.

  • Using an original crypto token system that enables settlements between users on a secure decentralized basis. Use of the token makes it possible to create an autonomous decentralized system where intermediaries are not required.

To provide these services, IAGON will create so-called online grids. There will be two grids for each type of platform task - data storage and computation. IAGON’s networks will form a global smart computing network together with distribution, encryption and data analysis systems. Quite a bold proposition, but in our opinion IAGON will be able to implement such a network with proper development.

The allocation of space for storage and data processing will be implemented via a series of machine learning (ML) algorithms. The algorithms will evaluate the availability and capacity of each node on the network and distribute data for storage or analysis, evaluating each network node in terms of cost.

Within the framework of IAGON, miners are people who provide capacity for storage and data processing. The nodes of this blockchain network will be private individuals. IAGON sees merit in this, since a private blockchain system easily solves the problems of implementing updates and consensus within a network of miners. At the same time, the IAGON platform’s miners can also form "blocks" of data, in spite of the fact that the blockchain does not actually participate.

For people who are a little familiar with the cloud services industry, the concept of the IAGON project will not come as a surprise. If we remove all the technical add-ons, IAGON is similar to some existing large cloud services that provide both storage and computer capacity. It is similar to other fintech startups in this area. The key differences in IAGON are its method of operation and the characteristics of its architecture.

The volume of IAGON’s technical documentation is more than significant. The WP is full of technical details of the developed blockchain and the architecture as a whole. As already mentioned, AI is the basis of the entire IAGON ecosystem, specifically the Alexandria Protocol. This system will regulate the filling of processing power and optimize network resources - plan, coordinate and distribute resources of decentralized peer-to-peer (p2p) virtual storage and processing resources. In addition, the protocol will determine pricing for each node of the network and ensure the system’s interaction with external databases - private / public blockchains.

There are few details about the Alexandria Protocol, since the team defines these solutions as the most valuable in terms of competitive advantage. The basis of a cheap, safe cloud is a competently built monitoring and management system, as such services have an intermediary function.

Currently, it is known that more than 100 million algorithms, methods and techniques integrated into the AI-tracker system are used to implement the AI system. The AI-tracker is the "brain" of the system, distributing incoming encrypted fragments of data through free storage and miners’ computing power. The team promises to publish more details on the Alexandria Protocol as the project develops.

Blockchain is directly integrated into the platform’s ecosystem. Incoming data is divided into blocks and sent to nodes; each block is hashed with the previous block and a chain is created. When receiving returned data from the node, the data output will be compared with the hash of the corresponding block to confirm validity.

We do not need to discuss the benefits of cloud technology. Any modern business knows exactly what it is and how it helps to reduce the costs of maintaining productive capacity. Competition in this market is huge, and the bulk of the market is already divided between online giants. At the end of 2017, the Synergy Research Group presented the following cloud provider competitive positioning:

The diagram clearly shows that Amazon’s services occupy more than a third of the market; the closest competitors are significantly behind. At the same time, Microsoft, Google and Alibaba show outstanding growth rates for their businesses.

This market continues to show high growth rates and remains one of the most promising. According to Gather research, the aggregate market for public cloud services is estimated at $260 bln, but the market will be estimated at more than $411 bln by 2020, which corresponds to a CAGR of 16.5%. We must agree that this is very significant growth for a market estimated at quarter of a trillion USD. If we consider growth by individual segments, Gather has published the following table:

The most significant growth will be shown by the IaaS (Infrastructure as a Service) segment, as the most flexible tool for software developers. Other segments will also show double-digit growth rates and this means that the market is in a growth phase.

Despite its size, the cloud computing market is flexible and lively. Business can quickly deploy its environment, for example, in cheaper services. Therefore, competition is the highest in the industry.

Regarding new technical solutions, blockchain fits well into the development of cloud technologies. The first reason businesses do not use cloud services more actively is a lack of confidence in the security of such services. Blockchain protocols can improve the security situation, so this prerequisite for the application of technology is clearly a good fit.

The second important feature is that the effectiveness of blockchain networks can help organize a fundamentally new model of interaction. There is much unused computer capacity worldwide both in terms of computing power and storage resources. Large networks of computers can be linked by means of blockchain to provide these resources.

Once again we wish to highlight the quality of the IAGON documentation. The team has published a document called "Competition Analysis". This compares the IAGON platform with the main decentralized platforms already in existence.

Regarding the advantages of the IAGON project over other decentralized cloud platforms, we distinguish an intellectual approach to working with the grid. The use of machine learning and artificial intelligence could greatly improve the platform's performance. The IAGON platform is universal for both storage and computation tasks.

There are a fairly large number of decentralized cloud-based startups. The most famous are GOLEM, STORJ and SONM. All three have successfully staged their ICOs and they are actively traded. GOLEM is developed for distributed computing, STORJ is for storage and SONM will implement both services. In the competition between start-ups, the initial launch of a functioning platform with a convenient service will be an important factor.

The IAGON project has an impressive team. Currently, the project has 3 managers, 12 team members and 15 advisors. Clearly, size does not always matter, but in this case the team leaves a positive impression and does not seem excessive.

The project is headed by experienced managers who understand modern technologies at an expert level. Each manager has a PhD degree, not often found among the founders of ICO projects. This cannot significantly affect the evaluation of the project, but it confers a certain marketing advantage.

Management

Dr. Navjit Dhaliwal, CEO (LinkedIn)

Dr. Navjit Dhaliwal - CEO: A serial entrepreneur with a keen interest in business and technology. He is leading the IAGON team in an effort to be at the forefront of the decentralized cloud services industry. Dr. Navjit Dhaliwal stands tall behind two of his previously successful business ventures and clearly makes his mark with IAGON.

Dr. Elad Harison, COO (LinkedIn)

Dr. Elad Harison - Co-founder and COO. Elad is an AI and Machine Learning Expert, Economist and Industrial Engineer. His everyday work integrates the technical, scientific, business and economic aspects of the organizational processes at IAGON. He is responsible for fostering a success-oriented, accountable environment within the company.

Dr. Claudio Lima, CTO (LinkedIn)

Dr. Claudio Lima is a seasoned executive and thought leader in advanced energy and telecom/IT, working with emerging technologies, new businesses and digital transformation. Dr. Lima has extensive Fortune 500 industry and high tech startup experience as Chief Technology Officer (CTO) and VP of Innovation, including R&D Labs, leading teams in advanced energy systems, Internet of Things (IoT), Enterprise Blockchain and AI, Smart Grid, Microgrid and Distributed and Intelligent Energy Resources (DER). Additionally, he has set up and led global advanced research and engineering projects and is the co-inventor of a disruptive patent on Microgrid Transactive Energy.

The core team consists of twelve professionals. The team members’ competence does not raise questions. It is notable that five members represent the software development company Winjit.

Since the size of the team is impressive, we will provide only a list of the participants in this review.

Development

Vignesh Iyer (LinkedIn)

Blockchain Evangelist

Jai Porje (LinkedIn)

Project Manager

Vishal Waman (LinkedIn)

Project Lead

Priyanka Pareek (LinkedIn)

Blockchain Business Analyst

Vijayta Bhatt (LinkedIn)

Fullstack Developer

Saji Xavier (LinkedIn)

Fullstack Developer

Eva Štrus (LinkedIn)

Marketing Manager

Rose Marie Taylor (LinkedIn)

Project Lead

Inged Sanchez (LinkedIn)

Community Manager

Pavlo Babenko (LinkedIn)

Community Manager

Darko Angelovski (LinkedIn)

Community Manager

Ahmad Dewanto Choirul Huda (LinkedIn)

Campaign Manager

The team of advisors is impressive and professional. Their competencies and backgrounds are unquestionable. Clearly, the team approached the selection of advisors thoroughly. All the main areas of  project development are supported by authoritative advisors.

Among the advisors, there are a number of well-known names from the world of ICO projects, which should positively affect the organization and conduct of the crowdsale.

Advisors

Dr. Rohit Gupta (LinkedIn)

Cloud Computing Research Advisor

Dr. Yogesh Malhotra (LinkedIn)

AI/Machine Learning Advisor

Jason North (LinkedIn)

Business Development Advisor

David Drake (LinkedIn)

Business Development Advisor

Nezer Zaidenberg (LinkedIn)

Cybersecurity Advisor

Phillip Nunn (LinkedIn)

Strategic Advisor

Nikolay Shkilev (LinkedIn)

Strategic Advisor

Vladimir Nikitin (LinkedIn)

Legal Advisor

Chris Abdey (LinkedIn)

Blockchain and Cryptocurrency Advisor

Petr Kosikhin (LinkedIn)

Blockchain Architect Advisor

Trond Skundberg (LinkedIn)

Business Development Advisor

Dan Litwak (LinkedIn)

Senior Security Advisor

Suchet Dhindsa (LinkedIn)

Strategic Advisor

Sam Farao (LinkedIn)

Strategic Advisor

 

The IAG token is an ERC20 utility token; it has no security function. There will be no further exchange of the token for other units. Given the utility nature of the token, the key factor for its intrinsic value is the IAGON business and the platform's popularity.

The token economy is quite simple; IAGON will charge a 10% fee for platform operations, which will go on platform development and maintenance of the decentralized network. As a result, users will pay a commission both when using cloud storage and computing power.

Being a decentralized intermediary, the platform is oriented to two types of user; accordingly there are two types of market for the project:

Firstly a user market consisting of corporations, public institutes and SMEs, which need either large storage capacity for big data, or the capacity to analyze such information with a high level of security (such data often contains trade secrets).

Secondly a miner market consisting of a whole variety of people who have the necessary computer capacity – individuals and data centers. The owners of such capacity provide it for information storage and problem solving, receiving a reward for this. Miners can provide power not only within cloud services but also as nodes for distributed networks.

Both segments have high potential and rates of development, while the cloud mining industry is actively pushing traditional centralized services. IAGON has great opportunities for scaling its business and therefore the potential value of IAG is high.

Key aspects of the project related to future business are disclosed in more detail in the documentation. We have both a detailed financial plan and marketing budgets. The documentation includes a SWOT analysis of the project, not often found even among those following best practices.

In the initial stage of development the team focuses on large data centers for data and computing processes. Acquiring several such centers at once could create a reserve for capacity; then there’s only the need to find purchasers. As there is a a serious price advantage claimed, the cloud service may be in demand from the user market. Consumers of such capacity will include corporations, public institutions, etc.

Work with partners and future participants in the IAGON ecosystem is already very successful. Four initial adopters have already been announced, impressive considering that the ICO is still going on. As a result, we can say that current activity regarding the long-term strategy is more than justified; it is a positive factor for value of the token in the long term. The founders’ strategy will inevitably bear fruit.

As for development prospects, the completion of the development of the IAGON ecosystem is planned this year. Moreover, the distributed storage will start to function in August and processing will operate in November. The product will be released in Q1 of 2019. This is a short period in comparison with the market as a whole. The team has a working MVP and a large amount of material for the project. As a result, the roadmap and current status of project development are positive factors for the IAG token.

IAGON has an extensive financial plan that is fully published. The project team discloses a five-year P & L (with a monthly breakdown in the first year), a revenue structure, cash flows, a breakeven analysis, etc. Given the volume of information for analysis, investors can evaluate the strategic view of the team for the next 5 years and predict turnover for the business, which will affect the value of IAG token.

The logic of forecasting the indicators is quite linear – an annual revenue growth of 100% for each of the 5 years is taken, with the exception of two years (75%). At the same time, the profitability of the company is gradually increasing and margins for net profit will be about 50% by year 5. From an investor's point of view, profitability may not seem so important, but the team is interested in further development of the platform, which will be reflected primarily in the token holders. As a result, the published financial indicators are quite adequate in our opinion. According to the team’s plan, business growth will be uniform and rapid.

The IAGON project has approached its crowdsale in good shape. It is a strong project with good motivation. Many of the risks for early ICO projects do not apply to IAGON.

The most significant risk for the project is the powerful competitive environment in the cloud services market. The largest online companies have already claimed a large portion of the market, and competitive struggle constantly forces them to improve their services.

Currently, it is a utopian idea to count on driving out giants like Amazon. Claiming a market share with a decentralized service will be gradual, and the project will have to start small. This is understood by other decentralized projects as well.

The project that launches the first convenient service will gain an advantage. We hope that the IAGON team understands this risk and closely follows its competitors’ progress.

 

 

The information contained in the document is for informational purposes only. The views expressed 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.