We assign Loci project a "Stable+" rating and recommend participation in the ICO for long-term investors, based on fundamental growth factors.
The Loci project offers a unique opportunity to invest in the first decentralized IP commerce project. Based on a new ecosystem, a developed marketplace is planned which will help to change the established approaches to patent law.
Loci has a number of objectively strong points. The first is the existing InnVenn service, the core of a future decentralized system. The original technology based on Fuzzy Concept Mapping is patented, and the rights belong to Loci.
A strong point for the project is a team that has been working together for some time, featuring competent and professional managers and developers. Especially noteworthy is the experience of the CEO, being associated with the patent invention market whilst also working as an engineer in the auto racing industry.
We cite the difficult current market situation for ICOs as a risk for the project. Given that Loci is mostly a narrowly specific project, there is no need to expect particular excitement about the ICO. This is partially confirmed by interest levels in the project on social media.
A competitive struggle in the segment for solutions for searching for patent documents based on machine learning and cluster analysis, can be called a significant risk factor. There are already a number of strong players offering a centralized service in this segment. With the development of technology Loci’s position can be subject to pressure.
Nevertheless, we are optimistic about the development prospects of the Loci project in the event of the successful completion of the ICO. The main service offered by the InnVenn project is completely ready and it is already functioning; decentralization and the development of additional functionality should not cause significant difficulties to the team.
Loci is a project for creating a multifunctional marketplace for intellectual property (IP) - ideas and inventions with the use of promising fintech solutions and blockchain technology. The marketplace will be implemented on InnVenn’s own platform, which gives an inventor the ability to search for patents on a database, the possibility of claiming an idea for subsequent patenting and/or selling, and the opportunity to finance development. In addition to inventors, the platform can be used by a licensed patent agency that confirms the originality of client ideas using search functions, as well as by investors (private and institutional) that can finance or buy out intellectual property.
InnVenn was developed primarily as a search engine for the US Patent and Trademark Office (USPTO), the main US registrar and regulator based on original information retrieval and visualization technologies. The relevance of searches for patents is due to the need to confirm the uniqueness of an invention when filing documents for its patenting. At the same time, existing search engines are imperfect since it is not enough to consider the names of existing patents for a reliable result; a comprehensive analysis of inventions is needed to minimize the risk of refusal on the part of administrative authorities. As a result, the procedure for confirming uniqueness is very expensive; the team quotes a figure of $2,500 for one search.
As the platform developed, InnVenn also introduced other databases. Currently, 98 different patent databases are used, not only in the United States but also in other jurisdictions. As a result, InnVenn could become an international platform; however, the team is aimed at the US as the most developed market in terms of patent law.
In addition to searching the patent database, the inventor needs to be certified that no one published a similar idea within 12 previous months since the current US patent system is "First-Inventor-To-File"; it provides such a period as preferential for the filing of a patent application after the moment of publication of an invention. InnVenn can also help in solving this problem, since the platform shows published but non-patented ideas.
The Loci project is unique in several ways. First, it is aimed at a very specific market for patenting ideas and inventions which is weakly related to cryptocurrency and blockchain technology. In this regard, it is difficult for a broad range of investors at the ICO to navigate the project and understand its benefits, so success will largely depend on the ability of the team to explain. At the same time, the specificity contributes to the absence of competitors among ICO projects, i.e. the main competitive case is gaining an advantage over the current players in the market, among which there are giants such as Google. In addition, the project is not aimed at consumers but is intended for inventors, corporations and companies involved in the patenting of inventions.
Secondly, Loci has been established since 2008 and, in addition to venture investments already received, the founders have patented their own technologies used in the project. As a result, Loci is prepared for its ICO not only with officially disclosed and patented technology but also with a working product - the InnVenn platform, where these technologies have been used.
InnVenn can be considered an almost ready product – currently, searches on the patent database are available to all comers. The only thing the platform does not possess yet is a recreated ultimate ecosystem of the marketplace for intellectual property which is the basis of LOCIcoin and the accompanying smart contracts. There is also a paid subscription, although the number of subscribers and intermediate results of activity are unknown.
The token issued at the ICO has utility functions; its infrastructural significance is the enabling of use of InnVenn on an equal basis with other currencies.
ICO start date: 6th Dec 2017
ICO end date: 31th Dec 2017
Hard cap: $19 000 000
Token: LOCIcoin, standard ERC-20
ICO price: 1 LOCIcoin = $2.5
Accepted payment: ETH
Total emission: 100,000,000 LOCIcoin
Distribution of funds:
- 50% - ICO
- 34% - Reserved to Purchase IP and Reward Platform Users
- 11% - Team, Advisors, Partners
- 10% - Development;
- 5% - Non-profit fund
On sale: 50 000 000 LOCIcoin
The Loci crowdsale will take place in several stages, where the first is an exclusive round for registered participants on the whitelist. At each stage the team offers a significant bonus program. In addition to traditional discounts, bonus tokens are also provided; as a result, even at the last stage of placement LOCIcoin net price is significantly lower than nominal.
Unsold tokens are frozen over a 4 year period, 25% availalbe every year for the purpose of growing the ecosystem
Team and partner tokens fall under the implementation restrictions of 500,000 tokens per year. This lock-in will be included in the legal and smart contracts.
The InnVenn platform, a product of Loci, provides clients (individuals and legal entities) with opportunities to work with the patent base, publish an invention, finance and co-finance development and trade in intellectual property. If the search capabilities of the patent database and the publication of ideas are already implemented in the current version of InnVenn (v1.2), the marketplace for intellectual property is a long-term case. At the same time, all functionality that goes beyond the scope of searches will be implemented on the basis of blockchain technology, i.e. it is planned to create a semblance of a decentralized marketplace for intellectual property. We will now look at Loci’s solutions for each of the services according to the information in the documentation and the current version of the product.
The main key service provided by InnVenn is access to a search engine based on the US patent database, which uses patented Loci technology. In particular, the search is performed using a combination of contextual searching, predictive analytics, machine learning, heuristics, Bayesian statistics and user input. The search results are visualized via a user-friendly Venn diagram, which hosts the entire array of technologies, inventions, patents and ideas found. As a result, by inputting a competent request a platform user can discover so-called "whitespace" - an area free of intellectual property. Thus, the inventor will be able to publish and patent the idea in this field.
The second capability of InnVenn’s is publication of a personal idea in whitespace by the inventor. This operation is useful if the innovator is going to issue a patent application within the next 12 months and is afraid that someone will publish the idea earlier. In addition to existing patents, InnVenn also sees non-patented intellectual property, i.e. published ideas. This allows minimizing the risk of failure of patent authorities as well as the buying or financing of an idea. The possibility of obtaining a grace period for a patent application after the publication of an invention is due to the current patent system in the US, where "First-Inventor-To-File" paradigm (FITF under the Leahy-Smith America Invents Act (AIA)) is applied.
The process of publishing an idea takes place with the participation of a smart contract, i.e. a decentralized network stores all the information that can become evidence for the confirmation of a patent claim in USPTO. This information includes the unique ID, date and time of the claim’s creation and the disclosure event as well as the inventor’s user ID through KYC, as protection against bots.
The ability to use a patent database is a currently functioning service offered by InnVenn, there is currently only the publication of ideas based on a smart contract in the beta testing stage. These services are not free, but there are only gas costs and an "extended" subscription, granting access to full functionality: search against the database, publish ideas, search history, export search results and so on. Subscriptions can be paid both in fiat and LOCIcoin tokens.
The project goes beyond the simple mediation of searches for and publication of ideas. It aims to create an entire marketplace for intellectual property, based on LOCIcoin and InnVenn.
Users of the platform will be able to sell their own published or already patented ideas; interested persons will be able to purchase these, paying in LOCIcoin. When a buyer submits an application for particular certain intellectual property with an indication of maximum budget, Loci independently communicates with its owner and carries out negotiations. If the owner agrees, Loci acquires it independently and transfers ownership to the buyer. Thus the anonymity of both sides can be preserved. If the intellectual property is a patented idea, Loci connects two parties via patent agents or directly, since Loci is not an official patent agent and is not authorized to conduct such negotiations.
A consortium of inventors and investment pools also can be created within the framework of InnVenn. Consortiums of inventors will contribute to the formation of high-quality intellectual property on the basis of several ideas for the purpose of their further sale and patenting. Investment pools will be formed by investors and individuals interested in the development who are willing to finance consortia or individual inventors.
Various agreements can be concluded between investment pools and consortia which will allow the financing of development in exchange for certain obligations. This mechanism can significantly reduce the costs of R & D for companies, and enable inventors to benefit from their own developments more quickly. LOCIcoin tokens will also be used for calculations in these mechanisms.
Before evaluating market volume, it is necessary to give several definitions. First of all, we consider patent law as one of the methods of confirming intellectual property rights. What is an intellectual right or abbreviated IP? The definition given by the Wikipedia website is presented below:
“Intellectual property (IP) refers to creations of the intellect for which a monopoly is assigned to designated owners by law. Intellectual property rights (IPRs) are the rights granted to the creators of IP, and include trademarks, copyright, patents, industrial design rights, and in some jurisdictions trade secrets. Artistic works including music and literature, as well as discoveries, inventions, words, phrases, symbols, and designs can all be protected as intellectual property.”
As is clear from the definition, patents are not the only mechanism for confirming intellectual property although they are one of the oldest ones. Usually, the creation of the first patent system is attributed to the Venetian Republic, in the year 1450. The first efforts of the authorities were aimed at protecting rights in the field of glass making.
Currently, patents are common, so the World Intellectual Property Organization (WIPO) defines the concept of a patent the following way:
“A patent is a document, issued, upon application, by a government office (or a regional office acting for several countries), which describes an invention and creates a legal situation in which the patented invention can normally only be exploited (manufactured, used, sold, imported) with the authorization of the owner of the patent. “Invention” means a solution to a specific problem in the field of technology. An invention may relate to a product or a process. The protection conferred by the patent is limited in time (generally 20 years).”
It is logical that most modern patents for inventions are owned by the world largest corporations since they have much larger budgets for R & D than private individuals. A selection of the most high-cost R & D programs among corporations in 2017 is given below:
The positions of some companies on this list are unexpected. Nevertheless, we see a market that totals hundreds of billion dollars per year. However, the cost of R & D is not for the patents themselves. If we talk about the distribution of patents in respect to the total volume of registered property rights, they will not come first. Here are some interesting data from the WIPO website:
The distribution of patents by country has the following form:
And finally, the distribution of patents among countries in the context of branches of the economy:
Concluding all the above, it must be understood that it is one thing to patent an invention and it is quite another thing to start making money on this. Here comes the question of patent marketplaces and the organization of IP trade. First of all, it should be taken into account that sales are usually handled by intellectual property brokers and more often they buy/sell not an individual patent but a package of patents.
Brokers, like any intermediaries, lead to an increase in the cost of the final product but they also have a number of undeniable advantages. That is how the advantages of brokerage were identified in article “2016 Patent Market Report: Patent Brokers and Patent Packages”:
initial filtering to identify suitable patent assets to sell
a selection of viable sellers, along with some certainty that the chosen target is willing to sell
screening of patents and identification of important patents and claims
guidance for sellers with regard to sales terms and timelines
definition of a process for diligence, bidding and sales
development of evidence of use (EOU)
tougher negotiation on pricing
An obvious conclusion can be made that in the context of creating a marketplace, the project will have to compete with patent brokers who determine the state of the market in many ways.
The project is conducted by an international team consisting of 17 people but there are four top managers; their characteristics are given in the white paper.
John Wise - CEO (LinkedIn)
John is a key figure in the Loci team as he (along with Dennis A. Van Dusen) is the inventor of the patent that underlies the Loci search engine. His previous professional background is connected with the auto racing industry and corresponding engineering. Since 2010, John has served in various positions up to Technical Director for companies such as IMA Motorsport, Perfect Power, Gainsco Bob Stallings Racing, and Wisko Race Engineering. An interesting post was written in John's blog on Medium in August - "Letter from Loci CEO", in which he describes how the experience of an engineer in the auto racing industry is related to the patent business and why this experience is very valuable.
Brian Hwang - Director of Operations (LinkedIn)
Brian brings his diverse experience and expertise in the areas of strategic partnerships, business development, and operations to the team. He is an alumnus of University of Illinois at Urbana-Champaign with dual B.S. degrees in Finance and Accountancy. He has worked in a wide range of large companies and industries including Johnson & Johnson, GE Capital, and Ernst & Young. He has also overseen the development and growth of small businesses and startups.
Eric Ross - Director of Technology (LinkedIn)
Eric has more than 10 years of experience as a software developer as well as consulting in this direction. According to information from LinkedIn, prior to Loci Erik worked for three years as Director of application development at the National Restaurant Association where he oversaw a staff of 13 employees and was responsible for developing a $80 million ServSave platform. Prior to that, he worked on various technical positions for Tiger Team Consulting for more than 7 years; the merits and functionality of this company are also described on LinkedIn. Eric also has a B.Sc in applied physics / computers from Grove City College.
Harjit Singh - Lead Developer (LinkedIn)
A specialist in Machine Learning, Harjit has experience with Java, Spark and Scala. As part of Loci, Harjit leads a team of three developers. Has a professional background since 1996, has worked in many small and large companies in software development positions, including FINRA and Quark.
9 people are involved in the project as consultants:
Charlie Kiser - Principal of Kiser.Co, CEO of Griot Inc. Blockchain and Cryptocurrency Expert and Entrepreneur.
Carl Grant III - EVP, Business Development for Cooley and he is known as a super-connector in the entrepreneurial ecosystem and a trusted advisor to CEOs.
Bryan Feinberg – with a background in Venture Capital, Capital Raising and Structuring, Brian currently serves on the ICO certification board to help improve ICC standards for ICO issuers that apply for the Financial Commission’s ICO certification service.
Brett Berlin - as a founding member of the ISOC-DC chapter of the Internet Society, Brett is focused on internet policy, as a member of IEEE-USA Policy Advisory Committees, and of NIST standards working groups (cloud and big data).
David Drake - Chairman of LDJ Capital, a family office; Victoria Partners, LDJ Real Estate Group; Drake Hospitality Group; and The Soho Loft Media Group. David previously represented the US Commerce Department at the EU and he spoke at the UK Parliament.
Tony Sousa- CEO of Sierra Wealth Development
Michael Brunner - CEO and Founder of BlockMedx.
William Schrader – has an MBA from Cornell University, and for 13 years was CEO of PSINet Inc.
Despite the absence of big names among the founders, there can be no questions about the team’s experience; it consists of competent, professional managers and developers. The experience of the CEO is particularly noteworthy; John will have many contacts both among patent agents and USPTO, being associated with the patent invention market while working as an engineer in the auto racing industry. This is really important, since the scope is not well-known to most investors and the entire crypto community; it is necessary to assure the public that the team has relevant experience.
In addition to competence in the patent industry, the team needs strong technical specialists with experience in blockchain architecture, since Loci is planning to go beyond being an ordinary search engine for patent databases. In this case, although the documentation and website do not contain information on all team members and developers, the data found in open sources allow us to say that there is sufficient competence.
The list of consultants is also encouraging; specialists from different fields are presented here. In conjunction with the partnerships concluded (information on this is available on the website in the "Team" section), the team has an extensive consulting base at its disposal.
The roadmap section is posted on the project website and in the official white paper. It should be noted that the roadmap turned out to be quite compact, taking into account the existing InnVenn service; all announced functionality is promised to be implemented by the end of 2018.
Thus, the project has 4 milestones to reach from now until then; however, the team did not elaborate on their content. Probably they considered that the content itself will be clear from the formulations and it is - so we will give our comments on the content above:
Q1 2018 – Strategic partnerships with IP firms. This point does not seem complicated. All IP organizations are somehow interested in generalized platforms and marketplaces. Inventors, whether large R & D departments of corporations or private individuals, obviously will not mind using a fast and cheap service
Q2 2018 – Research grants to inventor communities. This measure suggests itself as a means of attracting inventors to the platform. As part of the overall marketing program, incentives for community expansion are needed.
Q3 2018 – International expansion. We believe that this point is the least understandable. Possibly a new marketing program is meant here.
Q4 2018 – Decentralization alliance network. This milestone finalizes the roadmap. It is difficult to comment here; the future could be bright if it is implemented!
The ICO Marketing campaign can safely be called moderate. The project is well covered in profile media; it is presented in most popular public posts but the number of subscribers remains at medium level.
The website contains links to the official public channels for the project. The link list is standard:
Figures regarding subscribers that are correct at the time of writing are given below:
Telegram – 723
Twitter – 4620
Facebook – 919
The project uses Telegram chat as the official channel for communicating with the community. At the same time, the Loci project has at least two threads on the Bitcointalk forum in Russian and English. Their officiality may be questioned but the threads are quite lively and interesting. Currently, there are 18 pages in the English thread and 39 pages on the Russian one.
In addition to typical bounty hunting, there are also very curious posts; an example of active discussion is presented below:
Loci have a lot of publications and press releases in specialized media. The most interesting publications in our opinion are listed below:
Loci ICO Aims to Combat Patent Fraud With Ethereum Blockchain Network
One unique aspect of the ICO of Loci is that the company already has a working application that is utilized by an active user base of inventors and companies.
Bryan Feinberg: LOCI. The Blockchain of the Patent World. Thinking Better. Together.
LOCI is on a quest to unify the global and at times archaic patent world. As the company drives its capitalization via an upcoming token sale, we had an opportunity to sit down with the company’s CEO, John Wise for a deep dive into the companies and InnVenn Patent Discovery Platform. InnVenn is a superior patent searching tool that quickly and comprehensively searches the intellectual property landscape while fundamentally helping fuel innovation and the next generation of visionary’s.
In a D.C. entrepreneur’s journey, an essential start-up lesson
Successful entrepreneurs learn from failure as well as success. I was reminded of this last week when I Iooked into Loci, a start-up in the D.C. region that a growing number of people are talking about.
An Entrepreneur's Guide to Inventing
When starting a business, almost every entrepreneur asks themselves whether their idea is patentable. Patents provide a way to secure your idea, but navigating through the patent process is a world of its own.
Loci.io – Changing How We Invent and Value Ideas
Loci is setting out to disrupt one of the most convoluted systems in our current structure, the management of patents, and intellectual property rights. Loci wants to change the way the world invents and the value of ideas as a whole.
Million Dollar Idea? This New Website Can Sell Your Inventions
While the state of the patent industry may seem dry to some, patent litigation has shown to be a headache for businesses, from sole proprietors to large corporations. Patent hoarders rule the roost, as mega corporations spar over the shapes and functionality of devices, while the fees for protecting ideas have been soaring.
As a result, there is a well-developed marketing campaign, which is far from hyping the project but gives a comprehensive view nonetheless. Given that the Loci project is quite specific and does not imply mass involvement, the current progress of the marketing campaign seems satisfactory.
The InnVenn platform has a sufficient number of competitors. There is a small section of InnVenn Competitors in the official WP, where the founders identified four main competitors: Treparel, Innography, Mapegy and Intellixir. Let us consider them all.
Treparel has developed and maintained the KMX Patent Analytics software suite. This package is a rather advanced text analytics engine, which uses modern approaches to machine learning and data visualization. A few years ago, Treparel was absorbed by Evalueserve, a global research and Analytics Company, one of the largest IP and R & D search and analytics providers. Current Treparel services offer customers advanced cluster and classification analysis and visualization of text data, including IP & Patents. Among the clients declared on the official website are Philips, Mars, Bayer, the European Commission, etc.
Another technologically advanced competitor is the Innography project. This American company has been on the market since 2006 and offers customers solutions for big data analysis of the IP market. Among the company’s products are solutions for patent search, patent quality assessment, visualization and in-depth analytics. The service uses modern big data methods and machine learning. Innography was absorbed in 2015 by CPA Global - the world's leading Intellectual Property (IP) Management and Technology Company.
As for the Mapegy project, unlike the previous two Mapegy has positioned itself in a broader sense, namely as a Big Data and Visual Analytics company from Berlin, Germany that provides an innovative platform for supporting innovation worldwide. The project’s website has the following definition:
"Mapegy technology intelligence tools provide top insights from global innovation dynamics at your fingertips. Get in touch with us to use the most powerful and intuitive tools to measure and track innovation, competition and technology trends.
Our unique algorithms retrieve global data that is innovation-related, i.e. from patents, science, press or social media. Superior indicators measure and track R&D. Top of the line visualizations let you explore the global innovation graph intuitively."
Another player in software patent search is Intellixir. This is another successful project with a large number of customers which was founded in 2002. Using basic algorithms of machine learning, the Intellixir System is an independent software solution that allows the use of both patent data and scientific literature in searches. Of course, everything is based on text recognition and further analysis.
It turns out that the Loci project has very strong competitors in the market for centralized solutions, which have long established themselves among large corporations. All high-tech projects are similar; everything is based on machine learning and text recognition. It is difficult to judge the competitive advantages of this or that technology, since its models are unknown for obvious reasons. The Venn diagram which is used in the InnVenn project as the main means of visualization is not the only method for cluster analysis of data. The main competitive features will be services, the speed of search algorithms and the cost of services.
A few words in this section need to be said about aggregators/search engines for patents which are widely used at the current moment. Google Patents has been running since 2006, grown from the Google Books service. Currently, the Alphabet Corporation supports searches from 17 patent offices.
The second search engine worthy of mentioning is FreePatentOnline. This product works with most patent registrars and offers users a conditional free search within an integrated database. In addition to searching, a client is able to use additional software which allows more flexible customization of search conditions and visualization of search results.
It is clear that the competition in the IP and Patents search market is quite high. At the same time, new competitive advantages are provided by blockchain technology, which in itself must bear the function of a data warehouse for the registration of intellectual rights. Loci can make a big step forward by moving InnVenn to a decentralized architecture.
The project does not represent an interesting case from the economic point of view - cash flows are fairly linear. The basic functionality of InnVenn is provided by paying a paid subscription to the platform. Subscription can be paid both in LOCIcoin and in fiat ($250 or 100 LOCIcoin). In addition to minor gas cost, the subscription funds will be the only income item for Loci in the early stages of the development and InnVenn functioning, up to the creation of a functioning marketplace of ideas. At least, the team does not cite any other sources.
In the future, with the development of the intellectual property market, it is possible that the team will introduce an additional platform fee from transactions. Currently however, nothing is said about this. It is notable that in terms of the economy, quantitative information is not so extensive; the project is at the initial stages of development yet, despite the availability of a working product.
Economically, LOCIcoin is significant precisely in the intellectual property market. The team offers the following cases for token use:
Successful creation of a liquid IP market is the key point in terms of the entire financial ecosystem. This is really not easy due to the specifics of the sphere. After all, IP is not even an alternative investment and the main players on the demand side are corporations interested in R & D.
The Loci Economic Model section from the white paper requires a separate mention. In addition to traditional token lock-in, a rationale and procedure for spending the non-profit fund (5% of the ICO) and tokens Reserved to Purchase IP and Reward Platform Users are provided (34% of the ICO):
The token reserve can only finance inventors, while spending will depend on the state of InnVenn economy and LOCIcoin demand/supply in the market. It is indicated that Loci will not be able to sell tokens in the market, but only by transferring to inventors (airdrop). Distribution of funds will occur at the time when token market supply will be reduced (accordingly, the price will be high). Thus, Loci will ensure the growth of the platform and its popularity while at the same time leveraging the LOCIcoin token market with indirect methods.
Loci will create a non-profit organization for the sole purpose of funding research and development. This organization’s operating structure will restrict it to only donations of tokens with the intent of introducing IP assets to the exchange from people who could not normally afford to contribute. This organization serves as a redundancy on the asset side of the exchange. In times of stagnation, it will continue the flow of assets and transactions. The organization will be managed by a Loci board member as to additionally maintain a fiduciary responsibility to the marketplace. This mechanism will be built into the organization’s smart contract and legal contract.
The Loci project has one indisputable advantage; its InnVenn core is currently functional. Further decentralization of the platform does not seem too difficult. Therefore Loci has less risk of developmental factors typical for projects at an earlier stage of development.
Another point is that despite the use of blockchain for storing IP registers being logical, there is no need to wait for excessive excitement around this topic in crypto community. Therefore, Loci is a specific project, intended for a rather limited range of users. There are risks of having problems with token sale revenues, taking into account the hard times in the current ICO market.
The pressure from the larger competitors remains an important factor. Currently, the market has implemented several successful projects for searching and analyzing patent documents. Since these solutions are focused mainly on enterprise customers, improving search engines can significantly affect their preferences. In this case, blockchain will not be a decisive advantage.
Given that the target segment for Loci will be non-professionals in the IP industry, the final price of the service will remain an essential factor.
The last thing we would like to note is that the team has not fully worked out the project’s economics. As a result, the investment attractiveness of the token may not be high. The potential of the project will likely be revealed in the medium and long term.
In terms of LOCIcoin value, there is nothing new for the ICO market - the token carries utility functions, being used for settlements between all interested parties. In the end, this makes the future fundamental price dependent on the degree of development of the IP marketplace and the state of its ecosystem. The model is well known to crypto investors; it is the least risky one in terms of potential legal problems.
The scalability of the future token price is really great - there are no precedents for creating such marketplaces; meanwhile the market is large enough and the largest corporations can become its drivers. It is enough to look at items of expenditure on R&D of large technology companies and the amount of money spent on patenting property in order to evaluate the prospects of InnVenn.
Naturally, questions arise regarding the acceptance of the Loci concept by the major market participants; this will become a complex case for the founders. Nominally, InnVenn does have advantages over the existing market infrastructure and the founders describe these well in the documentation (Market Opportunities section). In certain respects InnVenn is something new for the market. However, in order to judge the possibility of realizing these advantages in reality, considerable experience is needed in the specific field of IP patenting. In the meantime, from our point of view, Loci looks very impressive especially against the background of the majority of "raw" projects on the ICO market and therefore we assess the fundamental potential of the token positively.
We would like to note one more feature of the Loci project and LOCIcoin. The user has the option of paying a subscription to the full version, without which the full functionality of searching and placing inventions is not available, i.e. a working version for researching patent databases for coincidence will be in demand by real inventors or patent agencies. At the same time, subscription payments are possible in LOCIcoin at the rate of 100 coins per subscription (at a base rate of 1 token - $2.5). As a result, given the high discounts on the ICO, the value of coins will be supported by arbitrage opportunities for paying for the subscription. Even if the cost of LOCIcoin decreases, users will generate additional demand since the subscription will become cheaper when paying in tokens.
The speculative potential of the token is ambiguous; the main reason for this is the generally negative situation for ICO start-ups in late 2017. At the same time, in the case of Loci, there are no additional triggers for acceleration of the cost after the crowdsale - platform development among the "patent" community is a long process and a completed InnVenn marketplace will be available only at the end of 2018. As a result, the project is most attractive for long-term investments as a bet on an alternative and unusual market for the patenting of intellectual property.
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.