Analysis of ICO Nuvus.io
Nuvus Blockchain is a decentralized blockchain company, formed to build a big data and supply chain verification ecosystem using distributive ledger technologies and trustless trust platform for the agricultural industry initially focusing on the cannabis industry.
Currently, supply chain data is non-transparent and controlled by centralized organizations and authorities, subject to industry manipulation and slow adoption of life saving treatments and research.
The project is aimed at introducing a trustless verification system on all supply chain transactions in the cannabis industry, providing growers, processors, distributors, retailers, doctors and users full transparency into the supply chain, from seed to user distribution, with decentralized blockchain verification at every step. This will provide transparency on the type, potency and potential benefits of different strains and their effects on the human body, adding significant value to the commodity across uses, research and industries, some of which are likely not yet defined.
The blockchain will provide real time patient’s feedback and grower input to encourage full transparency of data providers and user behavior, rewarding timeliness, quality, reach of communications, as well as accountability of the diagnosis.
The idea of the product is formulated quite clearly, the product has its own narrow market niche and is likely to be in demand.
The company Nuvus is planning the following actions to perform the project:
- Establish strong vendor and partner relationships with technology firms, doctors, scientists, universities and government to ensure integrity and value of the data;
- Attract, hire and retain highly qualified professionals to sell, manage, monitor, and service the various technological component parts and software systems required to support the ecosystem;
- Create billions of data points and hundreds of millions of dollars in transaction value;
- Establish supply chain integrity;
- Partnership with Hyperledger.org to develop and implement the scalable and modular blockchain technology to the cannabis industry and IOTA for technology implementation behind the IoT sensors and communication security using tangle.
As for the GETX token, it will be used for transactions within the platform. Nuvus will charge transaction fee or commission ranging from 5% to 15% from participants for data and information sales depending on the type of exchange through the platform. To facilitate liquidity and regulate the market, Nuvus will periodically buy Tokens back from the market. The minimum goal for fund raising – 840 000 dollars, the maximum goal is 35 000 000 dollars.
The funds will be distributed as follows:
- Research & Development – 35%
- Infrastructure – 25%
- Sales & Marketing – 20%
- Operations – 13%
- Legal – 2%
- Contingency – 4%.
Beta version of the product will appear in the 3rd quarter of 2018. Further development of the product is planned until the end of 2019.
The business plan looks quite realistic and adequate, but it lacks details.
Marketing strategy is focused on creating a network effect. Nuvus will use bowling pin strategy: start with a niche market, and then move to other niches and broader markets.
They are focusing on the supply side first: being accepted in as many locations as fast as possible through partnerships that enables instant scale. To achieve that, Nuvus will partner with growers, dispensaries, distributors and labs. It is said that Nuvus is one of the largest companies in the industry based on market cap, so they have access to many of these companies.
Also Nuvus is going to introduce a loyalty program for clients. They will reserve 40M GETX tokens as controlled fund for royalty payment and membership encouragement for larger participants.
There is a marketing strategy and the right direction is chosen, but it is not thought out enough.
Nuvus Blockchain is a natural evolution from the parent technology company of Nuvus Corp., (founded in 2014), a company involved in Controlled Environmental Agriculture (CEA), with an emphasis on automation and data analytics for the Cannabis industry. The team involved with Nuvus Blockchain has extensive background working with large telecom and utility companies. Prior to joining Nuvus, the team was involved in the development of a secure network interface card, a predecessor to the IoT technologies, for the residential electric utility meters and the Smart Grid space. Thus, the project team has been existing for several years and has experience of working together in the industry. In total, the team consists of 8 people with experience in IT-technologies, blockchain development, pharmaceuticals and microbiology.
The Vision of the Market
In the white paper the following is noted: «The Medicinal and Recreational Cannabis industries are relatively new and growing at an incredible pace, year after year. Over the next few years legalization of medicinal marijuana in the US States is expected to exceed the 75% mark. There is also an expectation in the industry that Laws at the Federal level will include the removal of Marijuana as a Schedule 1 drug, which in turn will lead to an explosion in the growth of the industry and medicinal research. Standards, rules and regulations written at the Federal Level will require States compliance». Thus we can conclude that the product is focused primarily on the market of medical marijuana in the United States. The following is a very detailed description of the U.S. medical marijuana market, market history, statistics and growth prospects. We can say that the founders of the project perfectly understand what they are doing and why it is necessary. But the founders of the project did not pay attention to the analysis of competitors working on similar products. It is not a fact that Nuvus is the only software developer for the medical marijuana industry. There are several projects working on products with similar features (Budbo, Paragon Coin, GrowPayment).
Understanding of the Target Audience
Nuvus platform is intended for medical marijuana producers, medical companies and patients, as well as other participants of this market niche. This follows from the description of the Nuvus project. However, a detailed analysis of the target audience is not presented.
One of Nuvus' competitive advantages, the company considers the system of genetic data collection for different varieties of medical marijuana. Currently, there is no complete database of genetic data on varieties of marijuana. Creation of such base will allow to grow up the most perspective and demanded in medicine grades of marijuana.
Another important advantage is the collection and analysis of data about the cultivation of marijuana. This data is of great importance for the quality of the end medical product. In addition, Nuvus Blockchain will provide patient feedback, collection and accumulation of data about the use of medical products. But it remains unclear how the project differs from its competitors.
The advantages of the product:
- thoughtful and very detailed concept;
- narrow market niche;
- good understanding of the market;
- realistic business plan and marketing strategy;
- successful experience of the company in the field of software for medical products.
- there may be risks associated with the legal regulation and acceptance of marijuana as a medicinal product in the medical industry.
Overall, the project looks very convincing.