Analysis of ICO Pavocoin
ICO dates: 12.06.2018 - 14.07.2018.
PavoCoin is a project designed for cannabis market participants (growers, wholesalers, manufacturers, suppliers, landlords giving space for growers) which contains from cryptocurrency for internal use and fee-based hardware and software platform for growers increasing the yield, quality and purity of their product. Developers already have real used Internet of Things platform in legal cannabis production in California, USA.
So, this product can solve these issues:
- Making fast, secure and anonymous payments, which is vital for cannabis industry which became legal in many states of USA and some of countries but partially remains in shadows
- Securing final customers and stakeholders
- Making growers’ part of industry more efficient because of high-tech solutions like AI-regulation of light, nutrients etc.
Development was started at Q2 2017, first generation of hardware was deployed at Q3 2017. Beta launch will be at Q3 2018, and final launch – at Q3 2019.
Soft cap planned is USD 1 million, hard cap USD 65 million.
Funds received will be disturbed mainly on development (40%), community support (30%) and marketing (10%).
PavoCoin will generate revenue on these points:
- Software-as-a-Service subscription fee for platform
- Transaction fees from all marketplace operations
- Transaction fees on forward crop sales
- Other professional services.
No calculations of yearly revenues, planned expenses or profit were shown in WP.
Marketing strategy based on subsidies for growers on Internet of Things installation and usage for first 12 month starting with the date for closing ICO. According the founders’ calculation, usage of system can give revenue lift for growers up to 14% of 5-year period. No more clear information about marketing strategy was given in WP just words about bounty and loyalty programs for supporting community and 30% of initial funds distribution on these purposes.
Team looks well-balanced and according the website, has a good experience in developing the start-ups (including IPO participation). Also, there is a Chief Cultivator – person with experience in cultivating legal cannabis for medical purposes.
Unfortunately, only Founders team (founder and co-founder) has links on realistic and live Linkedin profiles.
The Vision of the Market
Founders showed deep knowledge of market, its participants and their main issues – needs in secured and anonymous payments, at one side, and technological solutions for increasing production and quality of products, at other side.
Also, WP contains estimations of legal cannabis market growing on the next 3 and 10 years
Understanding of the Target Audience
Whitepaper shows deep understanding of target audience and its segment on cannabis production industry. First and main target is growers’ segment, because they have needs in not only payments tool, but hardware for increasing production and developing final products. Other segments (distributors, landlords etc) have need only in secured and anonymous payments – and project can give them this tool.
WP contains no competitive advantage analysis but, according our researches, there are no clear competitors to project. As a payment tool, cannabis community now uses cash (with all risks included) or tried to use popular cryptocurrencies like BTC or ETH. Project has advantage that it gives specific payment tool for market plus it gives support to growers – basic part of the cannabis community.
Project strong sides: interesting and innovative idea that may be useful for market; hardware MVP shown; deep knowledge of market and its participants; marketing strategy that looks like kind of leasing hardware.
Project weak sides: no business-plan calculations; team without proofs of previous achievements; risks of playing on field of partially illegal market (starting from prohibition of token owning by regulators, ending by possible vulnerability of wallets).