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Past-ICO Review: Cryptolending seems to fail

  • Eric Eissler
    🕵️‍ ICO Watch

    Lending gets a lift with Lendorid, but the dispersed team and unclear roadmap tell a different story


Past-ICO Review: Cryptolending seems to fail
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Sometimes descriptions are so complex that it is best to use the company’s own words to describe what it is. So without further delay: “Lendroid is a non-rent seeking, trust-independent, open protocol enabling decentralized lending, margin trading and short selling on the Ethereum Blockchain. It aims to solve the shortcomings of centralized exchanges by creating a globally shared lending pool, and a symbiotic off-chain infrastructure supported by incentivized participants.” So back to the world of finance and lending, Lendroid seeks to capitalize on the efficiency and decentralized aspects provided by Blockchain.

Financials

In a 24-hr period, Feb. 21-22, 2018 to be exact, Lendroid raised $47 mln. It’s token, LST, is a utility token which did not have much value, to begin with, but, has been on a steady decline since its debut. Opening at $0.014483 on March 25, its entry was also its all-time high. At the time of writing, it is currently trading at $0.001420, a steep loss. According to CoinMarketCap, Lendroid’s market cap is undetermined and its daily trade volume is around $350. Therefore, it is not getting much action on the exchanges. The economy of Lendroid is built around the utility-token LST (ERC20). By means of LST creditors and traders pay to Relayers and Wranglers. In addition, a part of LST is paid in the form of a commission for the platform development and its maintenance.

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Who’s who, no really

The Lendroid website does have the team listed, but after looking at some third-party sites, it could be determined that there are some people working in their Singapore headquarters. However, all the main players are located all around the world, which is a bit strange for a startup company.

Vignesh Sundaresan- Project lead (LinkedIn says Lead and Architect)

Sundaresan is a Blockchain entrepreneur and an open protocol architect and YCombinator alumni. Before Lendroid, he has worked in various Blockchain initiatives. With more than three years of working with Bitcoins and 1.5 years of experience working on Ethereum based solution. He co-founded Bitaccess in 2013 and built the software and team that scaled the Bitaccess ATM network.

Paul Martens- Brand & UX (LinkedIn says Brand Ambassador)

Part-time brand ambassador at Lendroid. Upgrading look-and-feel of the company and helping productize the powerful Lendroid protocol with tech leads.

Vii Sundaram- Teach Lead

Could not be verified on LinkedIn

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Progress Bar- loading

While there is not an official roadmap on the website, there are several progress bars for all of the features Lendroid plans to offer:

All of these features are still in the early phase of development with each feature averaging 25 percent completion. Lendroid is still in the early phases of development with no set goal of mainnet or product launch in sight.

Red flags raised

With the lack of team centralized in one place and the company not active on social media much, raises red flags about their seriousness. Furthermore, with a worthless utility token, daily trade volumes of $350 and no indicated market cap on CoinMarketCap is worrisome. They are not going to attract much business, investment, or attention (positive in this case). It is safe to say, that until they can make progress on their product and increase their numbers, few will be interested in investing or using this product as intended.

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The Top Rate ICO Industries in 2018

  • Stavros Georgiadis
    📊‍ Infographics

    Investing in ICOs requires due diligence and analysis of potential risks and returns.


The Top Rate ICO Industries in 2018
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Investing in ICOs requires due diligence and analysis of potential risks and returns. CoinDesk is its article named “The Seven Pillars of ICO Investing” has listed the most important pillars to consider before deciding to invest or not on any specific ICO project.

These 7 Pillars are the following:

  1. Team
  2. Idea
  3. Execution
  4. Legal/Regulatory Framework
  5. Tokenization
  6. ICO Structure
  7. Price Divers

What is interesting and should not be surprising though in the ICO investing is the fact that business models and marketing, promotional channels differ significantly in the amount of fundraising, as some business categories have in general twice the median funding compared to the smaller ones. The following statistic may be useful to investors as it represents the ICO categories with highest median funding. A higher amount of funding may be justified by future business prospects about what investors believe are the most promising trends that could be deliver desired returns on investments given the risks taken.


Categories with highest median funding in 2018:

  1. Blockchain Infrastructure
  2. Internet & Telecommunications
  3. Computing & Data Storage
  4. Data Analytics
  5. Asset Management
  6. Legal Services
  7. Social Media & Communication
  8. Supply & Logistics
  9. IT
  10. Identity & Reputation

These business categories are referenced not in random order, but from highest to lowest order of median funds raised. The Blockchain Infrastructure category has the highest median funds raised at $ 7,012,289, while the Identity & Reputation category has the lowest median funds raised in 2018 at $ 3,750,000. The first and last business categories have a significant difference between them in terms of median funds raised as the Blockchain Infrastructure category is 87% larger than the Identity & Reputation category.

Another key interesting statistic in ICO investing is the geographical distribution of projects fundraising in the third quarter of 2018. The following infographic shows that there are again very large differences within continents. Europe and specifically Russia with $ 182.9 Million was the largest market, Israel with $19.6 Million was the smallest market, while South Korea witnessed a significant drop in fundraising as according to ICORating, in Q3 2018, 17 projects with South Korean origins raised USD 68 million, compared with 16 projects and USD 301 million in Q2 2018.

Geographical distribution of projects based on origin of the project team, Q3 2018

Geographical distribution of projects based on origin of the project team, Q3 2018

Country of origin means a country in which more than 50% of team members were living at the time of an ICO.

Another point worth mentioning is that in Q3 2018 USA had the largest number of projects compared to all mentioned countries in the above infographic, still Russia with a smaller number of projects, 63 was as mentioned the largest market.

Cover image via u.today
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