CCIC's ICO Investment Analysis for the modum.io ICO

1. modum.io is a Swiss company founded in 2016, hence is just 1 year old. Despite several legitimate partnerships in the blockchain industry & the pharmaceutical supply chain market, modum.io has no MVP yet -> concept-based ICO!

The typical ICO distinction is as follows:
1. Concept-based ICO
2. MVP or beta-staged products are available
3. Products are live and revenue is already being generated

Logically, investing in a concept-stages ICO comes with a higher risk than investing in a revenue generating company. Risk is here defined as the potential price movement of the Tokens which is being influenced by several factors such as hype around the company and product, distribution of tokens (bad examples: large pre-mine, instamine, company holds 90% of tokens etc.), company's accessibility and activity in the community, general market trends and so on.

2. 20m of 30m total supply are being sold in the ICO at a price of $1 per token. This is the standard ICO model, where early contributors receive bonus tokens (1st 6m tokens = 30% bonus, 2nd 6m tokens = 15%, 3rd 6m tokens = 0%).

This has 2 sides:
Of course, it seems to be a low risk investment as you automatically receive free money by investing early. Invest $1000 and receive tokens with a value of $1300.
This model, however, has often triggered a, let's call it "common dump". Investors quickly dump their tokens on exchange launch to liquidate the tokens and secure their "free money". The value of the tokens hence decreases below the ICO price and token holders face a negative ROI.


3. modum.io values itself (or at least the token valuation which is commonly seen as the valuation reflecting the company behind the tokens) at $30m, as total supply is $30m tokens and ICO price is $1.

Weighing the early concept-stage of the company against:
- the strong network and partnerships,
- niche market potential (modum.io has potential to establish as the market leader for pharmaceutical supply chain tracking on blockchain basis),
- fundamentals (it is a strong problem that the company aims to solve with real demand),
- the team's experience and credibility
- general crypto market valuations (Bancor raised $150m and their MVP consisted out of 40 lines of code, Gnosis is valued at almost $2billion relative to their total coin supply and does not have a live product yet, IOTA is valued at almost $3billion and has not solved their scalability issue of transaction data storage etc.)

CCIC has invested in the modum.io ICO for two reasons:

1. A profound belief of a valuation increase to $60m-$100m, hence a ROI of x2 or even x3 from the ICO investment.

2. Support of a company that aims to drastically improve the wrongs in pharmaceutical supply chains.

-> Antibiotics are mainly produced in India and follow complex supply chains to, for example, the user in Europe. It is close to impossible to track and ensure the originality of the drugs. Pharmacies would be forced to but in reality cannot cope to validate every individual drug on originality which leads to problematic deviations, especially looking at drugs that are vital for life.

If you are interested in contributing in the ICO: https://token.modum.io

If you would like to read more about the global pharmaceutical supply chain "crisis":
http://www.newsweek.com/…/fake-drug-industry-exploding-and-…

#ICO #cryptocurrency #investment #pharmaindustry #supplychain#blockchain #ccic