What is Chainium
Chainium is disrupting the global equity market by allowing any business to sell shares of equity. This will help businesses raise capital in new ways.
What does this mean?
Currently the way public companies and private companies sell shares are different.
A public company has shares for sale on a stock exchange while a public company has four options to sell shares that include:
- Friends and Family deals
- Venture Capitalist deals
- Crowdfunding
- IPO - Become a publicly traded company.
For both public and private businesses these methods have obstacles. These obstacles are high fees for brokers, transfer agents or crowdsales, the risk of complicating personal relationships with friends and family, and giving up a large equity share to venture capitalists.
To sum it up, Chainium is the platform for businesses to digitize equity shares without having to create their own token or blockchain platform.
Why not have an ICO?
In the current market, ICOs are a way for businesses to raise capital without giving up equity. However, ICO's raise some issues for businesses:
- Not every business needs to be on the blockchain.
- Not every business on the blockchain requires its own token.
Chainium allows companies not interested in migrating to the blockchain (and those that are) a chance to digitize their equity via smart contracts. This allows businesses, interested in using the blockchain, to not hassle with customers purchasing a unique token to use their services.
It also allows companies that are not interested in integrating the blockchain to save money on developers and only use.
How will this work?
The image above describes the process in an easy to understand way but we will simplify it even more.
- A business owner lists shares of equity on the Chainium App.
- Investors review the equity offers.
- Investors purchase shares using fiat or cryptocurrency.
- The business owner is paid.
Now let's deconstruct this by looking at each party involved.
Business Owners
When creating an offer business owners have many options and settings they must choose. The process will be a simple step by step procedure.
Here's an overview of some options:
- Valuation of business and shares using built in AI and analytical tools.
- Investor type (Net worth, geography, trading volume)
- Dividend options
- Governance options
- Investor communications
- Investor rewards
- Financial reporting
Investors
Investors will use the platform in the following ways:
- Review offers via search, filter and analytics
- Invest in businesses and receive shares
- Portfolio tracking and performance analysis
- Trade equity in companies on built in Chainium exchange.
Third Party Developers and Providers
The Chainium ecosystem will include third party developers that build applications that add functionality to Chainium. These developers and providers access the system through a pay to use API. Functionality added may include:
- KYC services
- Investment advisors
- Banks
What is the CHX token for?
It's important that a token has a necessary utility in order for a project to require one. The CHX token is following the recent model of not requiring the end user (investor) to have the token to use the product.
However, the token is vital to ecosystem because it is required for important actions to occur. CHX has three main functions, creating a reserve for any offer listed by businesses, payment for fees for value added services and community rewards. Let's talk about these more.
Business Offer Reserve
- Business must stake CHX equal to 1% of the total equity they are attempting to sell.
- The staked CHX is locked in a smart contract forever, or until the firm buys back all equity or defaults.
- When a business defaults the reserve is distributed to investors.
Platform Fee
These are extra value added services that Chainium will provide to customers for a fee. These services are the main source of revenue for the Chainium project. These services include:
- Investor Analytics for businesses
- Capital raising advice
- Investment advice for individuals
- Business analytics for investors
- Fees from 3rd party institutions for accessing the Chainium data feed
- Fees from 3rd party developers for building apps utilizing the Chainium API.
Community Rewards
These rewards will be paid to users for acquiring new sign ups, businesses for running successful campaigns, and third parties for launching successful apps.
Who is the competition?
We haven't found any direct competitors to Chainium since they are taking a slightly different approach than most.
One similar project is Simple Token but a major difference is that Chainium is not attempting to put businesses onto the blockchain or provide them with their own tokens.
Other competitors are focused on creating custom smart contracts for business which is not the object of Chainium. Businesses on Chainium could, in fact, utilize other services in conjunction with this platform.
What's up with the ICO?
The tokensale begins in March of 2018 and the project is offering 50% of the total supply for sale. The remaining allocation is pictured below. The base price of the token is 0.00017 ETH per CHX. Contributions will be accepted in BTC, ETH and LTC.
The project hardcap is $8 million and the presale hardcap is $1 million. The presale hardcap was reached and investors received a 30% discount.
The total supply of tokens is 200,000,000 CHX. The breakdown of token allocation is below:
The management tokens are locked for 24 months with 25% released every six months. The reserve fund is locked for 12 months.
An $8 million marketcap will be achieved which places this ICO into the small cap category. The marketcap of the comparable firm Simple Token is currently $68 million.
Tokens are distributed after the close of the sale in March. Any unsold tokens will be burned.
Team & Advisers
The team has a solid mixture of business and tech backgrounds. The CEO Sascha Ragtschaa has worked in data analytics and finance with experience in share registries, share plans and shareholder communications.
The tech development team has backgrounds in the financial sector.
The advisors are a strong group including the former Prime Minister of Lichentstein, Klaus Tschütscher. Yana Afanasieva also brings a wealth of experience from her roles as Head of regional compliance for Paypal and Amazon in Luxembourg.
Team
Sascha Ragtschaa - CEO & Co-Founder
Ermin Dzinic - CTO & Co-Founder
Florian Batliner-Staber - COO & Co-Founder
Helen Tanner - Chief Marketing Officer
Lejla Trokic - Blockchain Developer
Kenan Trokic - Development Manager
Advisers
Klaus Tschütscher - Former Prime Minister of Lichenstein
Yana Afanasieva - CEO and Founder of Competitive Compliance
Mark Westcott - Co-Founder Shadowfall Capital and Research
Iain Robertson - Operations Director at Babcock MSS
Social and Hype
The Telegram chat is small with approximately 2700 members and it is fairly active with high quality (non-spam, non-meme) content. The admins do a decent job of answering questions.
The Medium account includes posts almost weekly from different members of the team.
The overall hype level of this ICO is low but a possible website redesign is in the works which may help boost the level of interest.
Overall
Chainium is offering traditional businesses the chance to raise capital using new technology. This method is will allow business with no use for the blockchain or unique tokens to avoid many of the pitfalls of traditional capital raising protocols.
The idea behind the project is new and has not yet been approached in the same way by other teams. The token metrics are may stir interest in those interested in low cap ICOs.
As always, do your own research if this project interests you.
For more info:
Website || Whitepaper || Telegram || Medium
ICO Info Sheet
*This is a project overview not investment advice.