ICO格付けサイトにおけるINSの評価を解説します（日本語訳あり）～後編～

The experience of the founders accumulated earlier when working on Instamart will contribute to the development of the INS product.

Within the framework of the project the founders singled out these main goals:

– Transfer of the service to blockchain.
– Applications and website for users.
– Development and expansion of the ecosystem.

The geography of the expansion is presented below. The project is planned to be developed from Asia (Tokyo and Seoul). These cities have no legal restrictions on the use of cryptocurrency. Based on the general scheme for project development the final product will appear at the end of 2018.

The intended clients are individuals and manufacturers of everyday goods. The company itself is a platform where they can make transactions without the additional filter of retail networks. At the same time, according to the founders, the price of goods for buyers will be up to 30% lower than on existing retail networks.

The largest blockchain-focused PR agency, Wachsman PR, is engaged in PR for INS in order to attract investors for the ICO. A client list for Wachsman PR can be found at http://wachsmanpr.com/our-work/

The company is publishing articles in specialized publications to attract interest in the project. At the time of writing, articles about INS have been published in more than 280 publications: English, Asian and Russian. There are articles in Huffington Post, The Merkle, MorningStar News BTC, Coin Speaker, Coin Idol, Entrepreneur Inc, The Telegraph, The Sun, Business Insider, and many others . There are planned articles on other crypto sites and journals.

As for social media, the project has a chat channel on Telegram (more than 5000 followers) and on BitcoinTalk (more than 110 pages).

INS has signed memoranda of trust with global players such as Unilever, MARS, Campina, Valio and Reckitt Benckiser. A memorandum with Coca-Cola is expected to be signed. This confirms interest in the project from large manufacturers.

In general, it is notable that the project ICO is being promoted quite actively. It is likely that by the beginning of the ICO the project will gain a loyal community.

INS charges a commission at the rate of 1% of the value of products sold on the platform. Commission is paid by the manufacturers.

The team does not cite information on operating expenses nor forecasts of turnover in the documentation, due to legal recommendations. This is unfortunate, as it does not allow a potential investor to independently calculate the viability of the chosen business model.

We note that the team provides Planned Fund Allocations in the white paper based on a hard cap of $18 million:

When the soft cap (20,000ETH) is reached, the distribution of funds will be the following:
ソフトキャップ（20,000ETH）に達すると、資金の配分は次のようになります。

The $2.6 million from the tokensale which the team is planning to spend on Admin and Operations financing will support the viability of the platform in the period up to achievement of self-sufficiency. These costs are estimated over 3 years.

Reaching the hard cap of $18 million will be enough to fully implement the project, according to the team. If not achieved, obviously less money will be channeled into the launch in different cities and regions. Apparently, the team will have to focus on a narrower list of locations.

Thus, the presence of a soft cap protects early investors from the risk of a shortage of funds for project implementation. However, from the point of view of the investment attractiveness of the token, the closer the results of the crowdsale to the hard cap, the more the team will be able to expand into new regions.

The founders admit to a high level of risk with investing in INS tokens. A significant part of the risk described in the white paper have the character of a disclaimer, since they can relate to any project involving cryptocurrencies and using smart contracts, but the main significant risks are related to regulation in different jurisdictions.

The project model assumes active movement of INS tokens from individuals to legal entities, but currently it is unclear how legislation in different countries will develop in the regulation of cryptocurrencies. The project objective is not to suffer from this; however in the case of regulatory tightening or even a ban on the use of cryptocurrencies in individual countries, the creators will have to significantly redesign the business model of the project and the price of INS tokens may suffer greatly from this.

As can be seen from the market review, intermediaries between buyers and manufacturers control a vast proportion of the multibillion dollar FMCG market, i.e. retailers. The project aims to take away part of this market and as a result to reduce revenues and influence from retail networks. This means that in the implementation of the goals set, the team will be actively opposed by a powerful lobby which would be potentially able to collude with current governments and change regulations and laws.

Again, we see the risk in the absence of information about the parameters of the platform economy.

We also identified risks for tokenholders associated with the presence of representatives of investment funds amongst the advisors specializing in investing in crypto assets.

INS tokens can be used by consumers to pay for products sold on the platform and should be used by manufacturers to pay for all types of reward. Moreover, producers must freeze the share of revenues from the previous month in order to guarantee payment of all rewards.

Thus, the following picture emerges: manufacturers products are sold for fiat, BTC, ETH and INS and the share of revenues that must be frozen is calculated from the total revenue. Accordingly, token demand will be maintained regardless of whether consumers will use them to pay for goods: demand will be provoked either by consumers or by manufacturers who will be forced to convert fiat revenues and/or revenues in BTC and ETH into INS.

The manufacturers will naturally have production and other costs which must be financed from their revenue. This means that most of the revenue will be converted into fiat. However, given the diversification of income currency, as well as the illiquidity of INS tokens in comparison with BTC and ETH, it is likely that INS tokens will be converted last. Thus, there is reason to believe that manufacturers will not sell the entire amount of revenue nominated in INS tokens to the market.

Representatives of INS predict that no more than 20-30% of revenue in INS tokens will be sold. This is overly optimistic from our point of view; however, we agree that supply will be less than demand, provided that the platform gains popularity.

INS tokens stored on the balance will participate in further circulation within the system. Manufacturers will accrue rewards for consumers in these tokens, and consumers in turn are more likely to return them to the accounts of manufacturers by purchasing new products.

The concept of the token, from our point of view, is quite successfully worked out. The token has a long-term value growth potential which will depend on the growth of turnover within the platform. At the same time, token demand will exceed supply due to diversified revenue structure of the manufacturers. Thus, we recommend participation in the INS ICO, subject to acceptance of the risks identified in this review.

Disclosure: Dmitry Filatov, the founder of ICORating, is an advisor in the INS project.

The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.

Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.

We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.