An ICO one should keep their eyes on that recently finished its tokensell is UChain. It is a Chinese-Canadian ICO which seeks to create blockchain Networks for the sharing economy. Its hard cap is set at 42,000 Etherium. It is going to have a 40 percent circulating supply. Their website does not provide more information about the token metrics. It is is actually an affiliate to UBicycle which is an internet startup specialising in shared travel. UChain will join umbrella companies under the Ubicycle brand such as UCar and so on. UChain’s blockchain technology will be implemented into existing new bicycle companies. The project seems exciting at first because it is a blockchain ICO but when one looks under the hood one is quite let down.
In terms of the positives, one can say that UChain actually allows enterprises to issue tokens on top of its platforms so ICOs can be launched and created on top of it. That is a good thing. It tells the investor that there is potential for upward price mobility. The second thing that likable about it is that their test net is scheduled for release in the third quarter of this year and their main net will go live by the fourth quarter. That is actually quite favorable for UChain if one compares it to others operating in the same market.
When it comes to the negatives behind the project there are three main things that catch an investors attention. First, the project does not have any big institutional investor support. One has to make do with small relatively unknown institutional investors. The second thing one notices with the project is that the team is not actually focused on the task at hand and are too diversified in other projects. UChain’s CEO and its co-founder will still have active roles at UBicycle while UChain chief procurement officer still maintains positions at an old Chinese smartphone manufacturing company and UBicycle. Finally, the UChain project is just an offshoot of its parent company. Organizational autonomy will be short-lived and thrown into an umbrella corporation that won’t do it justice. One has to ask themselves, isn’t UChain just a money grab? Moreover, for token economics, they deserve a four out of ten. The reason why is that one needs to be skeptical about the amount of money they want to raise. For a company that has a series of successful businesses behind it, they could have bankrolled their blockchain infrastructure instead of turning to the public to do a crowd sell.
It is advisable for one to conduct their own research regarding ICOs and their limitations or advantages as the internet is not a good financial adviser when it comes to how one should handle their money, however, a quick overview of the way an ICO works, its token economics and its white papers is a good dive into what the ICO stands for.
Keeping all that in mind, it is essentially up to one’s own self whether they choose to invest in an ICO or not. Research, analyze and approach with caution. The world of ICOs is your own playing field and whatever way you choose to venture out in it, make sure you are fully equipped and motivated before doing so.