Due diligence report of WePower (WPR)

Disclaimer:

This is not an investment recommendation! ICOindex has done a verification that covers several key aspects that we personally consider to be very important to determine whether the ICO project is legit or a possible fraud. These aspects do not reflect the investment potential or risk. Investing into any initial coin offering (ICO), crowdsale, token sale or any other cryptocurrency presented on this website can result in partial or complete loss of your money. Do not invest in projects you do not understand. Do not invest more than you are willing to lose. ICOindex.com cannot be hold responsible for any issues relating to projects listed on ICOindex.com website. 

Executive summary

WePower (WPR) is a blockchain-based green energy trading platform aiming to democratize access to a multi-billion market both for green energy producers and investors. Usage of the Ethereum smart-contracts, own ERC20 based token together with smart grid infrastructure revolutionize the possibility for energy tokenization and global scaling of the green energy market.

Due-diligence report

The first thing we typically look at during our due-diligence process is the team behind the project. Our conclusion is that based on public profiles information and background checks, the team has a balanced skill set both in business and project-specific energy domains (renewable energy, smart grids, etc).  Another positive sign is that project was able to attract several advisors who would help to bring proper expertise in a variety of key areas like blockchain and crypto-economy.

WePower (based in Gibraltar) declared partnership with several green energy suppliers and Estonian national transmission service operator Elering. It also claims that the project is supported by the Ministry of Energy of the Republic of Lithuania. We contacted the Ministry to clarify which kind of support is provided and here is what they kindly replied with:

“Thank you for your request. I would like to note, that Ministry of Energy observes a whole array of green energy projects and, among others, has taken interest in the results of WePower Network project.

However, Ministry of Energy is not in any way taking part in the WePower Network project and cannot be liable for activities of WePower Network project or investments made into WePower Network project.”

Whitepaper has a detailed explanation of challenges that it’s going to solve supported by models and calculations. We definitely recommend to read it in details to understand if it fits your investment risk profile.  It’s important to highlight that the project decided to structure their token sale model as a reward-based crowdfunding where contributors are rewarded free energy which they may use or sell on the platform. You can learn more about European crowdfunding regulation here.

In contrast with many other ICOs, project already has a working platform prototype which you can assess through web (requires Metamask extension to be installed in your browser) of check an official platform demo video

During pre-sale event completed on 22 October 2017, the project has raised 3 million USD. For the main crowdfunding round, the minimum investment is an equivalent of 200 USD.

  • ICO has a $5M soft-cap and $35M hard cap.  The hard cap is quite moderate compared to other recent ICOs. Tokens that are unsold during the sale will be burned. Publicly announced hard cap and disposal of unsold tokens allows potential investors to get a hint on potential future fundamentals.
  • Tokens allocated to the team (20%) will be locked for 3 years with a vesting schedule and tokens for the future (10%) use will be locked for 4 years. While it's a shorter period than used for non-blockchain start-ups (typically 4 years), it's longer then lots of blockchain start-ups have (6 months-2 years). Longer vesting period means that team is more incentivized to stay with the project and actively evolve it.
  • ICO smart contracts are created in collaboration with Blockchain Labs NZ and are publicly available for an audit on a GitHub. The address of the ICO contract is not published yet and will be disclosed only on the project official web - https://wepower.network/. DO NOT send money to any address that is mentioned elsewhere but official page or you most probably will lose it.
  • The way current "single-round" token sale is organized, it's not optimized for a  more "fair" tokens distribution for whitelisted addresses. Large investors having capital and technological advantage (pushing their transactions faster) may buy the majority of tokens withing hard cap leaving other whitelisted investors without the ability to participate.  We recommend the team to consider implementing mechanisms that would improve the situation, e.g. by spitting ICO in several waves and introducing a hard-cap per investor in each wave.

Based on our thorough due-diligence investigation, including project whitepaper, team and advisers backgrounds, skill set and ICO model analysis we grant WePower (WPR) project a due-diligence certificate for passing ICO Index verification with a result ‘Verified’. For more information about WePower, please visit their profile.

Images from https://wepower.network/