Fundamental analysis of Shipchain

Conclusion

The team has strong experience in the positions that they hold in the project. There was a good opportunity to jump into the project with a discount because of the recent bad news, but the price quickly recovered. Liquidity is average and the initial supply distribution was not as fair as it could be compared with other projects. The revenue model is good but as for perspective for the future, they already have competition both on-chain and off-chain. What is unfortunate is that there is no MVP available yet. What we also see as negative for the long term is that the token is not providing any holding incentive or passive income, therefore the investors only bet on the success of the platform and that it will be used in the future by many participants.

 

Team

The core team consists of 11 members and the project has 14 advisors.

JOHN MONARCH – Chief Executive Officer

  • CEO at Direct Outbound Services LLC for 6 and a half year – Direct Outbound is a leading BPO provider, specializing in Call Center and Fulfillment services.  Handling thousands of customer service calls daily, and thousands of packages shipped daily
  • CEO at Connexus Inc. –  for more than 6 years – A Direct Response Marketing launchpad. Connexus Inc develops full direct response offers for our clients from end to end, handling all services in-house.

https://www.linkedin.com/in/johnmonarch/

https://twitter.com/realjohnmonarch

 

LEE BAILEY Chief Technology Officer

  • Co-Founder of Net Prophet Technologies – 2 years
  • Founder of Annex Tracker – 5 years – High volume cloud-based campaign optimization utility for affiliate marketers.
  • President of Leeward Bound Corp – almost 10 years – IT Business Consulting

https://www.linkedin.com/in/leewardbound/

https://twitter.com/leewardbound

 

SAM RUSANI Chief Revenue Officer

  • Founder of Pure Rock Media Group – more than 6 years – manage talent and create digital campaigns for brands.
  • Co-Founder – now advisor of Professional Noisemakers – Professional Noisemakers is a PR/Branding agency specializing in “professional noisemaking.” Unlike traditional agencies, we do not just write press releases and hope for the best. In fact, we prefer not writing them at all. Instead, we create unique stories that appeal to the platforms we work with.
  • Board Member of Swedish-American Chamber Of Commerce – Los Angeles – more than 7 years

https://www.linkedin.com/in/samirusani/

https://twitter.com/SamRusani

 

BRIAN D. EVANS Chief Marketing Officer

  • Founder, CEO of BDE Ventures – more than 13 years – A diversified advertising and marketing consultancy that offers guidance on acquiring users and traffic, generating sales, raising money, building start-ups.
  • Founder of Influencive – Influencive is an online publication that publishes unconventional business, motivational and entrepreneurial wisdom.

https://www.linkedin.com/in/briandevansla/

https://twitter.com/briandevans

 

ROGER CROOK Chief Strategy Officer

  • CEO of Capital Springboard – 2 years – a Singapore based largest peer-to-peer invoice financing platform which allows accredited investors to purchase short-term outstanding invoices, with the ability to realize annualized returns of 11-25%, during a 90-day investment window with low risk.
  • Board Advisor at Everoad, ex-Convargo – 2 years – a start-up LogiTech peer-to-peer marketplace app company based in France. The business matches customers with road freight shipments with transportation companies that have a capacity for utilization throughout France.
  • Chairman & Advisory Board Member at Innova Capital – 2 years – a private equity company with European wide portfolio of companies. He is chairman and board advisor to one of the held companies.
  • He is also Advisor in many other projects

https://www.linkedin.com/in/rogercrook/

 

MAGNUS DUFWA Lead Developer, EU

  • ICO / Smart Contract Auditor, Smart contract developer, ICO Advisor at BlockPro AB – 8 months
  • IT Specialist at Zinzino – almost 4 years – Zinzino AB (publ.) is a direct sales company which operates throughout Europe and North America.

https://www.linkedin.com/in/magnusdufwa/

 

Trend (TA)

Currently, the price of Shipchain dropped due to the recent news:
The securities division of the South Carolina’s Office of the Attorney General has ordered blockchain startup ShipChain to stop operating in the state. The securities commissioner sent a cease-and-desist order to the company for allegedly violating securities laws.” https://www.ccn.com/operation-cryptosweep-shipchain-ordered-to-cease-and-desist-in-south-carolina/

But since then it rose again to about 50% of the drop caused by the bad news.
It may be connected with the statement from the project:
“The startup emphasized that it only sold its tokens to accredited investors, adding “that none of the purchasers of SHIPs in that initial sale are South Carolina citizens or businesses.” Further, the company claimed that “ShipChain is not aware that SHIPs were even offered in South Carolina or to any South Carolinian during the private sale.”

ShipChain chief executive John Monarch repeated these claims, telling CoinDesk that “ShipChain did not conduct a public sale, nor sell to South Carolina residents/businesses, and has no plans to in the foreseeable future.” “

https://www.coindesk.com/shipchain-pushes-back-against-securities-violations-claims/

We can also see a dropping volume currently but it is still not a very significant drop.

Technology

The security and scaling of the project are dependant on Ethereum and the success and evolving on Ethereum. Currently, it is not ready for a mass usage when it comes to scaling.

 

NvT ratio is not available, but currently, there is active transferring of the tokens, but it is very probably caused by the speculators.

 

The roadmap is ending on Q1 2020 when they want to start focusing on community open source projects are sponsored to accelerate app development on the ShipChain blockchain. Something on the roadmap will be most probably delayed or rescheduled due to the last news that hit this project badly. For example, they planned this to be finished on Q4 2019 – Relationships are established with government regulators to cement ShipChain as the favored tracking technology vendor. Due to the current problem they have with regulators, they should focus on this part of the roadmap as a priority.

 

Social media

On Twitter https://twitter.com/shipchain they have about 9k followers, on Telegram https://t.me/shipchain they have almost 31k members. On Linkedin https://www.linkedin.com/company/shipchain/ they are followed by 867 followers. Their Instagram https://www.instagram.com/ship.chain/ has more than 7800 followers. More than 11k followers are subscribed to their Facebook https://www.facebook.com/shipchain feed.

On the negative side, there is no official link to their blog or Reddit on their website.
Their Medium blog https://medium.com/@shipchain has less than 100 followers and no content. Reddit https://www.reddit.com/r/shipchain/ has 1200 readers but it may be unofficial, most of the activity seems to be there recently because of the negative news.

 

Developers

On their Github https://github.com/shipchain there is only repository for the token and no activity at all. There is no community developers participating on this project right now.
When it comes to developers support there is also not much to say, their activity is focused mostly on social media, notably Twitter and Telegram.

 

Business model

From ICO they got budget of 30 mil. USD.
They already have some partners, notably Perdue Farms – the parent company of Perdue Foods and Perdue AgriBusiness, based in Salisbury, Maryland. Perdue Foods is a major chicken, turkey, and pork processing company in the United States. Perdue AgriBusiness ranks among the top United States grain companies. Annual sales exceed $6 billion. ShipChain and Perdue Farms will work on a pilot project to implement blockchain technology through key parts of Perdue Farms’ supply chain.

And also Direct Outbound Services LLC, is a full-service warehousing and fulfillment center headquartered in Greenville, SC. Direct Outbound has grown into several hundred thousand square feet of warehousing space, ships hundreds of thousands of e-commerce and retail packages per month, and assists numerous government agencies with their shipping and bulk mail needs.

The team described vaguely how they will use the funds from the ICO.

 

As for the revenue model.

ShipChain will employ a two-fold revenue model, focusing on both the Small and Mid-size Business market (SMB), as well as Enterprise platform development. This includes the following:

  • ShipChain Web – web platform will enable shippers to connect directly to carriers, without the traditional brokerage model. Fees will be a low percentage of the cost of shipping, and ShipChain will avoid having to hire typical telemarketing brokers, keeping the cost of selling at a minimum.
  • ShipChain Enterprise –  custom sidechain solutions for large enterprises that need to utilize different data sources and information. ShipChain will do this as a development contractor, with all new sidechains still tying into the main blockchain.

 

Product

So far there is no product out for the public to try. According to roadmap they should be already testing freight-tracking pilot program with Perdue Farms.

 

Liquidity and supply

Current daily volume is 32,40 BTC with a total market cap of 1971 BTC. This is not very big liquidity and a fairly small order in tens of thousands of dollars would clean a significant portion of the order book and cause a large slippage.

 

Supply:

Only 45% of the tokens were offered to the public (including pre-sale).
12% seems a bit high portion for bounties and advisors.

 

Total supply is 500 mil. tokens, 170 657 181 are now in circulation.

 

Income incentives

A utility token that is used for on-platform purchases and incentivization of the participants. But no income incentive for holding or buying the token apart from speculation on price movement.