Envion ICO – Return on Investment of 161%?
Today, December 15, 2017, envion started their long awaited Pre-Sale!
The Pre-Sale was originally scheduled for DEC 1, 2017, but was postponed for the following reasons, from the press release:
“The founders of envion are postponing the start of the ICO until the 15th of December in order to open the ICO to a broader public, lay the foundation for future top-level cooperations and make it the most cross-border compliant ICO so far.
Large institutions, among them sovereign funds and one of the largest banks of the world approached us with very large deals in the weeks following envion’s ICO announcement. A prerequisite to these partnerships is that envionmeets the same high level of compliance with securities laws that these customers are used to. We decided to meet even higher standards and an international, cross-border old economy compatible prospectus to take advantage of these offers.
We are still coordinating with different law firms in many jurisdictions to prepare our prospectuses. Even though it is not required to have these prospectuses to conduct our ICO, envion has decided to act in the best interest of token holders and change the ICO start date to ensure that the deals described above can be closed without delay.”
Postponing the ICO should lead to the following advantages for token holders:
- Swiss users can take part in the ICO without restriction
- EVN tokens should be tradable at official and licensed US exchanges
- Banks and other financial institutions can more easily create cooperation models with envion and increase token holders profits
- envion lays the foundation for top-level cooperations
- EVN token on the way to be the best regulated security token so far broader market – higher value potential
- Even better ROI due to Third-Party Operation business
In our view, this is either a brilliant marketing trick or smoke and mirrors to
December 15, 2017
The Pre-Sale is Live!
This update will provide an overview of the envion business model, the risks of the project and the reasons why we contribute 0.5% of our portfolio to this ICO.
Let’s start with the question – what is envion?
Envion is a highly flexible, globally operative fleet of technologically advanced Mobile Mining Units operating at the most cost efficient electricity sources on the planet, managed and monitored by our proprietary software solution.
Hmmmm…a lot of fancy words, but what does that mean?
In plain vanilla, it means they want to produce mobile units that use (relative) cheap energy, to mine cryptocurrencies. Keyword is want to.
Envion tested one unit and claims to be ready to take on “mass production”. Since there’s no proof this concept works on a large scale, and envion is able to purchase the required technology (scarce), it remains to be seen if management is able to live up to all the sweet talk as presented in the slides below.
We do see the potential of this idea, so let’s discuss some of the problems, solutions, opportunities and risks that envion faces.
World’s Most Profitable Standard of Self-Expanding Crypto Infrastructure
Problems in the
Renewable Energy Industry
The collapse in the price of solar-power panels has triggered an exponential expansion of new photovoltaic plants worldwide – leading to unprecedented local overcapacities on sunny days.
Local “feed-in” rewards into our mobile mining units are of a much higher magnitude than for regular feed-in tariffs from the nets.
Because photovoltaic prices have plummeted, it has become more and more attractive for solar plants to expand and invest in additional revenue streams that ensure a more stable output during periods of low solar irradiance. This however results in massive and unprecedented local overcapacities: the perfect use-case for our endeavor.
Making the most out of unused renewable and other energy sources
We are accessing this low-priced electricity at its source: Even the smallest overcapacity at a decentralized transformer station (>50 KW) can be efficiently used by our units.
By nature, electricity overcapacities have been inaccessible and useless to date. Our unique concept of mobile ‘energy sinks’ heralds a groundbreaking paradigm shift, not only for power plant owners, but also for smart investors who will be rewarded with an unprecedented ROI.
Problem vs Solution I
There’s a growing demand for mining power, so the one that can buy the input the cheapest (electricity and hardware) will win this rat race.
Problem vs Solution II
The price of solar panels collapsed, and that led to more people and organizations using this energy source. And as a consequence, the prices of electricity have dropped due to oversupply.
If you could buy this oversupply of low-priced electricity right at the source, and transform it into a valuable asset (cryptos), then this could lead to a profitable business model.
Mobile Mining Unit
Check out the first operating Mobile Mining Unit in action.
It’s always difficult to base your view of a team purely on online profiling and communication with the company.
We also read several other reports, and they claim that the team was hyped and only recently joined forces. Therefore, it’ seems more like a one man show of the CEO, Mr. Woestmann.
So we’re a bit skeptical on the synergy of the team, the responsibility that comes with a $150 million ICO and we wonder if the team will be able to deliver a projected ROI of 161%.
Token Cash Flow Projection
The whitepaper mentions a ROI of 161% for the first year as the base case (and only) scenario. Based on the base case of envion, a $10.000 contribution would lead to a $16.100 total return. Seems a bit too optimistic. If this would be realistic, they should have raised a billion $, free money for all.
We would be satisfied if the envion token delivers a double digit cash flow return per year, so we have some cushion compared to the base case scenario.
Dashboard Revenue From Mining
Keep track of revenues on a daily basis.
Marketing & Hype
There’s a huge crowd that is interested in this ICO, let’s take a look at their social media numbers:
12.650 members on Telegram, Medium 1500 followers, Instagram 12.300 followers, Twitter 4.500 and Facebook 41.224 followers.
That could indicate a large base of users for the tokens (positive), but it also imposes a risk of a token dump at the 1st day of listing.
Risks of the Project
- Although the envion White paper provides a lot of information about their innovative and effective technology, it is nowhere mentioned how and who will build MMU’s.
- How is envion going to buy the ASIC graphic cards and other resources that are scarce?
- Envion team mainly consists of technical and financial specialists, but who is going to bring their idea to life after the funds are raised? The team seems very capable in marketing and sustainable energy areas, however they do not seem to have any real mining experience.
- There is no proof to the data that envion provides. For example: they claim that they have developed a cloud based software that scans the market for the most profitable cryptocurrency to mine. Then the software relays that information to the MMUs where the whole setup adapts within minutes. While this is theoretically possible, Envion does not provide any specifications of proof that this system is more than a concept. Envion does not have revenues yet. So it’s buying into an idea, a belief it could work out as planned.
- Envions claims that their business model is scalable, jet they are trying to raise 150 Million and build over a 1000 MMUs for the ICO.
- They have a patent for a cooling system, We wonder if this functions efficiently in every type of climate.
- No doubt that the projected ROI of 161% is very high and it seems a bit too good to be true. As it is visible in envion’s white paper, their ROI calculation is based on current market conditions and mining difficulty, which is very volatile and a sensitive factor to base ROI calculations on.
- There is no scenario analysis that would show different outcomes if BTC and/or ETH prices drop or any of the input factors change.
- We do see one more major risk, and that’s the dependence of envion’s business model on the general crypto market. Currently, we are in a parabolic and vertical move up. If that reverses trend, the ICO could take place in a bearish sentiment AND this could impact general demand for mining. Both will not contribute in a positive way to the short term value of the token.
As with any ICO contribution, we take into account that it might end up worthless. That’s simply the biggest risk for the token holders.
That’s also the main reason why we keep our contributions to ICO’s as a % of total portfolio within the 2%. If we have a strong conviction, then we participate with 1% of our assets in the ICO and we reserve another 1% of assets to add once the token is listed.
If we evaluate an opportunity like envion, in which we see future growth opportunities, but also some red flags, then we cap our ICO contribution to 0.5% of portfolio and reserve another 0.5% to add once it is listed (so max exposure of 1%).
That’s the risk we’re willing to accept. We realize that we will not tenfold our portfolio this way, as we spread our risk over at least 100 tokens, but that’s not the main reason why we are doing this. We do this to build a long term, well diversified portfolio of tokens, that guarantees a periodic (monthly) cash flow to our investors. We’re in this for the long run, and definitely not interested in a pump and dump.
We prefer tokens that have a strong business model, a solid management team, are active in a growth market and preferably, the tokens have a cash flow distribution characteristic.
Although we have our doubts about the projected 161% ROI, we do think that a cash flow return of double digits could be possible in the long run. If we combine that with an expected, increasing demand for tokens once the mining units are deployed, the total expected return (capital gains and cash flow) justifies a long term contribution.
Reasons we invest in envion:
- Great opportunity to contribute to the cryptocurrency community and to take part in securing the future of the blockchain technology. Indeed Envion technology and strategy is very promising and can bring big changes in cryptomining efficiency and energy consumption. Everyone can invest any amount of money and get a great return on investment.
- The theoretical return of investment is very appealing in this project. The baseline assumptions from which they calculate ROI are quite humble (eg. that ETH/USD price is 400$). The potential to scale their business is also quite impressive thanks to their modular approach and the ability to move their business to the most favorable electricity provider.
- Dividend pay-outs and effective crypto currency mining. EVN tokens grant their holders the right to receive 100% of the earnings of their proprietary mining operation, plus Envion will always mine the most profitable coins on the market, thanks to their Unified Mining Cloud.
- Amazing and innovative business idea for long term investment. Envion has a great solution to growing difficulty to mine coins and to use of non-renewable energy sources. Mobile Mining Units will operate where renewable energy is cheap and in over production, plus it has efficient cooling system and software. It will take time for Envion to efficiently use raised funds, build all mining units and transport them to places with cheap energy, but in long term this might be a very profitable investment.
If you believe in the future of the crypto market and (mobile) mining, then envion is an attractive diversification for (y)our token portfolio.
We decided to contribute 0.5% of our token portfolio to the envion ICO.
After the ICO, and dependent on price development once it is listed, we’ll re-evaluate our position and might add another 0.5% of assets to the envion token.
You can Participate in the ICO, click on the button below.