Bananacoin ICO review

Bananacoin is another attempt by agricultural commodity investors to expand the tokenization of the farming industry. Their goal is to scale banana export-relationship with China. They will be the first sub-category in the agricultural industry to take environmental friendly banana beyond the scope of plantation and exportation ideas.

Bananacoin is targeting the Chinese market, after discovering a wealth of opportunities with their shortage in the supply as compared to the huge demands. Therefore, they are basically stepping up the production rate through the expansion of plantation from 100 hectares to 360 hectares of land.

The problems being identified by Bananacoin is indeed genuine, the first problem is associated with low market supply such that, even though there are currently existing systems – centralized – that are controlling the exportation of banana to the Chinese market, that is, from Vietnam plantation farms which are controlled by their ministry of agriculture to China.

This competition according to bananacoin doesn’t seem much like a challenge because the soil factors of the plantation farms are poor due to pollutants and they are unable to maximize the market. However, the challenge from Cambodian producers might be a threat to their project if decentralization doesn’t pan out as planned.

bananacoin ico

Environmental friendly Banana cultivation is one of the most profitable agricultural business idea you can ever think of. Banana is one of the major export commodities and also largely consumed on the global market. As technology advances, new ideas emerge to compensate for the use of these technologies.

With mechanization and automated AI-controlled farming techniques came the opportunity to efficiently cultivate more crops and reduce human labor and stress associated with it. Now the blockchain is another technological product that has found a useful expression in the agricultural sector of the economy.

At this point, it is safe to say that with new technological groundbreaking inventions, which makes breaking barriers become inevitable, the more opportunities there are for an infinite possibility of applications.

This time around entrepreneurs are being incentivized to expand the production of banana plantations to a reasonable degree of supply. In Lao, banana business has flourished and is gradually taking the center stage because of the high optimism of its economic growth.

A crucial key element to their project is that their token is pegged to a real-world commodity. This makes the tokens have an associated worth of value of bananas corresponding to 1kg quantity. The cryptocurrency isn’t necessarily affected by the common plagues that affect other crypto objects. However, they are not completely immune to the all the challenges of cryptocurrencies, blockchain adoption, and ICO events.

As for a working prototype, they do not have one that is on the blockchain. However, they have a proof of concept – a banana plantation on 100 hectares of land which is currently sold to Laos citizens and exported to some nearby countries.

By using blockchain technology, bananacoin will be able to produce an effective trade ecosystem that provides transparency and ensures the effective disruption of the banana trades market by enforcing adherence to policies and safety regulations regarding the use of agricultural chemicals.

This brings us to the second problem identified by the project, which is the use of chemicals by their competitors, which resulted in a temporal ban on export activities. This probably gives bananacoin an edge to exploit the market even further.

Other platforms under the agricultural sector, which would seem as if they are providing similar services, would include AgriLedger among others which deal with depreciation in crop values between harvest and the point of sale. However, they are of different jurisdiction and under a different operating model.

Goals

Bananacoin’s reason for staging a token generation event is to create a financial instrument that is reliable on the exchange market and also has the ability to produce a 5.5% profit yield per month for the investors. On the other hand, the funds received will enhance their project objectives of expanding the banana cultivation and exportation to other countries, starting with China market and hopefully extend to other regions of the market.

Bananacoins (BCO) are tokens generated on the Ethereum platform using the ERC-223 standard. They propose to emit 12,000,000 (according to bitcointalk announcement thread) but on the website, it indicates 14 million as the probable amount of tokens available. However, it is stated in the FAQs section of the webpage that they would be emitting tokens equivalent to the investment worth of $7,340,000 USD, which is probably their hard cap.

More so, the exchange value for their token during the sale of the first 1 million BCO tokens was offered at $0.25 USD and the crowdsale is set to a base value of $0.5 USD per bananacoin, which is also equivalent to 1kg of banana – market value.

The business goals are well outlined, as they have very specific objectives to achieve summarized as:

  1. To increase banana exportation output to China by increasing current plantation farm size from 100 to 500 hectares.
  2. Create opportunities for investments in a real-commodity asset.
  3. Create a smooth business ecosystem of banana agro-commodity trades.

By infusing a conceptualized idea such as TGE a technic of crowdfunding model to offer good business objectives, they promote blockchain adoption. Once the platform is up and running, there will be an opportunity to be recognized among other forerunning cryptocurrencies like Bitcoin and Ethereum.

bananacoin goals

Crowdsale analysis

They have concluded the first phase of their crowdsale and have sold 3,411,723 BCO tokens. The token sale is expected to run from 29th November 2017 to 28th February 2018.

The roadmap

It would seem that their project started Q1 in 2015 according to the roadmap, and for over a year, there were negotiations with Chinese specialist for the leasing of the plantation. However, further down the roadmap, is more of a cultivation season and by September 2017 first stage pre-sale was conducted following a private sale stage.

The third and final crowdsale stage comes up late Q4 of 2017 and extends to Q1 in 2018. However, there’s a stage at the end of the Q4 of 2018 (December) tagged ‘token’ with no specific remark or description.

Team

The team is made up of experienced agriculturist and entrepreneurs. They basically have past successes in individual ventures, however, as a blockchain project, it seems to be their first startup both as individuals and as a group together.

As to the number of teams to execute the project, I think the team is sufficient enough since on their website there is a disclaimer that they are not tying the agro-industry to the blockchain, only that they would be using the ledger for transparent and immutable payment logger. More so, on the agricultural aspect, it should be a piece of cake for them, from the experience base.

One very prominent drawback to the project in this regard is an absence of professional profile history of the team on any of their documents, which could deter certain investors.

bananacoin team

Medias

The website has a fair design but lacks important information that may be required by first-time visitors to the webpage. On the webpage on the pictures of the members are displayed, no professional or social media link for any of the team member. Although no technical information about the project is made available on the whitepaper, the whitepaper also lacks contextual flow; information can be considered as a business plan and not as a whitepaper.

Moreover, the documents had smart contract snippets to show the blockchain part of the project, most of the write-up was more of a business and economic speculations/prospect. They have some social media accounts that are fairly active. And they also have a bounty program on bitcointalk.

Security

They would be accepting Bitcoins, Ethereum and fiat bank transfers. As for escrows, their smart contract is the only mediator for the contract. I would suggest that investors approach this project with a little bit of caution, no scam alarm bells, but the success of the idea is sketchy.

The startup has a great concept and prospect; however, the execution is poorly planned. But notwithstanding, if it’s not a ‘shit-coin’, investors would have lost nothing, instead they would gain so much more because of the commodity value.

Pros and Cons

Pros:

  • It gives token investors the opportunity to of pegging their investment worth to real commodity asset.
  • The offering of a decentralized eco-friendly banana trade commodity to the global market is a unique use case.
  • The business is easy to scale; they even have plans to extend to 1,000 hectares in the mid-term.
  • They have political backing from the local government of Laos.
  • On the completion of the project, the team will consider other export crops such as mango avocado and coffee.
  • There is a physical location for the venture.

Cons:

  • There are presently very active competitors in the market
  • The project development team have done a poor job in documentation and presentation of their TGE.
  • There is incoherent information from the startup, which makes it high risked investment.
  • There are no clear economic and financial prospects for the project.
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