ICO Project OilWellCoin (OILD)
Tokensale Start: 22/03/2019
Tokensale Finish: 24/06/2019
OilWellCoin is a project that provides users with the opportunity to invest in the oil industry. Holders of tokens in the future will be able to purchase the extracted oil at a discount or sell their tokens. The use of Blockchain technology will create a decentralized infrastructure for the extraction, refining, purchase and transportation of oil.
Business Model Overview OilWellCoin (OILD)
1. The validity of income
Project revenue will be based on sales of manufactured products. The project team developed 3 development scenarios depending on the financial results of the ICO. In developing the financial plan, operational and operational expenses, as well as expenses on management activities and tax deductions were taken into account. The first scenario involves the collection of funds in the amount of $ 12,500,000; in the second scenario, the amount will be $ 23,000,000 and $ 50,000,000 in the third. The total cost of the project over 5 years will be from $ 15,478,700 to $ 57,348,131, depending on the project’s development scenario. The net profit of the project for the first 5 years of development will be from $ 24,737,581 to $ 165,823,756, depending on the development option of the project.
2. Number of currencies accepted
The number of accepted currencies includes 4 liquid currencies: BTC, ETH, RUB, USD.
3. Token emission
In the project there is a limited number of tokens. A total of 16,000,000 OILD tokens will be released (p. 31 White Paper).
4. Discount on the purchase of tokens
Discount on the purchase of tokens is 50% (p. 31 White Paper).
In the technological map provided, the project objectives are indicated until 2022. Depending on the amount of funds collected during the ICO, funds will be distributed according to 3 possible scenarios. With the maximum collection of funds, their distribution will be as follows: 22.4% - “Acquisition of equipment and special equipment to carry out repair and restoration work”, 22.8% - “Expenses for repair and restoration work”, 46.4% - “ Operating expenses ”, 8.4% -“ Administrative expenses ”(p. 33 White Paper).
6. SOFT CAP / HARD CAP Ratio
The project has a poor SOFT CAP / HARD CAP ratio, which negatively affects its investment attractiveness. The values of SOFT CAP and HARD CAP are $ 10,000,000 and $ 50,000,000, respectively.
7. MVP availability
The project has developed MVP.
8. Risk assessment and insurance
At the same time, however, there are no risk assessments according to international standards, as well as any risk insurance methods, for example, Escrow, which increases the risk of loss of capital of potential token-holders.
Criteria of accordance to the international standards of business-planning of UNIDO and EBRD