Analysis of Hero Token – Future of Banking in Southeast Asia - Crush Crypto

Analysis of Hero Token – Future of Banking in Southeast Asia

This article was originally published on 2017-10-13.

Updates on 2017-11-09: We have added the date for the presale (November 20, 2017) based on HERO's recent blog post

Updates on 2018-01-01: We have added the date for the main sale (February 1, 2018).

Summary

  • Project name: Hero Token
  • Token symbol: HERO
  • Website: https://www.herotoken.io/
  • White paper: https://s3-ap-southeast-1.amazonaws.com/herotoken/Hero+Whitepaper_082917.pdf
  • Hard cap: 200,000 ETH (public crowdsale ICO contributors own 80% of total token supply if hard cap is reached)
  • Conversion rate: 1 ETH = 200 HERO
  • Maximum market cap at ICO on a fully diluted basis: US$84 million assuming current Ether price of $335
  • Bonus structure: 30% bonus during first 3 hours of presale / 20% bonus from hour 3-24 of presale / 10% bonus during day 2 – 3 / 5% bonus during day 4 – 7 / 2.5% bonus during day 8 – 14
  • Presale or white list: Presale starts on Monday, November 20, 2017 at 8pm (GMT+8) and will last 4 weeks from the launch date.
  • ERC20 token: Yes
  • Crowdsale date: Main sale begins on Thursday, February 1, 2018 (GMT+8) and ends on Wednesday, February 28, 2018 (GMT+8) (please refer to Hero Token’s website for the most up-to-date information)
  • Token distribution date: Not announced yet
Video summary (video is 10:31 long):

Project Overview

What does the company/project do?

Based in Philippines, PawnHero is the first online pawn shop in Southeast Asia. It aims to address the issue of expensive credit in a country where only 20% of the population have bank accounts and less than 5% own a credit card.

PawnHero has no physical branch and is online only. With this structure, the company can offer more competitive terms than other lending companies. Here is how PawnHero works in a nutshell:

The customer submits item information (a “Request”) at PawnHero’s website. PawnHero’s platform, Opus, then links the request to its Magnus Loan pricing model which instantly delivers several loan offers with different loan maturities to the customer. The customer then selects their preferred loan offer and is guided through Customer Information, Payment Method, and Delivery modules.

Opus then arranges for a PawnHero motorbike courier (“PawnTrooper”) to pick up the item from the customer’s home. At the time of pickup, the PawnTrooper completes the legally required KYC procedures, issues a pawn ticket to the customer, and receives the item for delivery to PawnHero.

Appraisers authenticate the item and assess the condition of the item. If the item authenticity is confirmed and the condition of the item is as represented in the Request, then the loan is released through Opus to the preferred pay-out option selected by the customer.

If the item inauthentic, then the item is returned to the customer. If the item is authentic but not in the condition represented in the Request, then the appraiser estimates the revised value of the item and Opus delivers a new loan offer via SMS and email to the customer.

If the customer accepts the revised offer, then the loan is released through Opus to the preferred pay-out option selected by the customer. If the customer declines the revised offer, then the item is returned to the customer.

PawnHero stores the pledged items at the Operations Center. Opus tracks the movement of the pledged items throughout the process until the items is either returned to the customer upon redemption by a PawnTrooper or the item is sold.

Below is a video episode featuring PawnHero (video is 25:22 long): 

How advanced is the project?

PawnHero was founded in 2014. According to the white paper, PawnHero has thousands of customers. It is licensed as a non-banking financial institution from the Central Bank of the Philippines.

It has won various awards, including the Most Promising Startup in Asia at Echelon 2015, Gold Prize at Hack Osaka 2016, and a finalist of "Most Innovative Company" at the Asia CEO Awards.

According to Crunchbase, it has received total funding of at least $9.7 million. Its investors include SB ISAT Fund, which is backed by SoftBank, Alibaba, Indosat and Trikomsel. 

Future roadmap of the project is as follows:

Q4 2017 – expand collateralized lending business in the Philippines

Q1 2018 – blockchain-based loans without collateral for individuals

Q3 2018 – regional expansion to 3 new markets in Southeast Asia (Vietnam, Cambodia, and Laos)

2019 – blockchain-based loans for SMEs and communities

What are the tokens used for and how can token value appreciate?

All HERO tokens in aggregate will have the right to receive up to 20% of interest income on a quarterly basis (with the goal of having monthly distributions in the long run).

In addition, the company may use a percentage of profits to repurchase Hero tokens from the open market at the prevailing market price.

As HERO token holders receive a portion of interest income generated by PawnHero, the more business PawnHero generates, the more valuable HERO tokens should be.

Download the Free Checklist for Crushing ICOs!

This is the guide that help me find the most profitable ICOs!


Team

David Margendorff is the co-founder and Chairman of PawnHero. He is a serial entrepreneur, having founded various companies including GAMESOLUTION GmbH and CompareAsiaGroup.

Below are the bios of the other directors of PawnHero:

Manny Ayala – Managing Director of Endeavor Philippines, former President, EO, Co-founder of IRG Ltd, an M&A advisory boutique.

Nix Nolledo – Chairman and CEO of Xurpas Inc., Entrepreneur of the Year, Philippines 2015 by Ernst & Young.

Kristi Bautista – General Manager, Asia Eurobankers marketing Corporation.

Alexander Corpus – CFO of Hatchd, Manosa, Liberty Telecom.


Opportunities

  • We like the business concept of PawnHero because it addresses a genuine problem that the unbanked people in Philippines face. It also offers a competitive advantage over other pawn shops because of its cost structure.
  • The company has a strong team who know what they are doing, with the financial backing of blue chip investors.
  • The company has been in operations for over 2 years, which makes it more advanced than most of the other ICO projects.

Concerns

  • We are not sure how successful the business is. PawnHero has been in operation for over 2 years and the white paper stated that it has thousands of customers, which seems low to us.
  • In the white paper, there are projections on operating metrics like monthly loan release and company headcount, but we would like to know what these metrics were in the last 2-3 years that PawnHero was in operation.
  • Part of the website is incomplete. The career page is incomplete and shows that the page is created with Wix. This doesn’t look professional to potential contributors.
  • The profit sharing can be arbitrary – in the white paper, it is stated that up to 20% interest income and the company may use a percentage of profits to buyback tokens, so technically they can never distribute any income and it would still comply with what’s stated in the white paper.
  • After ICO participants contribute to the project, they will need to go through the KYC process. HERO tokens are issued only after the KYC is approved. Ideally, KYC should be processed before participants can contribute to the project.

Conclusion

Overall, we are neutral about this ICO both for its short-term potential and long-term potential. Our thoughts of the tokens for short term and long term are as follows:

For short-term holding

Neutral. The hard cap of 200,000 Ether is fairly large, even though it represents 80% of total supply. We are not sure if the hard cap can be filled quickly with unmet demand.

For long-term holding

Neutral. We are not sure about how well the business is doing right now. The potential is large but we don’t see any metrics that the business is gaining traction after operating for 2+ years.


For more information about the ICO, please visit the following links:

Website: https://www.herotoken.io/ 

Whitepaper: https://s3-ap-southeast-1.amazonaws.com/herotoken/Hero+Whitepaper_082917.pdf 

Blog: https://medium.com/@herotoken 

Bitcointalk thread: https://bitcointalk.org/index.php?topic=2088817.0;all 

Download the Free Checklist for Crushing ICOs!

This is the guide that help me find the most profitable ICOs!

  •  
    248
    Shares
  • 6
  •  
  •  
  •  
  • 242
  •  
  •  
  •  

Click Here to Leave a Comment Below