Analysis of INS Ecosystem – Reinvented Grocery Industry

Summary

  • Project name: INS
  • Token symbol: INS
  • Website: https://ins.world/
  • White paper: https://ins.world/INS-ICO-Whitepaper.pdf
  • Hard cap: 60,000 Ether (public crowdsale ICO contributors own 60% of total token supply if hard cap is reached)
  • Conversion rate: 1 Ether = 300 INS
  • Maximum market cap at ICO on a fully diluted basis: US$47 million assuming current Ether price of $470
  • Bonus structure: Up to 25% bonus from purchasing early and in large contribution / whitelisted accounts receive extra 10% bonus on Day 1 / INSP (INS Promo token) - an extra 5% bonus
  • Presale or white list: Whitelist registration ongoing at https://tokensale.ins.world/
  • ERC-20 Token: Yes
  • Countries excluded: To be announced
  • Timeline: December 4, 2017 at 11am GMT (please refer to INS’ website for the most up-to-date information)
  • Token distribution date: Tokens will be listed on exchanges two weeks after the end of ICO
Video summary (video is 8:49 long):

Project Overview

What does the company/project do?

INS is a decentralized ecosystem on website and mobile app that will enable consumers to buy groceries directly from manufacturers. It aims to make e-commerce more efficient and cheaper (up to 30%) for both manufacturers and consumers by:

  • Bypassing wholesalers and retailers and deal straight with the manufacturers, which will result in lower prices for the consumers and lower expenses for manufacturers;
  • Reducing supply chain and logistics inefficiencies, allowing more local manufacturers to be more accessible to the consumers;
  • Replacing conventional trade promotions with more personalized, direct and efficient marketing, designed by the manufacturer for their consumers.

INS will enable manufacturers to create bespoke marketing programs to promote their goods directly to the consumers. It is similar to reward programs used by airlines.

The orders are processed automatically on the INS platform and supply requests are sent to manufacturers. Manufacturers deliver goods to a fulfillment center closest to the consumer's delivery address. Distribution center staff packs the order and passes it to a crowdsourced courier who delivers the order to a customer’s doorstep.

Presentation by INS Founder on the project (video is 8:43 long): 

How advanced is the project?

The idea of the project was conceived in 2017 Q2. In 2017 Q3, INS signed memoranda of understanding with a few large grocery manufacturers including Unilever, Mars, FrieslandCampina, Valio, and Reckitt Benckiser.

Below is the future development plan for the project:

  • Q1 2018: Development of the INS Platform
  • Q2 2018: Development of the INS consumer & fulfillment apps and interfaces
  • Q3 2018: Development of the supplier SDK
  • Q4 2018: Launch of the platform
  • 2019 and beyond: Geographical expansion and growing the ecosystem
What are the tokens used for and how can token value appreciate?

Consumers can use INS tokens for purchasing products on the platform. Users can also pay with fiat or other cryptocurrencies like bitcoin or ether, but by using INS tokens, users will have full access to any promo and loyalty programs that manufacturers offer.

Manufacturers can purchase INS tokens as rewards such as loyalty points, promotion, cross-marketing, feedback. They will also need to stake a minimum balance in order to participate on the INS platform.

As INS tokens are used to take advantage of promotions on the INS platform, the more transaction volume and promotions happen on the INS platform, the more valuable INS tokens should be.

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Team

Co-founded by Peter Fedchenkov and Dmitry Zhulin, INS has a team of 35. The team has previously founded Instamart – the largest venture-backed online grocery delivery service in Russia with over $10M of VC funding.

The bios of the key members of the team are detailed below:

Peter Fedchenkov, Co-founder and CEO – CEO of Instamart, former Investment Manager of Baring Vostok Capital Partners, Investment Banking Analyst of Goldman Sachs, Harvard Business School MBA.

Dmitry Zhulin, Co-founder – Founder of Instamart, former Vice President of VTB Capital Private Equity, Associate of Rothschild.

Dmitry Khovratovich, Blockchain/Smart Contract Lead – led the crypto security and smart contracts team that previously developed smart contracts for several companies who successfully completed their ICOs.

Advisors of the project include Eyal Hertzog, Co-founder of Bancor, Michael Terpin, Founder of Transform PR and Chairman of BitAngels, Moe Levin, CEO of Keynote, David Wachsman, CEO of Wachsman PR, and Dr. Rawi Abdelal, Professor of Harvard Business School.


Opportunities

  • By cutting out the middleman, consumers who use the INS platform can derive real benefits from significant cost savings. 
  • As groceries is an essential and recurring expense for most people, the potential of the project is huge. If the project is successful, INS can capture a lot of value in the large grocery industry, which is ripe for disruption.
  • Buying groceries online is a new thing and it is just starting to get competitive (Amazon Fresh, Instacart, etc.). INS can still be one of the first companies entering into the space in some cities.
  • The project has a strong team and advisors who can actually help the project to gain traction and build partnerships.

Concerns

  • No MVP/Proof-of-Concept has been developed for the project yet, which makes INS a white paper project.
  • Most groceries manufacturers are used to dealing in bulk. Some may not want to change their business model and integrate with the INS platform as it would generate a lot of small orders for the manufacturers.
  • The team has deep knowledge in the grocery market in Russia but it looks like Russia is not the focus of INS. INS will focus on large cities globally such as New York, Los Angeles, London, Paris, Seoul, Hong Kong, Tokyo, and Singapore.
  • The multiple layers of bonus and airdrop of INSP can be seen as gimmicky and spammy for some people, which can actually backfire as a promotional strategy.

Conclusion

Overall, we are neutral about this ICO for its flipping potential and like its long-term potential. There are a few layers of bonuses to make sure you take advantage of as many of them as possible.

Our thoughts on buying the tokens for flipping and investing for the long term are as follows:

For flipping

Neutral. After the rapid rise in Ether price from $300 to high $400s, the hard cap is now $28 million. We don’t believe the hard cap is likely to be filled quickly.

If you are contributing less than 100 ether, try to pool with your friends because contributions over 100 ether will receive a bigger bonus. Also, if the hard cap is not filled by week 1, we believe it would be difficult for the project to reach hard cap because the bonus falls off significantly.

For long-term holding

Good. If INS can bring large manufacturers on board and is able to deliver significant discounts as promised, it should be able to gain traction quickly because most consumers are price sensitive when it comes to groceries.


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

Website: ​https://ins.world/

Whitepaper: https://ins.world/INS-ICO-Whitepaper.pdf 

Blog: https://blog.ins.world/ 

Telegram: https://t.me/ins_ecosystem

* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.

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