Etherisc ICO Review – Decentralized Insurance Protocol - Crush Crypto

Etherisc ICO Review – Decentralized Insurance Protocol

Summary

  • Project name: Etherisc
  • Token symbol: DIP
  • Website: https://etherisc.com/
  • White paper: https://etherisc.com/files/etherisc_whitepaper_1.0_en.pdf
  • Hard cap: $30 million, and contributors will own 30% of the total supply
  • Conversion rate: 1 DIP = $0.1
  • Maximum market cap at ICO on a fully diluted basis: $100 million 
  • Bonus structure: 25% bonus for those who agree to lock up their tokens for 1 year
  • Private sale / white list: Whitelist and KYC registration is live
  • ERC20 token: Yes
  • Countries excluded: China, U.N. Sanctioned Countries, and U.S. citizens unless an accredited investor
  • Timeline: Crowdsale will start on June 25, 2018 at 15:00 UTC (Please refer to Etherisc’s website for the most up-to-date information)
  • Token distribution date: Released immediately, unlock date/time TBA
Video summary (video is 6:09 long):

Project Overview

What does the company/project do?

Etherisc develops a protocol for decentralized insurance applications with the goal to make insurance transactions more efficient, enable lower operational costs, and provide greater transparency.

Etherisc is not planning on offering their services directly, but, instead, opting to partner with existing or upcoming insurance providers.

Etherisc will be split into two major “folds” of business. The first being a non-profit foundation for insurance related products and services, and the other will be a for-profit commercial entities, spread across jurisdictions, and bundled together in an Etherisc Holding AG.

The commercial entities will act as the first movers for these decentralized products, taking on the risk while demonstrating its value to other companies in an effort to get them to adopt. This will act as both a proof of concept and a revenue tool to ensure the continued operation and development of Etherisc’s products and services.

Their platform will be supported by the protocols they develop, which will consist of an abundance of rules, essentially, in the form of smart contracts to ensure effective operation.
The platform itself will be a marketplace for these insurance products and services, where everyone is bound by the rules of the protocols.

Here is an introductory video of Etherisc (video is 2:12 long):

How advanced is the project?

Etherisc has been 2 years in the making. The founders met in June 2016 and presented a first working insurance application in September 2016 called Flight Delay.

Flight Delay is a dApp that has demonstrated successful implementation of flight delay policies, as its services were provider to passengers going to devcon2 in Shanghai in 2016.

Furthermore, more than 20 products are being built on the protocol, with Hurricaneguard (http://hurricaneguard.io/) open to testing. Additionally, they have DAO/smart contract prototyping ongoing.

The following is a projected roadmap for Etherisc’s continued development:

Q3/4 2018 - Product registration, hurricane insurance, and payment channels insurance.

Q1/2 2019 - Decentralization of governance, registry explorer (transparency), and integration with data marketplace providers.

Q3/4 2019 - Reward mechanism, and integration with identity providers.

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

The DIP token will be used for transactions on the Etherisc platform. Also, with companies offering services through the Etherisc platform, they will have to stake a certain amount of DIP token as collateral in the event that they can’t maintain their quality of service.

The more dApps deployed and transactions generated on the Etherisc platform, the more valuable DIP tokens should be.

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Team

Etherisc has a team of 23 around the world (Switzerland, Austria, Germany, United Kingdom, Belarus, USA), with the following being their core:

Christoph Mussenbrock, Cofounder and protocol/architecture lead - Over 20 years’ experience in finance with his most recent being with parIT GmbH as Managing Director.

Stephan Karpischek, Cofounder, Ecosystem and community manager - Over 8 years’ experience in research and business with his most recent being with Disrupt Consulting eG as Managing Director.

Renat Khasashyn, Cofounder, insurance products and revenue - Over 20 years’ combined experience in software engineering, with his most recent being as active Founder of Altoros.

Felizitas Mussenbrock-Strauß, CFO and HR - Over 13 years’ experience in a tax law office, with her most recent experience being in HR.

The team also has a total of 6 advisors, including Ron Beinstein, CEO of Augment Partners Ltd., William Mougayar, on the Board of Directors at OB1, and Daniel Zakrisson, Cofounder of Cofound.it.


Opportunities

  • The project is a protocol that allows other insurance dApps to build on top of. Therefore, Etherisc is not relying on any one particular dApp’s success in order to be successful.
  • The project has generated a lot of development interest so far, with 1 functioning dApp and over 20 projects being built on top of the protocol.
  • Insurance is an old an inefficient industry that is ripe for disruption. The use of smart contracts can cut out a lot of labor and improve the efficiency of an insurance business.

Concerns

  • Since products built on Etherisc can offer insurance in any native currency (not necessarily DIP token), it looks like DIP tokens do not have much utility other than staking by teams building the dApps and oracle providers.
  • Insurance companies are foreign to the use of cryptocurrency. We believe it would take a while before industry participants to develop their own dApps.
  • Insurance projects cannot be fully decentralized. There are lots of disputes and fraudulent cases in the industry and it is hard for the resolution of which to be completely decentralized. This may impact the demand for decentralized insurance applications.
  • The project is open-sourced but the development on GitHub has not been very active lately.

Conclusion

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

For flipping: C

The hard cap is on the high side for a dApp protocol. At $500 ether price, the project has a hard cap of 60,000 ether. Even though the project has been two years in the making and has a functioning dApp, we have a neutral view on its short-term performance.

For long-term holding: B

Insurance projects generally do not receive a high valuation. In addition, we believe DIP tokens do not have a lot of utility other than staking by developing teams because consumers can pay in other currencies.


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

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

This article is contributed by Victor Lai with the help of our intern John Coburn.

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