Health Nexus ICO Review – Blockchain Healthcare Ecosystem - Crush Crypto

Health Nexus ICO Review – Blockchain Healthcare Ecosystem

Summary

  • Project name: Health Nexus
  • Token symbol: HLTH
  • Website: https://tokensale.simplyvitalhealth.com/
  • White paper: https://docsend.com/view/cuufmc5
  • Hard cap: $25-30 million (ICO Participants receive 60% of total token supply)
  • Conversion rate: 1 HLTH = $0.40
  • Maximum market cap at ICO on a fully diluted basis: $50 million
  • Bonus structure: Up to 60% bonus during presale
  • Presale or white list: Pre-sale ongoing, white list will happen in March 2018
  • ERC20 token: Yes
  • Countries excluded: Not announced publicly
  • Timeline: Presale ongoing, whitelist will begin in March 2018 (Exact dates TBA - Please refer to Health Nexus’ website for the most up to date information)
  • Token distribution date: Upon token sale conclusion
Video summary (video is 7:12 long):

Project Overview

What does the company/project do?

Health Nexus is a marketplace built by SimplyVital Health to handle data transfer, payments, and storage in the healthcare industry. Healthcare application providers can build services on the Health Nexus marketplace for users to access and share data.

Their goal is to create a system that can pass the tough requirements of healthcare by ensuring better data integrity, encryption, and an efficient validation system.

Within the ecosystem, there will be a marketplace for applications written for a local or global scale. As an example, the team predicts application will be built around:

  • Clinical Quality Metrics (CQMs)
  • Transparency
  • Insurance payment and reimbursements
  • Pharmaceutical tracking
  • Data accessibility and sharing
  • Digital insurance/futures app (securing the assets of decentralized applications using financial derivatives)

The Health Nexus system will utilize a distributed hash table (DHT) for data storage, managed by a governance system. Their blockchain protocol will be based off the Ethereum network, starting with proof of stake (Casper).

Health Nexus is implementing several modifications to the Ethereum protocol, such as the ability to store identity on the network, a governing system that allows for upgrading and validation, and interactions built in for communication with the distributed hash table.

Health Nexus Diagram

Below is an introductory video of Health Nexus (video is 1:58 long):

How advanced is the project?

SimplyVital Health currently has a product called ConnectingCare that was designed to introduce blockchain technology to healthcare. This platform was one of the earliest working blockchain application in healthcare, and provides secure Health Insurance Portability and Accountability Act (HIPAA) protocols.

The ConnectingCare platform uses a proprietary API call to create receipts of activity in the SimplyVital platform that is stored on the blockchain. It is being used to prove that blockchain technology can improve healthcare, although it is rather simplistic.

The Health Nexus roadmap is split into phases, where phase 1 is to be completed by the end of the token sale and phases 2, 3, and 4 are estimated to take 1 year each.

Phase 1 – Deploy an ERC20 token that allows users to store keys/URLs on the Ethereum blockchain. The key will be able to create and manage child keys, be bought, sold and shared, and store access for outside data storage.

Phase 2 – Building the blockchain ecosystem with a built-in governance solution, currency transaction, and ability to run smart contracts. In this stage, users can trade their currency, run HIPAA compliant smart contracts, and generate their own apps, allowing them to build health data marketplaces.

Phase 3 – Adding in the ability to create and store keys and the creation of the consortium and network. This stage will allow for the transferring of health care data through keys, a developer SDK, Health Cash web client and provider dashboard, and the 1-to-1 swap of ERC20 token to HLTH 2.0.

Phase 4 – The final stage involves a secure data storage layer, and will require the most trust from healthcare providers. It will allow hospitals to securely store and share data in real time on the Health Nexus network, but this phase will likely take the longest to implement.

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

Due to strict regulations around privacy and security in the healthcare industry, existing currencies such as Ether would not function appropriately with a HIPAA-compliant system. Thus, Health Nexus is launching the HLTH token to be compliant with healthcare processes and have data sharing capabilities.

The HLTH token will be able to:

  1. Reward miners/validators and data storage devices that run on the ecosystem
  2. Act as an incentive mechanism for early platform adopters
  3. Provide a transaction currency that allows someone the ability to buy and sell medical data and take part in the medical application system

Platform users will need the token to be able to transfer permissioned keys that give access to off-chain data and access smart contracts or data storage space. The token will be used by people involved in the transaction and used to pay node fees for running the network.

If more people and healthcare providers adopt the Health Nexus platform over time, the token will be more valuable as it is required for transactions and data acquisition on the platform.

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Team

Health Nexus is being launched by the company SimplyVital Health, which was founded in 2016 and is based out of San Francisco, CA. Investors of SimplyVital Health include BoostVC, AnorakVC, and Yale Entrepreneurial Institute Innovation Fund.

The biographies of key team members are listed below:

Katherine Kuzmeskas, Co-Founder & CEO – Katherine previously worked as the Director of Operations for the CTNEXT Innovation Ecosystem, after which she was a Strategic Planner and Program Manager for Yale-New Haven Hospital. She co-founded SimplyVital Health in May 2016.

Lucas Hendren, Co-Founder & CTO – Lucas has 2 years of research experience in computer vision and nano technology. He then spent 1.5 years as the Lead Blockchain-Software Engineer for Capital One before co-founding SimplyVital Health. He is also currently an advisor to BitClave.

Jake Dreier, Director of Growth & Operations – Jake spent 3 years as the Manager of Teacher Leadership Development for Teach For America before joining Goldman Sachs as an Investment Management Associate. He also co-founded oVote Inc, a survey/data acquisition application, before joining SimplyVital Health.

David Akers, Senior Blockchain Engineer – David’s experience includes being a freelance web developer for 4 years, a Senior Software Developer for Quintify Database Solutions, and a developer for Cubic.

Advisors for Health Nexus include Alex Bessonov, CEO of BitClave, Brian Kern, President of Toro Risk Consulting Group, Brian Levine, Founding Director of the UMass Amherst Cybersecurity Institute, and Brian O’Connor, VP of Enterprise Technology at Evariant, among others.


Opportunities

  • The company already has a revenue generating app that will be listed on the marketplace. However, the amount of revenue is not disclosed so it could be a very small amount, given that the company is not a year old yet.
  • The marketplace is a platform that allowed third party applications to be listed on. The potential for the project is substantial if a significant amount of users transact on the platform using the different applications.
  • The idea of the project makes sense and would provide significant real world benefits. If successful, the project can save a substantial amount of money in the inefficient healthcare industry.

Concerns

  • The project has a very long development roadmap of 4+ years. The token swap from ERC20 token to HLTH 2.0 mainnet token is scheduled to happen in Phase 3, or 2 years after the end of token sale.
  • The marketplace is a two-sided market – Health Nexus needs both (1) applications to be built on top of the marketplace, and (2) users to use the marketplace in order to create the network effect. 
  • One of the main areas of focus of Health Nexus is on medical data recording/reporting, which is a highly regulated space in the US. We believe it would be difficult/slow for companies in this space to adopt blockchain technology.

Conclusion

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

For ​short-term holding

Neutral. We believe a presale bonus of up to 60% with no lockup, with a hard cap of up to $30 million is tough to reach in the current market environment.

Exact crowdsale date is not yet announced, so it is uncertain when the tokens will be distributed and tradable. We believe there wouldn’t be much unmet demand following the token sale.

For long-term holding

Neutral. The success of the platform hinges on whether the two-sided market of applications and users can gain traction. If the industry players are willing to adapt to new technology and build application on the marketplace, Health Nexus would have a much easier time attracting users.

While the team is strong, there isn’t a healthcare veteran who is well connected in the industry and related government officials. This is important because what the project is trying to accomplish is heavily regulated.


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 Kieran O'Day.

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