Coffee- the whetstone, Holy Grail and proof of a cryptocurrency's worth [context]. A lot of coins would make it rather difficult to get a cup of coffee. Not so with INS Ecosystem- a project that hops directly onto the potential of the tokenized economy to connect users and grocery sellers.
What is INS Ecosystem?
- INS Ecosystem
- INS Ecosystem White Paper
- Country of origin: Russia/Israel
- Ticker: INS
- ICO Dates: Starts December 4, 2017
- Hard Cap: 60,000 ETH
- Soft Cap: 20,000 ETH
- Token Price: 1 ETH = 300 INS
- Industry: Retail
- Funds accepted: BTC, ETH, LTC, DASH, Bank Transfer
- My Rating: 2/5
INS Ecosystem Social Media
INS Ecosystem ICO Overview
The token sale for INS Ecosystem opens up on Monday. The plans of ENS ecosystem are ambitious- to put in place a distribution system that takes away the monopoly of supermarkets. For this, INS plans to deploy a mix of blockchain-based techniques, such as smart contracts and loyalty point programs. Through this, INS intends to achieve a better bargaining power and better quality compared to supermarkets that dominate the current retail landscape.
The token sale would distribute the majority of tokens, with 20% in a reserve fund, and a well-supported developer team receiving 15% of the ICO proceeds.
The INS Ecosystem Team
The INS Ecosystem was proposed by Peter Fedchenkov. But the most prominent name is that of the founder of Bancor, Eyal Hertzog. The project and the ICO also have a robust promotional team, with Moe Levin, CEO of Keynote, most prominently listed as an advisor. The project's PR advisor is David Wachsman, a blockchain-focused PR expert. His agency, Wachsman PR, has worked with projects that now are making the circuits in conferences worldwide and gaining the attention of potential users: Dash, Iconomi, Aragon, Kraken, Lisk, and Kik.
The co-founder of the project is Dmitry Zhulin, an early Bitcoin investor, and venture capital expert.
And while the project lists skilled developers such as Dmitry Khovratovich, the team seems to be designed with promotion in mind. This raises a bit of a red flag since sometimes ICOs that are everywhere in the public's eyes often falter and fail to create a robust crypto community, such as the one seen in organically growing groups around older digital assets.
About INS Ecosystem Token
The INS ecosystem relies on the Ethereum blockchain, and INS is an ERC-20 token. In fact, owning Ethereum might have entitled users to an airdrop of a total of 500 million INSP tokens. But be careful- the two tickers are different, the INSP token is just a promotional digital asset of unknown value and function. It cannot be turned into INS tokens, or used in the INS Ecosystem.
The INS token has a clear-cut role: to serve as a means of exchange and incentives in the marketplace. It is still unknown if the prices would be determined in INS tokens, or if retailers would willingly take this type of payment.
The ICO page creates some confusion between the tokens and the smart contracts, and buyers should only proceed with great vigilance.
The INS Ecosystem proposes that payments would be accepted in BTC, ETH or cash- no mention of the INS token beyond the incentive program. It is quite uncertain what amounts of the shopping would be done in crypto coins. At the moment, even sites with robust BTC payment options rarely see a significant percentage of purchases made this way.
Investing in INS Ecosystem: The Pros
The team seems dedicated enough and with a high probability of delivering a product while remaining under the scrutiny of many investors. With a vast PR effort in mind, this ICO would hardly leave things to fizzle out, and may actually produce a working product and create a community around it.
The INS Ecosystem would also be another step to bringing cryptocurrencies to the mainstream. Because of this, the INS Ecosystem is worth considering for a small investment, as it is one of the first companies to tie up physical products to an Ethereum-based token.
The Risk of INS Ecosystem
There are minor, but important technological risks right on the ICO page for INS Ecosystem. The project has displayed the addresses of a couple of smart contracts, with warnings that funds should not be sent there. No one knows if an ICO user accidentally sends Ether to a smart contract address, as it has happened with Golem- and freezing the ETH forever. But this is just a minor risk.
The biggest risk is that the INS Ecosystem turns into a tokenized pyramid scheme, a blockchain version of the Amway approach, pushing products to buyers. Certainly, the message that an incentive program could displace the bargaining power of supermarkets and offer better deals looks like the sales pitch of many similar schemes tied to retail products.
The actual launch of a functioning app, a roster of suppliers and users, would happen toward the end of 2018, if all things go according to plan. And if a slowdown happens, then it is more months in limbo, waiting for the token to rise, or at least do something useful.
INS Ecosystem also makes a grab for new users by offering a cash payment option- a thing unseen in ICOs coming in earlier this year, which only had an ETH address. This time, almost every ICO accepts credit cards, thus making the jump from fiat to crypto coins much easier. This may fool a lot of investors who are not used to the volatility of token prices.
Final Thoughts on INS Ecosystem
At first sight, the idea of INS Ecosystem seems very appealing, tying up the mysterious crypto coins to something tangible. But in the end, it is another business model that uses the blockchain without a clear explanation if it adds any value, or does anything differently from other incentive programs.
Most of the partners of INS Ecosystem seem to offer just durable packaged goods, thus making blockchain-based shopping a form of glorified coupon-cutting while burning Ethereum for gas costs. It is unknown how newcomers to the ICO would be able to actually use their tokens, especially those that realize that a purchase of Ethereum would also be needed to even try and move the tokens, or try to sell them.
My Rating for this ICO is relatively low, a 2/5. The reason for this is the heavy publicity. Some of the most prominent and noisy ICOs in the past have met with issues that caused token crashes and investor rumbles, compared to organically growing crypto projects that added value over the years without bombastic promises. Bancor, Tezos, Kik by Kin, all have been high-profile ICOs that invite great skepticism later. INS Ecosystem ICO has the risk of becoming such a project, heavy on promotions and live events and light on being a trusted asset with a grass-roots support. Hype rarely pays, when it comes to ICOs, at least for small-scale investors.
Should YOU Invest?
Honestly, most people looking to invest in altcoins, tokens, and ICOs are hoping they discover the next Bitcoin or Ethereum. The chances of that are rare.
So where is your money best invested? My recommendation might surprise you. It's free to join, and won't require that you invest in risky cryptos!