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ICO Analysis: Alchemy Coin 14 Sep 2018

ICO Analysis: Alchemy Coin

Today we are going to do an analysis of Alchemy Coin based on a request from a reader who doesn’t want to be named.

Before starting my article, I would like to invite you to join my channel Texploxe (In Telegram). I share my ICO Analysis, News, Blockchain Tech, etc.

This time I am going in a different way to evaluate, as the requester showed me some red flags to consider, I am jumping kind of straight to the problems of this ICO.

Idea

According to the abstract from the whitepaper:

Alchemy is a blockchain-based peer-to-peer (P2P) lending marketplace. The platform allows for instant and direct lending between supply-side lenders and demand-side borrowers from all over the world in a trusted manner using the advantages of smart contracts and blockchain technology. We offer a unique architecture to analyze and structure a credit risk-adjusted rate with the utilization of Artificial Intelligence (AI) and Machine Learning (ML) technologies. We aim to revolutionize the peer-to-peer lending market and serve as the leading infrastructure for credit providers and credit seekers.

A fair idea indeed. But is it applicable at this time?

Utility or Security

Well, as the project is dealing with tokenizing securities, I think it is fair to say these tokens as a security.

Social Media Activity & Engagement

According to their website, they have raised around $41Million!!!

Now let’s see how much activity we have in the social media. A company like this would be buzzing with activity, right?

Telegram:

5K+ Members, around zero activity!

Image 1: https://cdn-images-1.medium.com/max/400/1*qQvak1Y14iE3YroUHfqYWQ.png
Image 2: https://cdn-images-1.medium.com/max/400/1*2DGs7orpv6yK9U2bMIkYpg.png
Image 3: https://cdn-images-1.medium.com/max/400/1*BZ3Qj16Zst-Zl3Nm4i2rhA.png

The only activity they have is from the admins and advertisers. You can hardly see member interactions.

Facebook:

Image: https://cdn-images-1.medium.com/max/600/1*9wJvxoMZT_hbwYWvJTiO5Q.png

Facebook is much funnier, as other ICO’s these days, they have bought facebook likes from some website. They have around 10K like to their page.

Now, let’s just check the activity from these 10K members:

Image 1: https://cdn-images-1.medium.com/max/400/1*af9f_88WhQD4gRXy5AGFPQ.png
Image 2: https://cdn-images-1.medium.com/max/400/1*XkKfBzE15FiOij4LmMC3Ng.png
Image 3: https://cdn-images-1.medium.com/max/400/1*Il_s_TfT0uckLm9lUm2NiA.png
Source: Facebook Page’s Post Section

The above is the last three post from the company, and in total, they have received 4 likes for the same. As some can argue that a particular post is new or so, I have added last three posts, and if we check based on dates, today is 21st Aug 2018, and the last post mentioned above is from 15th August, which gives them less than 1 like per day.

Youtube, Twitter and Medium:

Image 1: https://cdn-images-1.medium.com/max/400/1*aGI81_xVJFqT0pxtfC9zRQ.png
Image 2: https://cdn-images-1.medium.com/max/400/1*mXcTp2J-PeZZ_R29lcwvNQ.png
Image 3: https://cdn-images-1.medium.com/max/600/1*Yqe02MP2JZPeiacwCvDXjg.png
Source: Respective Social Media Channel

For these, I think they forgot to buy the traffic. But at least looks organic growth. So, probably their whole project has around 50 or so followers.

Smart Contract

I couldn’t find any particular detail about smart contract through the website, except the usual GitHub link with contract details.

Flags

Now let’s start to dig a little deeper.

1. Where are the company details?

Except for few names here and there, why there is no clear information of the company, where it is registered, etc in the homepage itself?

Image: https://cdn-images-1.medium.com/max/1000/1*u8-2RHUDhHrPJsuspKTWrg.png
Source: Website Footer

There is not even a copyright or so detail in the footer as well.

2. Where are the partnership proofs with major companies?
 
Image: https://cdn-images-1.medium.com/max/1000/1*h5Exa315yRdquwOCoXsfkA.png
Source: Website

Their website states partnership with Mercedes-Benz, Audi, and even Porshe!

But on checking the links associated with that image, it redirects to the official page of the respective companies.

Can Alchemy provide any valid proofs of partnership with these companies?

3. Why so many asset swaps? And that too tokens with next to no liquidity or in ICO phase themselves?

The below are the partnerships done by Alchemy:

Invox Finance — $2 Million Deal
They are doing their ICO themselves.

Yamzu — Financial terms were not available
If you check the announcement of the partnership, they talk about billions in terms of players as well as revenue. But the company Yamzu only have just over 10K user base, and that too according to what Alchemy has said in their announcement. Now consider the relevance of a gaming company with a financial company like this. According to them:

In an ongoing effort to remain hip

ARAW — $1 Million Deal
Another project which is doing their ICO

Tasa Asia — Financial terms were not available
Again the question is based on the relevance of this partnership.

FAN360 — Financial terms were not available
Another project which is doing their ICO

VBEX — Security Exchange Partnership
A very new exchange still to be seen anywhere.

BitNautic — $2.5 Million Deal
Another project which is doing their ICO

ApolloDAE — Terms of the deal were not available
They are also in their private sale right now.

Pecunio — $5 Million Deal
Next to no volume in the exchange. And the website still shows the sale page.

And with

4. Suspicion around Linkedin Profiles

Just checking with the Linkedin Profiles of some of the Team Members, you can see that:

James Fan — Only 74 connections
JT Bell — This profile is not available (Or maybe I am blocked?)
Chris Lowe — Only 57 connections
Benjamin Chen — Only 88 connections

And so on.

Linkedin is one of the most used professional social networks out there. It is not a compulsory thing to be on Linkedin or to have so many connections. But a project like this is expected to have people with a great connection.

Verdict

With all the above red flags and the sword of sudden sell due to so many asset swap’s happened, it is evident that this ICO bears more risk than a regular ICO.

Already ICO’s provide early adopters and investors with big bonuses, etc. And those are the ones who usually sells first when the token is listed in an exchange. And with the entry of this kind of asset swap deals, the risk is multiplied even more.

So, my advice would be to think before you invest in projects like these.



Please let me know if you want to see more parameters to be added to my analysis or want to give me some tips or want to correct me on my findings or even want to share some secret regarding the companies I would be writing in time.

The above was just an analysis for those who want to spend less time finding about the project. But please don’t consider this as an investment advice.

The above article was not paid for. And the respective company didn’t know about the same.

For the readers:

Thank You for reading till now and hope you like what I wrote.

For the respective company:

If you see anything written above is not true, please let me know about the same through comments or you can contact me through Telegram.

For anyone who would like an ICO to be analyzed

Please send me a message in Telegram with the name and website.

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