Crowd-founding Starting Time: 8 pm at Oct 30, 2017
Crowd-founding Ending Time: 0 am at Nov 21, 2017
Basic Information about the Project
BBT Initial Allocation Plan
Brickblock Rating Report
I. Market Analysis
In the investment of Bitcoin and Ether, I believe that during the period from the peak of August to the current low ebb, the ups and downs that many investors experienced are beyond their phychological endurance, and in the future, there is even the possibility that the value returns to zero. The annual investment funds has been continuing to flow into the stock market and the property market, making the investemtn environment in the original traditional investment market much more stable compared to the current token circle. However, for Chinese investors’ investing in the US market, there exist certain funding thresholds, foreign exchange conversion issues, and high transaction fees, which hinder cross-border investment by global investors.
On the brickblock platform, the project is addressing the huge currency volatility issue of digital money. Brickblock has set up three traditional funds, each with its own denomination and asset certificate token. Through the platform’s token exchange platform, investors invest in traditional investment markets with their own holdings of BTC and ETH to gain a stable appreciation of physical assets, hedging the risk of digital currencies, therefore making transactions easier, and the conversion between digital currency and cryptocurrencies be seamlessly connected.
1. There exist great fluctuations in encrypted currency, and the investors need to bear all the risks, which may even include the risk of value zeroing. Digital money attracts emerging investors for its huge profits behind huge risks, for example, in August, there were countless ICO projects that more than doubled since opening. In addition, investors from all over the world can invest in blockchain digital currency, and the investment is through BTC and ETH, so there is no trouble of foreign exchange. However, at the same time, the market trading volume is relatively small, and the influence of news is huge, for instance, it is normal to see a several tenths fluctuation, therefore the risk is too high.
2. When private investors participating in global investment, they are subject to local government’s restrictions on free trade, and each country has a different tax on investment. Therefore, it is wise for investors to diversify their investment.
In response to the above two sore points of the current investment market, the project’s solution is to allow digital money investors to invest in real estate funds, exchange funds (such as the S & P 500) and coin-managed funds through a simplified investment process. For example, if you currently have 100 US dollars of BTC assets, you can invest your BTC into the real estate funds on Brickblock platform, and you do not need to convert the currency into US dollars as the traditional investment method does, for the platform will help to automatically convert. What’s more, investment into the real estate market is managed and audited by the fund manager, as the market has a steady rental income, it is more convenient and hedging compared to the previous digital encryption market.
On the brickblock platform, the risk brought by huge fluctuations of digital currency and the restrictions on private investors’ global asset investment are addressed. Through a simplified investment process, digital currency investors invest in real estate funds, exchange funds (such as the S & P 500 Index), and coin management funds. You can put your BTC into the funds on the Brickblock platform, and it will help you automatically proceed encryption and convert the currency into foreign exchange, achieving a convenient and rapid investment.
The project generates a original idea of producing hedge position between the encryption market’s huge fluctuations and the traditional market’s stable risk investment. If the investment fund pool behind platform itself keeps operating steadily, this project would be a good method of derivatives hedging. The risk of this project lies in that whether the management level of the fund manager is enough to run the fund pool steadily. In this project, the function of the token is not clearly stated, and the necessity of the token is questionable. If only the BTC and the ETH are to be charged, then what is the meaning of the token exchange? Is it merely a symbol of the rights and interests? The prospect for this project is very good, and whether it can operate well in the future needs further tracking. ICORoot team will continue to track and report the progress of the project.
Market Scoring Parameters
Overall Score: 100 points Effective Score: 78 points
II. Team Analysis
JAKOB DRZAZGA (Co-Founder): 5 years experience as real estate developer, co-founded Brickblock company in 2016, and he is the one who will serve as fund
manager of Brickblock real estate.
MARTIN MISCHKE (Co-Founder): Martin started to deal with encrypted assets since 2012, and founded Bitcoins Berlin — a Bitcoin payment company. And he has served as the co-founder and former CFO of Bitwala, a Blockchain bank whose main business are remittance, transfer and international payment delivering. Martin co-founded Brickblock in 2016, and he has had entrepreneurial experience in Fintech and blockchain-related field.
PHILIP PAETZ (Chief Strategy Officer): Phlip joined the team two months ago, before then, he worked as a digital specialist consultant at McKinsey, specializing in planning and leading digital innovation.
Team Scoring Parameters
Overall Score: 100 points Effective Score: 66 points
III. Technology Analysis
Each fund on the Brickblock platform has its own denomination and Proof of Asset (PoA) Token. Brickblock’s PoA will allow users to seamlessly trade tokens, and ERC20D token is used to represent foreign assets.
The basic idea is to create some PoA contracts, and each of them represents a different foreign asset. By linking token contracts with the Digital Trustee Fund (DTF), there is a nearly 1: 1 combination between the value of tokens and foreign assets. Users can purchase PoA tokens in exchange for the local currency (such as Ether) and they obtain dividends paid for the assets by trading or holding the local currency. Investors can redeem PoA tokens, forcing the DTF to liquidate the corresponding foreign assets and refund the current market value in local currency.
Brickblock Token Mechanism
The Brickblock platform is designed with three tokens: the Brickvlock Token BBT, the Access Token ACT, the Proof of Asset Token PoA, each with a different purpose.
Brickblock Tokens (BBT)
The Brickblock contract itself implements ERC20 token, which will be distributed to crowdfunding participants at ICO. In addition to trading, these tokens are also needed to generate new ACT.
Access Token (ACT)
Access token is used for paying fees to keep PoA contract running and being active. They can only be generated by locking BBT into the ACT contract. When BBT is locked, the contract will record a new ACT to the sender’s account; ACT will need to run some of the functions of the PoA contract and be destroyed upon use.
Proof of Asset Token (PoA)
For ETF (Exchange Traded Fund) and REF (Real Estate Fund), PoA token represents real assets in the form of securities. CMF (Coin Management Fund) and CTF (Coin Trading Fund) represents a claim for placing funds in a secured trading account or in the wallet of the custodian. PoA tokens that users receive from the funds they invested in represent that the underlying assets can legally compulsorily enforce the claim.
Proof of Asset Scheme
The asset proofing mechanism works by establishing a “trust triangle” among users, DTFs and brokers, which requires a smart contract that trusts each other. The details are described as follows:
1. The user pays local currency to the contract. Once the asset is sent to the DTF, the broker can claim for this payment.
2. The DTF certifies that the smart contract has received the asset, which issued the local currency to the broker and sent the newly created PoA token to the user. The contract is activated only when a valid proof of asset is received or the initial amount of money is refunded.
3. The broker can also delegate the contract to issue funds, and then DTF will send the receipt to the contract. The custodians disclose actual receipts, and the trustees must be trustworthy, who will under any circumstances not misappropriate funds.
4. The Custodians notarize and issue any transactions and balances of the DTF Account, which allows users to independently verify that all liabilities of the DTF remain valid at any time. If not, users can send a fraud certificate to the PoA contract to lock and suspend all transactions. Users who want to instantly buy PoA tokens at a fixed price can make purchases at an outside exchange, which means the users can simply buy PoA tokens without waiting.
Brickblock is an inclusive investment platform that enables people of all income groups to diversify their crypto-combinations with real-world assets such as ETF and REF. Through tokenization, investment restrictions are to some extent bypassed, so for ordinary users who are seeking for investment channels, the investment threshold is reduced.
Technology Scoring Parameters
Overall Score: 100 points Effective Score: 67 points
IV. Funds Supervision Analysis
Brickblock.io has completed ICO tokens pre-sale, 2180.01 Ether and 117.61 Bitcoin are raised, equivalent to about 970 thousand US dollars, and the current official ICO made it to 50 million US dollars.
The funding budget has been disclosed, which is generally reasonable.
V. Profit Model Analysis
On the Brickblock platform, fund managers and brokers need to pay transaction fees using access tokens. A 0.5% transaction fee is charged for every service charge when trading on the platform. For example, the amount of a real estate investment is one million US dollars, so the fee will be 5000 dollars, each dollar is equal to a visit token, and access tokens are generated by BBT tokens.
This hedging model can be viable in the future, whose microcosm can be seen in the future diversified asset investment. However, the fund manager’s asset management level still needs to be further identified. ICORoot team will continue to track the follow-up.
Profit Model Scoring Parameters
Total Score: 100 points Effective Score: 70 points
Total Score： 100 points
Effective Score: 67.0
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