BMJ Score: 3.2
Quick Summary33 Investors read this
CommentaryThe development of blockchain technology has unlocked the potential for innovation in a multitude of business applications. Unfortunately, many public infrastructure platforms are not commercially viable due to challenges around infrastructure, sustainability, consensus model limitations, user backlogs, and data/privacy challenges. Ammeris wants to create an ecosystem that helps combat these challenges and enables businesses and government entities the ability to leverage decentralized technology in a way that is environmentally sustainable. The platform itself will be built on a new blockchain that leverages POW protocol. While the Ammeris blockchain will feature 100% renewable energy, a decentralized consensus model, cryptographic security, and smart contracts, we are hesitant about its success rate because it is an entirely new blockchain. New blockchain platforms have a harder time being successful given the amount of capital costs and resources required for R&D when scalability is unknown. While we are always skeptical about new blockchains, we feel more confident when a project has a strong team. The Ammeris team is outstanding;.they have substantial business and blockchain experience from notable firms like IBM and EY, and they have several advisors on board. One area where we would like to see more transparency is around partners/clients. Ammeris claims to have two clients, but does not give much information on who they are or how they are leveraging the platform. We like that the platform is scheduled to have a beta working by November 2018. The AMRS token will help ensure the platform is secure and commercially viable. It’s main functionality will be that as a utility token to provide access to the platform. Ultimately, our biggest concern around the Ammeris platform is whether or not the team will be able execute according to the whitepaper and gain market share. The market for blockchain platforms is highly competitive, and Ammeris’ target market is not specific. In fact, they are targeting almost every possible industry out there which could hurt their ability to capture value. However, a strong team has the ability to overcome such hurdles, and we eagerly await the release of their beta to see how the Ammeris platform develops.
- How to invest: Investors who want priority access to purchase AMRS can sign up for the whitelist on the main site.
- Discount: 30% discount throughout October and 15% throughout November
- Eligibility: US, China, and Singapore are restricted from this token sale.
- Token Price: 1 AMRS = approx. $0.40 USD not including discount
- Jurisdiction: Canada
- Payments Accepted: Accepting USD, BTC, and ETH.
- Problem addressed/solved: Blockchain technology has introduced a new wave of innovation in current business operations. While they have unlocked significant innovation, many public infrastructure platforms are not commercially viable. Some of the current challenges include: infrastructure concerns, sustainability issues, consensus model limitations, user backlogs, and data/privacy paradoxes.
- Target customers/customer/ segments/verticals: The primary market for Ammeris appears to be businesses seeking easy-to-use blockchain solutions for their current operations. Ammeris can also provide technology companies in particular with decentralized app solutions that allow for the simple construction of a Dapp.
- Value creation: The top three benefits that stem from using the Ammeris platform are as follows: 1) A 100% renewables-powered blockchain platform designed to host the complexity of commerce, data compartmentalization, and privacy. 2) An enterprise-ready architecture for building, deploying, and managing decentralized applications. 3) Cost-effective and simple integration through a globally-distributed network of trusted data centers.
- Competition: A few other projects offer platforms for the construction of decentralized apps, but not many projects provide the array of solutions that Ammeris wants to give its clients.
- Market size/potential: The market for this project has yet to be determined. They’re clearly solving a real problem, but that problem only exists in a tiny portion of the business world as we know it. Many people using blockchain in current business operations might not even know there’s a better option available to them that’s tailored to their needs. Ammeris must do a better job in promoting its platform in order to increase its market.
- Regulatory risks: This is a new platform, and it will have to prove that it is secure and can abide by data regulations like GDPR, HIPAA for medical markets, and PCI and SOX for financial services. There will also be regulatory risks around distributed ledger technology that vary in different countries and jurisdictions.
- Investor value: Ammeris is a utility token with many functions. As a minable asset, it is designed to act as an access token, a method to enable gas payments, and a way to approve transaction throughput. AMRS rewards data centers for their work in sustaining the network. Thus, the underpinning value of the AMRS reflects the value and work conducted on the Platform.
- Disclosures: Ammeris hits every check mark and then some. They have a well-organized, hyper-detailed whitepaper with tons of information. If you can’t find what you’re looking for in the whitepaper, the answer will surely be on the Ammeris website where they separate information via separate tabs labeled Blockchain, Foundation, and ICO. Lastly, the beta release will give interested users the chance to access a working product via the portal on the site.
- Token distribution: 55.56% ICO, 21.11% foundation, 16.67% team & advisors, and 6.67% founders.
- Use of proceeds: 43% platform development, testing, implementation, and adoption, 30% operations, and the remaining portions will be dedicated toward reserve, compliance, marketing, and investment-specific spending.
- Caps: Soft cap: No indication of soft cap; Hard cap: $10,062,500 USD
- Track record: The CEO, Paul Mears, goes one step further by adding his Facebook and Twitter account. Mears started his career at EY and has since become a serial seed investor focusing on biotech, medical devices, fintech, and technology applications. He’s been a business angel in over 20 companies, packing an immense amount of experience into one brain. The CIO, Raphael Hukai, previously served as an executive at both Equity Bank Group and IBM. He’s worked as either a CIO or technology advisor for over 30 years.
- Integrity: The Ammeris team consists of eight core members and eight advisors. Each member (including the c-suite) puts his or her individual LinkedIn and email addresses on the site. Ammeris has the bio equivalent of an essay for each member and advisor. It’s clear that their mission is to present themselves transparently and openly so that investors can trust that their investment is going toward a legitimatie project.
- Paul Mears, Co-Founder and Chair at Ammeris (LinkedIn)
- Erik Fertsman, Co-Founder (LinkedIn)
- Matthew Pickup, Co-Founder and Director of Development (LinkedIn)
- Ian Gilmour, Head of Advisory (LinkedIn)
- MVP: Ammeris Portal (beta) launch is expected to happen by the end of November 2018 with the mobile wallet beta soon to follow. The beta will have first iterations of the ABS and serve as the main ledger on the Ammeris Platform. It is supported by AMRS and is hosted by the foundation and accredited data centers. Investors who want priority access to the beta should sign up for the whitelist as soon as possible.
- Token use case: AMRS serves as the medium of exchange, reserve currency, and access/gas/fee token for the Platform. All Platform fees reward foundation and/or accredited data centers for processing transactions. To ensure the Ammeris platform is secure and commercially viable, it will be supported by the stakeable Ammeris blockchain-native Ammeris Coin. AMRS also acts as the main incentive mechanism for accredited data centers to support the platform, with all users settling platform fees using AMRS.
- Value-added: AMRS will be the primary incentive for data centers to support the platform, which, in the case of Ammeris, is near vital to the success the of project. It also acts as the only method of payment or settlement on the platform, increasing its value as opposed to platforms that support multiple tokens.
- Decentralization: The Ammeris platform will follow the principles of the decentralized economy.
- Token Supply: Max supply of 45 million AMRS.
- Technical difficulty/investment expertise needed: The Ammeris platform will be best understood by those who have a technical background in blockchain/crypto because that’s the industry where their “problem to solve” exists. In short, they want to create a better platform for companies who seek to build decentralized apps. The technicals behind the project will certainly scare away less “blockchain savvy” investors.
- Halo effect: Ammeris has aspirations to work with multiple partners for innovation and implementation, but no such partners have been acquired or at least they have yet to list them on the site/whitepaper.
- Buzz: Ammeris has over 2,000 followers on both their Twitter and Facebook accounts, but the engagement is literally either a few likes or none at all. This is even more disappointing because their Twitter account was created back in February of 2018, which means they’ve had plenty of time to build a legitimate following instead of purchasing followers.