BMJ Score: 3.4
Quick Summary32 Investors read this
CommentaryIdentity security may be one of the blockchain’s best uses. That’s why crypto became its first major application. The IAME Identification Network allows parties in blockchain transactions to verify each other without having to disclose non-essential personal information. Here’s how. The system fragments information into unintelligible pieces then distributes them to a multitude of independent third-party validators. But blockchain is software, and software is always buggy. So watching IAME’s real-world results will be crucial.
- How to invest: The company is conducting two pre-ICOs. First starts 6/6/2018 and ends 6/10/2018. The second starts 6/20/2018, and ends on 6/24/2018. Potential investors must subscribe online to learn how to participate in the pre-ICO: https://iame.io/token
- Discount: 25% bonus during first pre-sale, 50% bonus during second.
- Eligibility: U.S. residents prohibited.
- Jurisdiction: Country of Mauritius
- Minimum investment of .5 ETH in first pre-sale, .1 ETH for second. Investors must use Ethereum
- Identity verification is especially crucial for cryptocurrency - - certainly to its mainstream use. First, traditional KYC can’t guarantee that the sender in a cryptocurrency transaction is the owner. Second, cryptocurrency accounts (public key/private key pairs) can be generated anonymously at mass scale. Finally, wholesale data sharing between parties poses a security risk to both counterparties. These are the problems that IAME seeks to resolve by chunking identities and reconstituting only the necessary parts for any individual transaction
- Its first target customers include users of cryptocurrency who make transactions with Ether peers.
- IAME not only offers the promise of making cryptocurrencies a foolproof way of exchanging value, it could be applied to cure the pandemic of ID theft that has hit the likes of Target, Equifax, and Yahoo, involving hundreds of millions of IDs.
- IAME will face tough competition from KYC Legal and Civic. It provides a comparative analysis to differentiate its solution.
- The current market is small, but it has potential to grow with crypto’s adoption – that IAME could encourage in a “virtuous circle.” Could be potentially massive if the platform can be extended to any company that needs to maintain customer IDs.
- It’s doubtful IAME hits hard regulation since it falls under the relaxed jurisdiction of Mauritius.
- The IAM token would not inherently store value. Instead it would accrue value by supply and demand for identification processes determined by 2 factors: the cost of hashing the requested data on the designated blockchain, setting a price floor and demand for blockchain identification on the IAME network.
- IAME provides a smaller whitepaper but supplements it with a business plan as well. The IAME team spent months pitching to angel investors to come up with a viable development and go-to-market strategy. As of today, $180,000 has been secured to kick-start development.
- 50% main sale, 20% business pool, 10% advisors, 10% team, 10% community.
- Use of proceeds: Depending on the amount it raises, IAME will give priority to development. As IAME approaches its hard cap, it will use funds to a spur retail and enterprise adoption. The balanced allocation will be: 60% development, 14% listing, 10% enterprise marketing, 8% retail marketing, 4% infrastructure, and 4% legal.
- Min cap: Set at $1 million. Should the initial coin offering raise any amount less than US $1 million in Ether at the end of the ICO, all Ether will be returned to ICO contributors,
- Hard cap: Set to US $25 million.
- There are some impressive tech pedigrees here. For example, co-founder Suryani Chang, who leads the development of IAME’s proprietary ID validation processes, graduated with a master’s in Intelligent Systems in 2003, 10 years ahead of the curve.
- The team appears to have little startup or business experience, so it’s hard to judge the integrity here.
- Nathaniel Tsang Mang Kin, Co-founder / Compliance (LinkedIn)
- Suryani Chang, Co-founder / Back End (LinkedIn)
- Chirag Patel, Front End (LinkedIn)
- MVP: The IAME app is available for download on the App Store and Google Play store as IAME’s proof of concept. With it, anyone can create an account attached to their cryptocurrency addresses.
- Token use case: To operate the IAME Identification Network, a functional token will be issued, known as the IAM Token. It would initiate confirmation requests for validation packets. Parties would spend the token through the IAME’s client app after deducting hashing costs, with the balance paid as a reward to third-party validators.
- Value-added: Token becomes an incentive to also sustain the platform.
- Token Supply: Does not report total supply of tokens,
- Technical difficulty/investment expertise needed: The concept is technically complex, but IAME provides explanations that should be easy enough for most investors to comprehend.
- Halo effect from early investors, customers, or partners: IAME lists six different partners, none readily recognizable.
- Buzz: This project has solid buzz. Since IAME revolves around blockchain and its identity protection use cases, there’s a lot of hype surrounding it.