BMJ Score: 2.3
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CommentaryThe Milcoin platform wants to restore investor confidence by leveraging a utility token that is backed by the niche asset of beach front real estate in Latin America. While there are several platforms dedicated to putting real estate on the blockchain, Milcoin is one of the first we have seen devoted to this geography. The platform will be based on the Ethereum blockchain, and the token will be used as the only form of payment for property as well as an optional method of payment in surrounding retail stores in Latin America. Our biggest concern with this project stems around transparency. The whitepaper is hard to follow, and while the team does have an extensive portfolio of land and hotels, they do not discuss their roadmap. Furthermore, while the team is large and partnered with abc123start.com, a company that has over 100 million users at this time, none of the team members have validated LinkedIn profiles. For us to feel confident about Milcoin, the team needs to work on their transparency. There is a 12-minute video that seems scammy, and the whitepaper needs improvement. The team should also work on listing their partnerships and timeline for MVP release. At this time, we are not confident about investing in this project.
- How to invest: Simply visit the following link to complete the token sale registration form and book your spot in the Milcoin presale.
- Discount: No indication of presale discount.
- Eligibility: Restricted countries include Republic of China (except for Hong Kong, Macau and Taiwan), South Korea, Cuba, Iran, North Korea, Syria, Crimea Region, and Beijing.
- Token Price: 1 MILC = $250 USD
- Jurisdiction: Bahamas
- Minimum investment: $1,000 USD.
- Problem addressed/solved: Milcoin wants to provide even the most conservative of investors the opportunity to invest in tokens that are backed by hard assets. The Milcoin platform aims to give thousands of investors a gateway to miles of beachfront property in the Latin America region, opening new doors for investments and developments that were not previously possible.
- Target customers/customer/ segments/verticals: The LOR platform is designed to service two different kinds of users. First, there are the investors who wish to invest their cryptocurrency capital into tokens that enable them to participate in the platform’s real estate projects. Second, there are the third-party blockchain real estate users who wish to use the LOR platform to issue their own real estate titles from the platform.
- Value creation: Milcoin looks to create a new form of investment for even the most conservative of investors. They offer MLC tokens that are 100% backed by oceanfront real estate property in the Latin America region. Milcoin not only wants to offer an investment opportunity in real estate, but it also provides investors with shares of seven of LOR’s companies and allows the redemption of MLC tokens at different LOR businesses.
- Competition: BMJ has reviewed a few pre-ICO projects that center around real estate, and most of them have better overall scores compared to Milcoin. A huge reason for this is that Milcon lacks the supporting documents, transparency, and clarity to make investors see its vision. Milcoin fabricates much of its project via buzzwords and promises that it cannot prove to be real. Other projects have patents, MVPs, and other forms of proof to legitimize their platforms.
- Market size/potential: Milcoin is certainly entering a buzzing market, and it has a specific niche focus on Latin American beach properties. The reason we’ve seen so many projects that want to tokenize real estate assets is because there’s a high demand for that type of investment. People want to own fractions of real estate without massive minimum investments or legal obstacles. Milcoin will hit the market at the right time, but it will also be heavily reliant on the overall success of the crypto market.
- Regulatory risks: There are risks around how Latin America classifies crypto asset-backed tokens and whether individuals globally will be able to purchase land through crypto based on their tax jurisdictions.
- Investor value: MilCoin investors could benefit from the profits made by the Core Pool as well as the profits that come from the LOR platform-as-a-service. The inherent value of MLC tokens will be driven by the assets it backs up. Having said that, profit sharing from the Core Pool and platform-as-service fees could be the most valuable aspect of the investment.
- Disclosures: Milcoin really missed the ball in the disclosures department, It does not have an active MVP nor does it even have a roadmap to give investors an idea of the project timeline. The whitepaper is a lengthy 86 pages filled to the brim with unorganized and confusing content. One look at this whitepaper will reveal how NOT to write these reports and will emphasize the fact that projects must provide lite papers or one-pagers to reveal the contents of the project in an effective manner. Otherwise, you risk losing interest very early on from potential investors.
- Token distribution: Milcoin does not provide specific token distribution details. We find that 650 million of MLC tokens will be sold during the early and main sale, but the rest of the tokens could essentially go anywhere.
- Use of proceeds: Information on funds distribution not provided.
- Caps: Soft cap: 2,193 ETH; Hard cap: 14,625 ETH
- Track record: Milcoin has a 24-man team including the advisory board. An immediate red flag is that very few of the team members have backgrounds specific to blockchain or ICOs. In fact, the vast majority of team members are either attorneys or real estate advisors. Although their backgrounds aren’t ideal for the blockchain side of the businesses, this team has tons of skills and qualities that are perfect for the real estate, and specifically hotel, industry. The CEO, Carlos Maldonado, has worked as a consultant for hotel owners and offered services such as operative analysis, developing standardization programs, strategic planning, assistance in executive selection, as well as overview of the whole process of sale and acquisition of hotel properties. The team is well versed in real estate and law, but the question is whether or not they’ve acquired enough blockchain talent to carry through one of the most pivotal aspects of the project.
- Integrity: You cannot deny the experience that the Milcoin team brings to the table. They’ve operated LOR and multiple real estate properties for years and have a solid reputation to show for it. Having said that, much of this project seems like an “add-on blockchain” situation where a company tries to implement blockchain just for the press or status of a leading technology company.
- César Hank Inzunza, Founder
- Cuahutemoc Hank, Co-Founder
- Carlos Maldonado, President & CEO
- Ricardo Besquin, COO
- Jeremy Thomas, CTO
- MVP: Milcoin has no MVP nor does it have a roadmap to dictate when the MVP or final version will be available.
- Token use case: MilCoin will be used as a utility token in a number of ways, including to fund developments of the company’s wholly-owned, paid-in-full real estate. MLC tokens will represent ownership in certain properties and will help fund the development of future properties. In the long run, the token will be used as an electronic medium of exchange for goods and services at resorts, shops, restaurants and entertainment venues owned and operated by the Latam Ocean Real Estate & MilCoin Network.
- Value-added: The MLC token definitely has legitimate roles within the Milcoin platform, but many of the most impressive features seem like empty promises. Milcoin talks of how the MLC token “will be widely used in the electronic realm” and be “heavily used by untold millions of internet users.” Too many of its statements consist of common buzz words to peak the interest of the not-so-savvy investor. The project needs to have a detailed roadmap/plan to get the MLC token to the point of mass adoption, but there’s no plan of action anywhere on the site or whitepaper.
- Decentralization: Milcoin will run its project on the decentralized Ethereum platform.
- Token Supply: Max token supply of 1 billion MLC.
- Technical difficulty/investment expertise needed: The Milcoin project starts off with the simple idea of tokenizing real estate assets and offering them to the public. However, Milcoin wants to go the extra mile and allow its token to be used as payment at other businesses operated by LOR. This could cause both some confusion and complications in the future. It seems like Milcoin might be trying to do too much too soon; instead, it should focus on the side of the business that is built into its backbone.
- Halo effect: Milcoin works with Latamoceanre to find properties and represent them as the asset backing for their token. LOR will operate the real estate side of the business while Milcoin will focus on the blockchain side of things, tokenizing the real estate assets held by LOR and offering them to the world. The project also has a partnership with abc123start.com which claims to hold over 100 million users for Milcoin to access.
- Buzz: Milcoin has been featured on the typical ICO sites that go out and find content for their readers, but it has yet to be recognized by a big name news source. As for the social media following, the project doesn’t really have one. Its accounts were created in December of 2018 and have no engagement at all. It’s fair to say that it can increase those numbers with some marketing, but it’ll definitely have to push hard in the coming months.