BMJ Score: 2.6
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CommentaryThe mining and blockchain maintenance market has a shortage of professional hosting services. MiMiner wants to solve this by providing a single platform to host equipment at a minimum electricity price and with 24/7 technical support. By purchasing tokens, investors can put their equipment on the network at an incredibly low cost and ultimately increase their profits. While we like MiMiner’s notion of providing cost-effective hosting services with rapid and scalable deployment, this is a saturated space with many players. MiMiner does not address any of this in its whitepaper, and its small team does not give us confidence that it can differentiate. In addition to the team’s lack of experience, the project does not list any advisors or partners. Furthermore, while the utility token has an interesting use case around both hosting and renting out mining, it comes with its own risks. The price of electricity fluctuates, and this will directly affect the MIT token. An additional concern we have is that MiMiner does not currently own any mining equipment, and plans to purchase at the conclusion of the ICO. While the mining marketplace can use an innovative leader, we do not believe that MiMiner is the project to fill this role. MiMiner lacks an experienced team and does not yet have the infrastructure to support its mission. Given the risks of the industry, we are not confident in the project’s success at this time.
- How to invest: Register at the following link in order to participate in the MiMiner presale.
- Discount: 50% discount throughout presale.
- Eligibility: Users who have passed the KYC AML wallet verification through the proposed service can participate in the ICO. Anyone can become an investor except people living in the US, Puerto Rico, the US Virgin Islands and other dependent territories of the US according to the Token Purchase Agreement.
- Token Price: 1 token = $1 USD (discount included)
- Jurisdiction: Singapore
- Payment Accepted: USD, EUR, or ETH
- Minimum investment: $1 USD
- Problem addressed/solved: Mining and blockchain maintenance markets are currently experiencing a high shortage of professional hosting services in the sphere of private and industrial mining. The key issue is an accessible infrastructure which includes engineering solutions for trouble-free operation of mining equipment and minimal cost or resources.
- Target customers/customer/ segments/verticals: MiMiner offers attractively priced hosting fees not only to major private companies, but also to cloud mining providers and home miners.
- Value creation: MiMiner is a physical space and technology environment to provide a full range of turnkey services for the mining of digital cryptocurrency with profitable tariff plans for electricity and maintenance as well as readiness to operate 24/7. The full range of services include: equipment’s host, sale, set up and repair, uninterrupted operation, and maintenance of private blockchains.
- Competition: MiMiner will encounter plenty of competition as many other companies want to get people involved in the operations with either securities tokens or utility tokens that allow for profit shares of the mining. Due to low rates and a super low minimum entrance threshold, MiMiner offers one of the best opportunities for the highest return on investment. Having said that, plenty of other projects are utilizing alternative sources of energy that are both renewable and cheaper, minimizing the MiMiner advantages.
- Market size/potential: The market for mining has spiraled down in recent months due to the overall downward trend for crypto. This simply means that miners have lost motivation to mine since the value of crypto has gone down while the cost to mine remain constant (hosting, electricity, etc.). The surefire way for the mining market to take off is for the crypto market to do the same.
- Regulatory risks: The industry is dependent on the internet and software, meaning that system failure could adversely affect the performance of mining operations. Smart contract technology is also early on in development and still requires high level of R&D. The token and blockchain must abide by existing regulations, with no guarantee that the project will pass all bylaws. Another risk is that electricity rates vary. This will cause a direct change in the value of the MIT token. The mining farm itself is located in Russia, so people who want to host their equipment will have to comply with Russian laws and regulations.
- Investor value: Each token (MiMiner) gives the holder the right to use the MiMiner processing center's capacity rent-free for 49 years to accommodate the equivalent of 1 watt of energy consumption of your miner. Token owners can use these capacities to host their own miners or to rent them out. This gives holders access to professional mining with a low entry barrier. Lastly, token holders who don’t want to mine themselves or have spare tokens can rent them out to other consumers.
- Disclosures: At first glance, it doesn’t seem like MiMiner put much effort into their disclosures. They have an okay website with a 36-page whitepaper. However, their main website, miminer.com, has tons more information about the project. For those investors who want all the technical information possible, MiMiner certainly goes above and beyond on their main site.
- Token distribution: For every 100 tokens sold in this offering, 15 additional tokens will be issued and retained for the team members, partners, and advisors.
- Use of proceeds: Presale funds raised for launch of the major marketing campaign, staff hire, and start of their own infrastructure construction.
- Caps: Soft cap: $6 million USD; Hard cap: $40 million USD
- Track record: The MiMiner team does not post any LinkedIn profiles for any of their members. They also don’t appear to have a legitimate leader but rather a CTO who goes by the name of Nikolai Kolyasnikov. He’s a former engineer who has been working with blockchain since 2014. It’s difficult to verify the team’s credentials when they don’t have LinkedIn profiles or a significant online presence. Having said that, there wouldn’t be too much to verify. The MiMiner team is small and made up of average to below-average talent just based on the whitepaper descriptions. MiMiner also doesn’t list any advisors on their site or whitepaper.
- Integrity: The team has to do a better job of verifying themselves as a legitimate operation. They have no LinkedIn profiles, no advisors, and very short descriptions on their backgrounds and qualifications. One cannot accurately assess the integrity of the group when there’s such a lack of information, which is a red flag. It would stand to reason that a team with the utmost integrity would at least put more effort into disclosing the minds behind the project.
- Nikolai Kolyasnikov, CTO
- Dmitrii Kolyasnikov, CCO
- Anna Romina, Financial Expert
- MVP: MiMiner plans to order equipment and begin construction after the conclusion of the pre-ICO. As of right now, MiMiner has no mining equipment at all. They only established in May of 2018, so most of their efforts have been focused on completing successful ICO campaigns.
- Token use case: The MIT token is an integral part of the platform that allows the token holders to purchase services. Token holders get certain benefits such as hosting/renting out services and purchase of goods at minimum cost. Users can still utilize the hosting services provided by MiMiner, but would do so at a higher rate and will lost part of their returns.
- Value-added: Using blockchain technology, the MIT token provides an effective redistribution of income. Users can rent out their tokens to others and receive part of the profit minied by those users.
- Decentralization: Key factors to the project’s success are high-quality services and political and architectural decentralization of blockchain network.
- Token Supply: 23 million MIT tokens
- Technical difficulty/investment expertise needed: MiMiner is essentially building a facility to mine cryptocurrency and people can rent space, equipment, or invest in general operations to try and get decent returns from the mining. Their project differs from most other mining operations, so make sure and pay close attention to the details of how investors will make their returns and how MiMiner plans to build/maintain their operations.
- Halo effect: MiMiner does not list any partners for their project.
- Buzz: MiMiner has only 68 members on their Telegram account, and their Facebook and Twitter have a combined 8,000 followers. However, many of those followers may be fake as their engagement is next to nothing. Some of the top posts have only been able to garner around 50 likes/shares.