BMJ Score: 2.8
Quick Summary29 Investors read this
CommentaryYes, Cannabis is becoming more akin to alcohol, a widely accepted "adult beverage." We like Weedo because its wave blockchain architecture is stable, and it makes room for fiat currency, too. We worry, however, about an already saturated market, lots of competition -- and all the other stuff surrounding a still controversial substance.
- How to invest: Visit the sale page on the website, complete the form, and pay in BTC, ETH, WAVES, and LTC to get your WEEDO tokens.
- Discount: +40% Free WEEDO Bonus (The main sale also has bonuses that range from 30% down to 10%)
- Eligibility: ICO offer void to citizens of the United States, Singapore, China, and Vietnam
- Token Price: 1 WEEDO= $2.30
- Jurisdiction: US
- Problem addressed/solved: Weedo doesn’t exactly solve a problem but instead offers a modification of the way cannabis is currently farmed on a large scale. They seek to use eco-friendly power sources instead of the traditional farming methods. Backers will invest in the expansion of production and become holders of tokens which can be exchanged for a certain amount of cannabis or equivalent monetary compensation. This allows investors to profit from the sales of cannabis once fully grown.
- Target customers/customer/ segments/verticals: Target market would obviously be anyone in the cannabis industry. That can include anyone from medicinal facilities, cannabis product creators, or even public consumers. The majority of sales will likely be B2B. Interesting note: Weedo has merchandise for sale as well that includes mugs, sweatshirts, etc.
- Value creation: Weedo wants to become the first eco-friendly cannabis production facility powered by solar energy and heated by crypto-mining. The eco-friendly WEEDO production facility uses energy-efficient growth techniques for its 40 varieties of cannabis using photovoltaic solar panels, as well as heat generated by cryptocurrency mining hardware. Having a completely self-sufficient facility powered by renewable, unlimited solar energy, WEEDO is both cost-efficient and environmentally beneficial.
- Competition: The cannabis industry is growing extremely fast just like the blockchain industry. Weedo will face heavy competition in the form of other already established farming operations in a saturated market.
- Market size/potential: Legal marijuana sales surpassed $8.5 billion in 2017, a 16% increase over 2016, according to report. The growth is buoyed by new states legalizing marijuana and sales exceeding expectations in existing markets. Analysts predict the market to hit $22.8 billion in sales by 2021, despite continued federal opposition. In short, this industry is set to explode as states continue to legalize recreational marijuana.
- Regulatory risks: Weedo can hit hard regulations from the SEC and U.S government if they do not follow all set protocols for the production of cannabis. It can be costly to run a cannabis operation unless the producer proactively ensures compliance with all applicable regulations.
- One of the best parts of Weedo is that it’s entering a market/industry that will undoubtedly grow in the future. They’ll have plenty of customers and will hopefully be able to capitalize on this emerging market. Having said that, Weedo doesn’t exactly solve a problem that’s plaguing the industry. They’ll also have some fierce competition along their journey. For these reasons and the ones stated above, Weedo gets a Market Data score of 3.5.
- Investor value: ICO investors are protected under a buyback program, which offers $10-12 USD (the market value of one gram of cannabis) regardless of the existing value of their tokens effective upon the initial harvest. This gives ICO investors a secure state of mind that Weedo will buy back their tokens for the current price of 1 gram of marijuana (a guaranteed 400% return). Furthermore, pre-ICO investors get a lottery ticket for every 65 tokens purchased on top of a bonus of 40% additional free tokens. Weedo offers a variety of prizes, including airfare and accommodations to go and visit their facility.
- Disclosures: The project has a decent whitepaper and passable website. However, since the project is so young, they really can’t offer much disclosure as nothing has really happened yet.
- Token distribution: 45% public sale, 20% team & advisors, 15% reward and bounty program, 10% marketing, 10% pre-sale.
- Use of proceeds: 25% land and construction, 19% mining material, 17% solar energy material, 16% salaries & central services, 9% growing material, 8% marketing and expansion, 6% establishment and licenses.
- Soft cap: 1,000,000 WEEDO Hard cap: 7,218,750 WEEDO Contact Information: Weedo provides a contact email address: [email protected]
- Weedo’s biggest lure is their buyback program. As Weedo describes it, “It guarantees a 400% return”. If that’s true, then Weedo’s token should sell like hotcakes. The fact that they’re basing the price of the token on the market price of a gram of weed gives the value of the coin a backing of sorts. The only concern is the team’s 20% of the token distribution. It’s difficult to put that information aside since it sets the tone for the project and the team. For these reasons and the ones stated above, Weedo receives a Transparency score of 4.0.
- Track record: The CEO, Olivier Le Grand, has solid experience in entrepreneurship via founding companies prior to starting Weedo. The rest of the team lacks in experience… by a lot. The Product and Marketing Specialist, Robert Vaughn, has only 10 connections on LinkedIn. More transparency is definitely needed here.
- It’s difficult to give the Weedo team a pat on the back for integrity because of the troubling lack of any detail that would indicate a seasoned team.
- Weedo’s team might well be one of the weakest BMJ has reviewed. The only bright spot would be CEO Olivier Le Grand. He successfully founded three companies prior to Weedo and has gained valuable entrepreneur experience from those ventures. Having said that, the Weedo team is inexperienced, small, and lacking in blockchain talent. For these reasons and the ones stated above, Weedo gets a Management score of 1.5.
- Olivier Le Grand, Founder & CEO (LinkedIn)
- Baptiste Dargaud, CMO (LinkedIn)
- No MVP. Weedo is at the very early stages of its project.
- Token use case: The token is primarily a security that will be valuable during the buyback program that’s exclusively available to investors in the ICO/pre-ICO. The tokens can also be a means of payment for anything offered by Weedo (cannabis, merchandise, etc.).
- Value-added: The token adds value with the various rewards programs that Weedo offers its customers for actually using the token. Other than that, it seems the Weedo token is more a means for raising funds effectively in order to build their infrastructure on the farm.
- Completely decentralized
- Total WEEDO supply of 17.5 million
- Weedo has no MVP as the project is young and they have little to no startup money for the MVP as it stands. The token appears to be more of a method for raising funds rather than a tool for a platform. For these reasons and the ones stated above, Weedo gets a Token score of 3.0.
- Technical difficulty/investment expertise needed: The general idea of Weedo is easy to understand, but if you dig for more details, it can confuse anyone in a heartbeat. Having said that, average investors looking at the big picture will be able to understand the project’s goals and how the team will attempt to achieve them.
- Halo effect: Weedo has no partnerships listed at the moment. They state, “we will partner with large companies in both the medical and recreational sectors as well as local dispensaries and shops.”
- Buzz: Weedo doesn’t have much of a social media following, but this could be due to it being a very new project. They launched the website, whitepaper, and social media on April 15, 2018, which makes their 3,000+ followers in that period of time not look too shabby. Plus, they’ve been listed on several ICO review sites.
- The lack of partnerships and social media following hurts Weedo’s overall image. They need to look at expanding their marketing efforts in the future if they hope to raise enough funds. Also, people will take them more seriously if they can acquire early partnerships. Weedo gets a User Friendliness score of 2.5.