About 2 months ago we published our first article on CryptoGo with our review of BLOCKv. After issuance of the VEE tokens on the 23rd of November we analysed the process of the ICO and the involved investors.
To completely cover the field of ICOs in the future, besides the regular reviews we will also frequently publish post-ICO analysis. For that reason we expand our analysis-tools for evaluating blockchain relevant Big Data-streams every day.
In this analysis we concern ourselves with the

  1. Implementation of official statements in the smart contract source text
  2. Distribution of tokens including the bonus structure
  3. Analysis of VEE-transactions in the first week after the ICO

How was the ICO structured?

With a final score of 7,4 BLOCKv still holds a top position in our list of reviews. The goal was the collection of 40 million US-Dollar through an ICO. An ambitious plan considering the tense situation after the big ICO-boom of the summer.
The planned sequence of the ICO was:

  • Pre-Sale from September 18th to October 12th.
  • Public Crowdsale from the 12th to the 16th of October

The following VEE token distribution was proposed:

  • 35% for sale in pre-sale and public crowdsale
  • 25% for BLOCKv team members, early investors and advisors
  • 25% as a Promotionpool for projects based on BLOCKv technology
  • 15% for innovations and the BLOCKv ecosystem

The individual token allocations are subject to different vesting periods and cannot be transferred immediately.

What does the Smart Contract say?

Like any analysis this one starts with a look at the source code of the BLOCKv-Smart Contract. In it the VEE tokens are distributed to different pots according to the pattern described above. In the contract these are listed as PoolA, PoolB, PoolC and PoolD. In this article we will mostly deal with PoolA, in which the distribution of tokens and bonus-tokens.
BLOCKv have used a four-stage model in their ICO, which we will further elaborate on in the course of the article:

  1. Public ICO:        14458,25861 VEE per ETH
  2. Discount 10%: 16064,73179 VEE per ETH
  3. Discount 20%: 18072,82326 VEE per ETH
  4. Discount 22%: 18296,24509 VEE per ETH

Which discount groups will receive further VEE tokens from the vesting pools can’t be determined based on the Smart Contract. At the date of publishing this article we have not received an answer to this questions from BLOCKv.
The most important information on these three vesting pools we compiled in a short overview.

What are the ICO’s hard facts?

Token Sale
  • Investors: 1821 Transactions from 1502 different addresses
  • Investments ETH: 71.875,4571 ETH in pre- and public sale
  • Investments USD: 22.088.046,72 US-Dollar, equivalent to an ETH price of 307,31 US-Dollar.

89% of the invested sum is from the pre-sale, only 11% is from the public sale. According to our data a sum total of 1.276.194.934 VEE tokens were generated, which matches the official number. According to statements by BLOCKv 71997 ETH were received. The deviation of our date is therefore 0,169% or 0% and is therefore negligible.

  • Public Sale
  • 10% Discount
  • 20% Discount
  • 22% Discount

Graphic 1: Distribution of discounts in relation to number of participants

  • Public Sale
  • 10% Discount
  • 20% Discount
  • 22% Discount

Graphic 2: Distribution of discounts in relation to ETH-contributions

As can be seen in graphic 1 82,35% of transactions were part of the public sale. These received a base-ratio of 14458,25861 VEE tokens and therefore probably no bonuses or discounts.

Graphic 3: Top 10 Investors – VEE Richlist

On the other side about 14% of participants received the highest possible discount of 18296,24509 VEE tokens per ETH and can possibly still count on tokens from the vesting pools. These 14% provided investments of about 44.638,49 ETH, about 13,7 million US-Dollar, and therefore more than 60% of the entire investment volume.

Top 10 Investors – VEE-Richlist

Graphic 3 shows the investments of the 10 largest investors. Together these reach an investment of 28750 ETH and are therefore responsible for 40% of the volume. After issuance of the tokens the largest investor, with 5464 ETH, transferred most of them to many other addresses. So a group of investors can be assumed, not an individual.

Trading – Flip or HODL?

The actual distribution of the VEE tokens is visible to every user due to the technical circumstances of the blockchain. But the intention of investor can only be guessed at. To better understand them we looked at the transactions in the first week after the issuance of the tokens.

The first transaction after the end of the issuance phase was mined on the 23rd of November with a block time stamp of 18:59:06 O’Clock and enabled in the following transaction the transferral of 137.221,838 VEE tokens to the decentralized exchange EtherDelta. The first real P2P-transfer followed about 10 minutes later.
In the first 24 hours 803 transactions happened in total. Only 314 of them were peer-to-peer transfers. The rest of the transactions all happened in the context of deposits and disbursements or trades all around EtherDelta. There, 9.427.960 VEE tokens were exchanged into 454 ETH in the same time frame which is equivalent to 0,74% of the entire issuance volume. But it should be noted that, here, a single token can be counted multiple times, since this statistic doesn’t differentiate between tokens from the ICO and tokens bought on EtherDelta.

 

  24h 48h 7d
Transactions 803 1.306 3.865
P2P-Transfers 314 545 1.268
Transfered VEE 323.540.074 583.678.164 758.866.205
EtherDelta: ETH 454 626 2.172
EtherDelta: VEE 9.427.960 13.263.879 49.299.250

At a first glance, based on these numbers we can assume a steady hand from the BLOCKv-investors. Less than 1% of the tokens were flipped, aka bought with the intention of direct sale, in the first 24 hours. Even in the course of the week the transactions did not rise disproportionately. But EtherDelta is not exactly known for it’s user friendliness. So it remains to be seen if in the case of a Listing on one of the larger Exchanges the hands of the VEE holders remain so steady.

Takeaways

CryptoGo has a special relationship to the ICO of BLOCKv. With this analysis we’ve come full circle.
With the example of BLOCKv and the data shown by us possible positive ramifications of pre-sales for companies can be revealed. Even under adverse market conditions larger sums can be achieved using this method. But this is to the disadvantage of public ICO participants who receive worse conditions. Finding a good balance here is certainly a challenge and requires deeper analysis and comparison with previous ICOs.
For that reason CryptoGo will continue to track the structure, process, technical implementation and issuance of tokens to deliver even more well-founded analyses to our users in the future. For wishes for future analyses and critical feedback we are readily available on our Telegram-Channel.

Should you have further questions, find mistakes within the review or just want to discuss the newest developments in the cryptoworld with the CryptoGo-Team, visit us in the CryptoGo Telegram-Channel or subscribe to our newsletter. You’d like to know how other ICOs performed after their start?Check it out on our ICO Monitor.