Bee Token ICO Review – Bee Investment Analysis

https://www.beetoken.com

ICO Details

Symbol – BEE

WhitepaperLink

When – January 31 2018

Soft Cap – None

Hard Cap – 15 Million USD

Total Max Market Cap At ICO – 50 Million USD

Exchange Rate: TBA


Overview

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The Bee Protocol is a series of smart contracts that together form the Beenest. Beenest essentially functions as a decentralized version of Airbnb, where users are able to share their homes for payment in BEE, the token that powers the entire system. It runs on the Ethereum network, and this aspect means that Beenest can remove a lot of the intermediary costs and fees that it takes to execute these kind of deals:

Simultaneously, peer-to-peer sharing economy applications, typified by Uber and Airbnb, have achieved meteoric success in the past few years. However, these platforms extract high commission fees from their users in order to to run. Airbnb’s astronomic growth from $0 to $31 billion is only enjoyed by a select few — the founders and VCs. Without any interest in the company, very little, if any, of the appreciation value goes back to the guests and hosts. These are the same guests and hosts who form the backbone of this two-sided marketplace. At Bee Token, we believe that these invaluable contributors, as first-class participants in the network,
deserve to be rewarded for the platform’s growth through increased utility value of their tokens.

It’s certainly true that Airbnb has been one of the most massive successes that we’ve seen in the past decade, being a Silicon Valley brainchild of sorts. We know now that this kind of model works and that people are willing to use their homes to generate additional income. That being said, there are certainly ways to improve on this model, and cutting out the fees that Airbnb takes from its customers is just one way to do this. In addition, many Airbnb users are international – that means that there will always be some form of currency conversion taking place. That currency conversion always costs money, and is another area where the BEE token can shine – as there is no conversion (it’s a universal form of payment) those fees are cut as well. Overall it’s a great system that removes the misaligned incentives of third parties seeking to profit (Airbnb) and pushing all of the best aspects of the home sharing economy:

Beenest is the first decentralized home-sharing network built on top of a set of Bee Protocols that connects hosts with guests without taking any commissions. The Beenest dApp and the Bee Protocols are powered by the ERC-20 utility token called the BEE token. The Bee Protocols are open Ethereum protocols that can power other future sharing economy dApps

Dispute and conflict arbitration is also something that is handled seamlessly on one of the Bee protocols. If there is a dispute between users, both of their funds are locked up and a group of arbiters (who are staking BEE to function in that role) will be able to review the case and mete out justice. In the event of a wrongful case review, the user who believes they were wrongfully sentenced being able to restake more BEE and go to a different arbitration group.

The final verdict will be the median dispute amount of the arbiter vote. In addition to an amount, arbiters must leave feedback that leads to their decision. This is to ensure that the plaintiff has a clear idea of the thought process that leads up to that decision. If enough arbiters fail to provide an adequate decision leading up to their decision, the plaintiff will have the right to appeal. If this happens the appeal rate for each arbiter that failed to render an adequate decision will go up, hurting their chances to participate in future jurisdiction.


Team

jon

Jon Chou

Jon Chou was the former lead at Uber’s Security & Fraud department. He is the founder of the Bee project and lead.

jordan

Jordan Ong

Jordan was a former product manager at Facebook for over seven years. He will be the head of product for Bee Token.

bonnie

Bonnie Qin

Bonnie has previous work experience for Google and Sony. She will serve on the Bee Team as the backend engineer.
Note that this is one of the most stacked teams I’ve ever seen in a blockchain project – you’ve got the workings of a truly all-star team here, with decades of combined experience that will be fully focused on making this project soar. This is the kind of team I like to see when I invest in a project, and it’s with great confidence that investors can look into BEE.

Positives

One of the positives that I like about Bee is that their system actually accomplishes what many decentralized projects promote- that their solution is actually cheaper than incumbent options. I know from personal experience using sharing services or third party sites to make a deal, that the third party will always take a large cut out of the pie for themselves. Personally I find this abhorrent, and it wasn’t until blockchain and projects such as BitBay revealed themselves to me that I realized there was an alternative solution. With Beenest, it simply makes doing the same things you did before that much more simple – and isn’t that what everyone wants?

Another positive is the very low cap of their sale – kept at 15 Million USD, there is absolutely a large way to move upwards for ICO buyers at any stage, and even presale buyers (who received a hefty 100% in some cases) will get less effective bonus due to ETH’s price rise (thereby making crowdsale buyers get more Bee per 1 ETH). Comparing this project to Swarm City (which is demonstrably a weaker team with a product that’s not out yet) we can see that SWT has a 25 Million USD cap. That speaks volumes about where Bee will go if it starts at a low valuation such as 15 Million.

Finally, this is a concept that just makes sense in our sharing economy. Uber, AirBnB, and other forms of sharing assets and services are exploding in the modern era, and application of a decentralized peer to peer solution to this formula simply fits perfectly into the puzzle. I’m very bullish on this kind of project simply because I can see this usecase actually having lots of appeal and will be eager to even use their platform myself.

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Negatives

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One of the negatives of the project will be the failure of Swarm City – Swarm City was originally a very similar project, with more than just the commonalities in name to mention. Swarm City was a project that was built for a decentralized sharing economy, touted to eventually replace services like Uber and AirBnB. While Beenest and The Bee Token aren’t directly related to Swarm City in any way, I could see mainstream crypto buyers look at Swarm City’s inability (and slowness) to deliver and push that stigma onto Bee.

A second thing that may deter would-be investors are the terms of their presale. Bee took in a large amount of money (around 5 million USD was their hard cap) around two weeks ago (Jan 2nd) when Ethereum was trading at around 800$ USD – unfortunately (or fortunately, depending if you’re invested in Ethereum), the price of ETH continued to rise and topped out around 1’400$ USD. That makes their 5 Million raise turn into a 9 Million raise, which wasn’t reflected in the coming crowdsale cap. Keep in mind that ETH is now trading at around 1’000$ USD, thus returning values more or less to parity, but it certainly reflects poorly on the team if they weren’t willing to flex their terms a little to accommodate a large price rise in ETH. That being said, they kept most of their details as “TBD”, and did not take a hard stance on this issue one way or another, so it could just be me.


Conclusion

BEE Token and the Beenest app are simply well designed. They make a lot of sense, and I’m already hearing some hype in my groups from friends who are actually looking to use this kind of technology. That’s extremely rare for a blockchain project – the strong team gives an investor lots of confidence in backing this kind of project and one can easily see how BEE will increase in value over time given a successful run in the crowdsale. Look forward to these tokens as you don’t want to miss out on this one.

Investment Grade: 95%

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9 thoughts on “Bee Token ICO Review – Bee Investment Analysis

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