ICO Review - WePower

Welcome back crypto enthusiasts, to the weekly instalments of the latest news, topics and worldwide updates from Magnet Capital.

 

Monthly Coin spotlight - WePower

 

What is it

 

WePower is a Blockchain based green energy trading platform that enables renewable energy producers to raise capital by issuing their own energy tokens. These tokens represent energy they commit to produce and deliver. The ecosystem provides much needed liquidity by connecting investors (consumers or commercial) with renewable energy providers for current or future generation of energy.

 

What problem is it solving

 

Currently, green energy investment is a complex process that involves many intermediary players along the way (to structure debt deals, equity deals, investment structuring etc.). This has led to unnecessarily high costs to fund green energy projects, resulting in limited access to capital globally due to the diminished returns that initial investors finally realise.

 

WePower is proposing to provide a renewable energy trading platform which utilises blockchain technology to deliver a simple, transparent and liquid marketplace to fund renewable energy projects. Renewable energy providers will raise capital through issuing tokens in return for future energy generation. These tokens represent energy that the project owner commits to producing and delivering at a point in the future (at a significant discount).

 

It also integrates directly with an energy grid and as a result is uniquely positioned to accelerate green energy development and adoption at a meaningful scale. WePower solves the following energy market problems: Global access to capital for green energy projects; Global access to green energy investments and trading for investors and end-consumers; Speed and transparency of green energy investment and development projects

 

Why do we like it

  • Global access to capital for green energy projects

  • Global access to green energy investments and trading for investors and end-consumers

  • Tax benefits for businesses using green energy drives demand

  • Growing market for green energy

  • Backed by StartupBootcamp and partnership with EnergyAustralia

  • Signed first client in Spain with 1,000 Megawatt solar energy capacity

  • Partnered with Elering, one of Estonia’s largest energy providers, to pilot all Estonian energy tokenization

  • More liquidity opportunities for renewable energy producers

 

Why do we not like it

 

  • Green energy is lots of initial capital for a gradual payback period before you see a profit - this period could be extended if the drive is for continually cheaper energy

  • For many governments and producers it is still cheaper per KW to use fossil fuels to generate electricity

  • The token utility of WPR is weak, it only serves to get you access to participate in the auctions and collect a small amount of electricity tokens

  • Power Ledger is older, better known and already on the market as a strong competitor

 

Final Verdict

WePower is a company with a good foundation, good leadership and very clear goal. It doesn’t need the token to continue increasing in value to be successful. It’s no surprise the planet would be better off with 100% renewable energy consumption, WePower as well as its competitors give this sustainable future a reality by creating an economy for it. Allowing the electricity consumer to decide. The product would likely fail without the blockchain (good thing) meaning there is a need, the need is driven by value creation and can be quantified - executed by a token which can be traded on the market means even removing the Crypto hype this project and company has a prospect of success. This will no doubt be a marathon and the impatient will likely lose the sprint. Score: 8.5/10.

 

Disclaimer - Magnet Capital participated in the WePower Pre-ICO and currently hold tokens. The details provided is the opinion of Magnet Capital and not investment advice, please as always do you own research before investing in crypto.

 

Bites

 

Education is changing - A masters degree on Cryptocurrency is now available through the University of Nicosia, the degree is considered among the best university grade resource into the sector, its written by two globally renowned contributors to the space and has been enrolled by 5,000 students, it’s available online… and free.

 

Adoption

  1. Singapore’s Deputy Prime Minister, Tharman Shanmugaratnam, has reiterated that in Singapore “As of now, there is no strong case to ban cryptocurrency trading”. The government does however plan on ensuring crypto business, including exchanges, will be subject to the same AML and financial regulatory frameworks as any other financial institution.

  2. To the surprise of many, there was a cautiously optimistic tone in a meeting of the Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commision (SEC) to discuss cryptocurrency. Both parties discussed a future in which crypto assets are a pivotal part of, whilst acknowledging that there is still a lot of work to do regulating the market to protect investors and the public.

  3. Top 10 exchange (by volume), Bittrex, has announced plans to start accepting USD deposits. This would increase customer accessibility to 192 tokens on an exchange that is currently applying for a NY Bitlicense, the highest level of regulation in the state of New York.

  4. Arizona is set to become the first US state to accept tax payments in Bitcoin. A bill to allow citizens to do so has been passed by the Senate and sent to the House of Representatives for final approval.

     

  

Fork Update

Bitcoin Private - Bitcoin private is a newly proposed version of Bitcoin that will operate in much the same way but with a few new proposals aimed at improving privacy and scalability of the existing versions of Bitcoin. The first big change is that Bitcoin Private will use the same technology as ZCash and ZClassic, named zk-snarks. This technology means that when payments are published on the public blockchain, sender, receiver and other transactional metadata are unidentifiable. The second big change to the protocol is the increase in block size and adoption of Segwit. Bitcoin has implemented Segwit but failed to increase block sizes (still 1mb), whereas Bitcoin Cash has increased block size (8mb) but failed to implement Segwit. Bitcoin Private will launch with Segwit and 2 megabyte blocks implemented.

  • How to get Bitcoin Private: Seeing as it is the merging of ZClassic technology with the Bitcoin protocol, both holders of ZClassic and Bitcoin will get 1 token for every token they hold. E.g. if an individual has 0.5 Bitcoin and 15.5 ZClassic they will receive 16 Bitcoin Private

  • When - A snapshot of both the ZClassic and Bitcoin blockchains will take place on the 28th of February (US) and coins will be issued 2 days later to wallets that support the fork

 

The Market

  • This week the crypto asset market recovered from their lowest point since November 2017. Increases were experienced across the board with Ripple being the standout performer (albeit after being impacted the most during the market correction).

  • Most crypto assets are still ~50% below their all time highs in early January.

Egor Sidelska