Project Overview:

Website: https://aion.network/

Aion hopes to develop a federated blockchain network, making it possible to seamlessly integrate dissimilar blockchain systems in a multi-tier hub-and-spoke model, similar to the internet.

While the technology is interesting and the Aion team has extensive experience in the space, the total maximum cap for the token sale is quite high at around $425M, which may significantly limit investor interest.

Scores:

Flip Score                      4
Invest Score                 7
Tech                              7
Team                             8
Buzz                              6
Supply & Demand        3

 

Details:

Main sale:     TBA
Pre-sale: 10/3/17
Registration:       
KYC                      None
Country Excl None
Hard Cap              None
Token                     AION
Price               Based on Dutch auction
% Tokens Sold           50%
Distribution Schedule Depends (see below)

 

The Project

Technology

Aion is developing technology to connect and integrate different blockchains into a single network. Using Aion, for instance, Ethereum smart contracts would be able to transmit data to and utilize data from blockchains outside of their own network. Aion also suggests that with this interconnectedness will come increases in speed and scale, and that their technology will be able to offer additional privacy and security on top of what is provided by the underlying component blockchains themselves.

 

Opportunity

With blockchain adoption and the creation of new blockchains increasing exponentially with each passing week, the opportunity here is huge. Furthermore, there is nearly universal consensus that just as the internet emerged to meet the need of connecting isolated computing systems in the 1990s, something similar will be required to connect the isolated blockchains of today. The major challenge for Aion is that there are already a number of serious competitors in this space, including Cosmos, ICON, Wanchain and Blocknet, just to name a few.

 

Team

The Aion team looks strong:

CEO Mathew Spoke

  • At least 2 years experience running Nuco, Aion’s parent company operating in the block-chain space
  • Board of Directors member of the Enterprise Ethereum Alliance
  • Consulting background at Deloitte with a focus on blockchain technology

COO Kessem Frank

  • Similar background to Mathew, with blockchain-focused consulting experience at Deloitte followed by several years blockchain-related experience at Nuco

Investor/Advisor Alex Tapscott

  • CEO of the blockchain-focused investment firm, NextBlock Capital
  • Author of Blockchain Revolution, a #1 best-selling book in the Banking category on Amazon

 

Progress & Roadmap

Aion has several well-written white papers outlining how the technology is expected to work at a high-level. But as far as we can tell, they do not have any products or prototypes available to the public so far.

Aion’s has laid out a roadmap with three phases. The first phase allows for proof-of-concept inter-chain communication and is expected to be live in early 2018. The third phase, in early 2019, will “finalize the envisioned network infrastructure, providing infrastructure for fast, efficient interchain communication and interchain applications.”

Token

The AION token will be used to pay for transactions on the network. In this way AION tokens will be similar to Ethereum tokens. Payments will then go to network validators who validate transactions through proof-by-solving or proof-of-stake.

 

Trading/Investing Strategy

Similar Projects

From a technology perspective, there have been numerous similar projects, including ICON, Wanchain, Blocknet, Cosmos and ARK. Some of these projects started earlier and/or are further along in the development process than Aion, so Aion will be facing stiff competition in a crowded space.

Because Aion has a large maximum cap, and unique token sale mechanics, we do not believe that a comparison to the post-ICO performance of these other projects is relevant.

 

Buzz

Twitter: 10,600 followers

LinkedIn: 91 followers

The discussion on Bicointalk.org relatively minimal for a project this size. And a number of participants there have raised concerns about Aion’s large cap size, number of direct competitors and lack of a bounty program. However some of the contributors there do seem excited to invest.

Almost no discussion of Aion at all on Reddit, and the company does not have a Slack or Telegram channel. All in all, there is a solid amount of buzz here, particularly in terms of Twitter followers, but nothing exceptional for a project this size.

 

Supply & Demand

There are some concerning dynamics on the supply side here. Specifically, the main token sale has a very high maximum cap and is also quite convoluted and somewhat opaque in its pricing structure. In particular, the tokens will be priced at between $0.75 – $1 apiece (with some complex caveats for early pre-sale investors), resulting in a total possible market cap of something like $425M for the Aion tokens, and a cap of around $225M for those being sold in the main token sale — very large numbers indeed.

Even though demand for Aion’s tech should be solid, they will have to prove themselves against a wide variety of competitors. And while the buzz for the project is huge, it still may not be enough to justify a cap of almost half a billion dollars, with no real product currently available.

 

Buying Strategy

If you’re considering investing in this one, it’s worth carefully reading and understanding Aion’s Token Sale Mechanics page, because there is much more complexity here than in your average token sale.

The bonuses given in the pre-sale itself are relatively straightforward. AION coins start out priced at $0.75 for the first 10 minutes and prices increase in 10 minute increments over the following hour [see here] to a maximum of $1. Based on that, if you do want to get into the pre-sale, it makes sense to buy in the first 10 minutes since the discount is substantial.

Where things get complicated is that pre-sale investors can choose to designate some percent of their tokens as TRS or “Token Release Schedule”. By designating tokens as TRS, the investor agrees to have most of these TRS  tokens “locked up” and only slowly released to him over the course of the year, in exchange for receiving a percentage of any tokens that are not sold during the main sale.

In the context of all of this, something to consider is that it seems fairly unlikely that Aion will be able to sell out the maximum proposed cap of $225M. And if they fail to do that, according to the TRS rules, 50% the leftover coins from the main sale will be distributed among those who have chosen the TRS option from the pre-sale. In that scenario the price paid per-token in the main token sale could be much higher than that paid in the main sale. Therefore, our take here at ICO Intel is that if you’re going to play this one, the pre-sale is probably the way to go.

Note: the pricing rules for this sale are especially complex. Be careful and do your own research on Aion’s site rather than relying heavily upon our discussion above.

 

Conclusions

  • Flipping (Score: 4)

Due to the very large maximum cap size, we think that it’s unlikely that Aion will be good for flipping. If you do decide to flip, playing the pre-sale and getting the substantial bonus for buying within the first 10 minutes is probably the way to go.

  • Investing (Score: 7)

Despite the large cap, an investment in Aion could be a nice high-risk bet in the space of technology for connected blockchains. The reality is that while there is strong competition here, for the one or two companies that come out on top, the payoff will be huge. If you are investing for the long-term, we still believe that getting in on the pre-sale rather than the main token sale is probably the best strategy.

Finally, because the cap is so high, this could be one of those ICOs where if you’re interested in getting in as a long-term investor it could make sense to wait and get in when the token hits the exchanges, because there’s a good chance that the first trade prices on the exchange will be lower than the main token sale price.

  • Important Notes: Pre-sale investors should make sure to understand the “TRS” rules outlined on Token Sale Mechanics page.

 

Additional Research

In the mainstream media:

Techcrunch Article

Bitcointalk.org Threads:

https://bitcointalk.org/index.php?topic=2215642.0

https://bitcointalk.org/index.php?topic=2206362.0

 

 

Leave a Reply

*
*

Required fields are marked *