Every day dozens of new tokens are announced. We go through them all to find the cream of the crop – giving you the scoop on top ICOs before anyone else.
After looking at 30 token announcements, we’re picking Invox Finance as our ICO of the Day.
Invox Finance is a platform for invoice financing.
Premise
Invoice financing is a type of financing where a company sells its invoices to a third party, which provides them with immediate cash. This is essentially similar to a payday loan – but for companies rather than individuals.
Invoice financing is a large market, measured in the trillions of dollars, but it still has plenty of risks and challenges. Clients of a business may become insolvent and unable to pay an invoice. Companies may issue fraudulent invoices for services or products which were not delivered. Interest rates can be very high.
Invox addresses these issues through a distributed peer-to-peer lending system which connects individual investors who want to make money on interest, with businesses which need immediate cash, as well as the client companies of those businesses. The platform connects invoice sellers, buyers and individual investors, allowing for better transparency and lower costs.
Invox’es crowdfunding model gives companies access to a new source of financing. For investors, invoice fragmentation(where a large invoice is split into smaller pieces) allows regular investors to finance larger invoices and also manage their risk, as each fragment comes with its own risk profile. A tokenized reputation system also helps reduce counterparty risk, and smart contracts are used to make sure every party in the deal upholds their part of the bargain.
Team
The Invox Finance team has a background in traditional invoice financing. Their company ABR Finance has issued more than $30million AUD in financing since its founding in 2012. While the team has very strong finance and business experience, we would like to see more engineering talent on the team.
While it’s not a dealbreaker since development can always be contracted out, having engineering talent on the leadership team helps make sure the project’s technical and business goals are aligned, and that the scope of the project makes sense and is executable.
Token
The Invox token is used for fees on the platform, and also to create an incentivized reputation system. It’s used to reward companies selling invoices(sellers) and their clients(buyers) when a successful transaction goes through, basically when an invoice is verified as legitimate and subsequently paid.
The token sale will be hard capped at $17 million and is for 55% of the tokens.
Risks
As with any disruptive technology, the success of the project depends on successful adoption by the industry of the new system. Invox presents enough advantages – less paperwork, less counterparty risk for investors, more funding options for buyers, that there are good incentives for industry players to adopt the news system. We also like the fact they are invoice financiers themselves with signficant experience in this space, and plan to use this project in their own business.
One other risk in terms of the ICO is that invoice financing is a concept which needs a bit of explaining to normal investors. This may limit its hype factor compared to other, easier to understand projects.
Summary
Invoice financing is a significant financial market today which is ripe for disruption. Invox Finance provides several key ingredients – namely crowdfunded financing, digitization and recording on the blockchain of key documents, automation of key processes such as distribution of funds, and an incentivized reputation system. These have the potential to make invoice financing more transparent, safer, and at the same time expand the market.
As with any disruptive technology there are significant risks, but overall we like this project and are happy to pick it as ICO of the Day.
Bitcointalk | Whitepaper | Website | Telegram | Twitter | LinkedIn
All Logos and Images property of their respective companies.
Disclaimer: ICOBriefing does extremely early-stage research of token offerings. As the project progresses, details may change significantly or completely. Always do your own research and do not invest more than you can afford to lose.
ICOBriefing does not claim to provide financial advice or endorse any particular token. Investing in ICOs is very high risk and you may lose most or all of your investment. We are not responsible for any of your investment losses.