Project overview

IoTeX is the next generation of the IoT-oriented blockchain platform with vast scalability, privacy, isolatability, and developability for incubating new IoT applications and ecosystems. They do so with their “Blockchain in Blockchain” architecture which is a network of many blockchains that are hierarchically arranged, where many blockchains can run concurrently with one another while retaining interoperability.

In the IoTeX Network, the root blockchain manages many independent subchains. Each subchain connects and interacts with IoT devices that share something in common, e.g., they have a similar functional purpose, operate in similar environments, or share the same level of trust. If a subchain is being attacked or experiences software bugs, the rootchain is unaffected. In addition, cross blockchain transactions are supported to transfer value and data from subchains to the rootchain or from one subchain to another via the rootchain.

In order to keep all transactions completely private and anonymous, IoTeX integrates stealth address for receiver privacy, ring signature for sender privacy and Pedersen Commitments for hiding transaction amount.

 

Token model

The native digital cryptographically-secured token of the IoTeX Network (IOTX) is a major component of the ecosystem on the IoTeX Network and is designed to be used solely on the network. Prior to the launch of the IoTeX mainnet, the token will exist as an ERC20 compatible token on the Ethereum blockchain, which will be migrated to a token on the IoTeX mainnet when the same is launched.

IOTX is required as virtual crypto “fuel” for using certain designed functions on the network (such as executing transactions and running the distributed applications on the IoTeX Network), providing the economic incentives which will be consumed to encourage participants to contribute and maintain the ecosystem on the IoTeX Network.

 

Whitepaper

The whitepaper is expertly structured in a clear and logical manner. The description of the IoTeX network and all its features (subchains and privacy features) is thorough and detailed. The token model is also clear and easy to understand.

 

Roadmap

iotex roadmap

 

Team

Raullen Chai – Co-founder
Ph.D and Research Scientist in Cryptography at UWaterloo. Head of Crypto R&D at Uber, Security Engineer at Google. 8+ years of experience in cryptography and blockchain.

Qevan Guo – Co-founder
Ph.D in Machine Learning and Computer Vision at National University of Singapore. Engineering Manager and Research Scientist at Facebook. Growth Hacker. Startup investor and advisor. 20+ publications / patents.

Jing Sun – Co-founder
Founding partner of Sparkland Capital, focusing on Frontier Tech, lead 40+ investments and innovations in blockchain, security and IoT. Board director on numerous companies. Extensive experience in startup, investments and building up ecosystem.

Xinxin Fan – Head of Cryptography
Ph.D in Cryptography at UWaterloo. Sr. Research Engineer at Bosch Research. 14 years of research and industry experience in information security and crypto. 40+ publications / patents.

Dustin Xie – Blockchain engineer
Ph.D in Data Security at USC. Staff software engineer at Intel. 12 years of expertise in distributed systems, content protection, hardware video acceleration, network video streaming, graphics driver. Cryptography and blockchain enthusiast.

Tim Pan – Distributed systems
Senior Software Engineer at Microsoft, specialized in distributed systems. Active contributor to open source projects. M.S. Computer Science at Yale University.

Monika Hathaway – Communication
Technology communications specialist with deep expertise in cybersecurity, privacy, networking and emerging technologies.

Kyle Sykes – Creative and Marketing
Expert in marketing, branding and video production for years. Led creative and marketing efforts for blockchain and tech companies, previously worked in BitBounce, Scale API and HBO. Graduated from Stanford.

The IoTeX team is composed of people experienced and knowledgeable in both software engineering and entrepreneurship. They also have an in-house blockchain engineer which means that they won’t have to rely exclusively on advisors on that front.

 

Iotex ICO terms

They are only doing a private sale.

Ticker: IOTX
Token type: ERC20
ICO Token Price: 1 IOTX = 0.0000125 ETH
Hardcap: not available
Sold on pre-sale: 25,000 ETH (closed)
Total Tokens: 10,000,000,000 IOTX
Available for Token Sale: 24%
Min/Max Personal Cap: not available
Accepts: ETH

 

Token distribution:

30%: Community & Ecosystem

25%: Foundation

15%: Team

24%: Token Sale

6%: Community Reward Program

 

Use of funds:

IoTeX has not disclosed how they intend to use the funds raised in the token sale.

 

Community hype

Telegram: 64 576 members

Twitter: 2 566 followers

Reddit: 112 subscribers

 

Strengths

  • The IoTeX team is extremely experienced both in business development and software engineering (including blockchain)
  • Many notable investment funds (Kenetic Capital, Hashed, Draper Dragon, DHVC, etc.) have invested in IoTeX

 

Red flags

  • They haven’t disclosed how much they intend to raise in the token sale
  • Only 24% of tokens are available for the token sale
  • The team and Foundation together hold 40% of all tokens

 

Iotex Ratings

Team: 8.8/10

The experience of the team and their complementarity is exactly what we are looking for in a new ICO. The fact that also already have notable investment funds backing them is a huge plus.

Token Model: 2/10

The governance in their token model is completely centralized which goes against the principle of blockchain. Also, their token is only used as a means of payment between different IoT devices. This will lead in an increased volatility of the token, lowering its market value.

Token Distribution: 5.5/10

The fact that only 24% of tokens were sold during the token sale is an issue since it doesn’t decentralize the network. In the same vein, the founders and the Foundation together hold 40% of all tokens. They however have a “charity bounty campaign” where 6% of tokens will be rewarded.

State of the Project: 3.75/10

Nowadays, it is important for ICOs to have a working product at the token sale or be very close to having one. IoTeX is far from that since their beta is scheduled to released in June 2018. They also have poor communication with the userbase. They have not yet released how they plan to use the funds they raise in the token sale.

Market: 6.4/10

The Internet-of-Things market is very fast-growing and could benefit greatly from the implementation of blockchain technology. The only problem is that IoTeX is not the first project to work on it. Their competitors include IOTA, Hdac, Exxor and many more.

 

ICON score: 5.3/10

 

Conclusion

At ICON Partners, we find the idea behind the project very promising and innovative. The IoTeX team is certainly capable of bringing this project to fruition within the timeframe they have provided. However, the fact that many necessary information around the token sale are missing is concerning. This is especially true since the team and IoTeX foundation together hold 40% of all tokens. In our opinion, they need to be clearer and more transparent with their community if they want to drive mass adoption in the future.

We encourage you to do your own research and come to your own conclusions when investing in an ICO. All the information in this review are either facts or ICON Partners’ opinions and should not be used as investment advice.

 

Links:

Website
Whitepaper
Telegram
Twitter
Reddit

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This document is intended for informational purposes only. The views expressed in this document are not, and should not be construed as, investment advice or recommendations.