ICO Cleyond project Review - FFC Media

ICO Cleyond project Review

Name: Cleyond
Token Symbol: СYO
Web: https://​cyo​-token​.com/, https://​cleyond​.com/
GitHub: https://​github​.com/​c​l​e​y​ond
Documentation: White Paper
ICO status : processing
Pre‐sale: 15 September — 30 November
Public sale: until January 15, 2019 (according to other data, until March 1, 2019). It will be ended earlier if hard cap collects.

The project produces tokens, which are based on the Ethereum standard IEC‐721. The total number of tokens 31,25 million, 25 million of them were for sale. The price of token for pre‐sale is 1.5 euros, for crowd sale — 2 euros. The minimum limit for the purchase is 10 tokens. You can buy tokens for MTC, TN, dollars and euros. Residents of the USA, Singapore, China and a number of other countries cannot participate in the token sale.

Softcap is not installed, hardcap is 50 million euros. The company is registered in Germany and has operated since 2017. It used the technology of garbage processing, which is developed since 2012.

Project Summary

The project is going to solve the problem of pollution the oceans with plastic waste by recycling garbage into high‐quality products: granulates, which are made of polyethylene and polyamide. Recycling garbage leads on the Clean LOOP technology, which allows to turn polyethylene and polyamide tapes into initial components with almost no residue, and to obtain high‐quality raw materials without burning, without the using of toxins and almost without waste.

The problem of pollution the world ocean with plastic waste is real: every year 8 million tons of plastic gets into the ocean. This issue is being actively discussed at the UN and at the interstate level, and many other companies are already trying to solve the problem. At least some of them have the support of governments as well as major environmental organizations. It is not clear what are the advantages of Cleyond, who exactly and how many will buy their licenses (and the growth of the token rate is possible only if there is a high demand for them). Nevertheless, Cleyond plans to cover a part of the German, and then — the European and even the world market for recycling plastic waste.

The team wants to scale the project by selling licenses to use Clean LOOP technology.

You can buy a license to use this technology only for CYO tokens. The cost of one license — 750 000 CYO, that is 1,125 million euros at the price of pre‐sale and 1,5 million euros at the price of token sale. The price at the expected cost of a token of 10 euros will be 7.5 million euros.

In addition, the project plans to expand the scope of application of this technology for the reuse of other types of waste: for example, plastic coated paper or plastic bottles. It is reported in the White paper, that the recycling garbage process has approved by the technical supervision of the German TÜV.

The developers claim that the recycling garbage process by Clean LOOP technology is much cheaper than other methods of garbage processing, and much more attractive from a financial point of view, but they do not give specific figures and specific comparisons with competitors. Also according to them, the developed procedure of waste recycling is environmentally friendly: it requires only heat and a non‐toxic solvent, the name of which is not in the documents.

The team promises to increase the price of the token to at least 10 euros for investors: this is probably done to raise capital, but at this stage the promised yield looks doubtful and directly contradicts the requirements of the USA securities and exchange Commission.

Promised minimum yield of tokens from WP project

CYO — the so‐called branded tokens. There is information on the project website that any owner can write on his coin a name, slogan, «message to the world» or any other information that will be stored in the blockchain. It sounds pretentious, and it seems that this idea is purely for marketing purposes.

What does the blockchain have to do

It is unclear why blockchain is needed and what advantages it gives to the project. There is a feeling that the blockchain is used only to record information about the owner on the token. It is unclear whether it will bring hype. Rather no, than yes. Blockchain is not needed for the recycling garbage process.

Project Team and Advisors

The whole project team is from Germany.

Andreas Nold — general director and Jürgen Pfister — head of the Supervisory Board, before Cleyond he has worked for many years in the German company for the development of icubic AG.

Special mention deserves Prof.Dr. Hans‐Jürgen Gnam, an expert in biochemistry and waste management: there is mention in his LinkedIn profile about working on Cleyond, while there is no mention about working at this company on the company website, and the professor is presented as a university lecturer. There is mention in the WP, that one element of the marketing policy will be its lobby and coöperation with R & d universities.

Hagen Hübel separately underlined among other advisors. He is a specialist in blockchain and smart contracts. He is presented as a developer of Ethereum and EOS, a specialist from Silicon valley. He has a page on Github. Also we saw among the advisors the lawyer Michael Brenner, who is responsible for relations with regulators and legal purity of the project.

Friendliness to investors is low

The project website is available in English and German. There are 9000 subscribers in the Telegram chat, but instead of answers the team members asked to send questions to e‐mail. There are many followers on Twitter.

Positive indicators

  1. A promising idea.
  2. The project has been working in an environmental field since 2012: during this time the team has developed CleanTech technology and built a plant in Memmingen, Germany.
  3. They plan to sell licenses for working technology

Negative indicators

  1. There is no so good description of the business model and also no comparison with competitors. Although recycling is certainly a promising idea, it is not clear what will ensure a high demand for licenses.
  2. It is unclear when and where the listing will be.
  3. There are differences in the dates of crowdsale in different sources. Pre‐sale was extended for a month and a half, until November 30: it is possible, that they have not collected the expected amount.
  4. Big hardcap, although the team declares its intention to develop the project regardless of the amount collected.
  5. The use of blockchain is not reasonable.
  6. A long road map until 2022.
  7. Friendliness to investors is low

Summing Up

We put 4 of 10

They should have highly competitive technology in such a promising but competitive field. Also they need a well‐developed business model and analysis of competitors for recycling. Because there no these advantages, it is doubtful that the project will be competitive and technology licences will be in demand.

And although we see the calculation of the profitability of the plant, it seems that the project team forgot about the ravines. It is even strange, that this the German team.

The use of blockchain is not reasonable, and resembles an attempt to create an unreasonable stir around the project. The same idea is prompted by the promise of the minimum price of the token after the token‐sale — the Germans promise at least a seven‐fold increase in the token rate. We’ve heard that somewhere.

Despite the presence of existing business in its field, the project caused distrust, which the team could not dispel.

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