Dutch ICO project Seal Network, blockchain app and token against counterfeiting of brands

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Adriaan Admin

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Jan 30, 2018
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www.bitcoinforbeginners.io
#1
One of my friends brought this project to my attention. It is called Seal Network by a Dutch team, located in Amsterdam. The founders are 2 brothers with a background in brands and they decided to build a blockchain project with an app, a token and NFC chip (which is comparable with RFID) to attack the brand counterfeiting problem, which indeed for brands is a huge problem that costs them a lot of money. Blockchain indeed seems a perfect solution. The team seems legit, they are quite visible in videos, their location is clearly on the website and they seem to have a professional approach and a good solution. I believe however that there are already bigger projects out there that also address the issue of counterfeiting and I don't know if their solution is better or not compared to Seal's. The token is supposed to be used for payment of the service and people can officially transfer ownership of products on chain so everything is verifiable. They want to become the currency of authenticity and backed by brand product ownership. The token will be an ERC20 on ethereum, however,if they raise enough money, they want to build their own blockchain. If they don't reach that threshold, they will have to rely on Ethereum for their service. I believe softcap was already reached during presale, which is now running until the 12th of May. The ICO should be 13th - 27th of May for what I've found. They also seem to have some partnerships established, so that's good. Further they claim to have a working product in the form of the app; however this will become available in for Apple and Android in their stores later this year; a demo is now available though.

I must admit that I have not done real thorough research into this project so my opinion should be taken with many grains of salt. I do think the project and the team are legit with sincere intentions and probably the capabilities to deliver if a sufficient amount of capital is raised. It will depend if they are able to establish partnerships with enough big brands to create enough network effect for this project to succeed and of course they will have some competition from other major blockchain projects. I am not sure if outside of The Netherlands they have been able to raise enough awareness under investors to really gain traction for their crowdsale. 86.5 million out of the available 492 million tokens (41% of total supply, which is on the low end impo: I prefer a higher amount to be sold in the crowdsale, but that might be just personal taste) for sale have been sold so far.

So although I do like the project and I think they have a good chance to establish a successful product and service (if they raise enough), but I don't think this will be an easy "flipper", so I think I will keep my Ether in my pocket for another more spectacular project. But don't rely on my opinion or my personal considerations, I think the project does deserve to be looked into at least and if this team really can deliver, it could also easily turn out to be a hidden gem!

official website: https://seal.network/
Whitepaper: https://seal.network/seal-whitepaper.pdf

Very interested to hear anyone's constructive thoughts on this project.

(this post is my pure personal opinion, this is no sponsored post, nor affiliate links)
 
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Adriaan Admin

Administrator
Staff member
Jan 30, 2018
231
45
28
www.bitcoinforbeginners.io
#2
Latest update: crowdsale has ended. Apparently from what I've been told, around 100 million tokens were sold, from the 492 million available for sale. I believe that means on $0.08 token price, they raised $8 million. That means they remain in their "soft cap reached" road map projection from the whitepaper. This means the following, according to the whitepaper:

Seal will use existing chips and develop operations organically. Targeted prospects will include only small brands, boutique designers and art collectives.
It also means they will remain on the Ethereum blockchain and will not build their own blockchain. Pro is that their token will benefit from the high security of the Ethereum network, con is that they are very much reliant on the success of Ethereum as well for the existence of their service and that Ethereum will be able to scale to support all applications that are being built on it.

Although their road map is adjusted for the available funds, and it seems their projections don't seem unrealistic, the $8 million is still a limited funding capital that I hope will be enough to execute their long term goals without them running out of money beforehand.

The other side of the "coin" is that SEAL, based on the raised capital, only has a market cap of $ 8 million, assuming that the exchange price equals at least the token cost base from the crowdsale, there is a still a massive upwards potential in comparison with current average cryptocurrency valuations. So there is a potential that this token could be an undervalued gem at this moment. It will highly depend on the team overachieving their own projections and/or be able to attract a lot of attention by getting high profile partnership deals, to come on the mainstream investors radar.

1 thing that I do find remarkable is that they have chosen NOT to burn unsold tokens, but instead distribute them proportionally among all token BUYERS. I believe this is a much fairer approach, as it keeps the original token allocation in balance between investors and "free" tokens, preventing disproportional dilution in the disadvantage of investors. THis means that the token cost base has changed and crowdsale buyers' average cost price of tokens would be around: $8m / 492m tokens = $ 0.016 per token. Crowdsale investors will start to be in profit when the exchange price reaches at least that price of around $ 0.016. Good to keep in mind for the proper perspective!

It is announced that they will be listed on HitBTC soon in BTC, ETH and USDT pairs.

Disclosure/disclaimer: I do not own any SEAL tokens.
 
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