Small caps performance in the bear market series: TE-FOOD review
Since the Te-food (TFD) ICO on February 22 ended in 15 minutes with a successful fundraising of $19,100,000 (USD) I have been following this project closely. I´m curious about the idea of a traceability system in the blockchain, and more when is focused in food and medicine.
But, what exactly is TFD?
TFD tacks items through the entire supply chain (from the farm to the table) and provides tools to consumers.
You can have all the information of the chicken you are about to buy in the supermarket by scanning a QR code, and you will be able to read in the app the whole process of the supply chain of that chicken. But it´s not only a B2C system, is also a B2B so the supermarket or the next business in the supply chain have all the information of the product.
Quick summary of their numbers (December 11, 2018):
Price in USD: $0.07541
Price in BTC: 0.00000221
Market Cap: 3.8 M
Volume: 7k usd
Circulating supply: 505,000,000 TFD
Max supply: 1,000,000,000 TFD
Returns since ICO:
USD: .20x
BTC: .54x
It´s worth saying that TFD is a company working since 2016 with a working product. TFD actually tacks over 200,000 chickens/day and 2.5 M eggs/day in the asian market used by 6000 companies. Though they are expanding, they have decreased in the crypto market. It´s worthwhile to understand why this is.
Is TFD doing a good job in the bear market, even if they are worth 1/5 of their initial value?
Im about to analyse TFD focused on the second half of the year.
Since July, TFD is one of the most microcaps-active projects in Medium I have seen. There are 15 articles about various topics, including partnerships announcements, updates, masternode conditions (KYC required) Q3 progress report, the launch of their testnet and the chainfood.
TESTNET:
The testnet was launched on October 13. The team described their launch of their testnet as: "a HyperLedger based blockchain ledger for food traceability, which — after the launch of the operational version — will store transactions by several thousands business customers of TE-FOOD."
That day the team released this information:
- The hyper ledger based food chain to store traceability data with voting based consensus protocol + masternodes for their second token CAL.
- The blochain explorer of the Food Chain testnet.
TFD remained an ERC20 token.
Maternodes:
Five days after the release of their testnet they announced their Masternode policy.
In the article they were really strict with their vision as they wrote, “We don’t pay masternodes with printed tokens without corresponding revenue backing” (A hard critique to the MN ecosystem)
followed by:
"Many know that while the blockchain/crypto industry promised transparency, it is full with shady deals behind the scenes. We think this is a major obstacle in the road towards credibility and adoption.”
They are implementing a full KYC/AML + user verification. This is something to consider if you are thinking about running a TFD masternode.
Iridium:
Virtual node, it won’t maintain a masternode, thus providing computation power. A part of the customer´s transaction cost goes to the node owner.
Steel:
Is used to run TFD interface to send/request traceability data. A part of the traceability transaction cost goes to the masternode owner.
Platinum:
Is used to verify and store transaction on the TFD blockchain and functions the same as the “Steel.” A part of the traceability transaction cost goes to the masternode owner.
Titanium:
Run complementary services of the ecosystem + platinum functions. A part of the traceability transaction cost goes to the masternode owner.
The ROI still not clear and it will depends on the amount of transaction and the type of MN.
Calories (CAL)
CAL is a stable token (pegged to USD). CAL acts as unit for services on the TFD ecosystem, is generated for the service provider when a service is fulfilled.
Cal is the token economics of TE FOOD. There´s something strange in the article.
In the introduction, the author started with this line, "This token economics is meant to be treated as a temporary one(…) Some usage of crypto — which seems natural from technological or economic viewpoint — still not approved by authorities around the world. We think the next year will bring a lot of clarifications which are necessary to create a long lasting token economics.”
FOOD CHAIN
In November 10 TFD released the Foodchain. It´s a basic interfase but you don’t need more. The explorer is simple and clear. Only 26 nodes were working until today but the numbers of transactions are increasing exponentially. They are still low compared to big market cap projects.
Partnerships:
TFD has been working hard to build good partnerships. Since the third Q of 2018, the team has announced 5 partnerships. The most important are:
Auchan; international retail group present in 17 countries with 58.5 billion USD in revenue. Auchan will implement the TFD system in 5 countries; France, Italy, Spain, Portugal and Senegal. The system will be implemented in vegetable products and chicken.
New Zealand Trade Centre; export trading company helping New Zealand companies achieve global success. NZTC will implement traceability with TFD system on products exported from New Zealand to Vietnam, China and Taiwan.
The United Nations on the Sustainable food system programme; this partnership gives credibility to TE-FOOD and gives more exposure to the blockchain ecosystem in the food industry, TFD can have access to bigger companies such as Nestlé.
But what about the marketing?
Even if TFD has been working hard in the development and partnerships, they need to start working more in marketing. The mass adoption is important for this business to growth and start to report profits. Making people conscious about the importance of knowing what they are eating is vital to this project. Even if they have a nice idea and a good working product, if they don’t have users, this project could die.
The weak point, CAL
Calories, the stable token of the TFD blockchain, could be the questionable point of this project. As the team mentioned in the official article, "This token economics is meant to be treated as a temporary one.” So what´s the point to run a Masternode to accumulate CAL if there is nothing clear about its future? I would like to see how they are going to keep it stable and keeping the masternode owners satisfied (don’t forget they need to lock their tokens at least 2 months).
Technical analysis:
The chart is looking good to buy if TFD breaks the resistance at 24500. Nice inverted head and shoulders are forming, every time the price drops below 20,000 SATs, it quickly bounces above it. With the price at 1/5 the ICO price and the chart looking good, now is a good time to accumulate with a good stop-loss strategy.
TFD a long term investment?
Without a doubt, this bear market hit the whole blockchain ecosystem hard, but that hasn’t stopped the team from developing a solid project. now with a working product and good development TE-FOOD could be a good investment in the long term but don’t forget that this bear market is being a challenge for DEVS and teams to found the operations, a few weeks ago, PRL (another good FA project) made a successful exit scam (Trading in Kucoin at that moment) and ETCDEV leaving the ETC project for financial reasons, so be aware that cryptocurrencies are often a high risk/reward investment and should be treated carefully.
TFD has a good working product, they work as a company implementing blockchain, in their communicates they always emphasize the importance of revenue and a good economic structure before worrying about the token price, the team has been focused on building a solid working product and good partnerships in the second half of the year even if the price is not what they have been expected, in my opinion TE-FOOD is a solid project to keep an eye on.
The information and accompanying material is for informational and educational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to determine what may be best for your individual needs and risk tolerance. Please do your own research.
Nice analysis
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