CORL Whitepaper Review: Pro/Con

Hello Steemians, I am a small time investor and crypto enthusiast. Sometimes I come across a project in crypto space I feel compelled to write about as part of my “DYOR” process. Doing so helps me better understand the technicalities of whitepapers and judge risk/reward for investments. If you believe I have left overlooked something important, please leave a comment, as you will be not only helping future readers but also myself.

CORL is a federally registered, Canadian LLC that plans to serve as a venture capital provider to emerging technology start-ups. Small business can apply for loans from Corl in order to fund the launch or expansion of their business. Unlike a bank loan, which has a set payment due each month, the small business will repay the loan on a sliding scale each month, determined by how much revenue they collect that month. If a company takes several months to begin bringing in revenue, then they would not have to worry about covering their loan for those months. This seems like a much more forgiving and flexible alternative to bank loans. Another difference is that the entrepreneur of business who received the loan from Corl maintains full ownership of their company and would not assume any personal liability from the loan.

Once the borrowing company starts collecting revenue, 2 to 10% of the gross revenue will be automatically deducted from their bank accounts until a predetermined payment cap is reached, typically 1.5 to 2.5 times the original loan amount. As part of the loan application process, companies grant Corl access to payment, accounting and banking systems to determine and deduct these payments.

Corl is raising funds to begin making loans through an ICO. Like many ICO’s Corl tokens can be obtained by sending certain cryptocurrencies to Corl’s cantract address. Potential investors in Corl must submit KYC (ie. government ID) documentation and take a suitability assessment prior to being able to participate in their ICO. This assessment is intended to tell Corl how much rick it’s backers would be willing to take when choosing between loan applicants.

Pretty standard finance stuff so far, but now it gets a little more interesting… in their ICO, Corl is selling 100% of the equity ownership of the company. Compare that to other ICO’s who commonly only sell 40-60%, retaining the rest for themselves.

Corl tokens will give investors 100% equity ownership, but not confer any decision making or voting rights within Corl. Those will be kept exclusively within the Corl team. The tokens also provide a system of dividend distribution. 10% of Corl dividends will be distributed quarterly, proportional to the number of tokens each investor holds, in the form of Ethereum directly to the token holders wallet. The remaining 90% goes back into Corl to grow the loan portfolio and pay the Corl team. Corl team motivation will be to build a solid and highly profitable loan portfolio, which will increase dividends to token holders and themselves.

Pros: Personally, I really like the way Corl has laid out their token structure. The Corl token market will not be influenced by the Corl team in order to pump-and-dump their own coins, that is a good thing. The team is very professional with lots of experience. The Corl platform is practically ready for full release, having been in beta phase for quite some time. If you want to be part of the emerging technology investment movement Corl can be a great place to start, particularly for those of us without millions of dollars in the bank.

Cons: I believe Corl tokens will have lower liquidity than most; the Corl team will not be highly motivated to get it listed on exchanges because they don't own any to sell-off. Secondly, Corl tokens are classified as security tokens, security token regulation is up in the air right now. Lastly, Corl tokens will probably have low dividend payouts at first, as the investment portfolio will take time to mature.

My closing thoughts: Corl’s ICO has been postponed, presumably untill security token regulation has been established. I feel that this is a great project and will definitely try to be part of the ICO, if it happens. The Corl team has made it clear that being regulatory compliant is a key part of their project, so if our governments decide to ban security tokenization Corl may be forced to abandon the ICO route and pursue more traditional avenues of funding. Hopefully that will not happen because I feel that being a Corl token hodler will be a great long-term investment.

Do Your Own Research:
Corl Website: https://corl.io/?ref=kI3Acfn70R
Corl Whitepaper: https://corl.io/resources/whitepaper/CORL-Whitepaper-en.pdf