[Alert] Suncontract - Another Sketchy ICO
Slovenia based SunContract is currently looking for suckers to send Ether to their smart contract and "Join multi trillion energy market potential" [sic]
Don't be one of them!
What is SunContract?
In short, it's a shitcoin.
Here is their video presentation:
Now don't get me wrong. I'm all for trading energy on a blockchain and choosing from a free market of energy suppliers.
However such a system is far from reality, especially in the socialism infested European Union.
The reality is that a nation's power grid is in the hands of a quasi-monopoly if not owned by the state itself. Deeply entrenched and corrupt interests are at work here.
The prospects of your little blockchain startup disintermediating the power utilities are little to none.
Mabye some time in the future with a much higher penetration of solar power locally owned micro grids will become feasible.
Which leads me directly to...
Red Flag #1: The missing piece of the puzzle
Let me quote from SunContract's so called "whitepaper":
SunContract is a platform that directly connects electricity producers and consumers into an electricity pool based on smart contracts, which is a new, exciting and positive approach toward peer to peer electricity trading.
Rob has a solar roof and wants to sell Tom his excess energy.
Tom wants to buy energy from Rob and they have agreed on the terms on the suncontract blockchain.
Isn't there something missing?
How about a power grid to get energy from A to B?
How does their system interface with the grid?
Are there any partnerships with the grid monopolies in place?
On which terms can they access a European power grid?
In their FAQ we find this gem:
Considering that the longest undersea power cable between the Netherlands and Norway is 580 kms this FAQ is downright silly.
Depending on the amount of ETH they raise they talk about "national" and "international" levels.
In their FAQ we find this:
We found a solution to provide SunContract service within existing regulatory framework in several EU countries, for instance in Slovenia, Austria, Germany and also in some Middle Eastern countries like UAE (Dubai), Jordan and Turkey.
And what exactly is this solution?
SunContract's proposed project stands and falls with access to the power grid, yet the give absolutely zero information about this crucial piece of the puzzle.
After reading that long list of countries it sounds like they have no idea where they are going to start.
So much for a solid business plan.
SunContract might think that they are using a "new, exciting and positive approach" but they only talk about their app and tokens and rainbows and unicorns.
Where is the improved efficiency?
What exactly makes them better?
We are better because BLOCKCHAIN! And we got TOKENS!
The world is your oyster:
Electricity is a resource that is used every single day in the entire planet. Given the prices that are now on the market, we will offer a cheaper alternative to everybody. That is why we consider the whole world as our potential market.
How exactly they want to improve upon existing energy utilities that own the power grid and have billions of dollars at their disposal is beyond me.
At least in Europe one can already choose one's energy supplier and switching is quick and easy.
If they were implementing this together with some kind of local neighborhood micro grid it would make more sense.
Unless there is any information on which terms they interface with which grid this smells like a shitcoin.
Red Flag #2: Uncapped ICO
Most businesses have clearly defined capital needs. An uncapped ICO is simply greedy.
Buy hey, at least you can make multiple deposits!
Red Flag #3: Will the real Satoshi Nakamoto please stand up?
Apparently Tomislav Mučič, SunContract's blockchain consultant started working on blockchain technologies almost 17 years ago, a full 8 years before Satoshi Nakamoto invented the concept.
I refrain from digging deeper into the makeup of this team because I would just be wasting my time.
At this point it should be clear that I have absolutely no intentions to invest in this shitcoin.
I'll leave it up to you what you make of clearly made up credentials.
I could go on and on about this project but as this looks like a haphazardly thrown together website and whitepaper with little to no substance I'll end this here.