LTO Network ICO Review

LTO Network

LTO Network aims to help organizations drive transparency and efficiency while maintaining legal compliance and cutting down operational costs.

LTO Network Score



“Digitalization and automation of business processes offer great benefits in terms of productivity and cost reduction. However, organizations struggle to tap into these benefits for inter-organizational processes, partly due to a lack of trust. Bitcoin has proven how blockchain uses distribution and cryptography to provide a system that does not rely on trust. LTO builds upon this foundation with a decentralized workflow engine, focussing on ad-hoc collaboration. Information is shared between parties using private blockchains (a new chain per process) and hashed on a public blockchain. This hybrid approach allows organizations to meet any data protection regulations and prevents scalability issues that are typically associated with blockchain projects.”

REVIEW VIDEO

review video

TOKEN SALES

METRICS

Full breakdown

LTO Network ICO Review: Token Metrics & Usecase

The LTO Network has 2 separate tokens (not double-use), each issued for specific purposes:

  • Mainnet Token: as the utility token of the platform, it is used to stake or to pay for transactions, and additional functionalities that are still being developed
  • ERC20 Token: it is meant to provide liquidity and limit speculation on the mainnet token. Cannot be used in the platform

LTO ICO wants to solve the inherent selling pressure, bad token growth mechanism and asset restriction that stems from traditional lock-up structures. For this purpose, a new dynamic release module was introduced. Private sale and seed tokens are distributed in mainnet tokens. Crowdsale is distributed in ERC-20 tokens, and they are listed (liquid). Mainnet launches at the same time as the crowdsale, and there is a bridge between the two in the form of a fee curve between the mainnet and ERC-20. The sooner a private/early investor wishes to sell, the bigger the fee to pay. Investors are encouraged to switch to mainnet tokens through a low fixed fee, while the fee from switching to ERC20 tokens will be very steep and gradually decrease. Fees are burned, which maintains demand/supply, and the token exchange ratio is 1:1. The structure is as follows:

  • Seed round represented 13% of total supply and investors had a 40% bonus. As mentioned above there is no lockup, but a system of economic restrictions instead
  • 29% is allocated for private and crowd sales. Crowd sale will exclusively feature the ERC20 tokens, which will most likely be released upon exchange listing. Private sale is in mainnet tokens and features the same system as the seed round. Bonus is made on a case-by-case basis
  • The foundation gets 10%, locked for a year and then released in small unspecified amounts
  • The team is keeping 17% of supply, 33% of that being released after 8 months, with 33% every 2 months after
  • Only 4% is allocated for advisor and contributor reward, which is locked for 7 months
  • 15% is reserved for the ecosystem fund
  • 12% is being kept for marketing and partnership purposes

LTO Network Model for Token Vesting: Troll Bridge 

Many ICO investors understand the problems with the current token vesting schedule. Most projects include some form of vesting schedules to unlock their tokens. This is meant to prevent price dumping during the first month on secondary markets. However, what actually happens are steep stair like price drops in anticipation to the approaching unlocked tokens. 

The result is a higher volatility and increased pump & dumps. LTO Network came up with an innovative solution to this problem called the Troll Bridge. 

 

 

ICO DOG Review Troll Bridge LTO Network

Private sale and seed tokens are distributed in mainnet tokens. Crowdsale is distributed in ERC-20 tokens, and they are listed (liquid). Mainnet launches at the same time as the crowdsale, and there is a bridge between the two. There is a bridge fee curve between the mainnet and ERC-20. And the sooner you exit, the more fee you pay as a private investor. If you fulfill your promise of being a strategic investor, you exit both with the bonus and the principle. Fees are burned, maintaining demand/supply and making it a perfect way to reward holders and private sale investors. This lets any private sale investor choose when they want to exit the position.

This new unlock strcuture incentivies two major aspects of a coin. Firstly it mitegates selling pressure by burining tokens of the seller, while at the same time increasing buying pressure by reducing the total token supply. In theory the Troll Bridge should create a increased token price on secondary exchanges as well as stablize it.

Its an interesting concept that, needst to be frist tested in practice to see the true marits of the system.

Token Prices for Investors

The following numbers are a on average cost per token for different investor stages. They are not the exact numbers, but approximation of the numbers that were shown publicly. 

20% from ICO at 3 Cents (Crowdsale Price) 
3% crypto Seed investors at around 0.4 cent (15% of seed investors that invested in crypto)
23% fiat seed investors at 2.00 – 2.25 cents  (75% of seed investors that invested in Fiat)
53% Private investors at  2.4 – 2.5 cents (Private sale investors at discount of 40%) 

We also want to add that we love their transperency in regards to all investor rounds. To give a comparision of other metrics, ICO Investors of certik are paying 112x times more than the seed. 

Token Metric Evaluation:

15% of 1,4M is 210,000 USD. Buying an ICO in december with ETH is more or less the same as shorting Etheruem, which is also the main reason why all the ICO that came out recently dumped so hard. 

To explain this better lets look at someone that invested at the seedround. Team told me ETH was at $750 USD. Currently ETH is at 123 (29.11.18). Token Price of 3 Cents

750 / 0,03 = 25.000 Tokens per ETh

123 / 0,03 = 4100 Tokens per ETH

25000/4100 = 6,1x more tokens per ETH.

Amount of Free coins = ((1.4M Seed Money * 15%) * 6,1) – 210.000) = 1.07M USD 

Lets run that through the Troll Bridge = 1.07 * 0,55  = 0,48M or $480.000 USD that can be made from the fiat investors of the seed round. 

Usually this would be a red flag, but the troll bridge also burns all tokens that go over the bridge. Therefore if fiat investors want to flip their Crypto investment and instantly make their $480.000 Profits USD, they will also need to burn: 480.000 / 0,03 = 16.000.000 Tokens. This would reduce the percentage of total tokens from 42% to around 38% 

This cacluation does not include the 40% bonus given out as we are only focusing on the devaluation of Ethereum. 

Metric Evaluation Conclusion

Based on these calcuations, we are still bullish on the short term gains of LTO. The Troll Bridge double incentives users to hold their tokens, as they will pay double the price for burning their own tokens, while at the same time reducing the overal token supply. Investing in ICOs in a bear market is never easy, due to the falling price of Etheruem, however with the Troll Brdige and only 15% of the seed round funds being sold in crypto, we remain bullish on the short term gains. The team told us they will have some more marketing tricks that they will launch before they will be listed on any exchange, which should boost the buying pressue enough to prevent major token dumping. 

Green lights

  • Highly informative economics, technical and visionary papers
  • Full transparency towards investors
  • Not merely an ICO project – company founded in 2012
  • Not “just for show” advisors with active roles in the project
  • Working demo
  • Working partnerships, including one with POA
  • Use of own-chain rather than existing chains avoids direct competition
  • Lots of potential clients.
  • Mainnet Launch at ICO with first client already onboarded.
  • Real usecase for blockchain that will save their first client 36.000.000 EUR.

red flags

 

  • Moderate competition on some of the intended functionalities
Full overview

LTO Network ICO Review: Overview

Cryptocurrencies may have grown in hundreds of billions USD in market cap, but so far blockchain barely shows any significant, actively used real-world applications. In order to make blockchain a success – regardless of the project – expectations need to be properly managed and a long-term realistic plan created. The LTO Network attempts to follow this view at every step of the way and become a toolkit for Trustless Workflows. LTO’s vision encompasses the development of decentralized workflow automation, horizontally scalable, data privacy, p2p communication & event validation. LTO Network is focused on real-world decentralized workflow applications for enterprises, governments, and standalone projects.

LTO Key Aspects

  • Live contracts: Goes beyond the purpose of determining state like in SCs and actively instructs humans and computers about steps in a workflow
  • GDPR compliant B2B blockchain: Data privacy considerations facilitate processes, such as data that can be collectively erased in order to comply with data protection regulations
  • Horizontal scalability: Services are stateless and can scale independently
  • Permissionless private blockchain: Organizations can form ad hoc collaborations without requiring permission from a third party
  • Truly On-chain: Business process actions form a private blockchain, meaning everything is on-chain
  • Peer-to-Peer communication: Nodes will directly send information to each other, rather than broadcast it to the entire network

LTO Network ICO Review: Product Progress

LTO Network started working on their Product around december after their seed round. In which they raised $1.4 USD from which 85% was paid in fiat and 15% in BTC, Waves & ETH. 

Since then LTO incorporated their first client with the Ministerie van Infrastructuur en Waterstaat. LTO helps existing companies with their legal workflow expenses by automating the process and making it transperent on a sidechain of an permissionless public Blockchain.  LTO Network enables organizations and governments to collaborate on equal footing by using trustless business processes. Integrate existing apps and systems, increasing security and transparency while maintaining data privacy and GDPR compliance.

LTO Network: Existing Clients

SUPPLY CHAIN

Waste Transport for Netherlands and Belgium (Full Overview)

Belgium, the Netherlands, Germany and other public and private agents: Waste Transportation ILT (European Union tender winner)

Dutch and Belgian governments, together with other public agents, AVR and Indaver, cooperate on the waste transportation solution as part of the EU tender LTO Network won in 2018. Our partner Capptions is developing the UI, which is then integrated with LTO Network backend solution. EU governments supervise the removal and transportation of waste to and from other EU countries, connecting multiple agencies to manage the operation. It formerly relied on manual, paper heavy processes, but by using LTO Network blockchain, the authority aims to free up human resources for other tasks. The LTO blockchain infrastructure provides an immutable way of verifying data about the weight of the shipment and the quota, making interactions among the parties trustless and secure. Data is being shared only across the stakeholders — since it has to be done in a GDPR compliant way. 

From our call with LTO Network, following numbers arise. 

LTO Integrationg reduces the anual cost for the Waste Transportation ILT by almost 30.000.000 Euro. 

Real usecase breakdown: Hard facts

For one waste dispense between to countries, on average 30 workflow actions apply to a truck. The ILT dispenses around 600.000 Process anually. For each workflow process they are required to spend 1 LTO for a transation. They therefore require 18.000.000 Million tokens and need to pay around 4M. 

INSURANCE

DEKRA: GDPR compliant automated third party data-handling

After a successful pilot with LTO Network that entailed the streamlining of GDPR agreements between international insurance parties in which the finalized document was notarized through using Proof-of-Existence, the next step is integrating LTO Network to run and automate the processes on which DEKRA works together with other stakeholders.

REAL ESTATE

Deloitte, MSeven, OSRE, Merin, Stena, CMS Law: automation of rental agreement lifecycles as Live Contracts

Merin, M7, Deloitte and other corporate real estate giants are working with LTO network on creating an automated document management tool on blockchain. FSM workflows can define commercial lease contract lifecycles as Live Contracts, which are paperless, remove multiple operational frictions among the parties, and have a lot of cost-cutting advantages over existing solutions.

‘LTO Network aims to redefine the classic contract as we all know it today, through adding automatization and collaboration to it. The result: A dynamic contract process that allows for interaction on the property lease process involving multiple stakeholders.’ — Niels Bruijninckx, Senior Manager, MSEVEN Real Estate

NOTARY SERVICES

Firm24, Damste Notary, Hekkelman Notary, Lint Notary, and 20 more notaries firms

FIRM24.com is the largest provider of the legal incorporation market in the Netherlands, having around 15% of the entire market share. On the platform that FIRM24 is using, the incorporation workflows include shareholders, notaries, bookkeepers, banks, etc are connected in the incorporation life cycle (Live Contract “incorporation”).

 

 

 

Proof for all Client and Collaboration Partners are uploaded on a public cloud account: contracts, letters of engagement, functional pilot projects descriptions.

Check it out here.

 

LTO Network
DETAILED ANALYSIS

ICOs Found

ADVISOR SCORE

Medium - High

  • Advisors have little blockchain experience but are experts in respective fields
  • Advisor’s roles in the project are explained in detail (no “for show” names)
  • All advisors are active within the project

TEAM SCORE

Medium - High

  • Core team has worked together for 4 years
  • Professionally experienced
  • Bigger interest in showing project results than marketing
  • Great Marketing team with ex CMO of ICODrops
  • Great business development team. 

HYPE SCORE

Low - Medium

  • Telegram community is growing by the hundreds in recent days, but with limited engagement
  • Some mainstream news have covered only a particular usecase of the project
  • Modest twitter following

TOKEN SCORE

High

  • Most likely no lockup for ERC20 sale tokens, or until listed exchange (TBA)
  • An innovative new form of Vesting Schedule called Troll Bridge
  • Private sale and seed round in mainnet tokens have no lockup, but have rigorous economic restrictions that encourage holding.
  • ERC20 and mainnet tokens have different purposes and are interchangeable
  • Part of the private sale tokens is bought directly by customers to use for their company.

Hype & Exposure

LTO Network ICO Hype Review:

Legal Flings

LTO Network has made a lot of headlines with their App Legal Flings. Legal Flings is an app that allows users the ability to legaly consent to sex and store that data on an immutable blockchain. In itself the App is pretty useless in most countries with some small exeptions like the U.S and sweeden (Luckely). 

However Legagl Flings became a viral thing and was talked about on national TV of several countries. Evaluating the teams effort on building real world usecases for blockchain, we believe that they built the entire app to demonstrate the possabilities that LTO is capable of. 

LegalFlings went viral and became a massive marketing hit for LTO Network. We at ICO DOG first found LTO via an article on LegalFlings. We love this form innovatiative marketing and wanted to point it out as well. 

TEAM

Rick Schmitz

CEO

Arnold Daniels

Lead Architect

Martijn Migchelsen

CFO

Sven Stam

CTO

Martijn Broersma

COO

Ivan Golovko

Strategy and Investor Relations

Moesjarraf Jahangier

Senior Backend Developer

Yevhen Horbachov

Lead Frontend Developer

ADVISORS

Michael Egorov

CTO of NuCypher, former software engineer at LinkedIn

Sandor Klein

Vice President of International Sales at Docker

Pedro Irujo

Advisor at CEMEX Ventures

Femke Stroucken

Civil-law notary/notaris at CMS

PARTNERSHIP

Business Partner
Business Partner
Business Partner
Business Partner
Business Partner
Business Partner
Business Partner
Business Partner

CONCLUSION

LTO Network ICO Review: Conclusion

The LTO Network is a very ambitious project that has all the right ingredients and the appropriate recipe to succeed. The technological features have been diligently developed by an experienced and serious team, the innovative token economics system, and the uncanny transparency and amount of information shown throughout the development stages seem to be a much-needed break in the ICO space.

Real-world use and adoption are the main keywords of this project, so short-term investors will be frustrated at the way the token economics are managed. True long-term investors and potential users of the platform are the ones that will potentially truly benefit.

The self-imposed limitations behind the live contracts in contrast with smart contracts might be seen as a block to the level of adoption that the LTO team is aiming for. The team however already has products in demand for several businesses, and the revenue to show for it. We are confident that this tool will see real-world applications in businesses throughout the world once it officially launches.

 

ICO DOG Mentions:

Personally I think the LTO Network is one of the most advanced ICOs in terms of actuall business usecase and tech development that I have seen all year long. Last time I seen an ICO with such a potential was Power Ledger in 2017. Although I have not gone through all the integrators and are still waiting for the replies from several of their clients and partners, most things have already checked out. 

The team has proved to be innovative and adaptive. I am very impressed by their troll bridge model as well as the legal fling marketing stunt. The amount of progress that the team has made since decemeber is impressive (well at least in the ICO space). LTO is a prime example of how Blockchain can be used to provide real world value. We hope that LTO will be the frontrunner in the first real utility tokens ever made.  After evaluating all their clients and once their partners will be confirmed, we will personally invest in LTO Network. 

 

8.4

ADVISOR

8.3

TEAM

4.8

HYPE

7

TOKEN

platform

CATEGORY

All information including our "Grading system" rating, is provided merely for informational purposes. ICO DOG does not provide investment advice (read more).

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