Overview:

Modum positioned to solve pharma transit pains and allows token holders to confirm success.

modum.io, a Switzerland based supply chain management company utilizes IoT sensors to track environmental conditions that may potentially compromise the quality of products during transit. The company utilizes smart contracts on the Ethereum blockchain to validate and monitor the chain of custody and conditions throughout the supply chain.

Supply chain management is an ideal candidate to benefit from blockchain technology; potentially streamlining the entire chain through an open, immutable, accessible, and verifiable ledger.

Modum.io identified the pharma industry as one with an immediate and critical need for solutions as a focal point. The pharma industry is dependent on automation, logistics, and data integrity to deliver products safely, securely, and timely.

The European Union recently updated their distribution regulations, requiring proof that temperature did not compromise the quality of medicinal products during transportation. It is anticipated that other countries, including the United States, are likely to follow with similar regulation.

Currently this requirement is achieved by shipping all medicinal products, regardless of sensitivity to temperature fluctuations, in temperature-controlled trucks and containers. This yields excess cost.

Fundamental:

The modum solution proves compliance through the blockchain and sensors utilizing IoT technology. These sensors meet pharma standards, are wireless, and integrate with customer systems. Compliance is checked throughout the process and the status is updated in a smart contract with minimal manual intervention. With minimal anticipated cost, the company is capable of adding motion, light, and humidity detectors to the sensors; positioning itself to meet the needs of industries beyond pharma.

Ethereum is the blockchain used to develop proof-of-concept. The company is developing with the intent of delivering a solution that is blockchain agnostic. This appears to be a thoughtful strategy given the nascent industry and potential interest from future consumers using permissioned blockchains.

The modum team and advisors is comprised of considerable breadth and depth. They possess experience in well-known start-ups, pharma, engineering, blockchain, peer-to-peer and decentralized systems, finance, marketing, and legal. The experience in each area is apparent in their accomplishments and strategy to date.

Partnerships and integrations are critical to flourish in this space. Some of modum’s key alliances include: University of Zurich, Trusted IoT Alliance, SAP, and Swiss Post.

Value Proposition:

The modum token, MOD, is a refreshing change to some of the recent attempts on the market at introducing a token with a viable use case. The token functions separately from the product. MOD is a profit-sharing token, giving each holder the right to vote and participate in profits. The token follows a deflationary model with a maximum supply of 27,266,200. At the time of writing, 18,266,200 MOD are in circulation1. The MOD distribution allocated 67% in the pre and public sale (17,366,200 MOD) and 36% were locked for bounties, costs and the team to be released upon milestone affirmation. During the three-week ICO period in September, 2017, modum raised $13,350,000 USD.2

Token holders vote on milestones set to evaluate the team and advisors’ progress. Release and compensation of the team is determined by a majority positive vote on the milestone. Token holders in November 2017, voted on the first milestone addressing proper minting and token distribution of the initial sale. Voting participation was reported as 11.8%, approximately 2 million votes, and reached a 98.5% positive consensus. Three percent of the maximum supply was released to compensate advisors, those assisting in the sale, and the bug bounty participants.

The second milestone vote will determine the distribution of the 30% reserved for the team. It will ask token holders to confirm the launch of the first product line, that temperature and motion sensors are integrated into the hardware platform, and blockchain support on at least one additional platform (e.g. IOTA, NEO, Fabric, ETC, or Rootstock).

When profitable, the Board will meet to determine dividends to be distributed to token holders. My reservation in this investment lies here. To the best of my knowledge, the company’s current financial position is not available. One must assume that there is significant debt in bringing this technology and product to fruition. By purchasing the token, it is not clear the amount of debt that supersedes token/equity holders.

Regular updates can be found on the company site, including an upcoming MOD day in Switzerland on May 24, 2018.

Technical Analysis: By Andrew

 

Initial resistance is found at 2.88.  Look for resistance to be strong at the 3.50 level which has been a level of major support and resistance since the initial rally.  The 0.618 extension from the prevailing bullish swing and the 0.5 retrace of wave “C” where 0.5 retrace levels overlap the 3.50 level, where the 0.5 retrace is often indicative of a move higher or lower depending as to if it is a support or resistance level.   This would be considered a level of importance to break.  Initial target from a bullish stance would be 5.65 to 6.66 with an extended high in the 7.80 area. 

The current move could also be part of a broader corrective wave which can not be discounted.  A break of the 3.35 reduces the probability of a correction in the shorter term.  The initial down trend has been broken and retested and the current move appears to be the initial leg of a longer term bullish trend (based on overall market).  Though it is more likely we are in the beginning of an initial bullish leg, the

Those looking to add Modum to their speculative portfolio may want to add a 1/3 or 1/2 position at the current level as modum is trading just above the 0.618 retrace of the overall swing.  Look to add on a further pullback and bullish reversal signal.  Levels to watch are the 3.5 and 3.82/   Levels to reduce risk would be found above 5.65. 

 

1 Coin Market Cap

2 Etherscan

Modum whitepaper

 

This analysis is provided for informational and educational purposes. Nothing herein shall constitute legal advice.

Photo by chuttersnap on Unsplash

 

Fundamental Analysis by Kara Haas, @dividebynine

Chart and Technical Analysis By Andrew (AKA Goldbug1)

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