Midgard Research ICO Review: Lition

PROBLEM & SOLUTION Description

Lition is developing scalable public-private blockchain designed for enterprises and different commercial products.

Problem

Сurrently most of the blockchain projects do not satisfy real-world businesses needs. Adoption is a key problem for blockchain start-ups and to tackle it the platform must have these key features:

Reliable infrastructure that can be easily integrated into the existing businesses.
Сlear competitive advantages over non-blockchain solutions (Ex. expenses, speed, scalability, quality … etc) and value proposition.
– Already established long-term relations with the biggest companies in the industry so-called trust factor.

Solution

Lition formulates their vision as:

The objective is to develop an easy-to-use and easy-to-develop blockchain infrastructure.

Key facts about Lition:
Data privacy – Sensitive data is stored on private sidechains. Fully compliant with data privacy regulations (like GDPR in EU).
– Low costs and scalability – Every new sidechain increases throughput. Smart contract execution price is $0,01 with 3 sec block confirmation time. (Bitcoin have 10 min block confirmation time on average)
– Key industry partnerships and experience  – Lition is co-innovating with SAP(A giant producer of software for enterprises) to deliver solutions for different industries (Ex. healthcare, automotive, travel etc.).
– STO (Security Token Offerings) platform –  Lition is made for European regulated STOs.


MVP AND USE CASES

The Lition team has successfully held its testnet launch event on 28th of February at the SAP Data Space in Berlin. They showcased private/public layer 2 infrastructure with deletable data features. Demo of energy exchange is available for the public.

There are a lot of different applications of Lition`s infrastructure available in whitepaper.

The most notable are:

Banking and STO
– Lition has signed a contract to develop an MVP for a syndicated loan together with Fidor Bank, leading bank, (~1 trillion USD total assets) and a real estate development company (>100 million USD).

Other use cases:- NETWORK EFFECTS
– in the energy industry:
– ELECTRIC VEHICLES
– SMART GRIDS
– CERTIFICATES OF ORIGIN
– HEALTHCARE
– ENTERPRISE DATA MANAGEMENT
– and more


PEER ANALYSIS

Since Lition plans to develop a lot of use cases for their platform it will compete with different projects in their niche:

Infrastructures – due to the wide range of Lition’s applications we can compare it with the biggest infrastructure projects – Ethereum, NEO, ICON etc.

Energy consumption industry – Lition has already available energy exchange MVP, thus it can be compared with projects like Powerledger (40mln $ market cap), ElectrifyAsia (1mln $ market cap), WePower (7mln $ market cap).

Banking and loan. Lition can be compared in this niche with SALT, Sweetbridge, NEXO, Lendoit, Lending Block, MyCreditChain etc;

Healthcare (connect patient and medical service) with Mediblock, Irio network, Solve.Care, TrustedHealth, etc;

Certificates of origin with Wabi, Te-food, Morpheus Network, IoT chain; and a lot of other possible industries


ROADMAP

Lition has a detailed roadmap covering the period from the foundation of the company at the end of 2017 to the Mainnet 2.0 release with a full set of features in 2020.

Highlights on the roadmap:

-Q4 2017 Company incorporated
-Q1 2018 A release of beta version P2P energy trading app and connection first green power plants to the platform
-Q4 2018 Seed funding round completed
-Q1 2019 Testnet 1.0 public release, ICO (March)
-Q3 2019 Mainnet 1.0 public release
-Q1 2020 Mainnet 2.0 release with a full set of features


TEAM & ADVISORS

Lition has a solid and experienced team that consists of 27 specialists in different spheres. The team has vast experience in the business administration, legal, finance, tech and development, marketing.

The team is presented on the website in the following four sections: Leadership Team, Active Advisors, Core Team, Technology Team.

Leadership Team

Dr. Richard Lohwasser is a co-founder and CEO at Lition project. His background is impressive. At 17, Richard developed and founded the start-up Clanintern, which is a Top-10 website in Germany with over 1 million page impressions per day. He completed a 5-year university program in 3 years and he completed a 3-year Ph.D. program in 1 year.

He has worked in big German and international companies like ExtraEnergie (Germany’s top 3 independent electricity suppliers), Vattenfall, McKinsey Digital. Also, he is a founder of two start-ups at the moment.

Dr. Kyung-Hun Ha is a co-founder and COO at Lition project. He is a senior IT specialist and a founder of five startups in tech and e-commerce sectors. He has worked at Vattenfall, Mercedes-Benz Bank. Being the founder of the project, he is currently working as a senior director responsible for operations at GASAG, a $1,4 bn leading energy supplier in Germany.

Dr. Manfred Gabriel, Jan Wiedenhaupt, Reinhard Lohwasser are Board Members and responsible for Legal, Finance, and Technology.

Active Advisors

Dr. Jürgen Müller, CTO at Lition, is a board member of SAP,  is working very closely with Richard and Kyung to plan and execute all tech and innovation decisions.

Yan Feng Chen has a vast experience in blockchain space, he is co-founder of LongHash; Founder of Tuolian, Cryptocurrency Custodian Service Provider; Co-founder of Cybex, a decentralized exchange, and Tokex, a big data analytics company providing business and AML services.

Kelly Ford, Sales & Marketing Advisor at Lition, has a great experience in marketing working as a CMO at PayPal Germany (3 years), Head of Marketing at eBay (8 months), CMO at N26 Group (3 years). Kelly is a serial international entrepreneur with 28 years of international marketing and strategy experience including 2 venture-funded tech startups with successful exits.

Sang-Seop Lee has worked in the tech and IT sectors at various senior executive positions for over 16 years. Sang-Seop is working as Head of Specialists and Leading Energy Expert for the Korea Block Chain Association (KBCA), primarily conducting research and providing blockchain consulting services for the smart energy age.

Core and Technology Team

The rest of the team consists of professionals that have enough experience to bring Lition plans in life. The technology team is from Instinctools Company (up to 300 employees) which provides dedicated teams of tech specialists.


PARTNERSHIPS

Lition has a notable partnership (“co-innovative” partnership) with SAP, a multinational market leader in enterprise application software, managing business operations and customer relations with over 400.000 customers in over 180 countries. SAP will help Lition in software development and delivering blockchain usage to their customers.

Alpha Labs, one of the largest crypto asset funds based in Seoul, South Korea, and LD Capital, one of Asia’s earliest organizations focusing on value investing in blockchain field, are Lition’s financial partners.

Longhash, blockchain accelerator and Microsoft for Start-ups are stated as technology partners.

GASAG is a leading utility provider with over USD 1bn in revenue and over 1m customers. Lition Energie  has connected GASAG power plants to Lition’s blockchain energy exchange.

Other companies that help Lition in the development and token sale process:


TOKENOMICS

Hardcap: $8,000,000

Have already raised: $2,000,000 (softcap)

Total token supply: 176,000,000 LITIONs

Token usage:

1)LITION is a utility token that is used to cover transaction costs in the network.
2)Sidechain nodes must stake a certain amount of tokens to get in the network.
3)Lition node owners also must hold and stake tokens to get a reward for mining.

Seed round:
The average bonus for seed round is. 40%. Tokens will be vested over 4 months with the first distribution 3 months after the public sale.

Private-sale:
Private investors do not have any bonuses. The main reason to participate in private-sale is the size of investment only. Vesting terms are the same as in seed round.

Crowd-sale:
Crowd-sale token price is $0.10 per a LITION token. Tokens will be unlocked simultaneously with an official listing on the exchange.

Important points that are worth to be highlighted:

Firstly, Lition has a buyback program. It guarantees TGE investors an opportunity to buy-back up to 50% of the original value of tokens purchased. More details about the conditions of the buyback following this link.

Secondly, Lition will encourage investors offering up to an extra 25% of tokens if they will hold them up to 180 days. More details about the conditions of the HODL highway following this link.


VERDICT: 8 out of 10

Overall we like the idea of the project and the suggested use-cases. Lition has already developed an MVP – P2P energy exchange and will launch more products soon.

The team is solid and experienced in terms of business administration and development. Co-innovative partnership with SAP will give Lition strong competitive advantage to already existed projects in the blockchain industry.

Tokenomics is very reasonable and will prevent the token price from the serious supply shocks (lock-ups and vesting for seed/private investors). Moreover, Lition has a buy-back option and reward system for token HOLDERS. The LITION token has an obvious utility and will be used inside the ecosystem to pay transaction fees, receive mining rewards, be staked by nodes and other sidechains.

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Vladyslav Skakun
thecryptodiffer@gmail.com

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