[ICO REVIEW] Alehub - security token ALE

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Alehub token called ALE is a security token. Not like other ICO investors, ALE holders will become true stakeholders with voting power and dividend distribution

AXEL - internal token

AXEL token will be “born” when users deposit their money into the system in USD, BTC, ETH, LTC, BCH, DASH. Token will disappear when users withdraw their funds (from AXEL to fiat). It’s just like you buy a game card and deposit into your LOL account (League of Legends - a multiplayer online game) to equip your character with accessories and weapons.

Usage of AXEL token:

  • Transaction fee
  • Withdrawal fee
  • Smart contract fee
  • Verification fee (membership fee)

AXEL tokens can only be spent internally on Alehub platform and cannot be exchanged for any other cryptocurrencies or fiats. In order to prevent exchange rate fluctuation and manipulation on service prices, AXEL price is pegged to USD which means 1 AXEL = 1 USD. Settlement from AXEL to fiat will be conducted by liquidity provider partnered with the company. This will raise a question about the identity of liquidity provider who is left unknown at the moment.

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ALE token - security token 

ALE is a tokenized share of stock which gives  the rights to receive profits/ dividends if Alehub works well. 

  • Token: ALE - ERC20 on Ethereum blockchain
  • ICO price: 1 ALE = $0.3 
  • ICO time: July 25th, 2018 - September 24th, 2018
  • Total supply: 211.000.000 ALE, 110,000,000 ALE are for sale
  • Soft cap: $7.500.000
  • Hard cap: $33.000.000
  • Raised: $4.681.097

For the time being, Alehub is running on ethereum blockchain, meanwhile, their mainnet is under construction. There will be token swap on completion their mainnet. This will be critical event that can have influence on ALE price. For example, we have witnessed a strong fall of EOS price when their mainnet suddenly stopped running after launching. This June 2018, EOS faced network congestion issues just 48 hours after mainnet had been launched. Consequently, EOS price has tumbled 20% that week.

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Alehub interface (demo version)

Security token will bring some benefits for token holders/ shareholders:

  • ALE holders will have voting rights on important decision for Alehub network
  • ALE holders will receive dividends from Alehub
  • ALE tokens will be controlled under strict regulations from SEC so holders’ rights can be protected better than utility token holders

However, security token may come with some inconveniences for investors. Firstly, not many investors can meet several requirements to be “qualified buyers”, not only KYC or AML but also other local regulations. Secondly, it’s difficult for Alehub to find licensed trading platforms that are allowed to settle security token transactions for the time being.

Anyway, security tokens are believed to be the future of the ICO market. Security tokens will improve liquidity of many assets, like real estates or machines, by tokenization . Moreover, holders’ financial rights and benefits will be protected by regulations. ALE token is worth your consideration for a long-term investment 

About Alehub team

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Egor Loktev - Alehub project leader from Effective Energy Limited

Alehub is a project initiated by Effective Energy Limited - an IT and services company founded in 2014 in Hong Kong. Website of the company (effectiveenergy.info/) doesn’t provide adequate information except for a list of team members. Its content is way too sketchy for a four-year-old company. They don’t even mention Alehub project on their website.

Team members mostly come from Effective Energy Limited, along with Serokell - the developers of Cardano. It can be seen that Alehub has a strong technical team with knowledge and experience on blockchain and ICO projects. However, there’s no one who has experience related to business management or freelancing sector.

Conclusion

  • Alehub has a great idea, but it will have difficulties competing with big players like SAP and Oracle
  • Interesting technical solution can solve pain-point of business management market. However, team members may not have deep understanding of the market. What makes us doubt about the feasibility of the project.
  • Security token brings real benefits for contributors but also creates barriers for small investors. Alehub may be more attractive and suitable for institutional investors.
  • Roadmap is quite clear until 2020. It will take a lot of time to see Alehub final product.
  • Several concerns about the legality and regulations imposed on security token (where to exchange, who can buy and sell) still remain. 

Therefore, for safety’s sake, if you have limited capital, it is recommended that you should wait until ALE token gets listed on exchanges.

For previous review about ERP market and competitors, visit here.

Written by nami.today

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