[ICO REVIEW] PROFEDE - ICO for headhunting market (ICO cancelled)

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Profede is a decentralized platform for professional recruitment and crowdsourcing.

New update: Profede decided to cancel ICO on August 21, 2018 due to unconditional developments on cryptocurrencies market. Official announcement was on their telegram! Follow us for the latest updates

If you're looking for blockchain version of Linkin, you may find the right project. We will have short review about Profede to see how potential or risky it is.

The problems of headhunting market that Profede want to solve is:

  • High cost and low efficence of headhunting due to several middlemand and intransparency
  • Owners of professional career data do not have control over their data resource

On Profede protocol, professionals/ experts and companies can directly connect with each other without intermediaries.

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Profede business model

When a company is looking for suitable person for critical position in their operation, it takes a lot of time and efforts because it’s hard to match complicated job requirements with limit number of candidates. That is the reason why headhunters appear.

Headhunters or outsourced recruiters help companies find the right persons for the right places easily, along with other consulting services. They usually charge 30% of annual salary as commission for each candidate employed. Moreover, an enormous amount of data from candidates is “exchanged” for recruiters’ benefit without approval from the owners.

Profede protocol will create a decentralized data market where users will decide which data they want to share and get profit. Employers will pay a small fee to view more detailed profile from potential applicants. This process is as similar as vietnamwork’s or other recruitment websites’ operation except for the fact that data belongs to the owners instead of headhunters.

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To be honest, Profede’s idea is nothing new. Let’s take a look at ICO Talo – also a decentralized recruitment platform to see that Profede do not really save time and cost for employers

Talo develops an algorithm and a smart system to screen and suggest the most suitable candidates for the companies. In contrast, with Profede, employers still have to pay and review each profile by themselves with uncertain knowledge about HR.

Profede token

  • Ticker: PATO – standard ERC20 on Ethereum blockchain
  • ICO price: $0.01
  • ICO date: 01/06/ 2018 - 15/09/2018
  • ICO token supply: 3,000,000,000
  • Soft cap: 1,500,000 USD (fiat)
  • Hard cap: 20,000,000 USD (fiat)
  • Raised fund: 10,265,000 USD (45%)
  • Country: Estonia

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PATO is the payment currency in the system. Employers must have PATO to pay fee for viewing and contacting with their target. Profede charges 2% for each transaction. Therefore, it can be sure that demand of PATI is closely related to the development of the platform. However, if Profede fails to differentiate their system from their competitors, it’s hard to attract users and keep them alive.

Incentives for contributors to the network

Users may make use of reward mechanism and their personal data to collect tokens for improper incentives instead of seeking for job opportunities. Companies may waste their time and tokens in vain.

Security and privacy issues

How can Profede protect the privacy of candidates’ profile after providing for employers? How can they prevent “secondary market” for exchange “career data” between employers who have read the profiles? We cannot find the answer elsewhere, even in their whitepaper.

In conclusion, Profede have simple but “out-of-date” idea, practical technology but low competitive power compared to other ICOs in the same industry. It can be said that Profede is not a scam but not really potential project also.

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Technology

Profede network is built on Ethereum protocol which may bear the risk of overload transactions and long pending time.

Besides, Profede MVP or protocol has not been available yet. This may discourage investors from putting money in the project at that time. According to their roadmap, alpha verson of Profede testnet will be launched on Q3/2018. Let’s keep track on their progress until the introduction.

Market research

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According to Technavio’s research, headhunting market is predicted to grow with average annual rate of 17.66% from 2017 to 2021. However, like we said above, Profede do not really solve the cost-reduction puzzle in recruitment for companies. Besides, they seem to be less competitive than LinkedIn, Xing, Viadeo in terms of free professional data and labor social network.

Partnership: beBee - a social network for professionals and experts with 12 million users since 2015 will be the first application to be developed on Profede. This partnership will bring Profede a kickstarter for their system.

Competition

Dock.io is a ICO offer the same service as Profede with alpha version of protocol launched, MVP introduced and high recognition all over the world. Dock.io has reached their hard cap at $20 million.

Talo: Linkin with full package of service for employers and employees on blockchain. It takes full advantage of blockchain to promote transparency and accuracy in recruitment market.

Written by nami.today

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