Project Review: Edenchain (EDN)
By: Christian Lanz
Tags: Bitcoin, Ethereum, Money, Investing, Technology

Token Sale and Economics

Key Metrics

Token Name : EDN

: EDN Token Type : ERC-20

: ERC-20 Token Sale Date : 25.05.2018

: 25.05.2018 Token Sale Price : 10,250 EDN / 1 ETH

: 10,250 EDN / 1 ETH Amount Raised : $24,000,000

: $24,000,000 Circulating Supply: 400,000,000 (40%)

Token Supply Distribution

Public Sale: 40%

40% Team & Advisors : 18% (locked until Sep 2019) → etherscan.io

: 18% (locked until Sep 2019) → etherscan.io Strategic Partners : 15%

: 15% Accelerator Program : 12% → etherscan.io

: 12% → etherscan.io Foundation : 10% → etherscan.io

: 10% → etherscan.io Bounty & Marketing: 5%

EDN Token Ecosystem

At the moment EDN is an ERC-20 token, it will be swapped for native Edenchain coins as soon as the mainnet goes live. EDN is used as the fuel for applications on top of Edenchain (like e.g. ETH on Ethereum).

EDN Token Distribution

Source: Edenchain Blog

Use of Funds

Usage of the $24m raised during the initial coin offering:

Development : 50%

: 50% Marketing, Community, Security, Legal, Operation: 10% each

Usage of the remaining project tokens:

Team & Advisors: Incentivisation of the team and it’s advisors

Incentivisation of the team and it’s advisors Accelerator Program: Encourage adoption of the platform (most likely to fund projects building on top of Edenchain)

Encourage adoption of the platform (most likely to fund projects building on top of Edenchain) Foundation: Future exchange listings, marketing campaigns or other relevant expenses

EDN Token Release Schedule

Edenchain planned to vest tokens from Strategic Partners, Marketing & Bounty for 6 months. But they changed their plans and decided to unlock all those tokens on the 5 Dec which increased the circulating supply by ~20%.

EDN Token Holder Concentration

The Top 10 holders collectively own 559,024,465 (55.9%) of the total token supply. There is a total of 5284 wallets holding EDN.

Source: etherscan.io

EDN Token Overview & Use Cases

Current Token Utility: EDN is currently structured as a utility token. At the moment is has no use case due to the fact that the token is still an ERC-20 placeholder token.

Future Token Utility: EDN will be the fuel for the Edenchain ecosystem. EDN will be required to provide various services (B2B, B2C and C2C):

Masternodes: Once the mainnet goes live there will be two different types of nodes: Supernodes and Hypernodes. Both require to stake a certain amount of tokens in order to secure the network.

Source: Edenchain Blog

Service Providers: A service provider must deposit a certain amount of tokens in order to be able to use the Edenchain platform. The deposit is mainly used for security purposes.

A service provider must deposit a certain amount of tokens in order to be able to use the Edenchain platform. The deposit is mainly used for security purposes. Consumers: A consumer has to pay various kind of fees using EDN when using the Edenchain ecosystem. Most probably the token could also be used for in-dApp payments later on.

Financial Situation

Eden raised $24m in their ICO at the end of May 2018 when ETH was around $600. If they held on all of those coins the $24m would now be worth around $4m. It’s hard to say how much ETH they raised in comparison to fiat and how much they liquidated at which prices or if they liquidated anything at all.

However, after doing some research it seems Edenchain is well funded and not having any kind of funding issues.

Conclusion

Edenchain completed their ICO during the market rally in May 2018. The sale was sold out within minutes and way over-subscribed. It seems they have clever fund management in place, so most likely they are very well equipped for the upcoming months and years to deliver on their platform.

It’s unclear how many of the remaining project tokens (EDN) are really locked. Apart from Team & Advisor tokens, the team says that also Accelerator Program and Foundation tokens are locked. But e.g. a part of the Foundation tokens was used to pay for previous exchange listings — which suggests that they are not really locked. Different coin websites are also not sure about that. CoinMarketCap and CoinPaprika e.g. show a circulating supply of 819,992,054 EDN (only Team & Advisor tokens count as locked) versus CoinGecko showing 622,177,166 EDN (Team & Advisor, Accelerator Program and Foundation tokens count as locked). The team claims the number on CoinGecko is the right one.

Another thing to point out: Looking at all the EDN holders, the tokens is very well distributed and the Top 10 are only holding 55.9% of the total supply, this number is usually a lot higher.