The initial coin offering is no stranger to poorly conceptualized platforms, shady startups, or even straight-up fraudulent ICOs that exist only to separate unsuspecting investors from their cryptocurrency. With so many different initial coin offerings in existence, however, it can be difficult to determine which initial coin offerings are worth investing in.
When assessing an initial coin offering, it’s important to look for several key factors: a solid initial coin offering should present investors with a clear explanation of how the potential service or platform will work in a comprehensive white paper, present the team behind the platform alongside social links, and clearly explain how the funds generated from the ICO will be used.
The most important element of any initial coin offering, however, is whether or not the final product will be viable. It doesn't matter how effective the marketing for an initial coin offering is, if there isn’t a market for the final product- or the market is too small- then the ICO will undoubtedly fail.
The blockchain provides opportunities for developers to create a wide variety of different disruptive solutions. The unique way in which information can be disseminated across the blockchain, combined with the transparent and secure nature of its technological architecture, makes it ideal for creating complex data systems.
While this sounds like the ideal environment for the next generation of social media networks to grow, virtually all of the initial coin offerings that have attempted to establish new social media alternatives have failed.
In this article, we’ll take a look at Honestis Network, yet another initial coin offering that is promising to create the next facebook on the blockchain. The Honestis.Network ICO throws up a number of red flags that make it a less than ideal initial coin offering, so in this article we’ll highlight the specific issues that the platform presents to help you identity less-than-ideal investments in future.
What is Honestis Network?
Honestis Network aims to create a fully distributed social media network that allows users to trade their data for benefits. By building a completely distributed social media platform entirely on the blockchain, the Honestis.Network project wants to provide users with complete control over how their data is used and viewed.
The Honestis.Network will process all operations in a decentralized manner, which means that the personal identities of users on the network can’t be monetized, manipulated, or tracked. According to the Honestis.Network white paper, the platform also aims to provide peer to peer trading opportunities, a third party application market, and virtually everything offered by Facebook- only on the blockchain.
How Honestis Network Works
The Honestis Network will be built to the Ethereum network, and will use Honestis Network tokens as a method of monetization, making it possible for users and businesses to purchase advertisements, trade with each other, purchase applications, and more.
Users will be able to make their social media information available for purchase, which will furnish them with Honestis network tokens. Businesses will be able to purchase this data in order to develop better, more efficient products.
While the concept of a truly decentralized social network in which users are able to control and monetize access to their personal data is commendable, the Honestis.Network ICO is an absolute mess. The website for the Honestis.Network ICO is incredibly poorly constructed, and consists of various different broken elements jumbled together.
If the creators of the Honestis Network platform can’t even build a page to publicise their initial coin offering, how will they be able to construct an entire social network from scratch?
Secondly, the white paper that is available on the Honestis.Network website is poorly constructed and written only in broken english. The white paper itself is more concerned with extolling the potential profits that could be generated from the social media market instead of explaining the particulars of how the platform will operate.
Lastly, the fact that the Honestis.Network platform is being constructed on the Ethereum network is a red flag. Vitalik Buterin himself- the creator of the Ethereum blockchain- has stated that the network is not currently able to support decentralized applications with millions of users, and would require at least two to five years of further development:
“I would say two to five, with early prototypes in one year. The various scaling solutions, including sharing, plasma and various state channel systems such as Raiden and Perun, are already quite well thought out, and development has already started. Raiden is the earliest, and its developer preview release is out already,”
The Honestis Network Verdict
The Honestis Network ICO is one of the worst initial coin offerings to launch recently. Aside from the fact that social media based blockchain platforms are- at this stage of blockchain development- guaranteed to sink, the Honestis.Network ICO is a garish, horrible mess, and is almost certainly destined to result in the loss of all investor funds. Avoid at all costs.