Ketch’up Bike Sharing Company Invests $1 Million into JPAY & CyClean Tokens
One of the most successful bike-sharing firms in Hong Kong, Ketch’up Bike, has allegedly sold a major share of its firm to hold the funds needed to take part in the Initial Coin Offering (ICO) of CyClean.
Many were not too fond of Ketch’up Bike’s decision, as the crypto market is still relatively new, and the flaws associated with bike-sharing make smart contracts an unreasonable solution. Furthermore, some experts do not consider investing in tokens that have yet to appear in the market as a safe investment, but rather one that might be concerning.
CyClean is a firm that claims to permit users to rent their products, which range from electric bicycles, motorbikes, cars. Their ultimate goal is to eliminate excessive fumes, while promoting clean energy and green sports. The process of renting will be recorded on the Ethereum blockchain. As per CCN, the entire project was formed by a team that consists of experts who are from Samsung, Episode Games, KAIST and Princeton.
As for Ketch’up Bike’s reason for an investment of nearly $1 million, the coinciding factors of both projects and the shared values is what triggered such an investment. In addition, the fact that CyClean will be promoting clean energy and an eco-friendly approach towards traveling, combined with cryptocurrency has supposedly amplified interest of the Hong Kong firm.
According to the CEO of CyClean, Kenneth Chau, the difficulty associated with new bike-sharing firms is “the manpower required to manage the bicycles that are leased out”. He also added that blockchain is fundamental in this case as it would ensure that “rental transaction will be recorded on the distributed ledger, including the customer’s payment track record and the number of miles that has travelled.”
Possible Obstacles Ketch’up Bike Might Face
The CTO of Standard Kepler, Johnny Au Yeung does not believe that CyClean’s dependence on smart contracts will help the company. Yeung, who is part of a Hong-Kong based blockchain consultancy firm, deems current problems like overcharging and “false detection of the locking device, and thus false handling of the user’s usage of the bike” are not that simple to solve – especially through blockchain.
Moreover, it appears that the CTO is both shocked and doubtful of how it all might turn out for Ketch’up Bike as the startup’s token hasn’t made it to the market – a market that still seems quite unpredictable.