This article provides a business analysis of a new ICO: Beluga PayThis piece is worth a read if you are interested in Beluga Pay, searching for new ICOs, are passionate about decentralization & cryptocurrencies, or simply want to get a grasp of how to analyze companies from a purely business point-of-view.

This is an extremely long and detailed piece and a lot of effort went into it; I’d appreciate it if you’d acknowledge the effort with a simple like, comment, or share, and you can follow me to stay updated on upcoming ICOs business analysis.

Table of Contents:

Part 1: Introducing Beluga Pay

Part 2: Essential Information about Beluga Pay

Part 3: SWOT Analysis

Part 4: VRIO Analysis

Part 5: Valuing a Company

Part 6: Due Diligence

Part 7: TL;DR

Part 1: Introducing ICO: What is Beluga Pay

This project hits a major market: transactions.

The top-man at Pershing Square Capital firmly stated once that the best form of businesses are those that make money through others’ work; Beluga fits this bill right on-point.

Beluga Pay hopes to be the crypto world’s primary point-of-sale system. They have an ambitious plan that could speed up the process of making the world cash-less and transactions could be seamlessly done through digital platforms in even the most remote places.

Beluga provides a service beneficial to all businesses—big or small. As more people adopt cryptos, larger businesses are considering accepting payments through the new currencies. However, small businesses could face a disadvantageous cost if they accept cryptos with the current forms of payment available.

Beluga is entering the market to make the payments through crypto currencies quick, easy, and cheap. It’s point-of-sale service could be the catalyst to crypto growth the market needs. A common argument against cryptos is that it’s tough to utilize them when making an actual purchase; Beluga Pay’s ease of usage and accessibility to businesses and consumers alike is going to make cryptos a lot more usable in day-to-day transactions.

BBI token holders get portion of profits, earn membership to the platform, earn loyalty awards, and more.

The BBI token clearly offers many benefits; so, the issued token is genuinely valuable.

Part 2: Essential Information

Whitepaper: https://belugapay.com/assets/beluga_whitepaper_V9.4.pdf

Website: https://belugapay.com/

ANN Thread: https://bitcointalk.org/index.php?topic=2270648.0

TOKEN PRE-SALE: 1 OCT. – 1 FEB.

Ticker: BBI

Token type: ERC20

ICO Token Price: 1 BBI = 2.88 USD

Know Your Customer (KYC): NO

Restricted Countries: China; Singapore, USA, Canada

Accepts: ETH, BTC, USD

Country of Registration: Switzerland

Team: Diverse (International)

Part 3: Beluga Pay SWOT Analysis

SWOT analysis sheds light on the potential of a potential project.

I’ll be analyzing whether Beluga Pay presents an idea that holds plentiful potential and what would its barriers be.

Strength: It is important to understand what a particular project’s strengths are; these develop into competitive advantages.

Beluga Pay is a first mover in the crypto-market that aims to serve as major point-of-sale system to offer day-to-day utility to crypto currencies. Additionally, while it’s a first mover from the crypto-side of start-up POS, Square Inc. has already set a path for how a well-funded start-up can build its market-share.

Beluga can enjoy a double-advantage, it faces little competition in terms of dominating point-of-sale systems on the crypto edge of the market and it’s stepping into paved paths by learning from the mistakes and successes of Square Inc.

Moreover, while Square has seen a strong adoption among businesses in the US, it has limited itself to primarily the US. Due to the global adoption of crypto currencies and the imminent need to make crypto currencies more utilizable, Beluga could see an exponential adoption.

Weakness: A grasp of a company’s weaknesses is important; a brilliant idea can be brought down by a single, but mighty weakness in operations, financing, marketing, or a number of other business and/or technical functionalities.

Point-of-Sale industry is highly lucrative; that makes double-edge sword for new entrants.

Big players in the market aggressively aim to retain their market share. Beluga is up against massive corporations that have deep pockets and existing partnerships with both large and small businesses across the globe.

Opportunity: While many industries are ripe with potential, some are cluttered with immense competition or even potential downfall due to the advent of market changes or economic shocks.

Offering a point-of-sale system and facilitating digital transactions is a horizon largely unharvested. 85% of the world population still utilizes primarily cash; majority of this figure utilizes only cash.

Blockchain companies have an aim to bring benefits of this tech to the unbanked and remote locations. Beluga has plenty of opportunities to build powerful partnerships in the blockchain environment to collaboratively bank the unbanked while making their utilization of cryptos easy and simple.

Additionally, among those that have adopted the cash-less lifestyle, Beluga will be an attractive option as it builds on to their want of ease of transaction.

Threats: Even the titans of a given industry face threats; the situation is generally worse for smaller projects.

Beluga Pay is entering a highly profitable industry and holding companies, corporate associations, government-funded corporations, and existing tech giants could potentially target a crypto-POS system and develop their own product.

Moreover, the crypto industry is flowing with copy-cat ideas that free-ride the R&D expenses of early movers.

Beluga would have to move quickly to ensure it builds a good market adoption or it must build strong partnerships with other finance-related crypto projects.

Part 4: VRIO Analysis

VRIO analysis gives a crisp and tight snapshot of the odds of success of a project.

I’ll be analyzing whether Beluga Pay genuinely adds value to the overall state of cryptos and whether its value-addition is sustainable and maintainable.

Value: A project is valuable if it allows a better means of exploiting resources.

Beluga Pay’s value offering is massive and easy to spot: it’s making crypto currencies utilizable on a day-to-day basis for both small and large businesses.

Everyone wins if this project works out successfully; companies get to pocket crypto investors by tempting into spending their crypto funds, crypto enthusiasts are able to easily transact their holdings, and digital transactions get a catalyst across the globe.

Rarity: If a project offers something that can be attained without the blockchain, then generating market adoption will be very challenging. The offering needs to be tough to get without the aid of the blockchain.

There are existing POS systems available; there are many finance-focused crypto projects.

Here’s a project that allows crypto currencies to match the projects executed in the traditional markets. This is a big move and is going to be the only offering with such a competitive edge.

Also, the crypto market is getting flooded with new tokens on a daily basis.

Coins and tokens are not rare but the service they can be used as a medium for can indeed be rare. Beluga Pay is offering a token that is going to allow holders to earn a piece of its earnings; if the only means of accessing this piece of the pie is through the Beluga token, there is an enforced rarity through the platform’s right-to-earn design.

Imitation: Imitation is a major threat to any new project and it’s important to analyze whether a project’s key service can easily be reproduced by copy-cats.

Blockchain projects are commonly targeted by the hazard of imitation. But imitating such a large project can be tough. There is a high cost of entry into such an ambitious project.

Beluga Pay’s threat may not come from within the atmosphere of crypto-enthusiasts; rather, it may spark the interest of existing players in the financial world to build a competitor to Beluga. The rate of growth Beluga Pay hopes to maintain will be critical to stow away imitation.

Organization: Any company is essentially a successful effort of a group of individuals. Any crypto project’s success heavily rests on the capability of its team to properly manage and organize all efforts and funds.

Beluga Pay’s team has considerable experience with their industry and its members can build the tech necessary to carry out this process.

The challenge will be how well they remain organized as they push into new markets once expansion kicks in.

Part 5: What is Beluga Pay Worth?

Assets: You can value a business by calculating the new value of its assets; this isn’t a proper means of valuing a new crypto launch as a fresh business is in growing mode and is likely to have limited resources.

Revenue: You can value a business at a multiple of its revenue; the multiple should be derived from its competitors or other industry players.

This method is also challenging when valuing a crypto launch as most fresh launches have either inexistent revenues or have revenues that are far, far from their true potential and it may take years before they even scratch the surface of the goliath they may be one day.

Cash Flow: You can value a business by discounting its expected future cash flows. You can do this by dividing what you think a business may earn, on average, in a given year and then dividing it by a risk-free rate of return.

I advise using established corporate bond returns (~3%) as an almost-risk free measure of return rather than T-Bills.

A company can be valued in many ways; 3 common ways are:

I won’t give a figure to Beluga Pay as the answer to that can be highly speculative and a lot of positive or negative bias can seep in. Beluga Pay is trying to provide something unlike anything else. Finding estimates of what it will generate through a view of its remote competitors might provide a heavy spread between potential valuations.

But to give you an idea of what the potential here is, Square, a some-what fresh player in the fiat-currency POS industry, is valued at $16.5 billion.

Beluga Pay will likely have lower operating costs due to the nature of blockchain currencies and architecture, and that means its net profit per transaction could outperform Square’s. Earnings define market value; higher net earnings—derived from lower costs—mean higher net worth.

Moreover, Square functions primarily in the US, Beluga aims to target global expansion; moreover, it could easily enjoy the crypto community’s goal to bank the whole world.

Part 6: Where’s the Due Diligence?

I have made this piece to reflect an unbiased view of Beluga Pay. I cover the essential information, the sector competition, the potential of Beluga Pay, the valuation based on information provided by the team, and curated pieces of data about the project.

Generally, the conclusions individuals derived from due diligence analysis of crypt projects can be quite subjective. I want to avoid attaching subjectivity to this piece. Of course, given the fact that I am giving a thorough analysis of Beluga Pay, this project sparked my interest. But I’m not going to jump into the depth of its feasibility.

You should definitely take the time to evaluate the project feasibility and the prime measures for this would be presented goals, industry potential, community interest, and the team’s competency; team’s competency is perhaps the most important factor.

It’s quite possible that your confidence or interest in Beluga Pay could genuinely increase after you conduct a due diligence. Additionally, conducting a due diligence is always advisable as it allows you to set aside scams from projects that could potentially be major players in their industry.

The team is quite responsive and you can interrogate—ahem, question—them through their Telegram group, which is dedicated to ICO queries.

https://t.me/Belugapay

If you see value in blockchain projects or simply want to join the potential the product’s industry holds, then take your interest to the next step and get to know the project better by contacting the team holding the project’s reins.

Note

As is the case with investments in any security or asset, you should invest in ICOs and tokens only an amount you are willing to lose. Investments in the crypto market are high-risk, high-reward moves and investor due diligence is imperative.

Watch Out

If you intend to invest in the project’s ICO, be sure to utilize the official project website. As disappointing as it may be, scammers are rampant in the crypto market and many try to scam investors through deceptive measures by identity theft of project leaders and phishing measures.

You should only contact official company social media profiles for your informational needs and queries, and you should invest in the ICO directly through the company website.

Part 7: TL;DR

Beluga Pay is building a point-of-sale system to ease transactions with crypto currencies on a day-to-day basis. The BBL token gives holders a share of the company’s earnings among other benefits. This is a high-potential, highly lucrative market with Beluga as a first-mover from the crypto side that can learn from the efforts of POS system start-ups in the fiat-currency world.

If you found this article helpful, appreciate the information I have curated, appreciate the analysis I have provided, and/or are simply just a kind person, please support me by liking and sharing this article; you can also follow me to stay updated with the most remarkable ICOs coming up.

If you find the project valuable or interesting, support it by sharing and liking this page and keeping up with company profiles.