4NEW KWATT ICO Guide: Powerful Tokenized Electricity Energy Token?

4NEW is a blockchain technology-based waste and energy company, currently in ICO at the time of this writing, that aims to build several waste management plants that generate electricity as a byproduct throughout the United Kingdom. 4NEW then aims to provide standardized systems to allow customers to manage their waste and electricity utilities by spending cryptocurrency tokens to that effect.

What Is 4NEW?

4NEW Limited is, as mentioned above, based in the UK and founded in October of 2017. The website does not provide any information as to where the company’s offices are located, though the executive team for the company is listed on the site.

4NEW Limited’s CEO is Sandeep Golechha, a London-based executive that has been working since 1995 in high level positions and roles such as banking, alternative fuels and energy, and waste removal technologies. Other members of the 4NEW Limited team include COO Peter Teasdale, CTO Mudit Grover, CMO Michael Liburd, and CIO Darren Stones.

4NEW KWATT Token ICO Details

While 4NEW has rather long-term plans to not just create a network of waste processing plants that produce electricity as a byproduct and even create so-called “smart meters” to facilitate energy sales through their network, the current and only product the company has on offer is its 4NEW Coin, currently in ICO.

The proceeds from the ICO are to be used to crowdfund the manufacture of 4 initial waste processing plants and the infrastructure needed for them. Meanwhile, coin holders will then be able to use their tokens to purchase waste removal or electricity delivery utilities directly from 4NEW.

The ICO, which runs until December 15, 2017, is offering 170 4NEW Coins for 1 Ethereum (approximately $300).

4NEW Opportunity

4NEW claims that its coin is not a speculative coin but instead a commodity token to be exclusively used within the 4NEW waste and electricity ecosystem. However, despite that claim, the company does report planning to have their token introduced to external exchanges; this means there is an opportunity for speculation for early adopters of the coin looking to invest.

Additionally, the utility aspect of the token, if indeed 4NEW does build its waste management plants and the necessary support infrastructure, may be of some use for homeowners in the UK wishing to subsidize the cost of their electric and waste removal utilities.

4NEW Verdict

Building a company that uses the blockchain to handle payments and accounts is an excellent application of ledger technology. Recording account information and transactions into a blockchain makes each and every bit of data related to customers and providers makes for a transparent, immutable record that is highly resistant to tampering. However, we’re really not sure 4NEW’s plan to build and maintain a network of waste processing plants in the UK and then allow use of its token to purchase electricity or waste removal services.

It seems like a good idea on paper. However, we are concerned with the token being exposed to speculative price manipulation once it goes live on exchanges, especially since it’s supposed to be used as a utility token and not as a speculative coin. While it’s true that any altcoin needs to be tradable on open exchanges in order for it to have value beyond its closed loop system, there’s no telling what will happen to coin valuations once it is traded.

It’s obvious that every ICO has risks associated with it. Investing in 4NEW requires accepting the risks that your coin may not be very valuable if the company falls through with its promises of creating its waste processing plant network. Plus, with the geographical limitations of the project the number of investors interested in the company’s end goals will be relatively small. This means that any investors outside the UK are speculative ones.

If you are looking for a speculative ICO, then 4NEXT is likely not going to be your best bet. If you live in the UK and want better utility prices, you may want to check it out.