RED Restart Energy (MWAT)

Due Diligence

Restart Energy One S.R.L is an independent European Union electricity and gas supply company that was established in 2015. The Restart Energy Democracy (RED) platform is their blockchain-based peer-to-peer energy trading platform between consumers and energy producers.

Company key numbers (as written on their Whitepaper):

Revenue in 2016: 5.45m USD (>400% growth from 2015)

Revenue estimated for 2017: 20m USD (+425%) and revenue forecast for 2018 is 100m USD (+500%)

30,000 customers (27,000 households + 3,000 companies)

40,000 payment locations in Romania

+300 energy franchises sold to business partners in Romania

Partners: EuroGSM, InterBroker, GRS, AMVV

Source: Termene.ro. Restart Energy One STL information (Translated by Google)

Referring to the screenshot above and below from Termene.ro, we are able to conclude the following:

Company was registered on 29 Mar 2015. The team behind MWAT has about 3 years experience in the energy industry.

Restart Energy is from Timisoara, Romania

Revenue of 5.4m RON in 2015 and 21.1m RON in 2016. This is accurately reported in their Whitepaper

Company made a loss of 62,920 RON in 2015 before making an income of 459,487 RON in 2016. Margin is approximately 2.17%

Restart Energy has only 0.13% Romanian energy market share

Source: Termene.ro. Restart Energy country market share

ICO Tokensale Structure

Total token: 500,000,000 MWAT

Price per token: US$ 0.10

Market Cap: US$ 50,000,000

Team token: 12% locked for 12 months

ICO Model

The RED platform will allow energy producers to sell their energy to households and SME consumers at a retail price 30% higher than wholesale prices while consumers will buy the energy at 30% cheaper than current market price. In return to accessing the RED platform, these energy producers must allocate 1%–5% of all energy traded to MWAT users through the RED Loyalty System.

Each MWAT token can hold up to 1,000 KW tokens (KWT) where 1 KWT = 1kWh of energy. MWAT users can choose to consume the energy themselves or sell it on the RED platform. A MWAT user on the RED Platform can only store an amount of KWT equals to 1,000 * his amount of MWAT. This amount will undergo a full reset-to-zero once each year.

MWAT token holders can choose to take up different types of franchisee options depending on the number of tokens you have and the region you are looking at.

In Singapore, 1 kWh of power will cost approximately S$0.2215 or US$0.17. At 30% retail discount (as stated in the Whitepaper), assuming you bought 1,000 MWAT at US$100, the maximum amount of energy you could sell will be approximately US$119,000 per year.

However, in order to achieve 1,000KWT per MWAT, Restart will need to secure 10TeraW of power from energy producers to join the RED platform (based on each producer allocating 5% of traded power and all 500mil MWAT tokens are on the RED platform). This would mean about 33,000 producers operating more than 300MW of generation capacity.

WePower (WPR)

Due Diligence

There was some confusion as to where WePower is based at. When the ICO first started, it was written that WePower was based in Gibraltar (in fact you could still find such articles if you Google about them). However, from the current WePower official site, you would notice that they are now headquartered in Lithuania. This was later announced in this post that the relocation was because they would not have to pay a 21% VAT fee from the tokensale in Lithuania.

Source: Spec.lt. Information was translated using Google

Source: Rekvizitai.vz.lt. Information was translated using Google

From both sites, we can see that the entity was founded some time in 2012 before being registered legally on 25 January 2017 in Lithuania with an authorized capital of 2,500 EUR. The head of the company is Juste Grizickaite, who was not listed anywhere in the WePower team.

According to Bloomberg, Nikolaj Martyniuk, co-founder of WePower, is/was the CEO, GM, Director of Modus Energija UAB from 2015. Modus Energija UAB is the renewable energy division of Modus Group.

Artūras Asakavičius, the other co-founder of WePower, is a lawyer who specializes in banking, financial services and regulation, capital market transactions, investment funds and insurance law matters.

ICO Tokensale Structure

Total token: 746,403,007.29 WPR

Price per token: 1/8000 ETH (US$ 0.125 @ ETH=US$ 1,000)

Market Cap: US$ 93,300,000

Team token: 20% locked for 3 years

ICO Model

Similar to RED Restart Energy platform, the WePower platform allows renewable energy producers to tokenize and sell the energy they produce. Each renewable energy plant connected to the WePower platform will organize an auction for the sale of tokenized energy. WePower token holders will have a priority access to such auctions and their allocation will depend on the number of WePower tokens they have. To incentivize buyers, the producer is always selling its energy below market price which they can use for themselves or sell on the marketplace. In this way, energy plants can pre-sell their future production to raise funds for expansion, very much like crowdfunding.

Under WePower platform’s terms and conditions, renewable producers will also need to donate 0.9% of their energy directly to WPR token holders. However, WePower is not liable if renewable energy provider fails to implement its obligation to donate energy.

Users holding on to energy tokens can choose to: