Modium (“MOD”) — Tracking of specialized shipment

Research by: David R. Sources: White paper, website and verified checks*

1. Blockchain specifications

Name: Modum (MOD)

Market cap: $34,824,441

circulating supply: 17,366,200

Total supply: 27,266,200

According to the whitepaper: TOKEN holders WILL receive dividends; however this will be decided by the board of Modum.io when there is a profit. The dividends will be paid in Ethereum tokens and distributed to the wallets of those own hold MOD. (Pg. 14) white paper.

2. Timeline of events

Q4 2017:

First series of modum being integrated in Switzerland.

Q1 2018:

Successful completion, official entry in the market. Marketing, mass production of the devices.

Q2 2018 to Q4 2018

Marketing, further expansion and improve technology.

Q1 2019

Deliver the next sensor generation.

Q2 2019 to Q4 2019

Marketing, further expansion and improve technology.

Q1 2020

Deliver the next generation of sensors.

Pilot programs to market entry: (Pg. 17 of white paper)

Modum has successfully conducted several pilot programs in order to prove the concept.



1st Pilot project, Switzerland in 2016, where it monitored shipments be from a SME pharma producer to a wholesaler. This pilot lasted six weeks.

a. Several issues were identified and corrected for the next pilot project.

2nd Pilot project, Monitored shipments between a wholesaler and several clinics and pharmacies. This was a successful test, showing that the technology had improved and was ready for the next step. Additionally, Modum successfully monitored a cross-border shipment, internationally and between continents.

(Pg. 18 of whitepaper)



3rd Pilot project, during a paid pilot with the parcel-service market leader in Switzerland (no name mentioned) Modum.io aimed to prove the suitability for mass use of the modum system. The two phases were:

a. Implemented and stabilized customer processes;

b. Quantified additional efforts and duration of the temperature data read-out process.

The goal was to achieve 95% of all readouts within 30 seconds.



The results were: 100% of all readouts within 8 seconds. The pilot was a success and the client recommended integration of the modum system into the offering of the 3PL. (Pg. 19 of white paper)

3. Business plan

Business and pricing strategy:

Modum plans to market and sell their product as a way to reduce logistical costs and they’ll offer their services as a “pay-per-shipment” model. (Pg. 19)



Prospects

Modum is in contact with significant customers from within the Pharma distribution industry in the UK, France, Germany, Turkey and Vietnam. (Pg. 19)

5. Background check

Modum company: Created mid 2016 (Pg. 17 white paper) DR confirmed

1) According to the Switzerland Business registry bureau:

a) On 2016, July, 18th, №2958289, Commercial registery,

Modum.io AG, Wollerau, No. of SOGC 137 EHRA-Import user:

i) The purpose of the company is to develop completion, distribution and sales licensing of individual hardware and software products, notably through the use of blockchain technology.

Modum team: Created mid 2016 (Pg. 11 white paper) + (website)

1) In the white paper it still states that Malik El Bay as the CEO of Modum, however this is no longer true, Malik El Bay stepped down from that position and left the company. Simon Dössegger became the new CEO of Modum.

a) DR: A research on Malik El Bay showed that although very intelligent and talented individual Modum had clearly outgrew his abilities to take it any further. As a portfolio manager and investor, I want to ensure that the abilities of the CEO will not hinder the progress of the company. Malik El Bay definitely played an important role into bringing Modum to a viable project.

b) DR: A research on Simon Dössegger, who replaced Malik El Bay, has more experience and comes from GoPro where he held the position of Senior Product and Technology Management. Simon Dössegger expanded his knowledge during his tenure in GoPro, he is now the CEO of Modum. He has participated in many other innovative projects, and has kept his reputation in good standards. He appears to be well respected in the technological community.

2) I’ve also conducted a research on each of the team members.

a) DR: Developers: Marc Heimgartner,Tim Strasser, Guilherme Sperb Machado

Sebastian Stephan.

b) DR: Marketing: Michael Taylor and Ozan Polat, both appear to be in good standing and I was only able to find positive history for these two. Both have years of professional experience in Marketing. Having a dedicated marketing department will help manage the company reputation, ensuring that the company maintains their public image in good standing.

c) DR: Blockchain expert: Dr. Thomas Bocek, obtained a PhD in decentralized and peer-to-peer systems, also appears to be in good standing with faculties and businesses, well respected and positive history.

d) DR: Chairman: Werner Spörri, was one of the founding members of the S&K Partners AG in 2004. Financial analytical services and networking.

e) DR: Manufacturing experience: Pascall Degen, manufacturing experience with the Pharmaceutical sector, I believe this is important because when dealing with regulated medicinal products, every level of process is almost specialized and scrutinized.

f) DR: Industry expert: Michael Schaer, family founder of Tenta AG who has been acquiring competitors since 1989.

3) There are other team members who are listed on the website but not on the whitepaper, this is most likely because they joined the team post-whitepaper.

4. Conclusion

Result: Modum is now a part of our portfolio, at %5 of our holdings.

a) Modum has proven that it could evolve from a concept startup to a sustainable company.

b) The addition of more seasoned entrepreneurs with industry knowledge and contacts will definitely take Modum to the next step, (Integration).

c) DR: When analyzing the potential of a project I look for long-term sustainability, what is the project dependent on for success?

i) Adoption? If so, does the project have the necessary partners and backers in order to sign deals with industry players? It appears that Modum does.

ii) Modum wants to tackle a very specialized and heavily regulated industry, one thing is for sure, once Modum’s product prove their ability to:

(1) Decrease logistical spending while increasing compliance with regulations, it’ll immediately create an immense amount of trust for the authenticity of the products being shipped using the Modum technology. ( Proven in the Pilots )

4) Modum’s main goal is to offer a incorruptible chain of trust between point A to point B. Once this is established, auditing of regulated pharmaceutical transport could be done instantly, the level of trust between Sender and Recipient will increase while their logistical costs will decrease.

Although one could argue that the Walton Blockchain already does this, I would also agree, however, Modum is targeting a more specialized market.

I will be conducting a side by side analysis between Walton and Modum and how they differ, are they competitors? or could they both strive in their journeys?