On Time Foundation and a new multi-foundation token

The On Time foundation is an organisation that has launched a new ICO (Initial Coin Offering). This is a quick look at their offering of OTO Ethereum tokens.

This article is divided into two parts. First, I will give a quick primer on ICOs and Ethereum tokens, how and what they are. Then I will introduce the new On Time tokens, outlining their plan, and how they are different from the other token offerings that preceded them.

A primer on ICOs and Tokens

ICOs became popular in 2017 as the cryptocurrency industry’s answer to IPOs (Initial Public Offering). Startup companies and foundations can use an ICO to raise funds through crowdfunding — by selling their own Ethereum tokens directly to the public, without the involvement of intermediaries.

Some critics of ICOs consider it a mechanism for scams. Other analysts predict it to be a bubble. Although there have been cases of fraud in ICOs and in the larger world of cryptocurrency, ICOs are largely used for legal activities such as the aforementioned corporate financing and charitable fundraising.

Although the popularity of ICOs have somewhat died down in recent years and many ICOs and their corresponding tokens have been failures, many of the remaining ones are successful and growing strong. The Golem Project, which raised $8 million in 2016, now has a market cap of $36 million with an ICO profit of 3.67x according to ICOmarks. Kyber Network raised $48 million in 2017 and is now one of the leading decentralised crypto exchange platform. And AidCoin launched its ICO in 2018 and is developing charitable giving platforms on the blockchain.

The On Time Foundation

This brings us to the On Time Foundation. The organisation is offering a new Ethereum token, namely OTO.

They completed their ICO and is in the early stages of private selling. This means the tokens are not available publicly and is unlisted in exchanges — and can only be acquired through private channels. This also means many features of a usable token such as the implementation of distributed apps that use them, is still under development.

What makes OTO tokens different?

In contrast to most other ICOs, OTO tokens do not provide a single specific utility, but instead represent a mid- to long-term investment across a wide spectrum of fields:

  1. They will use the funds raised to invest in and launch multi-industry projects and companies across a 5 different fields.
  2. Following that, they plan to launch traditional IPOs on either of the major exchanges (NYSE, LSE, SHSE or SZSE) every five years.
  3. After which, token holders can trade their tokens for an equivalent share of the aforementioned IPO in value. (Or hold them further, or sell them on exchanges).

Their Roadmap

This foundation focuses on Construction, Crypto & Communications, Environment & Waste Management, Trees & Orchards, and Water, Air & Energy, with the objectives of:

  1. Planting commercial crops for timber and fruits
  2. Preserving and restoring ecological balance
  3. Embracing human-friendly AI & telecommunications technology
  4. Contributing to sustainable energy production, urban planning and waste management
  5. Maintaining a stable and liquid currency

Their roadmap is divided into 3 five-year phases:

  1. Phase 1 (2020–2024): Eco Management Ltd.
    Projects include pilot projects in Eco Construction, Renewable Energy Production, Waste Management and Reforestation in Malaysia, China, Russia, Myanmar, Nigeria, the UK and Canada. Target IPO: USD 55B at USD 4/share.
  2. Phase 2 (2025–2029): Eco Construction Ltd.
    Includes projects such as the construction of 13 World Trade hubs globally, hostels at 100 universities globally, four hydropower plants in India, Africa, Indonesia and Argentina. Target IPO: USD 500B at USD6/share.
  3. Phase 3 (2030–2034): Water, Air & Energy Ltd.
    Projects include construction of more hydropower plants in Myanmar, Nigeria and Borneo, acquisition of waste management plants, establishing manufacturing plants for micro-solar units, air conditioner/heater/purifier, and more. Target IPO: USD 1T at USD 8/share.

What to expect next

These are some technical questions related to the usage of the underlying Ethereum blockchain used by OTO tokens, you may skip this section if you’re unfamiliar with these concepts and come back at a later time.

As mentioned, this new ICO and tokens are still in its first stages of development, there are still many questions to be answered and milestones to be met. Here are some questions in regards to their Ethereum token implementation that I can think of.

  • Will they transition into an actual ETO (Equity Token Offering)? How will they upgrade their current smart contract to implement this?
  • Will there be a DAO (Distributed Autonomous Organisation) established to oversee the overall activities of the foundations and represent the rights of the token holders? Will the token holders be able to vote on what projects the foundations will be involved in?
  • How will they implement Token to IPO trading? How can current token holders ensure this trade will be honoured in the future? If IPOs are involved, will the tokens be approved by financial regulatory bodies?

Summary

Here are the key takeaways:

  • The On Time Foundation is offering a new Ethereum token: OTO
  • It offers token holders mid- to long-term investments across 12 different fields, with a future option to trade-in equivalent IPO shares.
  • Token trading is not yet available at exchanges, only via private sellers.

I feel that this token is a good opportunity for those who are interested in delving into crypto tokens, but have a more conservative and traditional approach. Stay tuned to this blog and the foundation’s social media channels (found on their whitepapers, linked below), for the latest developments.

On Time Whitepaper: ontimefoundation.org