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PayPie ICO Token Sale

ICO Start Date Oct 15th, 2017

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Description
ICO Details
Team
Description

PayPie aims to be the first financial tech company to take the current closed accounting system used by many small and medium enterprises (SME’s) and bring it onto the blockchain. Doing so would not only improve the transparency for financial audits and allow real time analytics but would also allow a platform to be created where a unique credit risk assessment will be provided.

This credit risk assessment will allow peer to peer lending opportunities for fellow small business and greatly improve the efficiency and success rate of credit opportunities for banks, financial institutions and investors. PayPie’s solution will transform the way credit risk is assessed and help to develop an entire blockchain backed ecosystem while cutting costs and accounting fraud.

ICO Details
  • Platform- ERC20 (Ethereum)
  • Supply- Number of tokens available for distribution is 110,00,000. The amount minted will be 165,000,000
  • Distribution- No information provided
  • Type of funds accepted – ETH
  • Pre-Mine – None
  • ICO Price – 1 PPP = .0011 ETH
Team

PayPie ICO Analysis

Company Profile

PayPie is a new offering from parent company SlickPie. SlickPie is a cloud-based accounting solution for small business founded in 2015 out of Vancouver, Canada. SlickPie’s accounting software helps its users record, track and reconcile income and expenses through an online dashboard and allows customers to tailor the look and feel of their invoices to better fit their company brand.

During production of SlickPie’s proprietary invoice and payment account software, there was an extra focus on the upcoming decentralized revolution leading to the development of accounting software for web 3.0, and that solution become PayPie.

PayPie plans to utilize the SlickPie platform by syncing with its current accounting logic and source code to store journal entry and other accounting data. This will cut down on time needed to bring the PayPie platform to production and will effectively create a triple entry accounting system far surpassing the current double entry accounting system that was invented more than 600 years ago that has hampered many small business and prevented invoice financing on real time invoice data.

Crypto Platform

The PayPie crypto platform is based on the idea that by introducing blockchain in an accounting software not only will there be a large decrease in the duplication of efforts, transparency will be increased and fraud will be minimalized. Its primary goal is to put each journal entry on the blockchain which will not only give PayPie higher visibility than banks on the health of the business but will create a platform for invoicing lending based on their Risk Score Algorithm.

PayPie algorithm

The first step of this transition to an accounting environment built on the blockchain would be the soft movement to a centralized system. Using PayPie’s platform, SME’s will use their existing ERP solutions to build a general ledger in PayPie built on the Ethereum blockchain. This will allow business to become familiar to the benefits of blockchain accounting and create a roadmap for future fast adoption.

After business become familiar with the benefits of the PayPie platform, they can move to a decentralized single ledger which will not only save time but will cut costs (elimination of payment processors and back office staff) and improve agility for potential business opportunities based on increased visibility. Not only that but regulators can be tied in to have access and prevent costly audits which can cost thousands of dollars and hours of time.

Once company data is on the blockchain and synched in with PayPie’s platform, it can begin to fully utilize the proprietary Risk Score Algorithm that will be developed in 2018. This algorithm is constantly adjusted on the Ethereum blockchain depending on changes to more than 150  business data points. With this Risk Score Algorithm in play, SME’s will be able to transact and utilize the PayPie Platform Marketplace, one of the key differentiators and reasons for tokenization. 

The PayPie platform Marketplace will allow SME’s to address one of the biggest challenges faced by small businesses today. The struggle of remaining cash flow positive to create new opportunities, implement existing plans, pay salaries and manage working capital. Currently most business get paid only after 90-120 days which can cost them billions in lost opportunities.

With a unique Risk Score, visible by Banks and lenders, cash can be given to the business against outstanding sales invoices instantly by an investor at a cost that creates a solution where everyone benefits. Currently the market for invoice finance has been growing rapidly over 11% per annum and is estimated to be over US $3 trillion worldwide.   

The best accounting solutions enable faster payments, increased efficiency, reduce risk of fraud and lower costs. By putting this accounting information on the blockchain in a triple entry solution not only will it do that but it will provide easy access to short term financing by turning the businesses accounts receivable to tradable assets.

PPP Tokens

The PayPie Platform Token (PPP) is a utility token which will provide access to the PayPie platform for transactions and services. Each PPP token grants the holder the right to purchase invoices and access to credit histories of SME’s using the Risk Score Algorithm analysis.

PPP tokens will also be required to change the beneficiary of an invoice and to provide financial audits of SME’s. Based on review of the expectations of use of the token, it is evident that PPP tokens carry no other rights other than the right to use the platform and would not be considered a security.

RoadMap

The PayPie platform is relatively new with the whitepaper just being released in August of 2017. Currently the plan is to have the ICO crowdsale during late October and for the platform to launch at the end of Q1 2018.

PayPie Timeline

ICO & Crowdfunding

The PPP token crowdsale will begin on October 15th and last till November 15th. There will be only one generation of tokens and the amount dedicated for crowdsale is 82,500,000 PPP with 1 PPP equaling .0011 ETH. If the maximum token crowdsale is not entirely sold, the remaining will be allocated to platform reserves and used when needed.

Of the 110,000,000 tokens available for distribution, the breakdown of how many will be available for contributions vs team allocation is as follows:

PPP Token Distribution

*It is important to note that there will be an additional 55,000 PPP tokens minted that will be kept as a reserve and be used for partnerships*

Of the amount of PPP tokens raised, the funds will be spent as follows:

PPP Token Planned Use

Leadership and Advisors

Nick Chandi - CEO & Co-Founder

Jag Barpagga - CIO & Co-Founder

Bogdan Fiedur – Blockchain Expert

PayPie Leadership

PayPie Advisors

Social Analysis (As of September 15th, 2017)

Final Thoughts

PayPie has brought together an extremely competent team mixed with the business and technical acumen that not only understands the current state of accounting systems but gets how a change needs to be made at the small and medium enterprise level.

It aims to take its SlickPie platform to the next level by offering two solutions: 1. If the business is interested in transitioning its general ledger to the blockchain with its current ERP solution still in tack and 2. A full stage integration to the blockchain.

Regardless of its background and offerings a few key questions remain if the PPP token will remain valuable and if the marketplace they aim to develop will have any long-term validity. One of the first questions revolves around the validity of its decision to mint 55,000,000 extra coins for partnerships and to solidify the strong ecosystem it is trying to build. It is impressive that they have dedicated such a big stake of tokens to increase awareness but it remains to be seen if any partnerships have been agreed upon. With that said, as the ecosystem develops and more users experience the benefits of having their accounting system tied to the blockchain, I do not believe they will have any trouble making the best use of those tokens.

Another item to note is the inclusion of tokens called PieCoins. PieCoins will be another type token in the PayPie platform that will handle all payments in the marketplace and will be pegged 1:1 to the currency used by the end user. Although there isn’t much detail provided in the whitepaper regarding these PieCoins, it is a positive sign they are thinking long-term about the validity of the platform, and how if there is too much volatility it may decrease the amount of SME’s that latch on to the platform. Using PieCoins, any profit that token holders earn will be in this PieCoin which can be converted to the US dollar in a 1:1 ratio. PayPie will handle any other conversion differences.

Overall, PayPie is creating and implementing a blockchain based solution for a key business need that if not taken seriously can bring down an overall profitable business. Based on review of parent company SlickPie, the background of the teams leadership and gaining a full understanding of the future PayPie ecosystem, I believe PayPie is positioned to become a player in the blockchain based accounting system provider industry and that invoice financing will be a key revenue generator in the future and for years to come.

Disclaimer: This "ICO analysis" is for entertainment purposes only. Investing in initial coin offerings (ICOs) can be risky and can result in taking significant loss on investments. Before investing in speculative cryptocurrencies or ICOs, you should talk to a qualified licensed professional. You should also seek proper legal counsel, to ensure investing is legal in your location.