ICOrating

COSMOCHAIN Basic Review (https://cosmochain.io)

ICO dates (09.04.2018 – 20.05.2018)

Web: icorating.com

Email: info@icorating.com

Twitter: @IcoRating

The Project

Name: Cosmochain

Ticker symbol: COSM

Project Type: Platform, Beauty

Extended company description: Cosmochain is a business-to-consumer platform

that connects consumers of cosmetics products and content creators to cosmetics

product suppliers, including cosmetics companies, OEM/ODM manufacturers, R&D

centers, and distributors.

Company: Huiseoul HK Limited

Website

Whitepaper

ICO Details

ICO start date: 09.04.2018

ICO end date: 20.05.2018

Token sale duration (weeks): about 6

Token type: ERC-20

Total token supply: 1,000,000,000 COSM

Tokens for sale (private sale + pre-sale + crowdsale): 500,000,000 COSM

(excluding bonus)

Post-ICO funds implementation plan:

Price: 1 COSM = 0.0001 ETH

Accepted payments: ETH

Bounty program: Active

Token role: Functional

Team

Team size (number of people): 12 (including engineering advisors)

Number of advisors: 18

GitHub

Project Information

Cosmochain is a complementary business-to-consumer platform that connects

cosmetics product consumers and content creators to cosmetics product suppliers,

including companies, OEM/ODM manufacturers, R&D centers, and distributors.

Those who contribute their time and attention towards producing and curating

content for others are compensated with tokens and have pro-rata ownership of the

content they create. Beauty companies may also actualize a wide variety of “on-

demand” services on the platform, including customer/market data collection and

selling their products in the marketplace by utilizing the API that Cosmochain

provides.

The platform will provide the following services:

For the user:

1) Beauty-focused social media based on a decentralized reward scheme.

2) A marketplace where items can be paid for in the 'Cosmo' cryptocurrency.

For a company:

1) Placement of advertising.

2) Access to the marketplace for selling products.

3) The right to use individual participants’ data.

4) Connection to appropriate content creators, users, influencers, and diverse

business partners.

5) Customer insight based on big data analytics.

Advisors:

Sung Park (LinkedIn) — Co-founder and Managing Director of Translink

Capital.

Yeonhee Kim (https://www.bcg.com/ru-ru/about/people/experts/Yeonhee-

kim.aspx) — Senior Partner and Managing Director of the Boston Consulting

Group (a global expert with consulting experience of over 27 years,

particularly in consumer products and retail industries).

Simon Seojoon Kim (LinkedIn) — CEO and Partner of Hashed, consultant to

the ICON Foundation, board member of Medibloc, consultant to Traceto.io,

and Venture Partner of SoftBank Ventures Korea. He was the Chief Products

Officer at Knowre, an ed-tech startup.

Ryan Sungho Kim (LinkedIn) — Chief Acceleration Officer and Partner at

Hashed. Former Director of Strategic Planning at Recobell, CEO at Looket

and Aprilfunk.

HongZhuang Lim (LinkedIn) — CEO of XSQ Pte Ltd. with over 10 years’

experience in the food and agriculture industries. He has also worked as a

Managing Director at Pac-Fung Agora Pte Ltd.

Darius Sit (LinkedIn) — Managing Partner of QCP Capital. Previously, he

worked as a trader at BNP Paribas and Dyman Asia Capital.

Hee-Eun (Baki) Park (Https://www.bloomberg.com/profiles/people/18828207-

hee-eun-park) — Principal at Altos Ventures. Previously, she was a strategy

manager for NCsoft.

Bokyung Kim (http://irisnj.com/2010/11/10/bokyoung-kimwedding/) — CEO of

Make My Wedding, one of the top Korean beauty bloggers, collaborating with

Giorgio Armani, Sisley, Shiseido, and Fendi.

Eunielle Lee (LinkedIn) — CEO of beex, inc. Founder of two beauty services,

Cut & Curl mobile application and Style Bar X. Prior to that, Eunielle was a

vice president of Lab & Company and worked at Paprika Lab as a mobile

services director.

Karine Estelle Cheong (LinkedIn) — Founder and CEO of Klover Group SG

with over a decade’s experience in the health and beauty industry, building

businesses around Southeast Asia. She is a beauty veteran and was winner

of Asia Successful Achiever 2016/17.

Hojin Jung (n/a) — Assistant professor of marketing at Hongik University.

Received a PhD in marketing from Kellogg School of Management,

Northwestern University.

Geoffrey Yoon (LinkedIn) — Cardiologist at Palo Alto Medical Foundation and

El Camino Hospital in Silicon Valley. He graduated from Johns Hopkins

School of Medicine and completed a Cardiology Fellowship at Stanford

University. He will actively support Cosmochain’s growing connections with

medical and research centers.

Project partners:

Huiseoul Inc. — a mobile commerce company focused on the Chinese

market, with revenues of US$40 million.

Mefactory — a top-tier Korean beauty startup founded in 2014. Metafactory

had great success with their launch of ‘3-Steps Piggy Nose Pack’, which sold

15 million+ sheets;

Cut & Curl — a cross-channel beauty-service providing a full range of beauty

solutions: digital content creation, a mobile beauty data service, professional

beauty product distribution, and beauty service operations.

Reduire — a Korean beauty brand pursuing a minimalist beauty routine.

KLARITY — a halal-certified functional skin care brand from Singapore.

Montserrat (n/a) — A beauty brand focusing on skin whitening cosmetics.

Seum — A law firm which provides general corporate and litigation legal

services to startup companies, technology companies, and venture capital

funds.

Investment attracted:

Private investors: Hashed, Kailin Investment, XSQ, QCP Capital.

The amount of private investment is not disclosed by the team.

Summary

The project is based on a platform linking cosmetics companies and customers.

Strengths of the project:

A strong team and advisors with appropriate expertise.

The presence of investors and high-profile partners.

Weaknesses of the project:

No MVP presented.

The project’s market shows relatively low growth rates, in spite of a huge

market size.

Market and Industry

According to Research and Markets, the cosmetics market is estimated to reach

US$429.8 billion by 2022. Annual growth rate will be 4.3% between 2016 to 2022.

The Asia-Pacific region is the fastest growing market.

[https://www.researchandmarkets.com/reports/3275915/world-cosmetics-market-

opportunities-and], [https://www.statista.com/topics/3137/cosmetics-industry/]

According to the team's analysis, the global cosmetics market showed an annual

increase of 3%, while in developing countries (including China) the growth rate was

5% per annum.

Key trends in the market are:

1) Personalization and micro-segmentation.

2) Marketing/sales switching to online channels.

3) Departure from traditional success factors for doing business in this industry.

Comments: The market is growing rather slowly, which indicates potential difficulties

in entering the market.

Competitors

In the course of our review we identified the following competitors:

Jolyy — a platform that enables making appointments in salons, for linking

specialists and platform users, and for placing advertising.

Spacoin — a platform for selling beauty products and services.

Summary: Cosmochain’s distinctive features are the possibility of analyzing

customer data and the creation of an internal social network.

Engineering Features of Cosmochain’s Architecture

Cosmochain will be built on the basis of EOS, and its service architecture is made up

of three layers:

1) Database Layer

2) Platform Layer

3) Application Layer

All information created and shared within the platform is managed securely by the

blockchain, all individual customers and participants can exercise ownership and

management rights for their own content, and all platform users receive

compensation when data and content are shared with companies. Participating

companies are also able to provide a wide variety of “on-demand” services on the

platform by utilizing the API that Cosmochain provides.

In addition, a NoSQL-based LightBase (such as MongoDB, Redis, Cassandra) will

be built to take into account the cache in EC2 server, and the main data will be

encrypted and stored on the S3 server. Therefore, this infrastructure design will

enable extensive data analysis (for example, AWS Big Data solutions).

Technical Description

Cosmochain’s components function as follows:

1) Database layer

Cosmochain has designed a full database layer using blockchain as its core

technology to take full advantage of data integrity, nonrepudiation, no network fees,

and other inherent benefits. All information is divided into private and public. In

addition, this component will store data.

2) Platform layer

The platform layer is a core layer in the Cosmochain service architecture. The

platform layer has two components: ‘Cosmochain Communty’ for customers and

‘Cosmochain Solutions’ for companies.

a) Cosmochain Community for users: This is the most essential aspect of

Cosmochain’s service, where all insights for participating companies are generated.

Customers can participate the in ‘Cosmochain Community’ through content creation

(writing posts, uploading videos) and curation activities (voting other users’ posts up

or down) – both of which can result in ‘rewards’ according to the reward scheme.

The community is a place where customers can talk about cosmetics and beauty,

create different content for companies, vote, comment, etc. For such activity, users

are rewarded with tokens (Cosmo Power) and an increase in reputation (Cosmo

Level). Users can also invest in cosmetics companies’ projects.

b) Cosmochain Solutions for companies: This is a service that Cosmochain provides

for beauty companies. Services include:

Use and purchase of customer data.

Organization of surveys for clients, creation of audiences. Surveys can be

created for the purpose of dermatological research.

Placement of advertising.

Availability of products "on demand". Customers will be notified if a company

provides a product they are interested in.

Analysis of customer data.

A marketplace will also be created within the Cosmochain platform where companies

can sell beauty products or services for tokens or fiat currency.

Each platform member will have their own personal account, where they can monitor

their reputation (Cosmo Level) and token holdings (Cosmo Power).

3) Application layer.

Main functions:

a) Personalized product development (collection of ideas from customers with similar

skin types and cosmetic needs).

b) Shopping navigator based on data (data analysis and recommendation of

products to customers targeted by skin type/nationality/country/age.

The Cosmochain ecosystem consists of three asset classes (two tokens and an

index):

1) Cosmo Coin. Used to pay for services on the platform by companies; customers

can use Cosmo Coin to purchase Cosmo Power.

2) Cosmo Power. A reward for users, also enabling purchase of cosmetics in the

marketplace.

3) Cosmo Level. A reputation index designed to prevent abuse of power within the

platform. It is calculated by a user's Cosmo Power amount.

Comments: The project uses existing technologies that have already been proven in

the market.

Technical Roadmap

With the development of the technology and amount of data required it is planned to

implement the following:

Q3 2018: release of the Alpha version of the platform.

Q4 2018: platform soft launch.

Q1 2019: closed beta release.

Q2 2019: global platform launch.

Comments: The project has presented a step-by-step strategy for the development

of the platform. However, development of the platform and the protocol will take

significant time, which could adversely affect investors' willingness to participate.

The following active modules are available in the open repository:

Comments: The repository contains 1 module:

Cosmo Coin — the ICO smart contract module. The repository belongs to

Cosmochain.

Documentation

We checked Cosmochain’s site and documentation for sufficiency and consistency

to assist in making an investment decision.

Information about the project is available in the White Paper and in the One Pager.

The white paper is available in English and Korean. The One Pager is available in

English. The white paper presents a description of the project; emphasis is on the

description of the platform's functionality and its infrastructure.

The website also provides information on the project, ICO, roadmap, team, advisors

and partners. The site is available in English and Korean.

Summary: The documentation provides insight into the project. The project is

described in sufficient detail in the documentation.

ICO

Tokens to be issued for sale: 50%

Public ICO start date: May 7th, 2018

Token Type: ERC-20

Accepted payments: ETH

Price: 1 COSM = 0.0001 ETH

Crowdsale duration: about 2 weeks, until May 20, 2018

The Cosmo Coin token will be the platform’s payment instrument, and will be used

by companies to pay for services on the platform. Customers can purchase Cosmo

Power with the help of Cosmo Coin. Cosmo Power will function as a reward for users

and can be used to purchase cosmetics products in the marketplace.

Token limit: 1,000,000,000 COSM

Benefits for token holders: Tokens are functional; they can be used to pay for

platform services or be sold; ICO participants will have the opportunity to be the first

users of Cosmochain’s solutions (which are more economical than existing

marketing tools)

Dividends: No

Additional token Issue: n/a

Escrow: n/a

The sale is carried out in three stages:

1) Pre-sale: April 9, 2018–April 20, 2018;

2) Crowdsale (Earlybird): 26 April 2018–May 6, 2018;

3) Crowdsale (Main sale): May 7, 2018–May 20, 2018.

Max Goal: 50,000 ETH

Minimum Goal: 5,000 ETH

Bonuses:

Comments: Tokens will be listed on exchanges. There is no period of lockup during

the pre-sale or main crowdsale.

Bounty Program

Link to the bounty program: http://telegram.me/Cosmochain_AirdropBot/

The program is available in the following directions:

10 COSM — joining the Telegram group

10 COSM — joining the Facebook group

10 COSM — subscribing to the Medium blog

5 COSM — referrals

Summary: All conditions for the program are provided by the project’s bot. The exact

number of tokens allocated to the bounty program has not yet been determined.

Token and Capital Distribution

Tokens and capital are distributed according to the following scheme:

Summary: Tokens do not affect the distribution of shares in the company.

Project Development Plans

Roadmap for the project:

April 2018: Holding meetings with investors and partners.

Q4 2018: Platform functioning in the Chinese and Korean markets.

2019: Entering the Japanese, general Asian, North and South American,

European and Oceania markets.

Summary: The team has presented plans for scaling the project. The marketing

campaign is aimed at attracting cosmetic brands to the platform.

Team

The team has 12 members and 12 advisors. Information on the core members of the

team (LinkedIn) is as follows:

Howon Song (LinkedIn) — CEO (MBA, Stanford, M.D., Yonsei U). He is also

current CEO of Huiseoul Inc.

Joowon Hur (LinkedIn) — CSO; previously worked for the BCG (the Boston

Consulting Group) Seoul Office as project leader, education — KAIST (Korea

Institute of Advanced Technologies).

Seungho Shin (LinkedIn) — COO; previously worked for Hahn & Company as

a senior manager, and also worked for the BCG (Boston Consulting Group)

as a consultant.

Summary: Only half the team have indicated their affiliation to the project. The team

is mainly from Korea. The team has the following specialists: A CTO, head of

marketing, head of investment, blockchain and engineering advisors, an analyst and

a design advisor.

Marketing

Information about the project is available on a variety of popular services such as

Twitter, Telegram, Medium, GitHub, Linkedin, YouTube and Facebook. The project

has an active bounty program.

The team is conducting an advertising campaign via social media. There are regular

news updates on Twitter and Facebook, and the project keeps a blog on Medium.

The format of articles about the project suggests that they were mainly written by the

project team as reviews.

Comments: Interest in the project is gradually increasing. The marketing campaign is

mainly being developed on Medium and Facebook.

Analysis of the CosmoChain website’s traffic based on Similarweb.com data showed

the following:

Traffic sources: https://www.similarweb.com/website/cosmochain.io

Comments: direct: 62.31%, referrals: 0%, search: 17.85%, social: 18.84%, mail: 0%

Search traffic: 17.85%, of which 100% is "organic" traffic

Referral Links: 0%

Analysis of CosmoChain’s website traffic based on data from BE1.ru showed the

following:

Traffic sources: [https://be1.ru/stat/cosmochain.io]

Comments: Top 5 countries for site visitors: Korea — 38.37%, Thailand — 19.84%,

USA — 12.75%, Vietnam — 7.95%, Germany — 7.33%.

Referral Links: No

Social activity: Facebook — 100%

Summary: Based on available data about the project, it can be concluded that there

is not yet sufficient interest in the project. The team is leading an active advertising

campaign on Twitter and Facebook and is also communicating with users via

Telegram, and keeping a blog on Medium. There are publications in the media. In

the last month, site traffic has increased by 22,000.

Contacts

You can contact the developers through the following links:

Website

Twitter

Telegram

Medium

LinkedIn

Facebook

Github

YouTube

The information contained in the document is for informational purposes only. The views

expressed in this document are solely personal stance of the ICOrating Team, based on data

from open access and information that developers provided to the team through Skype, email

or other means of communication.

Our goal is to increase the transparency and reliability of the young ICO market and to

minimize the risk of fraud.

We appreciate feedback with constructive comments, suggestions and ideas on how to make

the analysis more comprehensive and informative.