Ratings Summary:
Return: 5/10
Risk: High
Maturity: Long Term
Liquidity: NA for ICO
( Note: Please visit http://www.tokenspectrum.com/ for more reviews )
Blockchain technology has many use-cases in the global supply chain industry.
Global supply chain and payments are messy and time-consuming and involve multiple entities located in different geographies each having different formats and systems.
Most of the global commerce is conducted using physical shipping documents which are inefficient, slow to transfer and can be easily tampered with. Payments across geographies using legacy systems take at least 3 days to process, while the intermediary banks charge a high processing fee which increases the overall costs. This process is especially difficult and cumbersome for small suppliers and manufacturers.
According to the World Economic Forum’s report Enabling Trade: Valuing Growth Opportunities, reducing barriers within the international supply chain could increase worldwide GDP by almost 5 percent and total trade volume by 15 percent.
This is exactly what Morpheus Network is trying to achieve. Morpheus Network will create a supply chain network with predetermined, automated and digital work contracts, shipping & customs documents as well as automated international payments.
The core features of the Morpheus Network are as follows:
1: Full featured and automated supply chain:
Documentation: One of the major goals of Morpheus Network in to simplify global trade and supply chain. This can be done by the automatic generation of digital, original shipping documents. These documents will be stored on a permissioned blockchain where only authorized entities can access and edit them.
Escrow Payment: All payments within the Morpheus Network will be done using escrowed smart contracts. Funds will be released only upon completion of the objectives by both the parties.
Integration with other platforms: Morpheus’s smart contracts can include data from other platforms like Walton (RFID entry) or Sia (data transfer).
Payments:
Payments using the local Morph tokens will be instant and seamless. Any currency can be converted to the morph tokens and vice versa using the Morpheus Network platform. Integration with SWIFT will facilitate direct transfer in the regional currency.Security and trust: Morpheus will use a permissioned blockchain for storing the documents and facilitating payments via smart contracts which will provide security and make the system trustworthy.
What is the Roadmap?
An MVP for the platform will be available before the public sale (date TBA but somewhere in April).
Discussions about the project were initiated in April 2016. Since then the team has spent time in establishing partnerships and connections. The website mentions partnerships with “international industrial manufacturers” but have not given names of these organizations.
Aggressive development of the platform will be done from April 2018 onwards, and test platform for early adopters will be available in November 2018.
What are the tokens used for?
The Morph tokens will be used for payments across the platform. The escrow smart contracts are a key to this project and they can only accept payment in Morph tokens. Conversion of Morph with fiat can be easily done on the platform.
Token Distribution:
52% of the 100 million tokens are available for the public sale
20% of the tokens are available for the pre-sale.
15% of the tokens are reserved for founding member and advisors.
Team
Co-founder and CEO Danny Weinberger has extensive experience in operations and trade as he has worked as the director of operations for Stronghold Equipment for around 15 years. The other Co-founder Naom Eppel has extensive experience in Web development and security.
The website lists 18 members in the team but a lot of them are marketing professionals.
The remaining members are full-time employees of an organization called Winjit Technologies with whom the co-founders have partnered with. So technically they are not a part of Morpheus and listing them as members of the team is misleading.
Positives:
It is difficult for smaller manufacturers to be a part of global commerce to barriers at each step of the process, right from shipping, tracking to the final payments. A platform like Morpheus Network will make this process seamless.
Other supply chain related projects like Walton can be integrated with Morpheus Network. For example, data coming in from the Walton RFIDs can be integrated with the smart contracts. The smart contract will initiate payments only when it verifies the product’s qualitative data using Walton.
The size of the global trade industry is $15 trillion. This leaves plenty of ground for Morpheus Network to cover.
Along with its potential benefits for smaller manufacturers, Morpheus Network’s services can be very cost-effective for large-scale manufacturers with operations spread across multiple geographies.
Negatives:
Ground level folks like custom brokers and freight forwarders will also have to be a part of the network for the permissioned document access. So along with the manufacturers, Morpheus will also need to work closely with every component of the supply chain ecosystems of each country.
The white paper lacks technical details. There is no mention of the permissioned blockchain that will be used nor any details about its technology.
The co-founders do not have much entrepreneurial experience. Implementation of a project of this scale won’t be easy. There is no full-time team working on the project only members of the partner firm Winjit Technologies.
Smaller manufacturers will prefer existing platforms like Alibaba. Alibaba offers customs clearance, logistic services and even financing options for smaller businesses.
Rating
Morpheus Network is working on a real problem but there is too much vagueness at the moment to have a positive view of the project. What blockchain are they using? Technical details about implementation? Business model? How will people like shipping agents be integrated with the platform?
The MVP will be available before the public sale, once it is released we will revisit Morpheus Network and revise our ratings.
a. Return: Morpheus Network gets a positive rating in 8 out of 15 of our asset evaluation metrics. The positive score is on the upper side for the Problem Statement and Market Potential metrics.
The project gets an average rating in 4 of our asset evaluation metrics. The Product, Team Members, Partnerships, Marketing metrics get an average rating.
Morpheus Network gets a negative rating in Business Model, Competition, and Product Status metrics. Based on our evaluation, we assign a Return Rating of 5 out of 10 to Morpheus Network.
b. Risk: Considering the lack of technical details and competition from traditional giants like Alibaba we assign a High-Risk Rating to Morpheus Network.
c. Maturity: Short Term: Negative. The roadmap states that the team will only begin conversations with larger exchanges in May 2018. Considering the time that it nowadays takes to list on exchanges, we think talks with exchanges should begin now itself. Also, we are not sure whether the hard cap of $36 million will be achieved.
Long Term: Neutral. The longer-term investment potential of this project will depend upon the execution. As of now, there is not much clarity about how the project will be developed.
d. Liquidity: Not applicable for ICOs.
ICO Details
Token Type: Utility
Platform: Ethereum
Symbol: MORPH
Presale Value: 1.12 MORPH = $0.5
Pre-Sale: 2nd March - 17th March
Public Sale: TBA
Pre Sale Bonus: 12%
Hard Cap: $36 million
Jurisdictions Barred from Participating: USA, Canada
Website: https://morpheus.network/?skipintro
Whitepaper: https://morpheus.network/whitepaper/