Envion (EVN) ICO – Should you invest?
Envion (EVN) – Announced November 2, 2017, Envion hopes to be the “World’s Most Profitable Standard of Self-Expanding Crypto Infrastructure”. EVN is just one of many new ICOs attempting to focus on tokens with payout rather than forcing miners to create coins through mining.
Envion aims to be different while at the same time staying the same. The typical miner sets up a farm and uses either graphic cards (GPU) or ASICs to mine digital coins in order to hold the coins or sell. In either case the two main considerations after coin value is hardware cost and electricity. Combined with coin price determines is profit or return-on-investment (ROI) can be achieved.
EVN hopes to set up its patent pending (Germany:102017125540.0) Modular Mining Units (MMUs) where renewable energy is cheap and in over production. By doing so they can benefit from cheap energy and feel good about limiting a carbon footprint at the same time while making money for themselves and token holders.
How it will work is 1 December EVN begins a pre-sale of tokens for 48 hours at a discounted price of $0.70 per token. Investors are limited to US and Swiss citizens and will be subject to applicable laws of the respective nations. After the 48 hour pre-sale tokens then move up a set schedule reaching $1/token at full price before listing on cryptocoin exchanges.
After launch, holders of the tokens will receive a portion of any profits from the mining operations. Currently Envion operates on MMU in Germany at a factory and one additional prototype currently being installed at another factory. In addition to mining the MMUs provide heat to offset cost at the factories during fall and winter months. A simulation can be seen here but is only a simulation and live results are disabled.
From the simulation we can see Bitcoin (BTC) and Ethereum (ETH) being mined. This indicates that the MMU uses ASICs and GPUs to mine. The largest seller of Bitcoin ASICs is Bitmain while the best GPUs to mine Ethereum are from Nvidia. The simulation shows 130-140 TH/s on Bitcoin which works out to 10 Antminer S9s at 13,000 watts. Ethereum hashing is a bit more complicated to calculate as there are several GPU options with either 1070s or 1080s most likely being used to keep the number of cards lower. Currently ETH is simulated to be mined at 8.4 GH/s. With emphasis though these are only simulations. Total energy is ~60,000 watts.
Without knowing the energy price it is hard to calculate revenue on this unit. The white paper published by EVN discusses various energy price points and reading it seems to conclude the target of $0.02-0.03 per kw/h. With the installed miner being in a factory it is likely running on non-renewable energy and as a prototype the location may have been more important than energy cost.
Should you invest? This is a complicated question. EVN plans to return 75% of profit and re-invest 25% of profit with payments each week starting in January. As a new company there are no previous results to review. Forward looking statements from the company claim expected 161% profit first year with increasing revenue via re-invested profit. The old saying applies, if it sounds to good to be true it likely is.
Mining today and mining in January are drastically different things as difficulty on the Bitcoin and Ethereum blockchains are nearly guaranteed to be higher. No new mining equipment or GPUs have been announced with released prior to 1 January to replace the current benchmark Antminer S9s and Nvidia line of cards. The revenue today will not be the same as January.
Additional concerns abound. Mining equipment costs money. Trying to move MMUs around the globe is complicated and takes time. Transport time is not mining time. Buying equipment to keep it idle while moving MMUs around the globe increases time to ROI. Ask any miner today to give up 75% of his revenue and see if he can still ROI. They will laugh at the question.
For now use caution. Read the white paper here and check out the website before making any decision to invest. There is an active thread on bitcointalk which is hosted by an Envion rep if you have questions. All invests are risky, if you are prepared to lose everything then $0.70 per token during the pre-sale might be worth passing up the latte at Starbucks for a day.