Hiveterminal: Final Testing Before Opening New Markets Is Under Way! [the commentary]
Progress continues apace at Hiveterminal with the news contained in their latest blog. There is no need to break it down as it is short and sweet. There is only one key takeaway:
So I am more interested in talking about what this means or could mean.
Most of the time in business you get to tick along, do the daily tasks, set targets, and either achieve or fail to reach them. Make changes and continue on. Most of the time it is not exciting; lots of small incremental movements.
But this is an exception to the norm. We are now at a crossroads, a rare opportunity for the Hiveterminal team to level up; rather than move a toe forward, this could be the moment to take a big stride.
The Swiss VC, who still remains unknown at their request, bought 51% of the business and became the majority owner earlier this year. They took ownership of the former CTO’s tokens, who left Hiveterminal, and they invested an unknown fiat amount into the business too. Without resorting to hiring the Scooby-Doo squad, this information is not easily accessible. So we have to hope the team did a sensible deal - for their sake and for the sake of all the token holders.
In reality, I don’t think it really matters how much the VC invested. A good business person would not throw away money on something they did not believe in. That would not make good business sense. We have been told by the team in the official chat that the VC’s businesses are worth a total of nearly €1 billion, so clearly the VC has skills. But on the other hand, a good business person will choose to cut losses, offset things against tax and not be afraid to walk away. So ultimately how much money they put in does not matter to me. It’s the VC’s responsibility to deliver the invoices. It’s as simple as that.
In the team’s most recent blog, it is clear that one of the targets agreed between the team and the VC was for the VC’s companies to be able to join the platform and get invoices listed there. The VC is providing a stepping stone for European expansion - and this makes great sense from all sides.
Now, Hiveterminal has almost delivered the first target they agreed with their new VC owners. Within the next 10 days, the first new companies will start to be added to the Hiveterminal platform and this is where things are going to get interesting.
Since the VC investment was made, the onus has been on the team to deliver that first VC-led goal. But that dynamic is now switching and the onus is now going to be on the VC. This will be a moment of truth. Will the VC’s companies produce invoices that are suitable for the platform? Will the VC’s companies have a good enough credit score to make them attractive? Will the VC be able to encourage his companies to use the platform? Frankly this is all unknown and still yet to be proven.
Fundamentally, will the VC be able to deliver what he promised to the team? Nobody knows. Not even the team.
There is a long way to go until Hiveterminal can be described as a success. Despite having sold nearly a €1 million worth of invoices, we are not there yet. But make no mistake. This is a significant moment in the life of Hiveterminal. This is a crunch moment. This is a chance to level up.
The team has stated that the updated platform will be released on 10 July. By mid-August, I would like to see the first invoice uploaded and sold from one of the VC’s companies outside of Slovenia. This would be the first real step towards European expansion, a big moment and great milestone for the team.
By mid-October, it would be great to see the number of invoices sold on the platform reaching new record levels on a consistent basis.
I admit this is guess work and there are a huge number of factors that influence this, not to mention the effects of the global pandemic. But the cautious optimism exuded by the team gives the impression that these do not feel like unrealistic expectations.
There are very few utility tokens out there actually delivering utility. This latest development could further cement Hiveterminal’s status as one of leading projects for this new asset class. This will not be about possible deals, flimsy letters of intent, and what ifs. This will be about delivering real and tangible results. It’s a genuinely exciting time for the team and the ICO token holders who have been so supportive along the way.
If you are not involved, maybe it is time to change that. But is there time to get on board before you can't run fast enough to catch this train?!
Published by @soldonhive on Thursday 2nd July 2020
*DISCLAIMER: This is not financial or investment advice. The above references an opinion and is for information purposes only. All investments involve a high degree of risk and there is always the possibility of loss. This information is general in nature and has not taken into account your personal financial position or objectives. Before proceeding please refer to a licensed adviser or tax agent and relevant PDS for product details before proceeding.