The Hive Project, a cryptocurrency invoice financing platform focusing on providing new financial liquidity for small businesses will on Monday, July 3rd begin its ICO.
Driven by the risk-lowering technology offered by blockchain, the Hive Project aims to bring cryptocurrency invoice financing into the mainstream. Despite acting as the backbone of every economy, SMEs have traditionally been poorly served by the forms of finance available to them. Long waits for bureaucratic processes to complete and the high levels of collateral required by banks present unreasonable hurdles for SMEs to overcome when trying to source the financing they need to survive.
SMEs have limited access to short-term working capital financing as banks demand significant collateral and large amounts of documentation when approving finance. It is this
huge funding gap for small and medium-sized enterprises worldwide which has fuelled the global factoring industry’s growth of more than 10% per annum in recent years.
The Hive Project uses blockchain technology to grant every issued invoice a unique fingerprint. This innovation enables businesses to automate the invoicing process, bringing the benefits of blockchain technology closer to commercialization.
Ultimately, The Hive Project’s end state will include a full marketplace with advanced trading analytics for peer-to-peer lending. This will rapidly increase the liquidity available to small businesses and create a central database of invoices available for scoring and auditing. In addition to bridging the liquidity gap for small businesses, the technology provided by The Hive Project will help credit checks made on companies and facilitate rapid and real-time auditing
HVN tokens will grant the token holder the right to purchase invoices on the Hive platform and obtain credit scores for certain entities which have a sufficient financial track record on the Hive blockchain. Invoices are uploaded to the ethereum blockchain regularly and at no cost by claim sellers looking for liquidity. HVN tokens are therefore the entry point to The Hive network.
Jure Soklic, CEO, and Co-founder of the Hive Project said:
“When it comes to getting credit, it is clear that rapid changes are afoot in the old economy. We want to help small businesses get liquidity by leveraging blockchain technology and giving them financing options previously available to large companies.”
Invoice financing has emerged as a welcome solution to this growing demand for credit. Since 2009 and the beginning of the financial crisis, the industry has surged ahead at a rate of 14% per annum, adding over a trillion euros to annual invoice financing volumes in the process. In 2016, global invoice financing surpassed EUR 3 trillion in annual volume.
Yet, traditional invoice financing is typically reserved for stable companies, with access reduced for small businesses. Additional difficulties with automating processes, calculating ineligible accounts, dilution, concentrations, and invoice duplication create barriers to entry for small businesses. These are problems The Hive Project intends to provide solutions for.
Richard Titus, Advisor to Hive Project and Former SVP Samsung Electronics Visual Display and CEO, Propmt.ly said:
“Helping small businesses automate the invoicing process, The Hive Project delivers the benefits of blockchain innovation to Main Street commercialization. Hive Project’s end state – a marketplace with advanced trading analytics for peer-to-peer lending – will rapidly increase the liquidity available to small businesses and expand today’s often mercenary ecosystem of factoring and lending. It’s just the sort of financial innovation we expect from new technology and talented entrepreneurs and developers.”
ICO Details
Token name
Hive token (HVN)
ICO duration
6 weeks
What does this token represent?
Hive grants access to Hive network services.
Payout structure
Token owners will be repaid through a token buyback mechanism executed on the stock exchanges where HVN tokens will be listed. The number of tokens repurchased will depend on the revenues generated by the Hive network. Once the token holders get their initial investment value repaid through buybacks, the project should be treated as mature and attractive for acquisition by key players in the finance industry. If a takeover is successful, the proceeds will be split equally for each token.
Total supply
500,000,000 tokens
Price per token
This will be confirmed 7 days after the ICO ends.
Threshold amount
BTC 2,000 – BTC 10,000
Liquidity pool
Above BTC 1,500 raised
Bonus
Week 1 – 15% bonus
Week 2 – 12% bonus
Week 3 – 9% bonus
Week 4 – 6% bonus
Week 5 – 3% bonus
Week 6 – 0% bonus
The Hive Project whitepaper is available with more information.