Philippine Startup Aims to Decentralize Loans: HERO

Top.pngThis piece is worth a read if you are interested in HERO, searching for new ICOs, are passionate about decentralization & cryptocurrencies, or simply want to get a grasp of how to analyze companies from a purely business point-of-view.

Table of Contents:
Part 1: Introducing HERO
Part 2: Essential Information about HERO
Part 3: Valuing a Company
Part 4: TL;DR

Part 1: Introducing ICO: What is HERO
This project hits a major market: Finance.Credit is the backbone of business growth and economic stimulus. Access to credit allows businesses to grow and flourish, start-ups and entrepreneurs to pursue innovative solutions, and, of course, large corporations to expand.

In most developed nations, access to capital is fairly easy to access. This is why the vast majority of start-ups are birthed in the developed nations. It’s not that the rest of the world lacks innovative thought process, just opportunities and easy to grab due to easy availability of capital. From non-collateralized business loans from banks to seed funding from angel investors, developed nations provide many pathways to capital.

But what about the developing nations?In most developing nations, wealth is very skewed and access to capital is primarily available to those who already possess a lot of wealth. This leaves many to utilize subprime means of accessing capital, often in the form of microloans from loan sharks. The interest rates for such loans often reach crippling highs of up to 100%!

Not only does this put severe pressures on those who do pursue these loans, but it limits the utilization of such loans only for emergencies; the utilization of capital for businesses remains untapped for many in the developing world.

Enter: HEROHERO allows a tremendous opportunity for the developing nations in southeast Asia. Much of the population in the massive region is unbanked. HERO’s pursuit is aligned with some of the most fundamental goals the most enthusiastic participant of the crypto community hope to achieve: bank the unbanked.

HERO intends to utilize complex algorithms and identification checks to place anyone in Southeast Asia on to its platform to receive capital funding by way of decentralized loans.

The problem, HERO’s founders assert, is that many in developing countries lack a credit score or even the opportunity to build one. HERO makes it easy, in fact too easy, for almost anyone to start developing, first, a credit score, and then, a source of capital through loans with reasonable interest rates.

HERO’s team also has a proven track-record as they have already established an effective online pawnshop in Southeast Asia, and it received financial support Alibaba and Softbank.

The most important factor in any ICO is whether the team can deliver what they promise and in this case the team is clearly well-equipped with the knowledge and experience necessary for this project.

The HERO token is the medium of transacting for this platform and is therefore a genuinely valuable token.

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Part 2: Essential Information
Website: https://herotoken.io/
Whitepaper: https://s3-ap-southeast-1.amazonaws.com/herotoken/Hero+Whitepaper_082917.pdf
ANN Thread: https://bitcointalk.org/index.php?topic=2088817
Telegram: https://t.me/herotokensale
Token Sale: FEB. 1
Token Type: ERC20
Ticker: HERO
KYC: YES
Accepts: ETH; BTC; LTC; XRP; ETC; WAVES
1 HERO = 0.005 ETH = $4.78
Can’t Participate: USA
Team From: Philippines

Part 3: What is HERO Worth?
A company can be valued in many ways; 3 common ways are:

  • Assets: You can value a business by calculating the net value of its assets
  • Revenue: You can value a business at a multiple of its revenue; the multiple should be derived from its competitors or other industry players.
  • Cash Flow: You can value a business by discounting its expected future cash flows. You can do this by dividing what you think a business may earn, on average, in a given year and then dividing it by a risk-free rate of return.

I advise using established corporate bond returns (~3%) as an almost-risk free measure of return rather than T-Bills.

I won’t give an exact figure to HERO as the answer to that can be highly speculative and a lot of positive or negative bias can seep in. Finding estimates of what HERO will generate through a view of its remote competitors might provide a heavy spread between potential valuations.
But here’s a look at what some of the existing companies in this sector are valued at:

HERO serves as a platform for financial purposes, this allows us to narrow down from the prominent blockchains to the ones who have a primarily finance-focused mission.

  • Stellar presently holds a market cap of nearly $7 billion
  • Ripple presently holds a market cap of nearly $33 billion

HERO, however, is aiming for a more narrow target. While Stellar and Ripple claim to be global providers of service, HERO has boldly marked itself as a service for Southeast Asia. Of course, the company may later pursue expansion into other territories but that is to be seen.

However, narrowing down isn’t bad. It allows HERO to focus its efforts on a market its team has already penetrated and has much experience with. They could easily control the market share.

Note
As is the case with investments in any security or asset, you should invest in ICOs and tokens only an amount you are willing to lose. Investments in the crypto market are high-risk, high-reward moves and investor due diligence is imperative.

Watch Out
If you intend to invest in the project’s ICO, be sure to utilize the official project website. As disappointing as it may be, scammers are rampant in the crypto market and many try to scam investors through deceptive measures by identity theft of project leaders and phishing measures.You should only contact official company social media profiles for your informational needs and queries, and you should invest in the ICO directly through the company website.

Part 4: TL;DR
HERO is a blockchain-solution for providing a decentralized platform for loans by vetting individuals through internal algorithms. The company’s team are veterans in the tech sphere, particularly in Southeast Asia (HERO’s target market), as the company has already had a successful startup there with backing from Alibaba and Softbank.

Please
If you found this article helpful, appreciate the information I have curated, appreciate the analysis I have provided, and/or are simply just a kind person, please support me by liking and sharing this article; you can also follow me to stay updated with the most remarkable ICOs coming up.If you find the project valuable or interesting, support it by sharing and liking this page and keeping up with company profiles.

HERO Website: https://herotoken.io/

https://bitcointalk.org/index.php?action=profile;u=1821590

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