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Kidbizo ICO Review: A comprehensive review and scam alert on Kidbizo ICO, which aims to educate kids in the field of entrepreneurship

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(Source: Kidbizo.io)

Overview

Kidbizo is an ICO project that aims to expose and educate children in the field of entrepreneurship. Kids will be guided through the process of opening their own business and will be provided with the necessary tools needed to succeed in the business world. Due to a number of calls for assessing the legitimacy of this project, we have decided to take on the challenge and assess Kidbizo’s ICO using our fundamental analysis screener.

Let us analyze the project through 3 critical elements:

  1. Analysis of White Paper
  2. Analysis of Project
  3. Assessing Core Team

(Read more: Guide on Identifying Scam Coins)

1. Analysis of White Paper

Plagiarism: There are numerous segments where the white paper has plagiarized content from prior sources off the internet. Plagiarism is a definite red flag since it implies that the project isn’t serious in creating their own original content specifically for their project. Here are the excerpts:

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(Excerpt from Kidbizo White Paper)

Full of Fluff: It is obvious that the white paper is filled with superficial language meant to create ‘buzz and hype’ rather than to explain the technical details in depth. In fact, there is no mention about their technology nor how they would achieve their goals using blockchain.

Poor Editing Standards: The whitepaper is full of editorial and grammatical mistakes. It seems that putting huge amounts of irrelevant content is the objective rather than systematically explaining the project.

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2. Analysis of Project

No Unique Selling Point: The strength of any business or project is highly dependant on how unique they are relative to their competitors, and whether it solves a real problem. It is hard to conceive a scenario of how Kidbizo actually has any unique differentiators since it is basically an education/tuition center that focuses on giving entrepreneurship lessons for kids. There is a multitude of traditional options for parents to choose from; extra-curricular classes in school, enrolling in leadership classes focused on entrepreneurship, surfing the internet for tips to assist kids in starting their own business, or even watching Shark Tank!

Doesn’t Require a Blockchain: There doesn’t seem to be any use case for a blockchain or tokens in this case. There is NO technical overview or details regarding the project. The ‘Technical’ section of Kidbizo whitepaper does not indicate – in any way – the technical components and processes of their project or technology. In fact, that section merely points out the definition of blockchain, smart contracts and how they work. The fact that no technical details are available implies that either the team has no idea what they’re doing or they have not come up with a suitable technical overview of how the project will actually work! This insinuates that this ICO is a pure money grab.

No Token Use: The Kidbizo tokens seem to be useless since there is no mention on how it can be used in the first place! Can you access the range of educational services with the token? Does the token serve only for capital-raising purposes? These key questions are not addressed in the whitepaper. This is a terribly clear red flag on Kidbizo.

Technical Inaccuracies: Under the ‘Technical’ section of the Kidbizo white paper, a glaring inaccuracy stands out from the rest:

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(Excerpt from Kidbizo White Paper)

Let’s break down the highlighted portion:

  • SPV Structure: The fact that a Special Purpose Vehicle (SPV) is used highlights a potentially fraudulent intent of the project. This is the first time we’ve come across a structure where an SPV is used for cryptocurrency projects since the use of blockchain or smart contracts are used to circumvent 3rd parties or intermediaries. An SPV is a legal entity that is used in the corporate world for companies to isolate their assets, thereby insulating investors from bankruptcy risks. Although it sounds good, we argue that the use of SPV is unnecessary since smart contracts facilitate the ICO investing process directly between the ICO company and investors. Having a legally-insulated intermediary in the form of an SPV serves absolutely no purpose since the tokens are not securities and investors DO NOT have any legal recourse, to begin with. Therefore, although the original purpose of an SPV is to legally protect investors, investors holding Kidbizo tokens cannot be protected since the tokens DO NOT have any legal recognition. We would opine that the SPV is set up to detach any financial risks away from the original company that the project incorporated with. We are highly suspicious of this move.
  • Exchange of Value: The last sentence of the highlighted portion makes absolutely no sense and is a clear indicator of the incapability of the project to understand how an ICO or a crypto exchange process work. In order for investors to sell any of their tokens, the tokens must already be trading on an actual cryptocurrency exchange. A traditional cryptocurrency exchange DOES NOT use smart contracts to facilitate exchanges between buyers and sellers. Giving them the benefit of the doubt, perhaps they’re referring to decentralized exchanges (DEX), which does use smart contracts to facilitate cryptocurrency trading. However, it is NOT feasible for any project to integrate a DEX into their operations just for this function, because a monumental amount of resource is needed to make this work. The only possible objective for Kidbizo is to facilitate the trading of its tokens on independent DEXs, which looks to be way beyond the scope of the technical section of their white paper. The fact that the whitepaper so casually states the ease of which their tokens can be traded automatically using smart contracts is extremely worrying since there are numerous factors to be considered for investors choosing that scenario.

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3. Assessing Core Team

This is perhaps a critical segment in evaluating the credibility and track record of the founding team. Let’s take a look at the quality of the core team of Kidbizo to assess if it’s legitimate.

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(Excerpt from Kidbizo White Paper)

Let’s break down the highlighted portion:

  • Unverifiable Individuals: Straight of the bat, it is obvious that the individuals listed in the website as the team members of Kidbizo look shady at best. There is no link to their LinkedIn account or any other profile that can be used to verify the identity of these members. Additionally, all of the names are not the full names of these individuals, which makes it even harder for anyone to verify them. The difficulty in verifying the team members is an obvious red flag.
  • No Segregation of Roles: Perhaps an equally important element is identifying the roles and function of each team member so that there is a clear organizational hierarchy that the public can analyze. It is no surprise that there is no mention of the members’ roles in the project, which makes it hard to ascertain the extent of their contribution to the project. This ambiguity seems to indicate an intent to detach real-life individuals to their online personas as can be seen above. This is definitely a big red flag.
  • Low Credibility of Core members: There are 2 identified members – Rocky Mirza & Haroon Qureshi – that seem to be linked with substantial controversy within the online Muslim space. Here is a website that tries to warn others about the potentially unethical business practices of these identified individuals. It must be iterated that we can never confirm or ignore the authenticity of the claims against them, but the purpose of highlighting them here is for others to engage in further due diligence.

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Verdict

There are so many red flags and inconsistencies in Kidbizo ICO that it is incomprehensible why anyone would want to invest in this project. The project fails in all aspect of project viability, blockchain use-case, token utility, and whitepaper assessment. We would definitely recommend others to share this around to alert others.

Verdict: Potential Scam / Money-Grab

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Beneficial Resources To Get You Started

If you’re starting your journey into the complex world of cryptocurrencies, here’s a list of useful resources and guides that will get you on your way:

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Trading & Exchange

Wallets

Read also: Guide on Privacy Coins: Comparison of Anonymous Cryptocurrencies and Guide To Cryptocurrency Trading Basics: Do Charts & Technical Analysis Really Work?


This represents the writer’s personal opinions and does not – in any way- constitute a recommendation of an investment or financial advice. Please assume caution when investing in cryptocurrencies and do so at your own risk, as it is extremely volatile and you can lose your money.


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