Walimai, the company behind WaBi, develops solutions to ensure product authenticity.
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What does the company/project do?
Walimai, the company behind WaBi, is a company that develops solutions to ensure product authenticity. It places secure anti-counterfeit labels on consumer products in China and internationally.
Walimai’s operations are mainly in China, which suffers from counterfeit in products such as baby formula, cosmetics, and alcohol. In order to solve this problem and provide confidence for consumers, the company has developed RFID labels with anti-reuse design, as well as mobile Apps that integrate with the labels.
Walimai label is applied to the product at the point of origin and is scanned throughout the supply chain. After consumers purchase the products, they can scan the items with Walimai app, which would then show whether the product is original and the product’s previous locations and timestamp along the supply chain.
What are the tokens used for and how can token holders make money?
Merchants will be obliged to use WABI token as loyalty points in order to sell through Walimai’s channels. They have incentives to do it because consumers trust the Walimai brand and are willing to pay a premium.
They can use WABI token to effectively give a discount (consumers who buy the products will receive some tokens, which be used to redeem something in the future) or use more sophisticated techniques (e.g. buy the second product and receive WABI tokens, or refer your friend and receive the tokens).
Consumers can use WABI tokens to receive discounts on products sold in Walimai’s channels. They would need to top up their WABI balance to be able to use the discount, thus creating additional demand for WABI tokens.
For example, if a consumer has $1 worth of WABI and wants to purchase a $10 item, he will need to purchase another $9 worth of WABI and pay the product with WABI token.
The company also plans to enable users to have gift cards where they could buy some WaBi as a gift for someone else to use.
As consumers can scan Walimai products to earn WABI tokens, which can be used for discounts on products, the more transactions generated on the Walimai channels, the more valuable WABI tokens should be.
- WaBi’s closest blockchain competitor, Walton, has a huge market cap of $130 million while WaBi is more advanced in terms of development. Walton has signed MOUs (Memorandum of Understandings) with many companies, but MOUs mean very little in China as the parties of the MOU are not contractually committed to anything.
- Walimai is a good candidate to benefit from the macro trends in China: (1) China just phased out its one-child policy in 2015, which will boost the demand for baby products. (2) China suffers from counterfeit products and the Chinese are willing to pay a premium for quality. For example, they pay a premium for baby formula imported from overseas partly because the authenticity is guaranteed.
- The project has solid team members and advisors who can actually help the business development of the project.
- The company has put in place a procedure to prevent dumping of pre-ICO participants (who contributed $300,000 at $0.03 per token in August 2017). WaBi offered two options for those participants: (1) To lock tokens for 3-6 months and get 5-10% bonus, or (2) Sell the tokens back to WaBi Project at the ICO price. This will prevent them from selling at exchanges below ICO price.
- Even though the Wabi Project is based in Singapore, Walimai’s operations are mainly in China, which is subject to a lot of regulatory risks relating to cryptocurrency.
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