WePower – The Next Powerledger or Bust?

January 2018
By Sam
Posted: Updated:

I missed the boat on Powerledger. As of right now, I believe its gone from under a dollar to close to 10. It was completely under the radar for me. What it shows though is that a renewable energy type blockchain project can be very successful. It brings the average up quite a bit for following projects that are trying to get funded.

This is where WePower has come striding in with its 35 million USD ICO. WePower is a green energy  based trading platform (marketplace), where projects can get funded, then return energy to investors at a discounted rate. I’ve been involved in the funding of a few green energy projects and its extremely difficult to find the right group of investors at times. I’ve watched as projects have languished, waiting for funding. Going through the DD process can be a nightmare as every individual investment group has to perform their own DD on the project, stretching out the time it takes to starting building the plant.

The future lies with green power and Wepower wants to create a blockchain based energy trading platform to facilitate the flow of capital into green projects, while giving investors the ability to pre-purchase power at a discounted rate. For example, lets say I wanted to build a wind farm in Bulgaria, I would submit the project for review to WePower, they would perform a standardized DD and then present the project to the WePower platform’s users for investment. Local users would have first chance to pre-purchase electricity at less than market rates and receive WPR tokens in return. 1 is WPR equal to 1 Kwh of power and would entitle the holder to cash it in for electricity at a later date. The user wanted to sell it on the open market if they wanted to.

More so, any WPR token holder can exchange their tokens for more favorable projects in their home area. As the tokens are equal to 1Kwh of power, they could invest into a Spanish project and then benefit from the lower electricity costs to redeem it for power in England. All of this works out because EU energy laws are homogeneous and allow for transfer of power across geographical boundaries, thus opening up the whole of Europe to Wepower. This would be its limitation, if I had to think of one, that they would not be able to expand further than those countries, as their system is dependent on interconnections of power grids. Future laws could open up the market for them.

One major issue I have is that they are calling their fundraising event a “donation,” much like Tezos did. It’s a farce at most, designed to evade European securities laws. If shit does hit the fan, I would be very wary of what the courts would decide. More so, energy projects will “be required to donate 0.9% of all tokenized energy to the WPR token holders. Each WPR token holder receives tokenized energy proportionally.” I fail to see how this is a security. They are directly returning project profits to WePower token holders, essentially its a dividend. You can’t put a wig on a dividend and call it a “required donation.” This makes me a little scared.

But regardless of all of this, the model has been proven already by Powerledger. You can’t argue with market cap of 500 mil gives a very good idea of where WePower could go if its successful.

The team is Lithuanian and has already secured a partnership with their national government.

I’ve invested into the project, I like it. Good luck and the whitelist is open.

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