Biocoin - investment attractiveness report (Digital Rating Agency)

EXPRESS INVESTMENT EVALUATION OF
ICO PROJECT
biocoin.bio
ICO 01.11.2017
Digital Rating Agency
digrate.comLow
Fraud Rate

Investment evaluation of biocoin.bio ICO
The legal opinion prepared by
Digital Rights Center
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This report is the intellectual property of DigRate. The following content is intended for informational purposes only. This
information may not be distributed in any way or in any form without the prior consent of DigRate and links to
www.digrate.com
This evaluation expresses the views of DigRate and does not constitute a statement of fact or recommendation to buy,
hold, or sell these or any other assets, or make investment decisions. DigRate assumes no responsibility for any
consequences, interpretations, conclusions, recommendations or other actions directly or indirectly related to the
evaluation performed by DigRate, or the observations and conclusions contained in the ratings report and press
releases, or the absence of any of the above. Current valuations and recommendations can only be found on the official
website www.digrate.com.
The DigRate team expresses its respect to all enthusiasts of the cryptocurrency world.
2

GENERAL INFORMATION 4
INVESTMENT EVALUATION 5
Market 5
Business Model 10
The Tech 16
Economics 18
Legal Documentation 22
Team 27
Project Support 33
Media Environment 39
Legal Opinion (prepared by Digital Rights Center) 44
CONCLUSION 48
RECOMMENDATION 53
CONTENTS 3

GENERAL INFORMATION 4
▪ BioCoin's international blockchain platform and BIO tokens (BioCoins) form a settlements system that allows
businesses that join the platform to accelerate growth and increase turnover.
▪ The project team says BIO is to be the first cryptocurrency to integrate into the real economy. The founders claim its
international loyalty system will provide the impetus for BIO and BioCoin's blockchain platform integration into the
real world economy.
▪ The main objective of the platform is to foster collaboration amongst socially responsible projects that support
organic agriculture and support the principles of environmentalism.

INVESTMENT EVALUATION | Market 6
Does the problem the project plans to solve really exist?
According to the project’s whitepaper, BioCoins are intended to help solve the problem of attracting financial resources
to farming and environmentally friendly agriculture, which should spur development. BioCoins received by farmers
today, grow in price in the future, and help their owners move faster. Buyers of farm products receive cryptocurrency as
bonuses, and as the currency grows in value, products become cheaper for them.
The BioCoin platform and BIO tokens present an opportunity to increase sales volumes and growth for farmers, who are
difficult to reach within the existing "large corporate economy," where large trading networks and agro-holdings rule.

Does the problem the project plans to solve really exist?
COMMENT:
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
The main problem identified by the project team is the lack of adequate support for small farms and their displacement
from the food market by larger players. Moreover, inadequate small business financing hampers the development of the
agricultural sector as a whole, divides it geographically (farms located far from large population centers lack the
opportunity to sell their products in other regions), and restricts buyers in their choice of products. The BioCoin platform
promotes the development of small farms and enterprises that support the principles of environmentalism.

Is the company’s product unique?
COMMENT:
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Although blockchain technologies are used in all major sectors of the economy every day, the project currently has no
direct competitors. There do exist players in the agricultural market such as AgriDigital (http://www.agridigital.io),
AgriOpenData (https://www.agriopendata.it), Gro Intelligence (https://gro-intelligence.com) and AgriLedger
(http://www.agriledger.com) that use blockchain technology to track products from manufacturers to end-users.
Additionally, Loyyal (http://loyyal.com) and Blockpoint (http://blockpoint.io) have launched loyalty programs for
blockchain platforms. However, there is no single platform that unites both a platform for farmers and a loyalty program
for buyers.

Does the company understand its competition?
COMMENT:
The company has not identified its main competitors anywhere. However, in response to DigRate’s questions about the
competitive environment and the project’s competitive advantages, the team said the analysis was carried out prior to the launch of
the project and that the main competitive advantage is the use of BioCoins rather than the points accrued in standard loyalty
systems. According to the team, the creation of a loyalty system - the first stage of the development of the BioCoin ecosystem -
will allow SMEs to raise funds for development through the sale of tokens. By selling tokens, farmers are to be able to make
commitments to investors and repay them by paying for their products in time. The BioCoin platform is to be designed for Russia’s
LavkaLavka cooperative, the country’s largest farming association.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

INVESTMENT EVALUATION | Business Model 11
Is blockchain technology a solution to the market problem?
COMMENT:
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree
The project’s primary focus is marketing, as a similar system could be built, without blockchain-based solutions. The
second stage of the development for the BioCoin ecosystem - the creation of a crowdfunding site - can also be carried
out without the use of blockchain solutions.

Has the project laid out its operating business model?
COMMENT:
The project team describes the interaction procedure for platform participants as an automated exchange of fiat
currency for BioCoins. Each purchase is made through the transfer of transaction information, with the help of a
personal identifier for each buyer of the blockchain module, and the subsequent transfer of BioCoins (as a reward for
the purchase) to the buyer's wallet. BioCoins are taken from participants’ wallets, who, upon joining, buy BioCoins for
further potential accrual. At the time of the next purchase, the buyer can sell the previously purchased BioCoins,
returning them to the platform participant. In the event that the rate grows due to new participants joining the platform,
the exchange rate difference generated during the buyer's holding period of the BioCoins generates additional revenue.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

Is there already a working product that can be sold to customers?
The LavkaLavka farming cooperative was established in 2009. It now unites over 200 small and family farms located
across Russia, Armenia, Greece, and Italy. The LavkaLavka brand represents healthy products grown without
pesticides or chemical fertilizers by farmers who care about the environment and are reviving forgotten varieties of fruits
and vegetables, local breeds of animals, traditional crafts and rural life. All products are produced in small amounts with
enthusiasm and genuine love for the work being done.
LavkaLavka today: Online shop at lavkalavka.com, six stores, three cafes, two restaurants, a workshop and farmers’
market in Moscow, a farm hub with procurement shops, and a market in Tula Region, a production cluster for
processing bioresources in Murmansk Region on the coast of the Barents Sea in the famous village of Teriberka. The
cooperative plans to open five more cafe-shops over the next few few months.
Source: White Paper of the project

Is there already a working product that can be sold to customers?
COMMENT:
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
The BioCoin platform is to be created through the LavkaLavka farming cooperative. According to the founders, 20mn
BioCoins previously released are already being used to make transactions between members of the LavkaLavka
cooperative, project partners, and buyers.

Is there a clear roadmap and financial plan?
COMMENT:
There is a roadmap in the project whitepaper, but it lacks details about implementation. In our communications with the
team, we were presented with a more detailed roadmap, although it still lacked a detailed financial development plan.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

INVESTMENT EVALUATION | The Tech 17
Is the project technology safe for network members?
COMMENT:
BioCoin is built on the basis of a Bitcoin fork, Peercoin, which, in addition to proof of work (PoW), uses
the PoS algorithm, which allows Peercoin to be less costly than pure PoW and safer than PoS. The
technical description of the code is publicly available.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

The initial issue of BIO tokens is limited to 1bn. The project founders say the cryptocurrency’s value should increase as new
participants join the platform. At the same time, the founders indicated that in one year, it is possible for the issue to increase by
5% due to remuneration to a growing number of token holders. According to the project team, the size of the additional issue is to
be determined based on the possible annual loss of BioCoin wallets by users of the system. Tokens located on those wallets will
not participate in the issue.
The final number of tokens has an ever-increasing value, depending on the number of BIOs involved in finding the blocks, and the
number of BioCoin wallets included in the network.
INVESTMENT EVALUATION | Economics 19
Is the issuance of tokens limited? Is there an asset base that would protect current holders from token
devaluation?
COMMENT:
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

The BIO tokens’ value is determined by a loyalty program and transactions algorithm: platform participants initially acquire tokens
for calculating bonuses for their customers. After some time, the buyer can use the accrued tokens, returning them to the project
participant. At the same time, as new members join, the token value grows, as new participants buy some of the tokens on the
crypto-exchange, and receive some as payment from customers. However, in the public offering the authors of the project say that
it is possible for the number of participants in the loyalty program to decrease, which could trigger a devaluation of the tokens.
The project team has also released a video explaining the positive impact of a possible fall in the BIO token rate on the project
economy in a video message posted on YouTube. They argue that a fall in the rate would be beneficial for all participants in the
project ecosystem: for customers who would receive more BioCoins in the form of bonuses, and for sellers through the loyalty
program. With the return of previously accrued BioCoins, the actual discount (bonus) would be lower due to a decreased rate, thus,
the seller would receive more fiat currency. According to the authors of the project, in this case, the number of newly accrued
BioCoins should increase, meaning that ecosystem participants would have to buy more BioCoins on the exchange, thus creating
an artificial growth rate.

Do the project participants have clear motivation for owning the tokens?
COMMENT:
BIO tokens are to take the form of bonuses, accrued to buyers when buying from platform participants, as well as for performing
internal transactions between platform participants. The value of the tokens should grow as new members join, meaning holders of
the tokens are to be able to use them as a means of payment or as crypto assets, selling them on the exchange on their own.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

INVESTMENT EVALUATION | Legal Documentation 23
Is the company’s legal structure transparent?
COMMENT:
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Agree
Strongly
Agree
Information about the cooperative:
LAVKA COOPERATIVE
Address: Proezd Avtomobilniy, bldg. 8, structure 45, Moscow, Moscow Region, 109029.
Government Registration Number: 1117746891800.
Taxpayer Identification Number: 7722760606.
Tax Registration Reason Code: 772201001.
Open sources have detailed information on the parent company’s (LavkaLavka) registration and legal structure, and its
website lists all farmers that belong to the cooperative, as well as the requirements and documents necessary for
joining.

Has the company taken preventive measures to avoid issues with ICO market regulators?
In the project whitepaper there is no provision preventing US and Canadian citizens from purchasing the tokens.
However, the following answer is given in the FAQ section of the project site:

The project founders state that BioCoin is the first legal Russian electronic asset. They have signed an agreement with RTS-Tender to conduct a
token sale on the first Russian electronic crypto-platform, Voskhod.
Additionally, the project website lists the "Rules of BioCoin," according to which:
1. BioCoin is not an equity or any other security.
2. BioCoin does not provide an opportunity to participate in the profits of any company.
3. Holders of BioCoin do not receive dividends related to the activities of any business.
4. BioCoin is a software digital asset of the BioCoin loyalty system. BioCoin can be used to activate the participation of a BioCoin holder in
the BioCoin loyalty system.
5. The cost of BioCoin within the BioCoin loyalty system can change daily or more often. Both growth and decline in the value of BioCoin
are possible.
6. The number of companies participating in the BioCoin loyalty system may increase or decrease.
7. BioCoin issuers are not responsible for the actions of companies that have entered into the BioCoin loyalty system.
8. А holder of BioCoin has the right to dispose of the digital asset at his or her own discretion. BioCoin issuers are not responsible for any
actions of BioCoin holders.
9. BioCoin issuers do not give guarantees for BioCoin repurchase to BioCoin holders.
10. BioCoin issuers warn BioCoin holders about possible changes in the value of the BioCoin digital asset in the future and manipulation of
the BioCoin digital asset market. BioCoin issuers are not responsible for such changes and manipulations.

COMMENT:
Despite lacking a description of regulatory risks and methods of combating them in the whitepaper, the existence of
agreements with RTS and Voskhod, government electronic investment sites, indicates compliance with Russian
legislative requirements, where the ICO launch is planned.
The company also says it successfully underwent an audit by the Russian prosecutor's office after it began accepting
cryptocurrency in payment for creating the cooperative.
The whitepaper also states that after making a purchase with BIO tokens a receipt is made according to the exchange
rate for the national currency, and the project pays all taxes on the sale.
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree

INVESTMENT EVALUATION | Team 28
Boris Akimov
"The leader of new farming in Russia," according to The New York Times. One of the founders of the LavkaLavka cooperative. Farmer,
entrepreneur, philosopher. Author of a series of lectures and articles on organic agriculture, responsible consumption and sustainable
development. PhD in Philosophy. Winner of the Ernst & Young "Entrepreneur of the Year" award.
Does the project team have extensive experience and a strong track record?
Alexander Mikhailov
Chairman of the LavkaLavka farmer cooperative Mathematician (graduate of the Lomonosov Moscow State
University), evangelist of the international cooperatives movement, expert in payment systems and IT for
finance.
Oleg Pokrovsky
Farmer, and at the same time, blockchain technology expert. Has been working with Bitcoins and cryptocurrencies since 2012. The
founder of the "Robocassa" service and many other projects related to the development of crypto ecosystems.

Vasily Palshin
Head of Business Development at LavkaLavka. Crowd investing specialist. Successfully launched several startups with funds
raised through crowd investing.
Artem Kalinin
IT director at LavkaLavka. Technical director of the BioCoin platform. Expert in cryptocurrencies and
blockchain technology.
David Yavruyan
PhD in Biology. Creator of LavkaLavka's internal standards. International specialist in organic agriculture.

Alexander Goncharov
Lawyer, corporate finance and investment consultant. Founder of the Mark and Lev farm cooperative, Mark and Lev
restaurants, and the Bolotov Dacha countryside hotel (Tula Region)
Arthur Ivanov
CFO at LavkaLavka. Financial planning expert.
Also listed in the whitepaper is Steven Lichtenberg - Lead digital marketing specialist at LavkaLavka, and ICO expert - but there is no information on him
on the project website.

COMMENT:
The project team consists of experienced specialists who, according to the project founders, have competencies in the
fields of agribusinesses, financial planning, and blockchain technology. However, we found evidence of experience and
significant achievements for half of the team members’ profiles lacking:
Oleg Pokrovsky - no participation in BioCoin or LavkaLavka specified;
Alexander Goncharov - no participation in BioCoin or LavkaLavka specified;
Arthur Ivanov - profile indicates he works at LavkaLavka, but no position specified;
David Yavruyan - no participation in BioCoin specified, and has only past experience with LavkaLavka.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

Is the project team well known in professional circles?
COMMENT:
The founders of the BioCoin project are well-known personalities. Boris Akimov is active in the media; articles about him
have been published in leading Russian media outlets since he founded the LavkaLavka cooperative.
7 6 5 4 3 2 1
Strongly
Agree
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree

INVESTMENT EVALUATION | Project Support 34
Does the project have a strong advisory board?
Evgeniy Gordeev
Managing Partner of Russian Ventures, creator of the main Russian-language telegram channel about cryptology and
decentralization of DeCenter. One of the key supporters of crypto-reality in Russia. On the Internet since 1995. Many years of
experience in Internet projects, including one of the first Internet agencies in Russia. The author of a letter to President Putin with a
proposal for immediate legalization of the cryptocurrencies.
Anne-Elisabeth Ropion
A journalist, digital-strategist, marketer and CEO of ScribéCom, an agency she created twenty years ago in France. Anne was
born in Paris. She has a global understanding of how to connect people who share the ethical principles of BioCoin around the
world. She also created the Orgaiam project (orgaiam.com) - a map of organic restaurants around the world, including farms and
shops. She joined the BioCoin project because she is convinced by the "brilliant combination" of the need for sustainable growth in
the ecological product industry and the development of blockchain technologies. Anne-Elisabeth promotes BioCoin in Europe.

35
Helena Drewes Bollesen
Specialist in organic agriculture. The author of the book "To be or not to be. The Danish experience of organic agriculture." Helena
is an expert in the field of producing food with the help of environmentally friendly technologies.
Olga Maiboroda
Marketing director at Premium Bonus. Has more than 15 years of marketing experience. She has worked in leading positions in
large federal Russian companies and has been dealing with traffic management and customer loyalty for over 10 years. Olga
advises and develops effective loyalty programmes based on the Premium Bonus platform. Together with the Premium Bonus
team, she has implemented more than 50 successful marketing projects in the FMCG, HoReCa markets amongst others.
Mikhail Shlyapnikov
Founder of the Kolionovo farm in Moscow Region. Specializes in introducing new models of the local economy to the rural way of
life. In 2016, he integrated blockchain technology into the economy. In 2017, he held a successful ICO, issuing the Coliony
cryptocurrency, raising over USD 1.5mn. Partner in LavkaLavka innovative programmes.
INVESTMENT EVALUATION | Project Support

36
Elina Sidorenko
Head of the Group for Assessing the Turnover Risk of Cryptocurrency in the Duma (Russia’s parliament), MGIMO Professor.
Provides full legal support for the BioCoin project.
Alexey Katrich
Deputy General Director of Technoserv Consulting, Associate Professor of the Department of Finance, Money Circulation and
Credit at RANEPA (Russian Academy of National Economy and Public Service). Previously worked as Managing Director of IT
Development at Sberbank. Participated in the creation of the "Thank you" loyalty system.
INVESTMENT EVALUATION | Project SupportINVESTMENT EVALUATION | Project Support

COMMENT:
Although there are advisory board members whose skills and experience can help the project in several spheres, the
extent of their involvement in the project is unclear, with the exceptions of Elina Sidorenko and Eugene Gordeev.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

Are the project’s partners large and well-known?
COMMENT:
hThe project has about 50 participants, including the LavkaLavka farm cooperative (which the platform is using as its
base), Russian manufacturer of offroad cars UAZ, international coffeehouse chain Double B, and bookstore and
giftshop chain Respublika.
The founders of the project say that by December 2017 the number of participants in the program will reach 500.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

INVESTMENT EVALUATION | Media Environment 40
Is the project popular on social networks and in thematic communities?
498
Subscribers
3,072 Views
46,448 Subscribers
1,195 Users
325
Subscribers

Is the project popular on social networks and in thematic communities?
COMMENT:
The number of subscribers on social networks is average, but the LavkaLavka cooperative, which the
BioCoin platform and loyalty system are to be centered around, has a large number of subscribers on
social networks and is a recognizable brand in Russia.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree

Is the project widely discussed in blockchain news resources?
COMMENT:
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Disagree
Strongly
Agree
There are some publications about the project in popular news outlets, but there are no detailed reviews of the project
or reports from ratings agencies.

Is the project widely discussed in non-core media?
COMMENT:
The project is widely covered both in Russian and Western media. In our report, we present just a small sample of the
news outlets where BioCoin and LavkaLavka are mentioned.
7 6 5 4 3 2 1
Agree
Slightly
Agree
Neutral
Slightly
Disagree
Disagree Strongly
Agree
Strongly
Agree

INVESTMENT EVALUATION | Legal Opinion 45
By Digital Rights Center, a Digital Rating Agency partner
1. The provisions provided in the whitepaper do not pass the Howey test, because the legal nature of the token is unsatisfactory.
The exceptional features of the token are not defined, the general model is built on the speculative growth of the price of the
token, and the opportunity to generate income from the token does not require any activity on the part of the investor, which could
be classified as a hidden dividend payment. Thus, when selling tokens to US, Canadian, Chinese, UK, Singaporean, Hong Kong,
South Korean, Malaysian, or UK investors, the organizer of the crowd sale may encounter financial market regulation. However,
there is no information about restricting sales to residents of these countries in the disclaimer.

2. Despite the assurance in the disclaimer that BioCoin is not a currency or any means of payment in the Russian Federation, the
whitepaper indicates it is possible to use the BIO cryptocurrency as a means of payment in the network of BioCoin platform
participants, which is a contradiction. The Rules for BioCoin Implementation also state that "BioCoin is an international blockchain
loyalty program and cryptocurrency platform (BIO), a financial instrument for sustainable development of the green economy." The
structure of the BIO token is defined as a financial instrument (derivative), the use of which requires a license from the Central
Bank of Russia. In fact, BioCoin is an electronic currency for the purchase of farm products and agricultural goods (including
machinery, and fertilizers) in accordance with the federal law "On the National Payment System" dated June 27, 2011, No.
161-FZ. This approach contradicts the position of the central bank, the Russian Prosecutor General's Office, and the Ministry of
Finance, which say the adoption of modular law on cryptocurrencies and ICOs in Russia must prohibit the use of cryptocurrencies
as a means of payment.
3. The definition of BioCoin ("Technical specification of our coins") as coins contradicts Article 29 of federal law dated July 10,
2002, No. 86-FZ "On the Central Bank of the Russian Federation," according to which banknotes and coins are the only legal
means of cash payment in Russia, and their forgery and illegal manufacture may be prosecuted.

4. Point 9 of the rules for the sale of the tokens indicates that BioCoin issuers do not give guarantees for BioCoin redemptions to
BioCoin holders. At the same time, the project FAQs state that "all BioCoins for payment to customers as a reward are redeemed
on crypto-exchanges by business projects that joined the loyalty platform as needed, which are formed with the growth of turnover
of each business." Taking into account the project model, it can be concluded that, without foreclosure, the system does not work,
and the repurchase is not guaranteed.
5. The organizer of the crowd sale, being a resident of the Russian Federation, falls under the definition of “operator of personal
data.” At the same time, there is no confidentiality policy on the ICO page, including a policy for processing personal data, which is
mandatory under the federal law "On Personal Data" of July 27, 2006 No. 152-FZ, and there are no provisions recommended by
Roscomnadzor, Russia’s IT and communications watchdog, when drafting the policy document for the processing of personal
data, for which a company may be fined.
6. In the whitepaper there are no guarantees from the issuing company related to the presence of vulnerabilities in the service
program code, or illegal actions by third parties (DDOS, theft, etc.) in relation to user accounts, creating a zero-day vulnerability.
The protection model for vulnerabilities is not delineated, and the issue of legal liability in these cases has not been considered,
although the text of the whitepaper specifies that imperfections in the code imply it might be upgraded.

INVESTMENT EVALUATION | Conclusion 49
Criteria Score
Does the problem the project plans to solve really exist? 6
Is the company’s product unique? 6
Does the team understand its competition? 5
Is blockchain technology a solution to the market problem? 2
Has the project laid out its operating business model? 5
Is there already a working product that can be sold to customers? 6
Is there a clear roadmap and financial plan? 5
Is the project technology safe for network members? 5
Is the issuance of tokens limited? Is there an asset base that would protect current holders from token devaluation? 5
Do the project participants have a clear motivation for owning the tokens? 5
Is the company’s legal structure transparent? 7
Has the company taken preventive measures to avoid issues with ICO market regulators? 6
Does the project team have extensive experience and a strong track record? 4
Is the project team well known in professional circles? 6
Does the project have a strong advisory board? 5
Are the project’s partners large and well-known? 6
Is the project popular on social networks and in thematic communities? 4
Is the project widely discussed in blockchain news resources? 6
Is the project widely discussed in non-core media? 7
AVERAGE SCORE
5.3

50
High
High probability of investment return, low
sensitivity to market conditions.
Score: 6.1-7
RATING SCALE OF INVESTMENT ATTRACTIVENESS
Satisfactory
Medium-to-high probability of investment return,
considerable sensitivity to market environment.
Score: 5.1-6
Satisfactory
Considerable risk exposure, high sensitivity to
market conditions.
Score: 4.1-5
Low
Low development potential, highly speculative
investment.
Score: 2.1-4
Low
High default risk in the short term.
Score: 0-2
Low
In default, with little-to-no prospect for recovery

FRAUD RATE 51
How do we evaluate the Fraud Rate?
Advantages:
● The project team has a functioning business, which is to become the basis for a new
blockchain solution.
● The project has the support of major partners.
● The project has a strong team of consultants.
● The project has well-known partners.
● The public has shown considerable interest in the project.
Disadvantages:
● The project roadmap is detailed, but not public.
● There is no soft cap during the ICO, and escrow accounts are not used.
● There is no description of how to deal with possible competitors.
● There is no public financial plan for the project.
● The economics of the project ecosystem do not guarantee the stability and relevance
of the cryptocurrency.
Low
Fraud Rate

CONCLUSION
The project sets itself the global goal of uniting all socially responsible businesses into a single platform
based on an international loyalty system. The BioCoin platform is primarily designed to attract funds to small
farms that find it difficult to compete with large agro-holdings and trade groups.
The project supports the international principles of fair trade, and is also a member of the International
Federation of Organic Agriculture Movements IFOAM and is an active participant in the Slow Food
movement.
BIO tokens can be used as a crypto asset (their value increases as long as new members join the loyalty
program), and tokens can be used as payment for products and services offered by program participants.
The main advantage of BioCoin, according to the project founders, is that it can be used as a payment
instrument immediately after purchase; the currency is already available for farm products and is an accepted
form of payment in a partner network of restaurants around the world.
While the project’s big advantage is its social orientation, the economic side of the BIO blockchain platform
and its tokens is poorly developed: a permanent additional issue of tokens, whose rate is supported only by
the number of projects (farms, restaurants, and other projects) that join the program. Additionally, the use of
BioCoin in calculating remuneration for the loyalty program is done using its target audience typical buyers
of products from program partners which could adversely affect the viability of the BIO token, turning it into
a low-liquidity cryptocurrency.
52
Medium-to-high
probability of
investment return,
considerable
sensitivity to market
environment.

1. The founders could present a more detailed overview of their project
ecosystem
2. The team could create a complete financial plan for BioCoin that includes a
development strategy and scenario analysis
3. The ICO could be conducted with a soft cap and escrow accounts to
enhance transparency.
4. A detailed roadmap for the project could be published.
5. The team could conduct an analysis of the competitive environment, and
develop a strategy to compete with possible rivals.
RECOMMENDATION 54
What could
be improved?

CONTACTS
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info@digrate.com
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