Approaching the ICO in an Unorthodox Way
By Staff Writer
CoinMD, is doing their ICO all wrong…through lean start up principles and $50K of the Founders own start-up capital they have created a working business model with a solid multi-million-dollar revenue stream, they created a blockchain centric solution solving a massive problem (healthcare) and they have created a ‘utility’ currency which has usability meaning you can spend it with one-click ordering and receive value in return. In fact, they are one of the first companies to integrate a cryptocurrency wallet with a shopping cart and soon will integrate a cryptocurrency exchange. After all this…they are launching an ICO to add additional revenue streams to their business (members only bank and noncaptive insurance company) and to scale their existing ‘profitable’ activities including the CMDX Cryptocurrency exchange for the healthcare sector.
CoinMD is doing what I call the Reverse ICO Model. Proof of concept first then raise capital…
Today’s current Initial Coin Offering (ICO) model of write a whitepaper, attract a bunch of LinkedIn profiles, create a sexy name and do a massive 10 figure financial raise smells like the first iteration of the internet where people lost billions of dollars in pie-in-the-sky opportunities. The Founder of CoinMD started his career in the internet; he says it is amazing how history is repeating itself and how people lose all memory of the past when greed blinds them to experience. While people will get rich fast…many will be led to slaughter if they don’t THINK before they invest in ICO’s and open market cryptocurrencies. Like the early days of the internet many of these entrepreneurial visions will not see the light of day.
CoinMD was born out of a real problem, the skyrocketing cost of healthcare costs and the horrible failure of ‘Obamacare’ in the USA. People have gotten so frustrated with the current healthcare system they have just chosen to pay the annual penalty rather than paying $1,000+ a month for healthcare coverage. People want choice and they want to be able to afford to pay for a healthier lifestyle. Watch this 9-minute video to learn more:
What the founder of CoinMD did not expect was how fast his company would go global reaching over 14 countries in less than 6 months. He discovered that every country has some type of healthcare problem, the biggest one is most people simply cannot afford to live a healthy lifestyle. Kale, Tofu, Almond Butter, Non-GMO food, naturopathic and integrative healthcare is simply more expensive that the allure of dollar menus and fast food. Many people have put their health on the back burner to work 60 hours a week just to survive.
CoinMD is an interesting proposition – it is first a membership organization much like American Association of Retired People (AARP) with a goal of reducing peoples out of pocket healthcare expenses to zero. The collective buying power of CoinMD can provide savings and better healthcare for its members. People join for 90 days ($250) to 5 years ($5,500) on a membership program that gives them access to the benefits of CoinMD.
Second, it is the Groupon of healthcare, in that they have a geo-mobile savings program with over 350,000 participating businesses where an individual can save $2,000 a year and a family could save $4,000 a year using their CoinRewards program. Now this program seems to be of more benefit to people in the USA, but it can be expanded internationally.
Third, they are the Amazon of healthcare, even from the humble beginnings of 50 providers at their launch, CoinMD Choice the World’s First Universal Healthcare market place has a long way to go to resemble an Amazon. But as the Founder, Tom McMurrain says, “we are global, we provide and environment where healthcare providers will compete for your business and finally when you are ready to purchase we provide an ‘easy button’ to spend your cryptocurrency on healthcare, Amazon had humble beginnings as well”. Donald Trump once said if you have the choice to think…you might as well choose to think big and it appears the CEO of CoinMD is taking a play out of that playbook.
Fourth, they call themselves the Bitcoin of Healthcare which is a bit deceiving because they have adopted the LiteCoin infrastructure, which is more scalable and faster than the first mover Bitcoin. CoinMD source offers the Proof of Scrypt mining for members only. Most of the pre-mined coins will be distributed through a rewards program, meaning the members will be rewarded for living and promoting a healthy lifestyle.
One of the interesting elements of CoinMD is their ‘Big Data’ model which will make their members healthcare records more “portable, private and profitable,” a phrase coined my the founder. Members will be able to control their own healthcare data with a proprietary H-Wallet that will maintain the records in the cloud of the CoinMD blockchain under some very significant encryption and two-factor authentication. The security and access of these records seem to be one of the biggest long- term value drivers of CoinMD. However, the founder says since this has never been done, they are tip-toeing through a mine-field of failed legacy systems that are constrained by mountains of legislation.
Download the Whitepaper HERE
Fifth, and final element of CoinMD’s business which seems to be the Founder’s real core strength is creating a membership following through network marketing. While dogged by bloggers looking to capitalize on the founders 30,000+ search results per month, McMurrain is committed to his mission of helping lift more people out of poverty with blockchain technology than anyone has done in history. Smartcurrency for healthcare makes sense, his business model delivers value and the hope of a cryptocurrency that will grow in value as the membership and provider network grows. Bitcoin has certainly proven the supply and demand model of value pricing and as CoinMD continues to grow with a goal of reaching mass adoption there is only one logical direction their CMD coin can go and that is up.
CoinMD passes my test even though it has the MLM component. It is not a Ponzi scheme, in that it has a single sale product and does not promise monthly, weekly or daily return to anyone like some companies in the crypto-space. It pays a one-time referral fee through what appears to be a very lucrative compensation model. They are not taking in new money to pay old money…that is the definition of a Ponzi scheme so be sure to get your definition correct. I have found that people instantly look at MLM or Network marketing and they are quick to call it a Ponzi. MLM and Network Marketing in the USA is a $181 Billion industry, ten times larger than the National Football League. It is a big business and a model that works well with creating a membership organization.
The big take-away is this – CoinMD is usable, and it is usable in a way that people are accustomed to spending money. That is a big check mark for CoinMD. CoinMD has taken the complexity out of the nerd world of blockchain and cryptocurrency. The founders focus was to make everything 8th grade level as it relates to technology – push button simple in his words. CoinMD is unorthodox in its approach to launching and ICO, but some of the greatest companies in the world like Paypal, Amazon, Zappos and Apple were unorthodox as well. At the end of the day…we do not know what ICO will be the most successful, but I think it is safe to say usability and value creation must be inherent for a coin to have long term success.
To conclude, if you want to learn more go watch the videos and then if interested download the whitepapers and his free Amazon Best-selling eBook from the CoinMD ICO site by clicking here on the image below.