Liechtenstein-based ezzy AG launched an STO last month. The token enables investors to participate in the growth prospects of a decentralized eCommerce platform.
ezzy AG is building a blockchain-based eCommerce platform that aims at making online commerce “faster, cheaper, and more interactive.” The company is based in Vaduz, Liechtenstein, and launched a Security Token Offering (STO) on September 1st. The platform will launch next year.
The company was founded by Ernst Schnellmann, who has been active in the European commerce industry for the past 20 years. He has gathered a team of currently 19 employees to build the ezzy-platform, a decentralized marketplace that aims at lower transaction fees, higher security, faster speed, and increased data protection. The company makes use of the Graphene blockchain technology which enables up to 172,000,000 transactions per day.
Platform users can pay on-platform expenses using either ezzy’s utility token or its stable token. The stable tokens are tied to the price of fiat currencies, protecting users against the high volatility of non-pegged crypto tokens.
According to ezzy, it will store only a fraction of the user data that other eCommernce platforms gather. ezzy also claims to have lower prices than most online marketplaces, enabling either better profit margins for sellers or lower consumer prices for buyers.
As payments are made via cryptocurrencies, they are fast and relatively cost-effective. Payments can be placed into escrow and will be released via smart contracts after the seller has received the shipment. That increases security for both buyers and sellers.
Security token includes equity participation rights and issues dividends
ezzy has set a soft cap at €250,000 and a hard cap at €4,620,000. The security token offers equity participation rights and dividend payments. The token sale is split into 5 phases starting at €0.20 per token and closing at a whitelisting price of €0.27 per token. The minimum investment sum is €1,000.
ezzy issues 25 million tokens, 85 percent will be distributed to STO investors, 10 percent are team tokens and the remaining 5 percent are reserved for marketing purposes. Funds raised will be used for research and development (40 percent), marketing and sales (37 percent), administration and finance (15 percent), legal matters (5 percent), and a cash reserve (3%).
The token is issued as an ERC20 token on the Ethereum blockchain and its mechanics, as well as its smart contracts, are available as open-source software on GitHub.
eCommerce a promising blockchain use case
According to a company representative, ezzy is already talking with a large number of retailers that intend to use the platform. Likewise, the company says its STO has so far been met with high demand.
Indeed, blockchain in eCommerce is a promising use case. Currently, players such as Amazon, eBay, and Alibaba are dominating the space, and their power lies in centralization and data superiority. Decentralized platforms aim at shifting the data ownership back to the user, which is completely changing the way the business is done.
Apart from that, decentralized platforms may provide cheaper and faster payments, more reliable shipping procedures and order fulfillment as well as more efficient and transparent supply chain management.
Thus, ezzy comes in with a valid value proposition. But its goal of disrupting the e-commerce space is an ambitious one, considering the enormous centralization of power in the industry. Even though the larger platforms are not decentralized, the customer at the end of the day only cares about where they can get better service and lower prices. If ezzy can deliver on both, it could indeed see rapid growth. If not, it might get squeezed under the weight of the power players.