TE-FOOD ICO Review - Scam or Legit ICO?

TE-FOOD ICO Summary

The TE-FOOD ICO and TFOOD Token are raising funds to decentralize and scale an existing offchain, farm-to-table livestock and new food traceability solution focused on emerging markets.

TE-FOOD was in operation in Vietnam since 2016. The system tracks the items through the whole supply chain (farm, slaughterhouse, wholesaler, retailer) and provides resources to consumers, supply chain businesses and governments to get information on food history and food quality. According to their executive overview, TE-FOOD assert to possess 6000 enterprise clients, tracking 12,000 pigs, 200,000 chickens, and 2.5 million eggs every day.

TE-FOOD ICO Value Proposition

The TE-FOOD ICO suggests a dispersed ledger-based system would both add value and scalability for their offchain merchandise. It might appear far-fetched for some subscribers, but also in emerging markets there's significant distrust among customers toward the food industry as well as regulatory authorities on account of the excess use of substances, cases of poisoning- just technically unalterable logistics and food grade information can provide actual credibility.

The 2008 Chinese berry Scandal that led to the poisoning of 300,000 babies proves not just the real dangers caused by unscrupulous practices from food producers, but also by tainted police who cover up such abuses. Adding each detail of information about any product on the TE-FOOD dispersed ledger will offer a degree of transparency that benefits all participants, protecting and/or preventing food producers from making expensive mistakes and reassuring customers that their food is safe and of the highest quality.

TE-FOOD has designed a supply-chain method in which identification programs (RFID tags, security seals and label stickers) are employed to livestock, fresh and transport food packages, storing each datapoint throughout the entire supply chain. Fresh food items at the retail level can be traced back to their origins together with food safety related information. The system features a B2B mobile app for inputting data onto the ledger and a B2C app for customer access to product details. A detailed list of the existing identification tools and programs together with explanations about what role each piece of technology performs in the machine can be obtained here.

To comprehend the ecosystem, we'll first take a peek at the construction and role of the underlying blockchain structure. The TE-FOOD ecosystem operates on two different ledgers and tokens:

Token Transaction Ledger

Supply chain participants will use it to buy trades in the computer system.

Traceability Transaction Ledger

Transactional and food related information will be stored on a personal blockchain and use an an inner technical token: the Transaction token.

Every company in the supply chain preserves two wallets; a TFOOD wallet on the public network plus a Transaction wallet on the private network. A breakdown describing the role of this TFOOD utility token inside the TE-FOOD ecosystem follows:

Businesses can forgo further therapy, thereby reducing cost and preventing the overuse of antibiotics. The company selling the bunny puts a cost in TFOOD for the data and the recipient sends TFOOD to the vendor's TFOOD wallet in exchange.

Value Exchange Point 3: At the point of retail, consumers are rewarded with TFOOD for using the B2C app. Consumers have the additional option of utilizing TFOOD tokens to dictate food analysis services. Users package a portion of the product and send it to TE-FOOD. The results of the food evaluation are returned to the consumers in electronic format. While this might seem superfluous to a readers in countries with strict regulations on food manufacturing, the service provides customers in emerging markets in which instances of food fraud tend to be more widespread absolute certainty when choosing the right product for state, feeding their children.

TE-FOOD ICO Team

TE-FOOD was started by TE Ltd., a Vietnamese company established to operate a food traceability system. Erba 96 Ltd., a Hungarian company, was contracted as an IT growth spouse of TE Ltd. by the onset of the offchain version of the product. A detailed layout of legal entities involved in the job and how they relate to one another can be obtained here. The lead staff come from both businesses. In addition, the TE-FOOD roster includes a comprehensive blockchain dev team, applications dev team and food business experts.

TE-FOOD have two Co-CEOs who direct the project -- Erik Árokszállási and Dr. Trung Dao Ha.

His Linkedin shows he's worked since the founding of the company. With TE-FOOD, he will carry over his role as Co-CEO.

Dr. Trung Dao Ha can also be Co-CEO of all TE-FOOD. His previous experiences lay in the intersection of tech and company. He has served for 5 years as the President of the Ho Chi Minh City High Technology Association and has founded several small business ventures.

Marton Ven functions as CMO of TE-FOOD.

TE-FOOD ICO Strengths and Opportunities

Any ICO that launches based on a functioning business with a customer base and revenue stream instills a higher degree of confidence in the investment. TE-FOOD have been able to implement and scale a disruptive technology which includes all participants at the Vietnamese food supply-chain. Convincing enterprises to shell out money for any new type of support when profit margins could be thin is by no means a simple feat, however, the company have pulled it off.

For this accord, the offchain infrastructure for the system exists, functions and has proven its viability. On the customer end, they have gained modest traction with around 50k downloads of this B2C app already according to Google Play.

TE-FOOD are especially transparent regarding the the existence of their enterprise and partnerships, providing news clips and photos of their partnership arrangements on their Medium blog. A video presentation utilizing ZALO to scan a TE-FOOD branded merchandise can be viewed here. The capacity for mass adoption is significantly increased through the partnership with ZALO, giving users of this app immediate accessibility to the product.

TE-Food ICO Weaknesses and Threats

We're conscious of the multitude of decentralized supply-chain jobs available on the market, and also have taken these competitions under account within our rating. To directly address this matter, TE-FOOD have supplied comparisons of the project by WABI, Ambrosus, Modum and Waltonchain. The main takeaway in our view is that TE-FOOD have been able to catch the Vietnamese market, and are therefore insulated from direct competition until they extend into other markets in which the competition is also present.

Our main concern with TE-FOOD is that the regulatory stance of the Vietnamese authorities toward cryptocurrency.

As soon as it's clear that cryptocurrency can not be used as a kind of payment, the government is receptive to considering crypto within an investment advantage. As per a current bizhub.vn post, the central bank plans to collaborate with the Ministry of Justice to examine the legal framework for managing cryptocurrencies.

We took these questions right to the TE-FOOD ICO team for their sentence on the situation. Since TFOOD token will be used to access services within the TE-FOOD ecosystem, our concern was that it could possibly be considered a form of payment and therefore, illegal. The response we received from Daniel Csendes, Blockchain Technology Consultant for TE-FOOD, is the token is not considered a kind of payment under law, but rather a "permit".

He also signaled a statement could be made addressing this matter shortly. Contradicting this, the SWOT analysis on page 30 of this whitepaper admits that cryptocurrency regulations do indeed represent a possible threat to the project. The question of regulators interpret the operation of the TFOOD token to access solutions, whether as an electronic licence or an illegal currency, will hang heavy till an official statement clears the air.


Unless there's absolute certainty concerning the regulatory status of the TFOOD token itself, we must account for the threat this poses to the project's progress. As it stands, there is a far greater risk to the investor if the government clamps down on the project than for the TE-FOOD ICO itself.

With an existing company and stream of revenue, TE-FOOD has a base to fall back upon should the regulatory environment take a turn for the worst, while traders on the other hand will be left holding a bag of worthless tokens. Dealbreaker? We do not think so. Something to strongly take into consideration when putting our wager? Definitely.

The Verdict on TE-FOOD ICO Review

With respect to the regulatory issues raised in this article, it's necessary to point out that this is an issue faced all around the world such as ICOs and cryptocurrency. With any emerging, more disruptive technologies, a period of high risk and uncertainty will always precede a more regulated marketplace with discernable rules. With this high risk comes the possibility of high reward, which might be the situation for the TE-FOOD ICO.

The job is outstanding for the simple fact it is constructed from an existing business and maintains connections with both large-scale merchants and the government of Vietnam. The merchandise itself covers a number of important issues in the food industry and provides value to all participants in the ecosystem, from producer to customer.

Should the staff provide proof that their token is indeed compliant with current regulations, we will revise our score so. For right now though, we are going to be putting a small bet on the TE-FOOD ICO.