Wegogo Eyes $88 Million In ICO To Build First Travel Blockchain For Aspirational Travel In Asia

Wegogo has embarked on an ambitious project as it seeks to become the world’s first travel blockchain, for aspirational travel in Asia. To achieve this, the company intends to raise $88 million through an Initial Coin Offering ICO.

What is Wegogo?

Wegogo is an online travel startup that targets Chinese users via WeChat. The startup is in the process of making its services available to more users, mostly through online booking platforms in addition to WeChat and IOS. Plans are also underway to roll out in Android apps

The venture is backed’ by a group of Singapore investor’s, led by Farsight Capital’s managing director, Wong Toon King.

The Social travel app strives to make it easy for Chinese tourists to discover and book travel experiences with Aspirational Service Providers. The app essentially acts as a platform for matching travel suppliers with new Chinese travelers.

The platform also ensures operators get noticed amongst app users in additional to making it easy for them to showcase their most authentic experiences to potential customers.

Wegogo makes money by receiving a fee on processing transactions upon connecting travelers to their preferred Aspirational Service Providers, paid via Alipay or WeChat Pay.

Wegogo Blockchain Aspiration

Asia’s travel boom presents unique opportunities that Wegogo plans to take advantage of. Thanks to higher disposable incomes, increased tourism offerings and low-cost carriers, Southeast Asia has become the world fastest growing region for outbound travel.

Wegogo believes it has found a way to curve for itself a big piece of the $38 billion market opportunity in the fast-growing aspirational travel space. By leveraging blockchain technology, the social travel app hopes to play a pivotal role in the evolution of Asia tourism industry and in the process generate significant returns.

Pursuit of blockchain technology is part of the company’s ambitions to bring smaller travel providers closer to merchants who have yet to come online and start transacting with global travelers.

Wegogo big plan is to use blockchain technology to execute a peer-to-peer ‘PathFinder model’ as well as operate a reward system for all people who take part in the ecosystem while using its cryptocurrency. The reward system is centered on PathFinders who love traveling, discovering, sharing and guiding others to share the travel experiences.

Whenever PathFinders upload or share their unique activities or destinations on the platform, they will be entitled to a reward paid with WeGold. Should other users be motivated by the reviews and make bookings through Wegogo, the PathFinders would be rewarded further.

Aspirational Service Providers that strengthen partnerships within Wegogo ecosystem and promote the platform on their respective social media channels will also be incentivized by the reward system. Travelers who make purchases through the Wegogo app will also be incentivized through earning incentive points for their purchases.

All transactions will be captured on the blockchain to allow for a transparent ecosystem whereby people are rewarded based on what they bring to the table. The fact that WeGold tokens run on an Ethereum-based network means holders of the tokens will be able to cash them out whenever they wish. Holders will also be allowed to hold on to the coins as a form of investment.

Wegogo ICO Offering

Given that the company is still in the early stages of growth, the management has resorted to raise funds through ICO to advance development projects. The ICO route provides the most transparent and efficient way of raising funds, at such a pivotal time.

To be able to build a robust travel ecosystem within blockchain, Wegogo intends to raise $88 million in the offering. The online travel startup is to issue 3.4 billion WeGold tokens at a value of 0.00006866 ETH each or $0.037.

ICO Proceeds Usage

Technology Development 30%

Wegogo is to use 30% of the total ICO proceeds to develop the blockchain technology platform. Top of the agenda is to come up with a platform that is robust and scalable in all aspects, able to support more users while providing a vibrant experience on the aspirational travel platform.

Operating Expenses

Given that the company is still in the early phases of growth more manpower in the form of developers, marketers, designers and other professionals are needed to support the growth strategy. That said, Wegogo is to use 25% of the ICO offering proceeds to cater for any operational expenditures.

Reserve Funds

Wegogo is to set aside 20% of the ICO proceeds to cater for any additional expenditure that might come into being, as a result of economic and demographic changes.

Pathfinders Loyalty

Following the ICO, Wegogo is to recruit up to 1,000 PathFinders in China, tasked with the responsibility of discovering places that travelers can visit as well as tell stories in the effort of marketing the locations. 15% of the ICO offerings is to go towards building a robust Pathfinder network for marketing Wegogo

Ecosystem Expansion

Wegogo intends to use 10% of the ICO proceeds for business development strategies, mostly focusing on platform evangelization activities, marketing, and public relations activities.

ICO Timeline

The token sale will open to the public on May 15^th, 2018 at 02:00 UTC, to the public. It will run until May 30th, 2018 at 09:59 UTC. No limit has been set on the amount of tokens that one can purchase at the offering.

Wegogo plans to Beta release a PathFinder Management module in the third quarter that will enable PathFinders to upload newly discovered travel experiences on the platform. Focus in the fourth quarter will be on the launch of a marketing campaign, to target key Asian cities.... Wegogo Eyes $88 Million In ICO To Build First Travel Blockchain For Aspirational Travel In Asia

A Beginner’s Guide to Fundamental Analysis

When venturing into or preparing to invest in a business, you would have to look at its cash flow. Naturally, the net income is the influential factor or the prime meter gauge. However, one can’t skip learning and understanding how money flows in and out of a business. Aside from the bottom line figure, a company can be differentiated from the rest by the way their funds are managed.

Cash Flows Drives the Business

The survival of any business depends on its ability to generate cash, not temporarily, but for the long haul. Money makes the world go round, and it makes businesses grow. Hence, it’s all about sourcing funds and spending them to rake in the profits.

In general, a company needs a ‘positive’ cash flow which means its cash inflows should always exceed cash outflows. That’s the natural consequence of a business desiring to operate for years on end.

The Cash Flow Statement

The Cash Flow Statement completes the roster of financial statements that you will see in a company’s annual report. It’s one of three major corporate disclosures that investors and creditors need to obtain to better analyze a company’s performance. In the accounting parlance, the official term used is the statement of cash flows.

The two other financial statements are the income statement (profit and loss statement) or the balance sheet. You refer to the income statement if you’re reviewing revenues and costs to find out if the company is losing or making money. The balances sheet depicts the company’s financial health based on its assets, liabilities, and stockholders’ equity.

Meanwhile, the cash flow statement is the report that shows the cash produced and expensed out during the time interval or period indicated in the statement. In essence, the information contained in the cash flow statement weaves together the income statement and balance sheet. It’s a recording of all money matter transactions in a specified accounting period.

The Movements of Cash in a Company

The cash flow statement divulges the company’s sources of money (cash inflows) and where money is expended (cash outflows). There are three areas in cash flows that you need to know to clearly understand the whole money affairs. They are broken down into specific activities:

Cash flow from operations

This segment measures the actual cash used or delivered through the company’s normal course of business. It shows the company’s ability to spawn positive cash flows consistently.

If a company is in engaged in selling software, then the cash flow from operations comes from this normal business activity. It’s the ‘bread and butter’ or sustenance of the company.

Cash flow from investing activities

When a company acquires or sells capital assets, this activity is reflected as cash flow from investing activities. Capital assets are items that possess a useful economic life of a year or more. They are also documented as income-producing assets.

It should be stressed that each company has the prerogative to determine which items may be considered as capital expenditures (capex). Hence, there is may be differences when comparing the cash flow from investing activities of one company with another.

Cash flow from financing activities

Financing activities pertain to the cash flow between a company and its shareholders as well as its creditors. It can be in the form of sale of stocks, dividend payments, loan proceeds, or debt repayment.

Seeing negative numbers might be sounding off an alarm at first glance. However, it can mean something positive like retiring debt or distributing cash dividends to shareholders and investors. Read the line items corresponding to the figures to know the reasons behind the movement of cash for such activities.

An Illustration of a Statement of Cash Flows

CapitaLand is a publicly-listed company in Singapore and is one of Asia’s largest real estate companies. The company owns and manages a global portfolio that is valued more than S$78.0 billion as of December 31, 2016.

It has established its presence in 20 countries and caters to various businesses related to real estate. As such, their Consolidated Statement of Cash Flows is a fine example of how the three cash flow activities are presented in detail.

CapitaLand’s core markets are in Singapore and China but the company has business interests elsewhere. They are into integrated developments, shopping malls, serviced residences, offices, residential property, real estate investment trusts (REITs), and funds. Each of the cash flow activities are recorded in the consolidated cash flow statements to show the reader where cash is utilized.

Giving Importance to Cash Flows

Cash flow is a vital aspect of a business. Some investors view the statement of cash flows as having the same value as the income statement and balance sheet, if not better. Cash fuels business activity and therefore cash availability or lack of it is critical for the company. It tells the exact cash position that could impact on revenues.

Cash flows are essential to keep the business going. A business is financially strong if it has a high operating cash flow. Having a positive cash flow means the business is able to sustain operations and pay for salaries, debts and other payables.

There are occasions wherein a company needs to take a position on an investment with profitable returns in the near-future. Although it would mean a negative cash flow for now, the spending makes good business sense at the moment.

On the opposite side, insufficient cash flow means a business is hard-pressed to sustain normal operations.  Knowing your cash position can lead to sound financial decisions. An efficient funds management system can bring in increased revenues, lower overhead expense that will ultimately redound to higher profits.

Cash flows determine a company’s financial health

When you come across a cash flow statement, you can calculate the operating cash flow. Subtract the financial obligations or debts, add depreciation, and add/subtract working capital as applicable. The result will give you a more truthful picture of a company’s financial health.

Understanding cash flows will also assist you determine the difference between ‘ordinary’ revenue and ‘real’ profit. A company may be generating significant revenue but because of bloated expenses and obligations, profit may be smaller or none at all. In conclusion, cash flows can make or break the continued existence of a business entity.

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