27 JAN 2018

(Updated on 29 JAN 2018)


Executive Summary 3

01 Background 4

1.1 Summary of Medicalchain and ICO 4

1.2 Scope of the Project and Services 5

1.3 ICO Details 9

1.4 Technical Features 11

1.5 Development Plans 13

1.6 Marketing Strategy 14

1.7 Team 15

1.8 Documentation 17

02 Analysis 18

2.1 Market Review and Competition 18

2.2 Competitive Advantages 21

2.3 Economy of the Project 22

2.4 Community Engagement 23

2.5 Reliability and Feasibility 26

03 Evaluation 27

3.1 Investment Attractiveness 27

3.2 Potential Risks 28

3.3 CryptoStandard Score and Outlook 29

04 Other Important Information 31

4.1 Contacts of the Company 31

4.2 Useful Links 31

05 Appendix 32

5.1 Methodology 32

5.2 Medicalchain’s challenges and MediBloc’s responses 34

Disclaimers 39

Disclaimers 39

Our Contacts 39


Executive Summary

We assign Medicalchain a CryptoStandard Score of 8.7 and a Positive outlook. We believe that Medicalchain will lead the disruption in health data storage and applications in the long run. Under the current market hype, we are also optimistic about the after-market performance of MedToken.

Medicalchain envisions to become a decentralised health data platform that can empower simple exchange and usage of medical data. The proposed platform solution aims to solve several pain points of the healthcare industry nowadays. The challenges include fragmented storage of electronic health data, lack of patient centricity, and limited usage and applications of health records.

To tackle the challenges, Medicalchain aims to build a platform that consists of two functions – first, a secure storage of health data where patients have full ownership and they can grant permission to different healthcare parties; second, a marketplace which enables third parties to sell their healthcare services to Medicalchain platform users.

MediBloc, based in South Korea, is a key competitor to Medicalchain. Both of them provide very similar services but they adopt different technological designs. While it is still early to make a conclusion on their design functionality, our team believes that Medicalchain excels in two main areas: simpler token design and greater community involvement.

Medicalchain has gathered enormous market hype. There are over 46,000 members in their Telegram group, more than 100,000 potential investors signed up for the crowdsale and their website ranked top 100,000 in the world a week before the crowdsale.

Despite the promising business idea and the market hype, there are several key risk factors. First, due to the sensitive nature of health data, Medicalchain is likely to be facing enormous compliance issues. Besides, building the platform requires communications with many stakeholders which may be time-consuming. Furthermore, Pre-ICO may give rise to potential dumping behavior from early investors.

Our team is optimistic about the after-market performance of MedToken mainly due to the market hype. The long-run performance of MedToken would depend on the execution of Medicalchain team, which is the foundation for stability and profitability of Medicalchain.


01 Background

  1. Summary of Medicalchain and ICO

1.1.1 Summary of Medicalchain

Medicalchain is an UK-based decentralised platform which uses blockchain technology to securely store health records and maintain a single version of the truth. Different stakeholders such as doctors, hospitals, laboratories, pharmacists and insurers can request the permission of accessing a patient’s record to serve their purpose and record transactions on the distributed ledger.

1.1.2 Summary of ICO

The token, MedToken is sold with the following features:

Pre-ICO start date: September 15, 2017
Pre-ICO end date: Unknown
Pre-ICO price: 1 MedToken = $0.1 – $0.22
ICO start date: Feb 1, 2018
ICO end date: Unknown
ICO price: 1 MedToken = $0.25
Sales Details
Hard cap: $24 million
Soft cap: N/A
Accepted payment: ETH, BTC
Minimum investment: $5,000 (Pre-ICO); $10 (ICO)
Maximum investment: $5,000 (ICO)
Financial Metrics
Max fully diluted market cap[1]: $125 million
Market cap with circulating supply at ICO[2]: $56.25 million
Total no. of token supply: 500 million
Token distribution: 35% – Crowdsale

34% – Retained by Medicalchain

31% – Community development

  1. Scope of the Project and Services
      1. Mission and Vision

Medicalchain envisions to become a decentralised health data platform that enables patients or users to give conditional access to different healthcare agents such as doctors, hospitals, laboratories, pharmacists and insurers. Through this way, Medicalchain aims to empower secure, fast and transparent exchange and usage of medical data.

      1. Issues that the Project is seeking to solve/ Market Needs

On their whitepaper, Medicalchain has identified seven unsatisfactory practices and market needs currently in the healthcare sector. They have been summarized below:

  • Users demand instantaneous and seamless flow of health data
  • Health services are fragmented and electronic health records are stored in different healthcare service providers
  • Lack of patient centricity where patients have limited control and access to their health data
  • Increasing death resulting from medical error due to unsynchronized patient data
  • Security risks arising from centralized database
  • Lack of transparency, especially in the health insurance sector, and record and billing practices
  • Increasing demand for telemedicine
      1. Business Model

Medicalchain summarises their services as a healthcare platform. To aid a better understanding on their business model, our team breaks down their services into two clear and separate products: (1) electronic health records (EHR) storage and management tool; (2) health solution platform for third parties.

EHR storage and management tool is a core part of Medicalchain. With this tool, Medicalchain could help the healthcare industry create, according to what they call, a single true version of the user’s health data. Currently, a user’s data is kept at various databases held by different healthcare service providers with different formats and standards. Medicalchain would like to build a database which stores all the health data along the entire medical service chain. A prominent feature of this database is the employment of a user-permission system where users are the owners of the data and they could grant rights for different parties to read and write their health records. While the EHR storage and management tool is crucial to the development of Medicalchian, it is expected that the tool could not generate any revenue as Medicalchain promises to let users use the tool for free. In other words, the patients and industry players could store and manage the data without paying any fees.

Therefore, we believe that the revenue driver of Medicalchain would be the second product – health solution platform for third parties. Precisely, it is a marketplace where third-party healthcare-related companies could connect with Medicalchain users. The platform uses MedToken as the currency/ medium of exchange. There are two main functions of the marketplace. First, third parties could post their service or products for users to select and buy. Second, users could ‘sell’ their data to third parties which utillise medical data. Medicalchain does not mention whether they would charge any fees for the provision of the marketplace. One common way to monetise a platform is to charge commission like what Apple Store does.

Medicalchain has clear plans to initiate the first two applications on their health solution platform. First, telemedicine consultation corresponds to the first function mentioned above. Medicalchain users could pay MedToken to receive medical consultation through webcam. Services include second opinions, education, follow-up care, diagnostics and follow-up care etc. Second, health data marketplace for pharmaceutical and research companies corresponds to the second function of the platform mentioned above. Researchers are able to request health data on the marketplace and Medicalchain users could share the data to those companies with MedToken as compensation.

      1. Process Flow

To aid illustrations, process flows would be discussed with respect to the four services mentioned above.

EHR storage and management tool. The whitepaper covers only the technical details of the tool. Through our Telegram conversation with Medicalchain team, to use the services, users have to sign a consent form, allowing Medicalchain to solicit their health data on their behalf, from healthcare service providers. Through this way, Medicalchain could help construct the single true version of users’ health data.

Health solution platform for third parties. Healthcare service providers could list their services and products on the platform. Users could browse and choose services.

Telemedicine consultation. Patients could book an online consultation and interact with the doctor through webcam. Users could grant doctors the access to their health data stored in Medicalchain in real time. The consultation fees are settled in Medtokens.

Health data marketplace. Medicalchain will connect research institutions with users who are willing to have their health data used in studies in a health data marketplace. Users will be given clear information about how their data is being used and what data will be required. In many cases anonymised data will be permissible, ensuring the privacy of everyone involved. In return, participants will be compensated with MedTokens.

      1. Blockchain Application

Medicalchain employs a dual blockchain system to separate their two products. For EHR storage and management tool, they use hyperledger fabric, a permissioned blockchain network. For the health solution platform, Medicalchain uses Ethereum network and smart contracts to record the transactions. Details will be discussed in Section 1.4 Technical Features.

      1. Business Partners

Medicalchain has launched its preliminary product, Discharge Summary in 3 UK NHS hospital trusts:

Leeds Teaching Hospital Trust

Queen Elizabeth Hospital Trust

University Hospital Lewisham

      1. Token Utilities

The tokens are mainly used to empower the third-party health solution platform. According to Medicalchain’s plan, MedToken will be used by patients to pay for the fees of telemedicine consultations. For the health data marketplace, research institutions need to pay MedToken to the users who are willing to share their health data.

Medicalchain also proposes insurance companies to award MedToken to users who are willing to disclose their complete medical history as this helps solve the problem of asymmetric information between insurers and insurees.

      1. Comments on Scalability

CryptoStandard team has identified two major obstacles in the scalability of Medicalchain.

First, the opportunity of the business could be limited in some countries. As highlighted in the whitepaper, legal compliance on storage, management, access, and commercial uses of health data vary in different countries. As those data are very sensitive, it may take significant effort to go through the legal processes. Besides, this business model may scale well only in countries with people who are more aware of their rights in managing and making use of their medical data.

Second, the parties involved are very extensive. For the business model to fully function, from our point of view, here are the three critical steps to take. First, Medicalchain needs to solicit a massive number of consent forms from users who are willing to join the database. This serves as a critical foundation for the latter two steps. Then, they have to request electronic health data from related health service providers including hospitals, general practitioners, insurance companies and government, on behalf of the users. Lastly, they need to find medical partners for telemedicine consultation services, and research companies for health data marketplace. We believe these steps are all very time-consuming and may limit the scalability of Medicalchain.

  1. ICO Details

This section focuses on our comments towards the presale and/or crowd sale. All other ICO-related information has been included in Section 1.1.2 Summary of ICO for reference.

      1. ICO Structure

Medicalchain has included both Pre-ICO and ICO for their crowdsale. And they have notable differences in terms of price and minimal investment amount.

For Pre-ICO, they separated the sales into several rounds with prices ranging from $0.1 to $0.22 per 1 MedToken. The minimum investment for Pre-ICO is $5,000. From our conversation with Medicalchain team, they have raised $20 million from Pre-ICO.

For ICO, there is only one uniform price of $0.25 with the maximum investment cap of $5,000. The team plans to raise another $4 million from ICO.

Our team ascribes the high concentration of tokens in the hands of Pre-ICO investors as a risk factor. As they have obtained tokens at a much lower price than the ICO token holders, with unknown restrictions on the lock-up period, there could be risks that Pre-ICO token holders may dump their tokens in the market.

Another worth-noting fact of Medicalchain crowdsale is the token distribution where the crowdsale accounts for 35%; Medicalchain team retains 34%; and community development accounts for 31%. While we believe that the high ratio reserved for the company and community development is one of the risk factors, Medicalchain team stresses that the vesting progress is lengthy and fair to protect the investors.

      1. Involvement of Institutional Investors

According to a news release from Medicalchain[3], there are 6 funds invested in the Pre-ICO round. They are Preangel, DFund, Synco, Blockchain Labo, Blockchaininvest Hedge Fund and BlockVC Fund.

      1. Post-ICO Matters

Regarding exchanges, Medicalchain is in discussion with several exchanges, but has not yet announced which ones they will list on.

For the use of proceeds, Medicalchain fails to comment on the target ratio of different uses of the proceeds. They stress that the use of proceeds could change depending on their progress.

According to our conversation, Medicalchain would not burn the unsold tokens and they believe that the tokens would be sold out very soon as more than 100,000 potential investors have already signed up to indicate their intention to join the crowdsale. There is no plan for future offerings of tokens.

  1. Technical Features
      1. Overview of the technology

Medicalchain employs a dual blockchain system to separate their two products. For EHR storage and management tool, they use hyperledger fabric, a permissioned blockchain network. For the health solution platform, Medicalchain uses Ethereum network and smart contracts to record the transactions.

For the use of Ethereum network, it is generally deemed as the most popular smart contract execution platform. It is widely accepted and used in the blockchain industry. Therefore, it is reasonable for Medicalchain to use Ethereum network to support the health solution platform.

As health data is highly sensitive and Medicalchain would like to enable users to own the permission rights, hyperledger fabric is adopted. It is a closed/ permissioned blockchain which, in contrast to public blockchain, does not allow all the network participants to read all transactions.

Specifically, IBM[4] highlighted 6 technical advantages of Hyperledger Fabric for why it is a good choice for storing sensitive data like health records:

  • Permissioned membership
  • Fewer levels of trust and verification are required across node types, and network scalability and performance are optimized
  • Data on a need-to-know basis
  • Rich queries over an immutable distributed ledger
  • Modular architecture supporting plug-in components
  • Protection of digital keys and sensitive data

Despite the advantages, Hyperledger Fabric is still in its developing stage. With the potential changes of its blockchain, closer attention is required to monitor how Medicalchain’s platform should be adjusted.

Medicalchain also provides an illustration on how their encryption cryptography works. Our team has checked that it follows the common practice of encryption.

      1. Development and Implementation of the technology

As mentioned on the whitepaper, Medicalchain would release a beta with pilot tests in the US and UK in February 2018. The pilot tests will be extended to China, Japan and South Korea in October 2018. A fully functioning platform will be released globally in March 2019.

      1. Checks on Current Development Work

To date, Medicalchain’s work on GitHub is insufficient to check.

  1. Development Plans
      1. Brief History of the Project

In early 2016, the founder of Medicalchain, Dr. Albeyatti identified an issue that the medical notes were not standardised and it took doctors enormous time to deal with the administrative work. Therefore, he founded Discharge Summaries with Bara Mustafa in hopes of generating accurate and timely notes. At first, the service was limited to the notes prepared by doctors when patients were sent home.

With the vision to expand the influence and witnessing the power of blockchain, Dr. Albeyatti decided to found Medicalchain to broaden the application.

      1. Current Progress

The proof of concept is in its final phase and the development is now focused on design and UX/UI experience. The core of the application, Medicalchain’s secure API and blockchain, is ready for the release of the beta.

To date, Medicalchain has launched its preliminary product, Discharge Summary in 3 UK NHS hospital trusts:

Leeds Teaching Hospital Trust

Queen Elizabeth Hospital Trust

University Hospital Lewisham

      1. Future Plan

On the technical side, Medicalchain would release a beta with pilot tests in US and UK in February 2018. A fully functioning platform will be released to the world in March 2019.

On the partnership side, Medicalchain plans to establish links with world class universities in March 2018 and partner with wearable device companies for them to provide health data which support the format and standard of Medicalchain platform.

      1. Comments on the Roadmap

As the beta will be released only after the ICO, it limits our investigation into the product functionality. Having said that, we believe that the timeline for pilot tests and the launch of a fully functioning Medicalchain platform is reasonable as it takes time to negotiate with partners.

  1. Marketing Strategy
      1. Marketing Strategy during ICO – Targeting Investors

During ICO campaigns, Medicalchain used social media to promote themselves, including Facebook, Twitter and Youtube. They also used blockchain-related communication channels, including bitcoin talk and GitHub. There was also discussion of Medicalchain in Reddit and Steemit.

We have checked Medicalchain’s website for its sufficiency and consistency. It includes a professional video, links to whitepaper, social media and different communication channels. The investment registration form is also straightforward and user-friendly. The website has language versions of English, Korean, Russian, Japanese, Chinese and Italian.

There are a number of press interviews and news coverage. Medicalchain also has presence in the Financial Times, The Huffington Post, Blockchain News and Nasdaq.

      1. Marketing Strategy after ICO – Targeting Customers

There is very little information on marketing strategies after ICO on whitepaper. Per our conversation with Medicalchain team, their focus after ICO would be the onboarding of users and medical professionals.

  1. Team

After combining the information from Linkedin and the website, 12 core team members and 8 advisors have been identified.

      1. Core team members

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Dr Abdullah Albeyatti, MBBS BSc MRCS (ENT)


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Mo Tayeb, BSc, MBA


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Natalie Furness, ‌BSc

Communications Director

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Dr Philip Xiu, MA MB BChir MRCP

Lead Medical Officer

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Dave Ebbitt, ‌‌BSc BA

Health Informatics Manager

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Bara Mustafa, ‌‌BEng

Head of Security at Medicalchain

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Robert Miller, BSc

Director of Business Development

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Dr Stewart Southey, ‌MBBCh FRCA MBA

Medical Advisor/Business Development

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Kornelia Koscik, ‌LL.B. (Hons) LL.M.

Legal and Marketing Associate

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Tim Robinson, BEng

Community Manager

Image result for linkedin iconLouis Agha-Mir-Salim


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Dr Tiam Feridooni, MD (Candidate), PhD, BSc (Honors)


      1. Advisors

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Ivan Guevara, Ph.D

Senior Legal Consultant

Eddy Travia, BSc

Co-founder & CEO of London-quoted Coinsilium

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Dominik Zynis, B‌A


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Professor Robert C. Miller, MD MBA FASTRO FRSA FRSM

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Dr Dominik Schlosshan, LRCP LRCS LRCPS MRCP MD

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Paolo Barrai

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Richard Hadfield, BSc MBA

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Vincent Biret-Chaussat, BSc

      1. Comments on Team Information, Profile and Composition

We have checked the team profile from Linkedin and other social media platforms for sufficiency of information disclosure. All the team members disclose their connection with Medicalchain, while there are 4 advisors who have not indicated their linkage with Medicalchain: Eddy Traia, Prof. Robert Miller, Paolo Barrai and Richard Hadfield.

The team composition is a well-balanced one with experts from business, blockchain and technology backgrounds.

  1. Documentation
      1. Availability of documents

On their website, the whitepaper is available only in English.

Since Medicalchain adopts a dual blockchain system by utilising two existing blockchain networks, we believe that the whitepaper covers a satisfactory level of technical details even though there is no separate engineering paper.

      1. Sufficiency and consistency of documents

We have checked the whitepaper and the news releases for their sufficiency and consistency.

The whitepaper has described the problem of healthcare industry nowadays, how Medicalchain offers help to solve the issues, the technical details, timeline and the process flows of the Medicalchain platform.

The content of the whitepaper and the news releases are generally consistent.


02 Analysis

2.1 Market Review and Competition

2.1.1 Market Overview

Medicalchain is involved in two existing markets – electronic health records storage and electronic health record applications.

Electronic Health Records Storage

A research firm IDC points out at their report[5] that electronic health data has an annual growth of 48%, and the volume will increase more than 15 times from 153 exabytes in 2013 to 2,315 exabytes by 2020. With this huge amount of health data and its sensitive nature, the demand for secure storage is enormous.

According to TechTarget[6], there are four main types of storage solutions now: disk, flash, cloud and blockchain. Different from Medicalchain, disk and flash solutions aim at local hard drive storage instead of remote access and ownership of data. Therefore, cloud and blockchain solutions are more similar in nature for the purpose of storage.

The market of cloud storage software for electronic medical records is very crowded with over 300 players identified[7]. Even though cloud solution is gaining traction, it could not solve the inadequacy/ insufficiency of interoperability, transparency and exchange of health data which are the major challenges faced by the healthcare industry nowadays.

While there are many successful applications of blockchain technology in the finance field, the healthcare industry is exploring the use of blockchain for storage. It features low cost, remote access, decentralized ownership, and more importantly interoperability/ applications of the health data.

Electronic Health Records Applications

Personal health data can be utilized in many ways, including research studies, pharmaceutical purposes, new drugs invention, clinical tests and health insurance design. However, concerning/considering patients’ privacy and security, the scope of current applications and thus the market for health data applications and exchanges are limited.

In the current practice, research institutes, pharmaceutical companies and insurance companies would directly go to entities with massive amount of health data. These entities include hospitals and governments which act as middlemen to help identify suitable patients from their database and facilitate transactions such as clinical tests. The current practice is inefficient and costly.

Recently, blockchain startups like Medicalchain envision to scale up the health data applications market by facilitating the transaction process within the industry. Through their blockchain platforms, institutions who need extensive amount of health data could reach the patients directly.

2.1.2 Competition

When narrowing down the definition of market to electronic health record storage and application platform empowered by blockchain, we have identified one key competitor – MediBloc.

MediBloc is a South Korea-based blockchain startup which provides a very similar health data storage and application platform as Medicalchain does. MediBloc completed its crowdsale in Dec 2017 with 6,232 contributors and raised around $30,000,000[8]. Its token (i.e. MED) is currently listed on CoinRail, Bitthai and There were 40% tokens unsold during ICO and they were burnt on Jan 20, 2018.

Medicalchain challenges MediBloc in 6 dimensions through Telegram chat: blockchain differences, data storage, tokenomics, user onboarding, execution and access to patient information. Our team has reached out to MediBloc and received exclusive responses from MediBloc’s founder, Dr. Allen Wookyun Kho. The challenges and responses are appended with this report[9].

We undertook an exhaustive analysis into Medicalchain’s challenges and MediBloc’s responses. We believe that the differences pointed out by Medicalchain are merely two companies’ own decisions and choices based on what they believe to be the best fit for their product and target markets. As both of them are in their infant stage with beta version not yet released until later this year, the information available is not sufficient to judge which design, as a whole, is superior. The challenges and responses are summarized into Part 1 of the following table based on their own claims. The identified competitive advantages of Medicalchain will be discussed in Section 2.2.

Comparison table: Medicalchain VS MediBloc

Name Medicalchain MediBloc
Part 1 – Company and Technology Design
Blockchain Difference Hyperledger Fabric Qtum
Data Storage Health data lake Personal device, data network
Tokenomics MedToken Dual token system: MED, MP
User Onboarding Use of Civic to verify identity Not yet decided
Execution Global focus Begin with Korea
Access to Patient Info Emergency access through Medicalchain’s barcelet Permission from patients
Part 2 – ICO Details
Base UK South Korea
Date Founded Apr 2017 Oct 2017
Token Name MedToken MED
Pre-ICO Price 1 MedToken = $0.22 1 MED = 0.00045 QTUM
Price 1 MedToken = $0.25 1 MED = 0.0005 QTUM
Working Prototype Beta releasing in Feb 2018 Alpha releasing in Jul 2018
Beta releasing in Sept 2018
Accepting BTC, ETH QTUM
Minimum Investment $5,000 for Pre-ICO
$10 for ICO
3000 QTUM for Pre-ICO
N/A for ICO
Capital Raised $20,000,000
(From Pre-ICO only)
ICO Date Pre-ICO start: Sep 15, 2017
ICO start: Feb 1, 2018

13 Nov 2017 – 26 Nov 2017
ICO: 27 Nov 2017 – 15 Dec 2017

Soft Cap N/A N/A
Hard Cap $24,000,000 $50,000,000
Part 3 – Community Engagement Statistics
Telegram Members* 46,556 5,193
Twitter Followers* 11,900 6,889
Tweets* 335 295
Facebook Likes* 794 4,486
Instagram Followers* 181 152
Youtube Subscribers* 336 112

*data are collected as at 29 Jan 2018

2.2 Competitive Advantages

There are two main edges that Medicalchain has over MediBloc:

Simple token design. For Medicalchain, MedToken is the only token created to be used as currency within the system and it acts as the medium of exchange for the services and applications on the health solution platform. In contrast, MediBloc introduces MED as its currency, and MP points as a medium to aid a rating system. Users of MediBloc have to deal with both MED and MP points to complete transactions. We believe the introduction of MP points is unnecessary and too complicated.

Community involvement. Medicalchain has gathered much more hype than MediBloc. As at Jan 29, 2018, there are over 46,000 members in Medicalchain Telegram group. In contrast, there are less than 6,000 members in MediBloc Telegram group. Such a difference is also observed in other social media and communication channels.

In addition, our team would like to point out that there is an absence of founders and admins in MediBloc’s Telegram communication channel. With an abundance of questions unanswered, MediBloc may not be able to communicate properly with the early adopters of their product.

2.3 Economy of the Project

As MedToken is not a security token, the profitability of Medicalchain does not directly impact the trading price of MedToken. However, we believe that assessment on the economy/ financials of the project is still of paramount importance due to the fact that the long-term sustainability of Medicalchain can ensure the use and the value of MedToken.

2.3.1 Economic Model of the Project

As described in the Section 1.2.3 and Section 1.2.4, there are four parts of Medicalchain’s current business models: EHR storage and management tool, health solution platform for third parties, telemedicine consultation and health data marketplace.

As the use of the storage and management tool will not be charged, the other three services will be the revenue drivers. However, we believe there would not be significant revenue inflow in the first year of their business. It is worth noting that health solution platform and health data marketplace are built upon a successful storage and management tool. In other words, without a sufficient scale of the health record database, it would be hard for Medicalchain to drive sales for health solution platform and health data marketplace.

The telemedicine consultation presents another story as it is a proven market and Medicalchain could launch this service in a short period of time with its connection with medical practitioners. However, the current telemedicine market in more developed countries is crowded and it requires competitive advantages to capture the market. The real-time health record database is a good edge for Medicalchain to compete in the telemedicine market as it helps patients better communicate with doctors. Hence, same as other products, telemedicine requires a successful EHR storage and management tool.

Therefore, our team believes that, in the short run, Medicalchain has to rely on the proceeds from crowdsale and MedToken reserved for community development to operate the business.

2.3.2 Comments on the Assumptions of the Model

Medicalchain does not provide any assumptions for their company financials.

2.4 Community Engagement

Different from traditional fund-raising campaigns, ICO relies heavily on the level of community engagement. The ‘hype’ of the ICO will be analysed in depth to better assess the demand for the tokens.

2.4.1 Analysis of Social Media/ Communication Channels

As of Jan 29, 2018, the statistics of different social media or communication channels are as follows:

Facebook: 794 likes
Twitter: 335 tweets;11,900 followers
Instagram: 31 posts; 181 followers
Youtube: 336 subscribers
Telegram: 46,556 members

Medicalchain uses Twitter and Telegram as the major communication channels. Twitter is used as a passive tool for Medicalchain to broadcast their latest news. On the other hand, Telegram is used as an active tool for Medicalchain to address the questions of the potential investors.

2.4.2 Analysis of Blockchain-related Platforms

Among the major cryptocurrency discussion platforms, Medicalchain has initiated discussion only in BitcoinTalk. Similar to many other ICO projects, Medicalchain made an announcement on BitcoinTalk for its crowdsale, outlining the details of the sales and their contacts.

There are also discussions in other common platforms including Reddit, Steemit and Medium. While Medicalchain does not initiate the discussions, they reply to questions about their project regularly.

2.4.3 Analysis of News Releases

As of Jan 22, 2018, there are 35 news releases[10]. There is news coverage from reputable news organizations such as Financial Times, The Huffington Post and Blockchain News.

There are also interviews with key management of Medicalchain posted on their website, with COO Mohammed Tayeb interviewed by the media the most.

2.4.4 Analysis of the Website

According to SimilarWeb[11], the distribution of traffic sources and traffic by countries are as follows:

According to HypeStat[12], there are 94,500 monthly unique visitors and 2.4 pages per visit. The traffic volume of Medicalchain is higher than that of most ICO companies and blockchain startups.

2.4.5 Bounties Program

Medicalchain does not have any bounties program.

2.4.6 Comments on the Atmosphere of the Community

We believe the community holds a generally good atmosphere as most comments on the discussion platforms are positive. Besides, according to the Medicalchain team, there are more than 100,000 community members who have signed up for the crowdsale before the start of the crowdsale.

2.4.7 Comments on the Responsiveness of Medicalchain

The team members of Medicalchain are very responsive in Telegram. They have delegated 8 team members as admins who usually respond to questions within 10 minutes. The admins include the co-founders and they answer all kinds of questions, from KYC (Know your customer) to technical details.

2.5 Reliability and Feasibility

2.5.1 Check of prototype

Medicalchain is going to release a beta version in February 2018. Therefore, we could not check the prototype for the time being.

2.5.2 Check of GitHub codes

The content of GitHub is insufficient for checking.

2.5.3 Availability and responses of current user base

Medicalchain team has founded Discharge Summary as its preliminary version. According to Medicalchain, the service has been expanded to three UK hospitals with more than 60 doctors using it. The feedback of using the service is generally positive.

2.5.4 Sufficiency of Resources

Our team judges the sufficiency of resources from three perspectives: team expertise, available capital and execution plan.

First, we believe that Medicalchain team has a good mix of expertise and background which forms a good foundation to execute the project. Second, they have sufficient capital to build and operate its business. With the high market hype and a reasonable hard cap, it is believed that Medicalchain could raise $24 million (i.e. the hard cap). With the reserved MedToken for community and business development, our team believes that the funding is enough for Medicalchain to at least launch the fully-functioning platform.

However, there is a lack of a detailed execution plan related to user onboarding, adoption and business partner searching after ICO.

2.5.5 Potential Compliance Issues

As MedToken is not a security token, Medicalchain faces fewer legal issues related to ICO. However, in their business model, soliciting and storing health data play a key role. As those data are very sensitive, it is expected that Medicalchain has to design their platform with country-specific standards. In the whitepaper, Medicalchain has expressed its awareness on this compliance issue.


03 Evaluation

3.1 Investment Attractiveness

3.1.1 Disruptive Nature

Medicalchain tries to disrupt the healthcare industry with the help of blockchain technology. Our team believes that Medicalchain’s proposed platform targets the exact pain points of the healthcare industry nowadays, including the lack of interoperability of health data, and the scattered and incomplete ownership of health records. Blockchain solution provides a new perspective in resolving the aforementioned issues. In the long run, we expect that blockchain technology will be one of the main streams in the healthcare sector and Medicalchain could probably lead this disruptive reform.

3.1.2 Market Hype

With over 46,000 members in their Telegram group and the help of different marketing campaigns, Medicalchain has raised enormous market hype. It is featured in different reputable media groups from different countries. Besides, with the $24 million hard cap and over 100,000 registered investors, it is expected that the hard cap can be reached and the market hype would drive the momentum of MedToken after it gets listed.

3.1.3 Experienced and Diverse Team

From our in-depth research, Medicalchain is a rare team in healthcare-related blockchain sector which has expertise from medical, business, blockchain and technology developer backgrounds. Besides, their advisors are very experienced in this field which could potentially aid the growth of the team and help achieve the goal of disrupting the healthcare industry.

3.2 Potential Risks

3.2.1 Lack of Prototype

The beta version of the Medicalchain platform will be released in February 2018, which is supposed to be after crowdsale. In other words, investors could not experience their service before investing. This also hinders our investigation into Medicalchain’s functionality, reliability and user experience.

3.2.2 Concerns of Scalability

Our team believes that the largest hurdle for Medicalchain to fulfill their goal would be execution. There are two major concerns related to the execution. First, different countries adopt different standards for storing and soliciting health data. Our team believes that it could be tedious to go through all the legal compliance issues in different countries as Medicalchain aims to provide a global solution. Second, Medicalchain has to deal with many different parties to make its platform fully functioning. They have to onboard users and medical professionals, educate the mass, deal with business partners, and most importantly negotiate with different governments. The two concerns mentioned above would be time-consuming and hinder the scalability of the business.

3.2.3 Concerns on Pre-ICO Structure

Medicalchain launched Pre-ICO in mid-September 2017. During Pre-ICO, MedToken was sold to a maximum of 2,400 investors with the price of $0.1 to $0.22. In other words, there are a small amount of investors holding MedToken in a lower cost than the ICO price of $0.25. With unknown lock-up condition of the Pre-ICO round, our team identifies the potential dumping behavior of early investor as a risk factor.

3.3 CryptoStandard Score and Outlook

CryptoStandard Score (CS Score) is our unique approach to assess an ICO in an unbiased way. With thorough backtesting, we come up with the following 10 most reliable dimensions to evaluate an ICO. This rigorous model is supported by over 80 parameters.

The dimension, score and comments from our team have been summarised below:

Dimension Score Comments
Idea 9.0 Medicalchain has a very disruptive idea that could change how healthcare sector operates with the help of blockchain
Competitiveness 8.8 As blockchain application in healthcare is still in its infant stage, the market is not occupied by any large players
ICO 8.4 The ICO campaign has reasonable features. However, it is worth noting that the distribution of proceeds is not available. Besides, Pre-ICO investors may have notable advantages over ICO investors
Team 9.5 Medicalchain team is very strong with diverse background
Community 8.6 Medicalchain maintains a close connection with the community
Marketing 9.3 Most of the popular social media and blockchain-related discussion channels are available for Medicalchain to spread their news
Documentation 9.4 The documents provided are sufficient and consistent
Financials 6.0 Medicalchain does not provide any financial figures to support its business model
Reliability 7.7 The preliminary product, Discharge Summary, is used in 3 UK hospitals. However, there is an absence of prototype for Medicalchain platform.
Feasibility 8.5 Our team believes that, with the capital raised in the crowdsale, Medicalchain has enough resources to develop their business

With our in-depth analysis, we assign Medicalchain a CS Score of 8.7 and a Positive outlook[13]. Our team believes that Medicalchain has demonstrated a very strong expected business performance, huge market momentum, and there are several risk factors that could potentially be mitigated.

Score Distribution Radar chart Digital Widget



C:\Users\kwanm\Downloads\WhatsApp Image 2018-01-23 at 21.48.06.jpeg


04 Other Important Information

4.1 Contacts of the Company


4.2 Useful Links



05 Appendix

5.1 Methodology

5.1.1 CS Score

With the increasing momentum of ICOs, there are more and more data available for us to do backtesting where we come up with the following 10 most reliable dimensions to evaluate an ICO. This rigorous model is supported by over 80 parameters. The dimensions and their explanations are as follows:

Idea We look at the use of blockchain technology to see if it is disruptive and decentralised in nature. Besides, the ability to scale is also important to make the startup a sustainable business.
Competitiveness We evaluate the current market structure to see if there are strong competitors and the company’s core competencies to fight against others
ICO Token sales structure including the role of the token and the planned composition of the proceeds will be analysed
Team Expertise, experience and execution ability of the team are key to building a great company
Community We will look at the size and hype of the community
Marketing Social media channels and the team’s responsiveness on those channels will be investigated
Documentation We will check the sufficiency and consistency of the startup’s whitepaper and technical paper
Financials We will examine the projected financials and the respective assumptions behind their financial models to see if they make sense
Reliability Availability and functionality of prototype will be analysed
Feasibility We will check if there are legal concerns. Besides, our blockchain specialist will check the quality of the codes

5.1.2 Outlook

In addition to CS Score, CryptoStandard also publishes an outlook as a general comment for a particular ICO as some readers may prefer a qualitative summary rather than a quantified score. We use expected business performance, market momentum and risk level to guide our issuance of an outlook. There are 9 levels of the outlook:

Positive + The startup has very strong expected business performance, huge yet reasonable market momentum, and a minimal level of risk
Positive The startup has very strong expected business performance, huge market momentum, and several risk factors that could potentially be mitigated
Stable + The startup has very strong expected business performance, strong market momentum, and several risk factors that could potentially be mitigated
Stable The startup has strong expected business performance, strong market momentum, and several risk factors that investors should often monitor
Negative + The startup has strong expected business performance, average market momentum, and several risk factors that investors should closely monitor
Negative The startup has strong expected business performance, below average market momentum, and several risk factors that investors should closely monitor
Risky + The startup does not demonstrate its ability to capture a promising market/ the target market does not have admirable features to pursue, below average market momentum, and significant risk factors associated with the startup idea
Risky The startup does not demonstrate its ability to capture a promising market/ the target market does not have admirable features to pursue, poor market momentum, and significant risk factors associated with the startup idea
Scam High risk of default

5.2 Medicalchain’s challenges and MediBloc’s responses

Note: Both the challenges and responses are adopted directly from Medicalchain and MediBloc, without any amendment on words and languages.

Blockchain differences

  • Medicalchain’s challenge

MediBloc uses Qtum for their blockchain. While we respect other developing choices, we feel that Hyperledger Fabric is a stronger platform to develop on because of the strength of the document and depth of the documentation. This is reflected by the respective Githubs of Hyperledger Fabric and Qtum. Fabric boasts 590 watches, 2892 stars, and 2132 forks where as Qtum rests at 162 watches, 603 stars, and 121 forks. Moreover, our Hyperledger Fabric blockchain will be permissioned as opposed to MediBloc’s public Qtum blockchain. A private blockchain ensures patients retain more privacy with their medical records as the transactions associated with that blockchain can only be viewed by the hosters of the nodes.

  • MediBloc’s response

MediBloc uses Qtum for their blockchain. While we respect other developing choices, we feel that Hyperledger Fabric is a stronger platform to develop on because of the strength of the document and depth of the documentation. This is reflected by the respective Githubs of Hyperledger Fabric and Qtum. Fabric boasts 590 watches, 2892 stars, and 2132 forks where as Qtum rests at 162 watches, 603 stars, and 121 forks. Moreover, our Hyperledger Fabric blockchain will be permissioned as opposed to MediBloc’s public Qtum blockchain. A private blockchain ensures patients retain more privacy with their medical records as the transactions associated with that blockchain can only be viewed by the hosters of the nodes.

Claiming that Hyperledger Fabric is better than Qtum does not make sense even if we fully take MedicalChain’s claim into account. The two platforms are just different and cannot be compared apple to apple. Medicalchain claims that Hyperledger Fabric is stronger than Qtum since there are more development contributions so far. As you may know, Qtum is based on both Bitcoin and Ethereum technology. In order to make the comparison between Qtum and Hyperledger Fabric a little more sensible, one should take into account the strengths of Bitcoin and Ethereum all together. I am not, however, saying that Qtum is stronger than Hyperledger Fabric. I am claiming that the grounds on which MedicalChain establishes their claim do not really make sense.

On the other hand, the latter part – public vs. private – can be a point of comparison between MediBloc and MedicalChain. MediBloc is positioned as an ‘open platform’ that allows everyone(or any entity/company) to participate in the healthcare data ecosystem. Even if the transaction details are open to the public on the blockchain ledger, it does not mean that it reveals any personal info which is the content of the transactions. All sensitive info will be encrypted with individual key and stored in off-chain storage. In blockchain, any identifiable information will not be stored. MedicalChain’s claim means that they will store sensitive information in blockchain itself, and thus, it needs a protection for these info. If this is what MedicalChain intends to do, I believe MedicalChain’s approach has critical weaknesses. On MedicalChain’s private blockchain, permissioned nodes(validator, miners whatever you call them) will not only see all transactions within that blockchain, but also will have access to the contents inside the transactions. This is not different from opening the contents to the public. In order to prove that private blockchain is more secure than public in terms of information protection in this environment, MedicalChain has to specify how they will choose their nodes and why having these nodes can be more secure in detail. Without these info, MedicalChain is making an empty claim.

Also, with this private blockchain approach, there will be a hurdle for new-comers to enter the platform. MediBloc is rather focusing on securing the contents of patients while opening all transactions to the public, so anyone can confirm the transaction without going through a 3rd party.

Data storage

  • Medicalchain’s challenge

Patients are expected to store data on their personal devices when using MediBloc, in addition to the central MediBloc Core backup. Doing so is burdensome to patients and creates another point where patient data could be compromised. In contrast, using Medicalchain patients are not expected to deal with the problems associated with hosting their own health data. Medicalchain has developed a dynamic system for managing the storage of health data over several jurisdictions. Depending on the jurisdiction that you reside in, your health data will be encrypted and stored in a correspondingly compliant health data lake. For example, if you live in the US your data will be stored in a HIPAA compliant manner.

  • MediBloc’s response

This part doesn’t really make sense in our point of view. In MediBloc, people need to store their healthcare info in their personal device first and then they can remove it from their device once the data is stored in MediBloc’s data network. MediBloc takes this approach to let people to have a full control over their own info and at the same time to remove any potential legal risk from the data flow. We designed this data flow based on thorough legal consultation from multiple law firms. All data storage that will be included in MediBloc’s data network will surely meet the requirements of any jurisdiction as we have designed the data flow to go through the actual data owners, patients. I’m not sure how MedicalChain will handle these sensitive medical information without going through the patients. I cannot find any detailed info regarding this matter in MedicalChain’s proposed whitepaper. If the healthcare data cannot be fully controlled by the patients, it just defeats the whole purpose of our project or any other PHR project. It seems like MedicalChain did some research to use words like ‘data lake’, but it doesn’t look that genuine to us.


  • Medicalchain’s challenge

MediBloc has both Medi tokens and ‘Medi points.’ Medi tokens are the currency of MediBloc, but Medi points are used as a sort of rating system. The addition of Medi points makes the system unnecessarily complex. It adds new concepts and functionality to a system that is already bleeding edge and hard to learn. Moreover, MediBloc introduces a complex inflationary system into its token. In contrast, Medicalchain is issuing a single currency for all of its transactions to be distributed at once with no inflation.

  • MediBloc’s response

In our point of view, Medicalchain’s token system does not have any mechanism. For any blockchain project issuing tokens, carefully designed cryptocurrency reward system must be embedded to incentivize the participants to make healthy contributions to the ecosystem. To make a sustainable token-based ecosystem, MediBloc devised two types of tokens, and these two are tightly connected to one another. I agree that our system is more complex than Medicalchain’s, but it was an inevitable choice to create a robust token mechanism. In our whitepaper, we explained why we designed this kind of system. I believe that our carefully designed token mechanism can be considered as one of the strongest characteristics of MediBloc in comparison to other similar projects.

User onboarding

  • Medicalchain’s challenge

MediBloc provides no details on how it will verify users. In contrast, Medicalchain has partnered with industry leader Civic to verify the identities of its users in a decentralized and safe way. Moreover, it is unclear how MediBloc intends to load existing patient data onto its systems. Medicalchain will request patient’s records on their behalf and use a combination of OCR and APIs to populate a patient’s health record.

  • MediBloc’s response

First of all, partnering with Civic is not a big issue. Civic is one of many options we have and it doesn’t have to be decided at this stage. I’m not saying Civic is not great. I mean that we are considering several options including making our own decentralized identity system. We need an actual test to decide which would be the right choice for MediBloc.

And for handling data, requesting someone else’s records on their behalf is one of the most difficult tasks due to privacy issues and complex regulations per different jurisdictions. MedicalChain is making it sound easy, but their claim is way too far from the reality. It almost makes us wonder whether they did a proper research on healthcare system.


  • Medicalchain’s challenge

Medicalchain is mindful of the awareness and education that needs to take place as well as the requisite actors that will need onboarding and have a plan outlined in our whitepaper. There hasn’t been any information from MediBloc on how they intend to drive adoption of their technology. Moreover, Medicalchain won’t be limited to just one country. We’re a globally focused company built to be location agnostic. Your medical records will travel with you wherever you go, regardless of what country that may be.

  • MediBloc’s response

MediBloc’s core intention is to do its business in global scale. However, healthcare regulations differ in wide range and PHR business is a big challenge even in a small region. MediBloc wanted to be more realistic, and thus, we targeted a region most familiar to us first, South Korea. We really want to have a successful use case first and then expand into other regions. We are focusing on Asia first and plan to go to Europe and US later on.

Hashed Health in the US has focused their efforts for the last two years to onboard the requisite actors under one umbrella. Following their consortium model in the US, MediBloc also plans to start similar endeavor in Asia – Asia-focused healthcare+blockchain consortium. Medicalchain claiming itself to be location agnostic is an unrealistic assertion that does not take into account the healthcare regulatory landscape. From technological perspective, any blockchain project is location agnostic.

Access to patient information

  • Medicalchain’s challenge

On MediBloc, providers can access some information from everyone’s records without their permission. Patients have no say in this process and cannot opt out. In contrast, on Medicalchain, providers cannot look at just anyone’s records. In cases of emergencies, Medicalchain’s bracelet could be scanned by two doctors and only then would select vital information from a person’s health record would be unlocked.

  • MediBloc’s response

MedicalChain clearly does not understand MediBloc at all. The information on MediBloc that healthcare providers can see without patients’ permission is only limited to the data specifically set by patients themselves. These information such as ‘blood type’ and ‘emergency contact’ are for ‘emergency’ purpose only. If patients do not want to reveal any info, then they can easily choose to completely hide all their health info on MediBloc. As a default, all health info will be fully encrypted with individual key, so no one else can access it without permission. We all know that making patients to have a specific device like ‘bracelet’…. is not going to work. Perhaps few people will have that device on them 24/7, but we are talking about the general public. How can Medicalchain make people to wear this ‘bracelet’? No one expects ‘emergency’ in their life, and relying on another device like this will not solve any issue.

Source: Medicalchain Telegram and Communication with MediBloc Team




CryptoStandard (Global) Limited (CryptoStandard thereafter) is an independent provider of research on blockchain companies, ICOs and cryptocurrencies. The information contained in the report is for informational and educational purposes only. Readers should not treat any information contained in this report as investment advice. The views expressed in this report are solely personal stance of the CryptoStandard team, based on data from open access and information provided to us through Telegram, email or other means of communication.

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  1. Calculated by using the ICO price ($0.25) and max circulating tokens (500 million)
  2. Calculated by using the ICO price ($0.25) and max circulating tokens immediately after ICO (500 million* 45%) where 35% is from crowdsale and 10% is from vested token retained by Medicalchain team
  9. Section 5.1
  13. The detailed methodology and explanations have been included in appendix 5.1