Vernam logo


ICO details

Token nameVRN Token
StatusICO Ended
ICO startsMay 8, 2018
ICO endsJun 18, 2018
Token nameVRN Token
KYC/AMLNot Required
Telegram Members Count39,786


Vernam is an insurance platform built on the blockchain. Eliminating the insurance broker middleman, user will save around 30% of the insurance price, ... Read more

Visit Website Read the whitepaper

Our Review of Vernam


Vernam is an insurance platform created by a C-level team with no apparent insurance industry experience, and this shows in the documentation, which is very light on implementation and heavy on irrelevant market statistics. Vernam is not wrong is asserting blockchain can, and probably will, cut middlemen costs of insurance but the execution leaves us with a lot of questions, and there are many possibilities of mistakes being made. In addition, the regulatory burdens of the insurance industry will likely crush this team and the project could potentially be abandoned half-finished.

  • Concept

    Concept Rating
    12 /30

    Vernam is building a blockchain-based decentralised insurance platform that will connect customers, brokers and insurance companies, and replace middlemen with far less expensive smart contracts. Insurance processes will be made more convenient and will be fully transparent, while also reducing costs for stakeholders. With an industry valued in the trillions, and an archaic system badly in need of an overhaul, Vernam’s target is sensible. If they are able to get insurance providers onboard, lower prices for customers should happen rather fluidly as agents currently receive up to 30% commissions, and greater options would be realised for people living in less populated areas who have limited access to agents.
    The company’s name comes from the high-level cryptographic security chosen for the token - an ill-considered and tertiary issue for insurance on a distributed ledger. Certainly we want data security, but reliable insurance is the overriding need, and the company should be named more sensibly. Perhaps not a major point, but it demonstrates a lack of forethought on an important issue and suggests too many other issues have also been poorly considered. There is also virtually no mention of how the project will handle the regulatory details across jurisdictions, or how Vernam can compete against entrenched competitors with billions in marketing budgets.
    The project’s analysis of the problem and the pain points identified are fully accurate, but hardly revolutionary, and while the solution sounds good, the sloppiness of presentation makes execution look haphazard. According to the roadmap, the MVP will launch in Q4 of 2018 and will be fully operational in Q1 of 2019 but the project’s available documentation focuses on the existing market and Vernam’s goals, without demonstrating how they will be accomplished. The project’s net of service is too wide, and the plan for market penetration is too global, both geographically and in insurance sectors; Vernam may gain traction If they narrowed their initial target market. Considering the heavyweight competition in this market, this project looks to be a long-shot.

  • Team

    Team Rating
    9 /25

    Vernam have 20 core team members listed on the website. The CEO and second co-founder are both PhD candidates - unless this is their project, one wonders how they can balance the staggering workload of this business with a dissertation. The the CMO has only two years career experience, and the CTO doesn’t list Vernam on his LinkedIn page, suggesting a lack of priority for the project; in fact, no one after the founders mentions Vernam on LinkedIn. They could be onboard and waiting for some market confirmation before putting real time into the project, or they may only be loosely associated - the vast majority of the team appear to be partners or external consultants. Regardless, the full-time team is drastically limited and appear to have no experience in insurance, which is a devilish industry for certifications, actuarial knowledge, legal issues, contractual obligations and so on. Not to mention the project is targeting the entire global and industry breadth. Flying without a net comes to mind. Vernam may even lack the expertise to build the necessary smart contract - which will be a high demand one with many, many moving parts. Such a smart contract may be impossible.
    Four advisors are listed, though three of them are ICO advisors who look to be advising many other projects. One advisor is listed as the CTO of Huawei but a Google search of his name revealed no references attesting to that beyond his own Linkedin page.
    Partners are not evident but this business will require an extensive partner list as Vernam is essentially an insurance broker, not an insuring company.

  • Competition

    Competition Rating
    9 /20

    While the actual market is quite large - over $4.7 trillion according to some reports - it is also highly regulated, and the existing large corporations have significant power.
    There are a number of recent and upcoming ICOs in the space, including InsurePal, PolicyPal and Etherisc, who appear to be the most direct competitor and have far more experience in both insurance and blockchain, and are better connected and much further along their roadmap.
    Though it is B3i that is likely Vernam’s biggest challenge. This well-funded initiative by major insurance companies is investigating the blockchain possibilities for insurance. To put it simply, no startup can compete with these resources, so it will be in their best interests to work with B3i to implement and investigate a solution. However, these major players will want the best team and we don’t believe that’s Vernam.

  • Economics

    Economics Rating
    7 /15

    The Vernam Token (ticker: VRN) is an ERC-20 utility token that will be use to access services on the platform, though insurance will actually be offered for fiat payment. The brokerage commissions are returned to the customer in VRN tokens, with Vernam buying them on exchange to close the cycle. This slightly backward system could work, but could lead to market manipulation to the detriment of Vernam unless they offer extremely cautious financial and purchase controls - which they seem unable to do.
    Total supply is 1 billion of which 50% will be sold, 20% will go to a CryptoSafe Insurance Fund, 15% to founders and team, 7% to advisors and ambassadors, 5% to a liquidity reserve, and 3% to bounties/airdrops. Cost ranges depending on when they are purchased, resulting in the soft cap ranging from $2.04 million to $3.4 million, and the hard cap ranging from $25.5 million to $42.5 million USD. The economics are fairly standard, including the high amount held by the team. The varying hard cap is frustrating though, and regardless of the price, is high. There is a likelihood of low liquidity.

  • Presence

    Presence Rating
    5 /10

    The website is somewhat average, it lacks creativity and some links lead to blank pages. As with the whitepaper, there is a lack of details and both drown the reader in market statistics rather than focusing on the execution of the business plan. Social media channels boast surprisingly large follow counts, though these are likely due to bounty activity, and Google search results reveal a few puffed reviews, that were possibly paid for. The project’s MVP - linked from the website - is merely a template with a series of ‘coming soon’ links and no operative substance.

Real Time Updates for Vernam

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