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October 31 2017

ICO Alert Report: HydroMiner

ICO Alert Report: HydroMiner

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What is HydroMiner?

HydroMiner is a cryptocurrency mining company using green energy drawn from hydropower stations in the Alpine region of Europe. Hydropower is generally thought to be one of the most effective and affordable renewable energy resources. It is environmentally friendly, carbon-neutral, and natural. Hydropower allows us to manage resources sustainably and enables low-emission production. What’s more, the technology is simple, controllable, and has an excellent track record.
Using hydropower stations in the Alps region, we reach one of the lowest prices per kilowatt in Europe. In fact, our cost of electricity is currently 85% lower than the average in Europe. In addition, we realize further cost savings by using the water for cooling our mining equipment. In fact, we are able to compete with energy prices in Northern Europe and China. Not only is hydropower mining ecologically friendly, but it is also profitable.
Where possible, mining equipment is built inside standard sea freight containers. The advantage is that containers can easily be assembled near our headquarters in Vienna, Austria, and then taken to the hydropower station. Another advantage is that we have a proven method for equipping containers with mining gear using extremely effective cooling and ventilation equipment. In addition, the container can be moved to another location very quickly if needed, sometimes depending on water levels or the need for extensive maintenance on the power station’s turbines.
The average cost for one fully equipped container is between $350,000 and $650,000 USD, depending on the hardware and cooling technology. With our ICO, we are selling H2O Tokens that will act as vouchers that can be exchanged for mining contracts on the HydroMiner platform.
We have currently rented, with the option to buy, two hydroelectric power stations in Austria. We use the room inside the stations, or place containers nearby to avoid the high network costs for the power lines. Additionally, our proprietary cooling system allows us to save considerable space so that we can significantly increase the number of GPU cards per square meter compared to other mining projects.
We will use the ICO proceeds to further scale up our mining operation with additional hydropower stations.
 — The HydroMiner Team

Q&A

ICO Alert: How does the HydroMiner token (H2O) function within the platform and why is it needed?

HydroMiner: The H2O token acts as a voucher that can be exchanged into mining time from 2018. One H2O equals to 5kwH of mining performance. This model, compared to buying hash rates at other mining companies, ensures that your mining contracts will go on to perform better, as more effective hardware becomes available.
Every ICO participant will be able to purchase H20 tokens once their mining time ends. To reward them for the support during the ICO, they will always receive the same bonus that they got during ICO, up to the amount of their initial contribution. For example, John contributes 50 ETH during the first week of the ICO (20% bonus) and exchanges his tokens in February 2018 for mining time. Once the mining time ends, John will be able to purchase H2O tokens for up to 50 ETH and get the same bonus of 20%. This process can be repeated as long as HydroMiner is operating.

ICO Alert: How long has the team been mining various cryptocurrencies, or are they getting started now?

HydroMiner: The sisters (who founded the company) have been active in mining since 2015. The first hydropower stations were rented in early 2017.

ICO Alert: Mining cryptocurrency is generally very profitable at scale. Why does the team need to host an ICO?

HydroMiner: We are hosting an ICO because we want to scale up our business and we can deploy the capital effectively in more hardware and more hydropower stations. We also want to form the world’s best green mining community!

ICO Alert: What are the various coins the project will be mining and why?

HydroMiner: We plan to mine ETH, BTC, SEC, a basket of altcoins (example: ETC and XMR; to be determined at the time of the offering), and an algorithmically determined most profitable mix of coins.

ICO Alert: HydroMiner is renting two hydropower stations. Is there any situation where this access to hydropower stations is no longer available due to regulation, business practice by the hydropower station, or otherwise?

HydroMiner: That is unlikely. There are over 2,800 small to medium hydropower stations in Austria, owned mostly by private individuals. We have options to rent more, and even purchase them. Our two current contracts are long term, and we have purchase options.

ICO Alert: What are the economics behind exchanging H2O tokens for mining time? For example, in the ICO, each token is priced roughly around $3 per token. How much time does the token illicit mining and what can contributors make by purchasing mining time (on a per token basis)?

HydroMiner: We have a sample calculator on our website and give more details in our whitepaper. The important part to understand is that 1 H2O can be exchanged into mining time for 5kwH for 24 months.

ICO Alert: Does HydroMiner have any competition? Has anyone tried mining cryptocurrency using any sort of renewable energy?

HydroMiner: There are many other crypto mining companies, but we focus 100% on building eco-friendly mining operations.

ICO Alert: How far along is the project today? What does the roadmap look like for the rest of 2017 and 2018?

HydroMiner: Today, we are renting two hydropower stations and are currently deploying another container with 1,200 GPUs. We have an option to rent a much more powerful power station and are well secured from suppliers that can deliver hardware very quickly. By 2018, we will have built the HydroMiner platform where users can register and exchange tokens for mining time.

ICO Alert: As a non-HydroMiner question, we like to ask for unique predictions for the ICO and cryptocurrency space in the future. Where do you see both in the next 3–5 years?

HydroMiner: Blockchain is very disruptive for many industries, fintech and fundraising being just two of them. We will see this play out in the next years, and while many ICOs may fail, we are just at the beginning. We are where the Internet was 20 years ago, it’s a very unique position in time, and we are glad to be at the forefront of it thanks to the support of our community.
Courtesy of HydroMiner

ICO Information
The token sale began on October 18, 2017 and ends November 15, 2017. Each HydroMiner token (H2O) is priced at 0.01 Ether and the bonuses throughout the ICO are as follows:

Week 1 (October 18–24): 20% Bonus
Week 2 (October 25–31): 15% Bonus
Week 3 (November 1–7): 10% Bonus
Week 4 (November 8–15): 5% Bonus

The H2O token is an ERC-20 token and only Ether is accepted as contribution. Funds should be sent from an ERC-20 compatible Ethereum wallet and tokens will be sent to that wallet.

There was a presale for 187,500 tokens that sold out in 36 minutes.

Token Distribution Information
There are 100,000,000 H2O tokens being created, with 25,000,000 available during the ICO. Tokens will be distributed to contributors immediately after the transaction is confirmed. Tokens will be sent to the wallet from which the Ether was contributed.

Allocation

Use of Crowdsale Proceeds
The proceeds from the ICO will be allocated to hardware, expansion costs at the power stations, and mounting the equipment. ICO proceeds will also be used for marketing, legal, and advisory fees. HydroMiner plans to use 1% of the raised funds to buy BNT and create a Bancor “token changer” between BNT and H20, thus creating intrinsic liquidity for the H20 token. The following is the breakdown of how proceeds will be used:

Hydropower station leasing/electricity: 15%
Hardware: 55%
Operations: 15%
ICO Costs: 10%
Marketing: 4%
Legal: 1%
BNT Reserve Fund: 1%

Team
Nadine Damblon, CEO
Linkedin
Nadine co-founded HydroMiner in 2016 with her sister, Nicole. Her main responsibilities at HydroMiner are business development, strategic planning, and networking. Nadine started crypto mining back in 2014 and holds a degree in media studies.

Nicole Damblon, CFO
Linkedin
Nicole Damblon started crypto mining with her sister Nadine in Düsseldorf in 2014 and helped expand their venture, building up from their beginnings in their apartment to two hydropower stations. In 2016, she moved to Vienna to be HydroMiner’s CFO. She studied East Asian art history and holds a bachelor of arts degree.

Christian Vogl, CTO
Linkedin
Christian Vogl is an expert in hardware supply, network infrastructure, server migrations, and energy supply. He started his own profitable mining business back in 2012. In 2016, he joined HydroMiner as the CTO and is responsible for the technology and cryptographic strategy.

Sebastian Kastner, Lead Engineer
Linkedin
Sebastian is responsible for HydroMiner’s cooling technology and mining hardware. With three years experience in designing mining infrastructure for HydroMiner’s facilities, Sebastian is also an expert in managing many aspects of the mining process such as management software, pools, and improving mining hardware at the core.

Philip Dimitrov, Chief Marketing Officer 
Linkedin
Philip joined the blockchain world in 2015. Since then, he has helped many marketing campaigns succeed and has published a great deal of news and videos about the happenings in the cryptocurrency world. For Hydrominer, he leads marketing and content creation.

Kevin Benckendorf, Public Relations
Linkedin
Kevin has been intrigued by the blockchain since early 2016, and is a PR specialist who thrives on managing relationships with clients and employees.

Alexander Dimitrov, Developer
Linkedin
Alex has been active in the cryptocurrency space for the past three years. He is the co-founder and main developer of CoinStaker.com. Currently, he is finishing his bachelor’s degree in informatics at the University of Vienna. He will be developing the upcoming HydroMiner platform and helping with the design of the smart contract.

Social Media
Twitter
Facebook
Bitcointalk
Telegram
Linkedin

View the HydroMiner Website here.

View the only comprehensive list of active and upcoming ICOs here.

References
(1) HydroMiner Website, HydroMiner, (2017)
https://www.hydrominer.org/

(2) HydroMiner Whitepaper, HydroMiner, (2017)
https://www.hydrominer.org/wp-content/uploads/HydroMiner.pdf

Topics: Blockchain, Cryptocurrency, ICO, Investing, Hydropower