In DigRate warned about the risks of the project Local World Forwarders

Rating Agency assessment of digital assets DigRate assessed blockchain project Local World Forwarders (LWF) and concluded that it holds significant risks for investors.

Team LWF plans to create an international platform for fast and cheap delivery. The platform will operate on the blockchain and smart contracts. Participant in the ecosystem can be any person, after submitting an application and passing the verification. Thus the sender, courier and recipient of the goods will be connected directly and will be able to control every step from beginning to end through a special application.

The main idea of the LWF project is the involvement of private freight forwarders – that is, anyone can become a courier, taking the application through the smartphone. Since this method does not require the presence of a sophisticated logistics infrastructure, it can actually lead to cheaper services, noted in DigRate.

The team argues that’s going to take a yet undeveloped niche in the format of logistics based on P2P blockchain, where there are no similar players. But the traditional logistics market is highly competitive. While in Wiper Paper project a detailed analysis of the competitive environment is missing.

The motivation of the ownership of the tokens (LWF Coin) project at the moment is not clear. On the one hand, the calculations LWF Coins inside the system has lower fees and discounts. On the other hand, the White Paper stated that the LWF Coins can have a cost of zero and that the participants are not and will not be held responsible for their market value.

On the official websites of the company and RoadMap provides a detailed project development plan that discloses the time frame for implementation, although some dates are slightly shifted. The team also did not disclose detailed information about building their own logistics infrastructure.

The disadvantages can be attributed to the fact that in the White Paper of the project, there was no mention of guarantees of the company relating to the vulnerabilities of the code and illegal actions of third parties (DDOS, theft, etc.) in relation to the accounts of the users of the service. The legal component of the company is not disclosed.

The founding team of Angelo and Fabio Melis Legenzi are crypto experts, participants of the conferences of kryptonyte. Have experience in the IT sector, logistics, and entrepreneurship. However, information about the successful implementation of the project co-founders of the core business in the field of logistics is no.

The Advisory Council of the project now few in number, the leaders of the team say about the imminent increase in the number of advisers. Also, there is no information about the presence of support from large investors.

At this stage all of this suggests that the investment in this project should be approached with extreme caution.

The full report from the investment assessment can be viewed at the link.

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