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ICO Analysis: Bancor

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We have previously done a precursory article covering Bancor, but now, with the impending launch of its Initial Coin Offering, it’s time to analyze the thing in-depth.

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In our previous article, we discussed the primary novelty of Bancor, its “smart token” asset contracts. A reader wrote in with concern over this aspect, and wants more in-depth information into how this can work or is safe. Clearly new concepts like this do need more explanation, so let’s see what we can understand here.

Perhaps the top-tier objection to the Bancor protocol are its roots, of course:

The Bancor protocol is named in honor of the Keynesian proposal to introduce a supranational reserve currency called Bancor to systematize international currency conversion after WWII.

The name is, of course, quite apt for the purpose of the token. Is Bancor itself Keynesian? Not exactly, but we must dutifully check over the offering here to ensure that there are not value-murdering features like centralized institutions being able to introduce inflation, or supposedly immutable smart contracts being thwarted through appeals to authority. These are the real risks that many Bitcoiners, and others, take with Keynesian economics, and so this platform requires thorough review to ensure that it is not going to introduce such risks by design.

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Smart Tokens

The Bancor protocol enables built-in price discovery and a liquidity mechanism for tokens on smart contract blockchains. These “smart tokens” hold one or more other tokens in reserve, and enable any party to instantly purchase or liquidate the smart token in exchange for one of its reserve tokens, directly through the smart token’s contract, at a continuously calculated price, according to a formula which balances buy and sell volumes.

Especially in recent offerings, a number of tokens have come to the game which could find themselves without any value at all. The Bancor notion of “continuous liquidity” seems to be based on the idea of previously proven value from other assets the token offering might have access to. Thus a “smart token” can always be liquid because it always retains value from another economic source.

This is higher-level thinking, from the get-go, in terms of tokens and crypto-economics. While Ethereum and Counterparty, and others, serve a similar purpose by allowing anyone to issue their own tokens, those tokens are overwhelmingly defined by their utility, and so they can be difficult to assess. But if one can point to a metric such as “each token contains X bitcoins, X ether, X ___, and so its intrinsic value is at least equal to the value of one or all of those,” then there is a new metric that is useful in determining the likely trajectory of projects. In short, one function that smart tokens can perform is that of token issuers providing collateral.

The current exchange model for currencies/assets has a critical barrier, requiring a certain volume of trading activity to achieve market-liquidity. This inherent barrier makes it nearly impossible for small-scale currencies (such as community currencies, loyalty points or other custom tokens) to be linked (exchangeable) to other popular currencies using a market-determined exchange rate.

So, in the current world, where BTC, ETH, DASH, and LTC make up a large portion of the cryptocurrency wealth, a token creator might decide to issue a token that is contains assets around 50% Bitcoin, 25% ETH, 12.5% DASH, and 12.5% LTC.

This is sort of the same principal that mutual funds operate on: mixing various similar instruments so that when one or more of them have poor performance, the others can pick up the slack. But the token holder, through the Bancor protocol, is able to extract that given value at any time and destroy their tokens issued on the Bancor protocol. An FX mutual fund, made up of the world’s currencies, would be the closest thing to this, but instead there is no firm managing and the individual currencies can be obtained by the investor at any time, via the protocol.

This aspect could give rise to other cryptocurrencies being used in actual settlements, regardless if exchanges are offering such pairs at that time or not. The speed of value proposition would become more important than the speed of human change – ie, new currencies which come after Bancor but have exceeding merit will not need for recognition from the wider community before being used as the base currency with which others are denominated and traded. The control that exchanges as a whole have over the way we think about our coins would be lessened in such a world where this became commonplace.

The term “instant liquidity” is used a lot in the documentation and promotional materials surrounding the Bancor protocol, and they make the case in their whitepaper that liquidity for newer cryptocurrencies is a problem. However, the words “instant liquidity” are perhaps misleading. The term liquid means different things for different users. Some would consider getting to Bitcoin itself to be liquid, while others wouldn’t consider the assets liquid until they were in an account they can spend anywhere else in the world – ie, fiat. So let’s leave aside the “instant liquidity” as either a plus or a minus, and instead focus on the structure of a smart token and how it can actually be used, in practice, in concrete terms.

A smart token holds a balance of least one other reserve token, which (currently) can be a different smart token, any ERC20 standard token or Ether. Smart tokens are issued when purchased and destroyed when liquidated, therefore it is always possible to purchase a smart token with its reserve token, as well as to liquidate a smart token to its reserve token, at the current price.

Okay. How does this work?

A given “smart token” will base its operations on what Bancor refers to as a “constant reserve ratio.” All figures within the smart token will be in relation to the smart token’s market capitalization as a whole, which is its supply multiplied by its price. Instead of Bancor token authors creating tokens at the beginning of an ICO offering or what have you, they are issued as they are purchased, and destroyed as they are liquidated.

A Bancor token must be funded by one of its reserve currencies. If the CRR of a given token is 100% of a given other currency, then a traditional increase in the price of the token will take place. However, if a token’s CRR has a variety of reserve tokens, then the price increase due to the purchase will be mitigated. This is what they mean when they say they are creating a new method of price discovery: a variety of markets are held within each token, potentially, creating more interesting and even accurate price definitions at market. And while a token may be issued on the Bancor protocol and consist of multiple traded cryptocurrencies making up its Constant Reserve Ratio, it, itself, can be traded elsewhere. People purchasing these tokens on other markets would not be able to simply say something had lost all value because its Bitcoin value had significantly dropped, for example, if its corresponding values in other pairs also represented in the token have not dropped likewise. Similarly, traders would have to watch themselves when pricing sales of such tokens, because saying “this token is worth .01BTC” does not mean much if any of its other reserve currencies are not trading at a similar level. (This is why Bancor can make the claim that there is “no spread” for individual Bancor tokens, because while there actually is a spread, the settlement of any token issued by the Bancor protocol will wind up with its holder gaining the reserve currencies within it.)

From a traditional financial perspective, this all sounds an awful like the type of instruments which got us into the bubbles and crashes of the early 2000s. Traders were packaging millions of low-value, low-performance loans and other financial instruments together and selling them as packages of “diversified assets” and then speculating on their performance from there, in some cases even managing to bet against them and profit being the only ones with the real information as regards their likely performance. The complexity of these instruments was part of the reason the whole musical chairs act went on so long.

Yet, while there is potential that bad actors will use the technology to scam others into investing into nothing at all, there is still a lot to be said for innovating in the market strategies of a tokenized future.

How People Will Use It

The Bancor team themselves list a number of use-cases that will be immediately obvious. Rewards programs, decentralized asset baskets similar to those being developed by ShapeShift’s Prism platform, and federations of similar tokens. Lower-volatility tokens can be created in-house by trading groups, and such products can be offered for sale on the market. Cryptocurrency mutual funds become much easier to envision, despite the volatility of the various markets. This part of finance will eventually become much more important in the Cryptocurrency space as things mature and more and more legacy institutions integrate with cryptocurrency payment, receipt, and trading rails.

The Bancor token itself will be the most prominent for the Bancor Protocol, as it will be the one that funds all future advancement and development. Its actual cap is not published until 80% of that cap has been reached, but 100 tokens will be issued per 1 ETH spent. BNT tokens will have a 20% Constant Reserve Ration of ETH. BNT itself will be based on the value of the Bancor Network and its reserve currency, ETH, although the Bancor Foundation can issue more tokens later.

Bancor tokens themselves will hold value for as long as the Bancor Foundation and Ethereum do, and users will have the option to liquidate them at any time. This would mean, essentially, a 20% Ethereum redemption is possible. In assessing this ICO, you must be aware that some people are going to do exactly that.

Bancor Team

The Bancor foundation itself is not going to be doing the creation of the Bancor Protocol, but instead directing it. It is composed of financially-focused executives including Eyal Hertzog, who is the primary spearhead behind all of it. Hertzog’s success has been in IPO technology companies, such as the first major Israeli video sharing site, MetaCafe.

Chief Monetary Architect Dr. Bernard Lietaer was involved in the creation of the Euro, and so it is no surprise that much of the thrust of Bancor is in trying to unite and stabilize disparate cryptocurrency assets.

As far as development goes, they are currently contracting LocalCoin, Ltd, which, like many similar ICOs we have seen, seems to have been created specifically for the purpose of Bancor. The model seems to work like this:

  • Have a new idea related to cryptocurrency.
  • Flesh out that idea.
  • Create a firm to develop the idea, to be funded by sales of the new token.
  • In some cases, profit on both sides of this.

This is why we we will review the token distribution before getting to the verdict on Bancor, but let’s see who is working for LocalCoin.

At the helm they have Yehuda Levi, who formerly worked on AppCoin, one of the earlier cryptocurrency plays to get traditional VC backing. They list a litany of other competent, established developers, all based in Israel, working on the development of Bancor Protocol smart contracts.

Distribution of the Token

As we can see here, the token distribution is confusing on first glance. Let’s think about this. We know that 10% are going to the “team,” in the form of BNT tokens. Then we know that 40% of the 50% of tokens (20% of the total supply) are also going to fund development. That means somewhere in the neighborhood of just over 20% are going to be awarded to LocalCoin in the form of paid software development and initial awards. 20% are also held back by the foundation for later conversion and usage. The foundation is free to offer later crowdsales to continue work on the platform.

But, this ICO is also different than most. The tokens’ only enduring value is in the enduring value of the Bancor Protocol, which means there is little or no incentive for the coins withheld to be liquidated right away, but instead to create value for the protocol and liquidate them at a later time.

The proceeds of the crowdsale and future tokens issued by the Bancor Foundation will continue to develop the distributed marketplace that is Bancor’s primary function. BNT themselves will have speculative values related to the value of the protocol itself, it seems. The problem of team coins is mitigated by their vesting structure, which only allows them mature up to a sixth of withheld coins every six months.

The Verdict

There’s a lot to like about the Bancor Protocol, but one can totally forego this crowdsale and still benefit from it. So let’s talk about the value of the BNT token, and whether or not you’re going to be able to profit by purchasing it. The odds are definitely on you profiting in the short term, although long-term it’s easy to see bigger entities, like the Ethereum DAO themselves, offering alternative ways of conducting the same type of business.

BNT gets an immediate boost in safety rating since you are able to liquidate it for 20% of the Eth that was put into it in the first place at any time. That is to say, it’s impossible to lose your entire investment, in terms of actual Ethereum, so that must be accounted for.

The level of confusion Bancor-created instruments have the potential to create must also be accounted. We have to deduct a full two points for that, as there will probably be some hiccups in the beginning, and these could even be catastrophic and unrecoverable. The nature of mixing assets may be looked down upon parts of the community it looks to serve, so another .25 points should be taken for that. Because this entire concept is nascent in an excessively nascent industry, another full point must be deducted to account for the potential that overshadowing plays are going to be made in the near future.

This leaves a score of 6.75 on a scale of 0 to 10 in terms of safety, and that feels about right. This means the author is betting in favor of the idea that within 7 days after the purchase of tokens, you will be able to divest them at a rate of about .01 Eth each or more. It does not mean the author is not betting. It simply takes into account all of the factors, most of which are based on his past experience watching similar things launch. While every project is different, the tendencies of this market are analytically-assessable.

Investment Details

You’re able to make an investment into the Bancor Protocol at a rate of .01 ETH per Bancor Network Token in less than 7 hours. The minimum time this sale will run is one hour, and they had to develop a special method to ensure this would be the case. There is a hidden cap on how much ETH will be raised, but no one will know that figure until 80% have been raised – this is to prevent early investors from being able to accurately dominate the token pool.

Investments are subject to terms and conditions. The address which will be handling the investments is 0xBbc79794599b19274850492394004087cBf89710. Transactions already sent to this address at launch time fall under their one-hour-minimum policy, which dictates that if more than 100 million Ether are raised in the first hour, additional funds will be allocated specially. This post goes into a lot more detail about the funds and the minimum time period. No funds should be sent from a wallet which you do not have direct control over.

The longest the crowdsale will run is until June 26th at 14:00GMT.

Do your own due diligence, investments are at your own risk. Do not invest more than you can lose.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 1 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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2 Comments

2 Comments

  1. demetrist

    June 12, 2017 at 9:51 am

    Thank you for the great analysis! I am confused about 1 aspect, if you can help. Bancor team has announced that 80% of ETH collected that is above the hidden cap will be locked into a smart contract for 2 years or until it’s fully spent, which will automatically buy BNT if the price = 0.01 ETH (the ICO price). I m quite confident that the ICO will go over it’s hidden cap by a lot. Doesn’t that guarantee that we are not losing on the investment for quite a while, and that we could get out of the project at any time at at least the price we bought in (and meanwhile if ETH prices goes up, profiting from that respect) ?

  2. paracetomol

    June 12, 2017 at 11:13 am

    Is it safe to send ETH to the address shown in the article a few hours before the opening of the crowdfund?

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ICO

ICO Analysis: CloudMoolah

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CloudMoolah was successfully launched in the USA in October 2017 with currently over 300 developers and more than 10 million gamers using the platform. CloudMoolah is designed to facilitate and manage payments seamlessly between game developers, gamers and payment merchants in a convenient and secure manner on a global scale.

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The project offers unity developers the opportunity to collect in-app revenues from 100+ million gamers and 500,000 retail points of sales in Southeast Asia. The use of blockchain technology will ensure security and efficiency of gaming transactions while increasing cost savings for developers. CloudMoolah will allow game developers to collect in-app revenues from credit card users and noncredit-card users, which is extremely valuable considering the credit card penetration is less than 3% in Southeast Asia. CloudMoolah combines popular localized payment methods such as Telco Top-Up Cards, Prepaid Cards, Ebanking And The New Moo Token to capture this market.

Token

The MOO token is an ERC20 token used on the Ethereum platform which will have a circulating supply of 300 million and a total supply of 500 million. When released, the MOO token will be available for purchase/trade on public exchanges. Also, MOO can be traded for CloudMoolah Points (CMP), the in-app virtual currency used for payments and transactions within the MOO store. The MOO store is a third party app store populated with Unity content enabling efficient and secure transactions between gamers and developers. Developers will have access to over 100 million gamers through the MOO store.

The public ICO begins March 1, 2018, and ends March 31, 2018. The MOO token price will be $0.30 and have a hard cap of $30 million. The link to join whitelist is here.

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The token distribution is as follows:

  • 41% private/public sale
  • 22% founders/senior management
  • 17% suppliers
  • 10% company
  • 5% staff
  • 5% advisors

Team

The CloudMoolah team has over 30 years experience in the video game industry in Asia with a stellar track record of publishing blockbuster game titles such as World of Warcraft, EA SportsTM FIFA Online 2, Starcraft 2 and Counter-Strike Online. Co-founder and COO Jonathon Sze successfully built EA SportsTM FIFA Online 2 fan base from zero to 25 Million in Southeast Asia. Co-founder and Chairman Roland Ong brought World of Warcraft to Asia and was the founder of IAHGames which won rights for top-rated games such as Starcraft 2, EA Sports FIFA Online 2, and Counter-Strike online. Co-founder and CFO/CIO Benjamin Cher has closed over $500 million worth of VC/PE deals in his career. The complete list of team members and advisors is listed in their whitepaper.

Partnerships include Unity Technologies (Asia’s largest and the world’s most popular game development engine), True Digital Plus, VTC Online, MOL, Softworld, Bluepay, IAH Games, UniPin and Sam & o Group.

Verdict

While CloudMoolah intends to cater to millions of gamers and developers around the world, its primary focus will be on the Asian market, which has been generally under served by mainstream digital payment services. With an experienced and successful team, strategic partnerships  and proven business model, CloudMoolah appears to be on track to make significant headway in the Asia gaming market.

That being said, there are some implementation risks associated with the project. In particular, CloudMoolah is targeting a highly diverse Asian market that differs along multiple strata. This could be seen as one of the major challenges to successful implementation.

Risks

  • As with many ICO’s, the executive team has outside obligations and cannot focus 100% of their attention to the project. -2
  • The project’s main focus region is Southeast Asia, which consists of 11 countries with differing demographics, economics, and languages that can all become major obstacles to mass integration. -1.5

Growth Potential

  • A+ team with decades of experience and huge success within the gaming industry. +5
  • CloudMoolah is an established business that has already made crucial partnerships with both global and local markets. +3.5
  • $30 million market cap with a low 300 million circulating supply. +1.5

Disposition

Working with gaming developers, CloudMoolah appears to be committed to achieving an excellent gaming experience for gamers worldwide. The team comes with great success in the gaming industry that, if applied to blockchain, can create huge cost savings for gamers and larger profits for developers. This leads us to the view that CloudMoolah may be poised for great things. Based upon merits observed, CloudMoolah receives a 6.5 out of 10 rating.

Investment Details

  • Symbol: MOO
  • Market Cap: $30M
  • Circulation Supply: 300 Million MOO, Total Supply: 500 Million MOO
  • Payments Accepted During Crowdsale: ETH
  • Crowdsale DateMarch 1, 2018 – March 31, 2018
  • Token Price: 1 MOO = 0.30 USD
  • Jurisdictions barred from participation: China, USA

For more information regarding CloudMoolah:

Website: cloudmoolah.io (team, advisors, whitepaper)
Whitelist: kyc.cloudmoolah.io
Facebook: facebook.com/cloudmoolah/
Telegram: t.me/cloudmoolah (20,549 members)
Reddit: reddit.com/r/CloudMoolah/
Twitter: twitter.com/cloud_moolah
Medium: medium.com/@cloudmoolah

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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ICO

ICO Analysis: TE-FOOD

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TE-FOOD is now the biggest farm-to-table food traceable system in the world. TE-FOOD serves over 6,000 businesses while averaging more than 400,000 transactions on a daily basis, which results in serving well over 30 million people. TE-FOOD has integrated 2,600 retailers and markets, 3,100 farms, 3,400 livestock agents and 190 wholesale distributors into their system.

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TE-FOOD coordinates with governments, supply chain companies and consumers to enhance food safety, eliminate food frauds and minimize costs for supply chain companies. The entire supply chain will become more efficient through the use of one interoperable transparent ledger; this will help avert large-scale food recalls and enable smaller, targeted recalls.

Currently, the main focus of TE-FOOD is  the emerging countries that account for 60% of the world’s population along with 45% of GDP, and which needs massive technological disruption because of the level of distrust in their food supply chains. Started in Vietnam and having found success, TE-FOOD is aiming to be in 17 countries within the next five years.

TE-FOOD’s revenue sources are the following:

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1. Selling physical and logical identification materials
2. Charging transactional costs
3. Selling food transport environment sensors
4. Charging monthly or sales volume dependent fees on the marketplace

Token

The company is issuing TFOOD tokens, which are ERC-20 tokens created to be used within the TE-FOOD system for the following:

1. Pay for transactions
2. Pay for value-added information
3. Rewarding conscious consumer behavior for using our Consumer mobile app

A total of 1 billion TFOOD tokens are to be created with 51% being available for purchase during the public sale which is scheduled to commence on Feb 22, 2018, and conclude March 22, 2018. TFOOD tokens should be immediately transferred and can be used in the TE-FOOD system after completion of the token sale.

Team

A Vietnamese and Hungarian company combined to create TE-FOOD with a team that includes more than 20 members (each listed with details on their website along with LinkedIn links). The team is led by CEO Dr. Trung Dao Ha (Co-Founder of Thien Minh Group, President of Hochiminh City High Technology Association, Austria Honorary Consul in Hochiminh City for the Austrian Government and Co-founder/CEO of DAO advanced Technology), CeO Erik Arokszallasi (CEO of Erba 96 Ltd) and CMO Marton Ven (CEO at Flumen and CMO at Erba 96 Ltd).

TE-FOOD works with some of the biggest retail food companies in Asia such as AEON, Lotte Mart, JAPFA and C.P. Group. The government of Vietnam’s largest city, Ho Chi Minh City, also employs TE-FOOD. Current partners include: GS1 (barcodes), Unisto (security seals) and Zalo (message/call app).

Verdict

TE-FOOD is developing a scalable, cost-effective system for tracking, securing and ensuring quality for global food transportation which will reduce corruption, theft, fraud and food-borne illnesses. Identification applications are used to track livestock, transports and fresh food packages from the farm to the table. This will enable fresh food sold in retail to be tracked back to their origins. TE-FOOD is able to track food items throughout the entire supply from beginning to end while accessing quality information.

TE-FOOD has been operating in Vietnam since 2016 with a proven track record and buy-in from thousands of businesse. If the company is able to successfully integrate its functioning business to its tokenized model with participation from current clients, along with expanding to new markets, it may find success for itself and investors.

Risks

  • When seeking to expand to new countries, TE-FOOD may face a variety of difficult regulatory and compliance issues working with different governments and agencies. -2
  • The executive team, though accomplished, is still involved with other businesses which may detract from putting their full efforts into the success of TE-FOOD. -1.5
  • Although TE-FOOD does already have a working business, which is definitely a positive, they will still face strong competition from other blockchain companies. -1

Growth Potential

  • The company already has an established working product and with key partnerships with multiple businesses and the government of Vietnam. +5
  • TE-FOOD is scheduled to be in 17 countries within five years according to their roadmap. +2.5
  • TFOOD tokens will be immediately released and available to all investors. +3.5

Disposition

With nearly 80% of food fraud involving fresh food products and livestock, over 400,000 annual deaths due to food contamination and the health threat of antibiotics overuse in animals used for food, TE-FOOD’s main mission is to greatly reduce these issues by making the fresh food supply chain transparent and more effective through a modern, but affordable ecosystem. Having an already working business model combined with the ability to scale, TE-FOOD appears to have the means to accomplish this mission if everything goes to plan. TE-FOOD receives a rating of 6.5 out of 10.

Investment Details

  • Symbol: TFOOD
  • Type: Utility
  • Price: $0.05
  • Accepted Payments: ETH
  • Public Sale Date: Feb 22, 2018 – March 22, 2018 (Bonus levels – 15% Week 1, 12% Week 2, 10% Week 3, 5% Week 4)
  • Public Sale Amount: 512,000,000 TFOOD (51% of total) to be sold. 1,000,000,000 TFOOD total supply
  • Jurisdictions Barred from Participating: None mentioned

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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ICO Analysis: Endor

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Endor.coin, more commonly known as Endor, is a behavioral analytics protocol for businesses as well as individual users. The team has dubbed the project as the “Google for predictive analytics.”

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Until now, high costs have kept out anyone but large organizations from accessing artificial intelligence and predictive analytics. Most predictive questions require data scientists, weeks of iteration, and consistently updating data models to produce accurate results. Using blockchain technology and automation, Endor democratizes this data making it available for anyone to use – no fancy Ph.D. required.

Social Physics

Endor expands on a new, MIT-based science, Social Physics. This science states that each set of event data, like credit card purchases, contains certain human activity patterns within the data. If you’re able to detect these patterns, you can create more accurate predictive analytics than normal machine learning.

Automatic Prediction Engines for Enterprises

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Endor’s first focus is on an automated “Data as a Service” platform for enterprise clients. With this engine, a business can upload a set of behavioral data, and after a short integration (a few hours at most), they’ll be able to ask questions about the future behavior of the subjects in the data set.

The team has already used this platform in studies to measure brand loyalty, new product adoption, and market campaign effectiveness at Coca-Cola as well as detect ISIS activists on Twitter. All of this done at a fraction of the cost of current systems.

Data Science for the Masses

After the successful implementation of Endor for enterprises, the team plans to use the protocol to fully democratize behavioral predictions. Through the decentralized nature of blockchain technology, Endor connects users to data providers in a cost-effective, trustless way ensuring that the predictions they receive are as accurate and affordable as possible.
At first glance, this may not seem as beneficial for individuals as it is for organizations. Imagine this, though. As a cryptocurrency investor, you want to know, “What tokens are going to increase in price by 20% in the next month?” With Endor, you now have access to the robust predictive trading engines that were previously only available to institutional investors and the uber-wealthy. Although the answer you receive may not be perfect, it still gives you a critical edge over those not receiving it.

Token

The Endor team is designing the protocol in a way that connects to an existing blockchain as well as off-chain datasets. As a user, you must pay EDR tokens to make a prediction request. The larger and more complex your request, the more EDR you need to pay. Two potentially separate entities receive this payment. The first is analytical data providers who supply the robust data sets used in the analytics. The other are those who perform the intensive computations on those data sets.

The team will eventually open up the Data Layer so that providers can additionally sell their data to outside parties.

Team

PhDs, data scientists, and product experts comprise the majority of the Endor team with a large number of members tied to directly to MIT.

Dr. Yaniv Altshuler, co-founder and CEO, is an MIT researcher and recently published “Swarms and Network Intelligence in Search” – a fitting book for the Endor protocol. Another MIT co-founder, Professor Alex Pentland, created Social Physics and is a founding member of advisory boards for many notable organizations like Google and the UN Secretary General.

Beyond a rockstar team, Endor is already working with some big players in the product and service industries. The list of partners includes Mastercard, Coca-Cola, Walmart, and Travelers Insurance, to name a few. On the blockchain side, the team has formed strategic partnerships with Bancor and Enigma.

Tokens and Distribution

The team hasn’t yet released any information on the number of tokens or how they’ll distribute them.

However, they outline in their whitepaper that they’ll use the majority of the ICO contributions for research and development. The team will also use up to 10% of the proceeds to form a joint partnership with a world-leading research institute. Additionally, up to 30% of funds will be used to purchase proprietary technology such as prediction engines.

Verdict

Endor is using Social Physics to provide better predictive analytics to businesses as well as individuals. The enterprise protocol has already been successfully tested and used by numerous Fortune 500 companies while the individual-facing product will be available at the end of 2018.

Even though the token distribution details haven’t been released, the team and partnerships alone are strong indicators that this could be a valuable opportunity.

Risks

  • No token details. The team has yet to release any details about the token distribution. Even with a great project, poor distribution could be detrimental to investor returns. (-3)
  • Dependence on a consumer product. The enterprise protocol is only one half of the project. The half for individuals hasn’t been built yet and has a lot to prove. (-3)

Growth Potential

  • Numerous use-cases. There’s no shortage of scenarios that benefit from predictive analytics. AI, machine learning, and behavioral science are becoming more valuable each year. (+4)
  • All-star team. This is exactly the type of team you want working on a project like this. From MIT data scientists to blockchain experts, they’ve got it all. (+4)
  • Successfully tested product. Having a working product puts Endor ahead of the majority of other ICOs. The fact that it’s been tested with big-name companies is just the icing on the cake. (+5)

Disposition

Endor scores an impressive 7 out of 10. The project checks off the boxes you want to see in an ICO. Strong team? Check. Large market? Check. Working product with customers? Check and check.

The only unknown, for now, is how they’re going to distribute the tokens after the ICO. If the Endor team stands by their mission of decentralization and democratization with fair distribution, this has the potential to be one of the most exciting ICOs of the year.

Investment Details

Endor has not announced a date for their crowdsale yet. However, you can check out their website to stay up-to-date with any news or updates.

  • Type: Utility
  • Symbol: EDR
  • Platform: Ethereum
  • Crowdsale: Pending
  • Soft/Hard Cap: Pending
  • Price: Pending
  • Jurisdictions Barred from Participation: Not specified
Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 11 rated postsAlex Moskov is a writer and entrepreneur with a passion for building and creating awesome things. Alex has experience in music tech startups, digital marketing, and cryptocurrency investing.




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