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ICO Analysis: Bloom

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Credit scoring serves an integral function in the lending process. Yet, in 2015, U.S. Congress declared credit scoring to be a monopoly controlled by one organization: FICO. The data analytics company is responsible for scoring more than 90% of top U.S. lenders, leaving some 26 million Americans unable to obtain credit.

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A similar monopoly exists globally. More than one-third (38%) of the world’s population does not have a bank account, and 3 billion people are unable to qualify for a credit card. Although creditors would love to serve this untapped market, traditional credit bureaus cannot score prospective borrowers unless they’ve already taken on debt.

Against this backdrop, Bloom has emerged as a global, decentralized credit protocol that addresses existing limitations in lending by applying blockchain technology to credit scoring and risk assessment.

Bloom is a protocol for assessing credit risk through federated attestation-based identity verification and the creation of a network of peer-to-peer and organizational creditworthiness vouching (“credit staking”). – Bloom Whitepaper (2017).

Through the Bloom protocol, lenders will be able to issue complaint loans on the blockchain at affordable rates. In doing so, the Bloom protocol seeks to address five overlapping issues:

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  1. Cross-border credit scoring: Credit histories in one jurisdiction do not apply to other jurisdictions, forcing borrowers to re-establish their credit score when they relocate.
  2. Backward-looking credit assessment: Borrowers with no credit history are at a significant disadvantage when it comes to obtaining a loan or credit card.
  3. Lenders are limited in terms of global reach: Lenders are usually unable to serve borrowers in underdeveloped markets because they lack identity and scoring information to base their decisions.
  4. Risk of identity theft: When applying for a loan, borrowers must bear all their personal information, giving potential hackers more information to commit fraud.
  5. Lack of competition: The credit scoring industry is heavily concentrated, resulting in an uncompetitive market.

The Bloom protocol is based on three components. Together, the seek to overcome the five challenges posed above.

  1. BloomID: Identity attestation allows borrowers to obtain a global secure identity, making it easier for creditors to assess them.
  2. BloomIQ: A credit registry that tracks current and historical debt obligations tied to a borrower’s BloomID.
  3. Bloom Score: The credit score measuring consumers’ creditworthiness.

While certainly making a strong case for a decentralized credit scoring platform, Bloom doesn’t specifically address how the system will solve the five problems highlighted above. Instead, it seems to show that BloomID, BloomIQ and Bloom Score will address the problems by creating a globally portable credit profile that will: (1) apply across borders; (2) enable a backward-looking credit assessment regardless of jurisdiction; (3) safeguard consumer information through a secure system as well as globally-recognized identity attestation; and (4) create a global market place for creditors to access borrowers who have fallen outside the purview of traditional finance.

Although the author’s conjecture may be sound, the whitepaper does not provide specific details on how this system will work, let alone explain the regulatory challenges standing in the way of this vision. This is discussed in greater detail in the Verdict section.

The company has laid out how this protocol will improve on the current system of credit evaluation:

The Bloom protocol improves the current credit ecosystem by creating a globally portable and inclusive credit profile, reducing the need for traditional banking infrastructure and opaque, proprietary credit scores. This means both traditional fiat lenders and digital asset lenders will be able to also securely serve the 3 billion people who currently cannot obtain a bank account or credit score.

Bloom Token

The Bloom token (BLT) is powered by the Ethereum blockchain, and will serve both as a currency and governance mechanism on the network. In other words, BLT will allow organizations to evaluate user identity and credit worthiness. The companies using the Bloom network will pay for identity verification and risk assessment using BLT.

As such, the BLT token can be used in three ways:

  1. Scoring Proposals: The BLT token essentially serves as the governance mechanism for the network. Through token-based voting, bad actors are held to account.
  2. Security: BLT allows the Bloom network to implement fees for invitations. By imposing small costs on each transactions, attacks are not economically viable.
  3. Payment: The token serves as the primary currency on the Bloom network.

The Team

The Bloom team consists of four core members: Jesse Leimgruber, Ryan Faber, Alain Meier and John Backus. The founding team members have backgrounds in computer science, digital marketing and blockchain. John Backus’ resume strikes our attention given his role as research scientist at the Stanford Bitcoin Group.

In addition to the founding team, Bloom has three advisers on board, including Meg Nakumura, CEO of Shift Payments. Joseph Urgo has also been recruited from District0x, an Ethereum dApp. David Raphael of Infinity Media also brings with him experience in conversion rate optimism. Overall, the brains behind Bloom appear to be well qualified and highly focused.

Verdict

Very few ICOs are as highly regarded as Bloom. This massive undertaking has the potential to become a highly lucrative enterprise. Bloom’s expansion into credit card services is also commendable. To speed up adoption, the company will launch the BloomCard, a blockchain credit card intended to serve as the model for all future credit providers.

On the flip side, significant challenges remain. Unless they are addressed, the company may struggle winning over institutional adoption. Providing a clearer implementation timetable is also needed to win over investors. The author believes that an updated whitepaper is warranted as Bloom moves forward with its raise.

Risks

  • The credit scoring industry is mired in regulations that become even more complex when the moment we cross borders. Bloom has not outlined how it intends to navigate these issues. -3
  • Although the team has outlined a roadmap for implementation, no dates are provided. How fast will they be able to scale? Is the existing team sufficient in reshaping the global credit scoring industry (i.e., overtaking FICO)? -2
  • There’s probably a good reason why many people struggle to get credit. Is Bloom’s business model inherently risky? And will creditors be willing to take a gamble on borrowers with bad or no credit? -2

Growth Potential

  • Bloom is presented with an undeniably lucrative opportunity to link creditors with unbanked populations. More than one-third of the world’s population does not have a bank account and many more do not have access to credit. +4
  • The credit industry has been under the microscope following Equifax’s massive data breach, which exposed the private information of 143 million users. The combination of BloomID and security for invitations makes Bloom a much more secure platform. +4
  • Unlike other ICOs, Bloom’s multi-purpose token adds real value to the business. +2
  • The Bloom platform is likely to benefit from positive publicity tied to its admirable business objective of expanding credit options to all. +2

Disposition

Factoring all the above, we give Bloom a generous score of 5 out of 10. It should be noted that the ICO launch date has yet to be announced, which means our rating may be revised once details of the pre-sale surface.

Bloom is a highly ambitious project that, if realized, will benefit society in many ways. But there are glaring concerns related to regulation, credit risk and implementation that still need to be addressed. Combined, these factors could adversely impact institutional adoption.

The Bloom protocol will be developed in six major phases, culminating in the democratized autonomous credit infrastructure. The pace and timing of that roll out has yet to be determined, a clear sign that Bloom is still in its early concept stage.

Another review of Bloom is likely warranted once the company provides more explanation regarding its technical features, and how it plans to tackle the five problems discussed in its whitepaper.

Investment Details

No ICO pre-sale information has been provided yet. Users are encouraged to follow Bloom’s website or subscribe to their newsletter for the latest information.

Featured image courtesy of Shutterstock

 

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4.5 stars on average, based on 352 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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  1. jagrmeister

    October 17, 2017 at 3:26 am

    I work in alternative credit; the issues relating to credit scoring are significant, to be sure. If you look at the peer-to-peer lending space, or alternative lenders, there is use of a range of new technology to address these shortcomings, including addressing the unbanked problem. I am interested in Bloom for these reasons. But from your review, I have no idea what they’re doing uniquely to address these issues; I realize they’re “putting it on the blockchain” but that doesn’t even address the issues identified in the review. You list:

    1. Cross-border credit scoring
    2. Backward-looking credit assessment
    3. Lenders are limited in terms of global reach
    4. Risk of identity theft
    5. Lack of competition

    Interestingly the article starts off talking about the problems of the unbanked but none of these 5 issues have to do with the core problem of today’s credit system that omits them.

    The write-up doesn’t address any of the five areas enumerated, or show why Bloom would solve them. For #1- cross-border credit, this is one of the most problematic issues. The reason cross-border credit isn’t done is because the laws range widely in terms of what data you can collect to construct the score. How does putting the credit score on the blockchain change that? Backward-looking credit assessment? It depends what you mean by this; the scores are meant to be predictive. Which is why recent events matter more; a failure to pay 10 years ago may not show up on your current score. Further, to the degree, you can reassess the core data in a way to be more ‘future-oriented’ it’s unclear what blockchain has to do with it.

    For # 3 “Lenders are limited in terms of global reach”, see my response to #1. There’s a reason they’re limited and it was to do with limitations on collecting and applying data to scoring across borders. Beyond scoring, if lenders want to lend across borders, they then have to worry about differences in law as far as collections. So even if there’s a cross-border score, they may not be able to practically use it.

    #4 really isn’t an issue. Prospective borrowers don’t shy away from loan apps because of concern of identify theft.

    #5- possibly. Transunion, Experian, and Equifax are responsible for collecting their own data regarding the borrower’s history; they simply use FICO to do the mathematical scoring. Whether one needs someone else to do with FICO does already remains to be seen. Again, if one does, it’s unclear why a blockchain solution is needed.

    The way this article reads is “There’s a problem of the unbanked…now here are 5 problems Bloom identified which have little to do with the unbanked….and we have no explanation for what Bloom is actually doing to even address these five issues”

    Hacked has been on a tear in terms of covering a volume of ICOs. But perhaps this is quantity over depth analysis. I don’t want to read an incomplete summary of the whitepaper- in that it contains some of the bullet points, but none of the explanation. If the whitepaper also didn’t have explanation- then the review should point that out. The alternative lending world is full of companies optimistic they could reinvent credit scoring and ended up in ‘no mans land’ and never found a market.

    What I’d have preferred to see is examination of whether Bloom’s proposed solution actually addresses any of its stated objectives; why should we believe they can solve the problems they claim to tackle.

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ICO Analysis: MYDFS

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MyDFS is a blockchain-based daily fantasy sports solution that connects sports fans around the world with a transparent, easy-to-use, investor-friendly platform. A fantasy sport is a type of online game where participants assemble imaginary or virtual teams of real players of a professional sport. These teams compete based on the statistical performance of those players’ players in actual games.

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Select platforms like Fanduel and Draftkings monopolize the North American market. MyDFS has identified some significant challenges that the industry faces and aims to bring improvements using blockchain smart contracts and cryptocurrencies.

Some of the issues faced by the industry and the solutions proposed by MyDFS is as follows:

  • Legal ambiguity: Fantasy sports platforms operate under a legal loophole, where they get classified as a game of skill rather than betting. This allows fantasy sports platforms to operate in certain jurisdictions while getting banned in some. MyDFS is based on a token-based model and completely excludes fiat money, thus working around the regulations.
  • Application interface: Most of the fantasy sports apps have a complex UI which acts as a barrier for new users. MyDFS’s team has made special efforts to bring in ease of use in the user experience.
  • Verification: Players on the most popular gaming platforms have to go through complicated verification procedures almost every time they want to deposit money to play. MyDFS allows ease of verification while enabling users from all geographies to participate.
  • Payments: The use of cryptocurrencies make payments seamless and instant.
  • Transparency: The use of blockchain smart contracts bring in complete transparency while removing concerns around manipulations and insider trading.

An alpha version of the application with basic game functionality is available for testing. The MyDFS application would be fully functional as early as June 2018.

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Team

In 2016, CEO Viktor Mangazeev founded uTrener.com (utrener.com), a daily mobile fantasy sports platform that launched in Russia. They also have a white label application which has been gaining traction. Having a white label app that is used to create fantasy sports applications shows the team’s expertise in this segment. There are 12 members of the team, all of them work full time on MyDFS.

They have six advisers, which includes tech and crypto entrepreneurs and also one football player.

Token

The Ethereum based MyDFS tokens will power the platform. The tokens will be used for game entry fees, reward distribution, advanced functions like p2p duels/access to leaderboards, in-game purchases, and sponsor integrations.

The tokens have a good utility across the platform and, as the adoption grows, the demand for tokens will increase. Users interact with fantasy sports applications on a daily basis which will keep the demand consistent.

The token distribution is as follows:

  • ICO Distribution: 40%
  • Growth and user adoption reserves: 37%
  • Team: 10%
  • Advisers and early contributors: 10%
  • Bounty: 3%

Verdict

Fantasy sports was built out of a loophole in the law that normally bans such betting. It’s a growing industry, estimated to be worth more than $7 billion a year in the U.S. and Canada. MyDFS’s team has industry relevant experience which will help its cause in platform building and subsequent promotion.

Blockchain technology finds a perfect use case in fantasy sports. Transparency and ease of payments is the most significant advantage in my opinion. Users located in different corners of the world can participate and earn from NBA matches, which is not possible without using the blockchain.

A major area of concern is whether MyDFS will be able to gain market share in the key market of North America. Incumbents Fanduel and Draftkings are the undisputed leaders in the sector with a combined market share of 90% and have made it impossible for newer platforms to gain any share. It would be interesting to see whether the dual advantages of transparency and ease of payments are solid enough to enable a shift.

Growth Potential

  • One of the most tempting factors about MyDFS is that the platform will be fully functional by June 2018, before the FIFA World Cup. Very few projects have functional products immediately after the launch. Majority of the funds raised in the ICO will be used for marketing and promotional activities; the team doesn’t need as many funds for product development. +5
  • The team looks solid and already has a functional product serving the same use case without blockchain. +4
  • MyDFS opens a completely new market opportunity as it removes jurisdictional constraints using tokens and blockchain. Users located all over the world can participate and earn in any fantasy sports using MyDFS. +3

Risks

  • Competition is the biggest risk that MyDFS faces. Fanduel and Draftkings have raised a combined sum of more than $1 billion and have established a duopoly in the market. Other blockchain based projects like DraftDaily, Protoblock are vying to gain a share. -2
  • MyDFS is raising $40 million for 40% of the token supply, which makes the valuation based on total supply a bit steep for a company with no users. We are not sure whether MyDFS will achieve its targets. -2
  • Fantasy sports is a relatively new industry with just $7 Billion of total valuation. -1
  • Fantasy sports industry has primarily matured in North America and the U.K. However, US citizens are not allowed to participate in the ICO, thus losing an opportunity to distribute tokens amongst the primary audience. -1

Disposition

We arrive at a score of +6 out of 10 for MyDFS. Although there are short-term concerns about the ability to reach its hard cap, MyDFS is a good project from a long-term investment perspective.

ICO Details

  • Token Type: Utility
  • Platform: Ethereum
  • Symbol: MyDFS
  • Pre-Sale: April 16, 2018 – May 6, 2018
  • Public Sale: May 21, 2018 – Jun 12, 2018
  • Pre Sale Bonus: 25%
  • Hard Cap: $40 Million
  • Jurisdictions Barred from Participating: USA, Singapore, China
  • Website: here
  • Whitepaperhere

Disclaimer: The writer has no position in MyDFS at the time of writing.

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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4.5 stars on average, based on 15 rated postsAakash Kawale is a financial analyst based out of Mumbai, India. He is the lead analyst at a Singapore based organization and has extensive experience of analyzing US and Indian equities. Aakash is a strong advocate of the Blockchain technology and has been analyzing cryptocurrencies since 2015.




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ICO Analysis: FIC Network

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FIC Network is a blockchain-based fixed income securities model that reduces costs, operational friction, and risks while improving auditing ability and transparency for the industry. It will allow users to list, buy, and sell any type of crypto or fiat fixed income financial instrument including loans, bonds, collateralized loan obligations, loan syndication, credit default swaps and futures. FIC Network will also allow companies to raise funding by issuing bonds denominated in crypto or fiat.

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The FIC Network seeks to improve upon the existing traditional systems by boosting transparency, speed, asset liquidity and security, as well as reducing costs, operational friction and risks. The FIC network will cover every financial instrument in the fixed income space, starting with consumer and business loans, followed by bonds, structured products and other financial instruments. FIC Network will accommodate any type of currency, including cryptocurrencies, and financial instrument.The technology is scalable to the global fixed income and debt markets, which exceed $230 trillion USD.

Token

The eFIC token is an ERC20 utility token that will be used to trade, list, and hold financial instruments on the platform. eFIC will also prevent network spam and denial of service attacks. eFIC tokens will later be converted to FIC tokens after the launch of their production-level FIC blockchain later in 2018.

The presale is currently ongoing through May 7, 2018, including a 30% bonus with a minimum investment of 10 ETH. The crowdsale starts May 7, 2018, and runs through May 15, 2018. The hard cap is $16 million USD with 316,500,000 eFIC tokens available for purchase at a price of $0.10 USD per token. All unsold eFIC tokens and unclaimed bonuses will be burned after completion of the public sale. FIC Network has partnered with Civic to be their KYC provider for the token sale.

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The token distribution is as follows:

  • 50% Token Sale 316,500,000 eFIC
  • 30% Reserves (locked) 160,000,000 eFIC
  • 20% Team (locked) 156,500,000 eFIC

Team

The FIC Network team consist of experienced executives, blockchain developers and experts in startups, marketing and investments. Their website lists a core team of nine members and eight advisers. Arturs Ivanovs is Founder & CEO of FIC Network as well as an adviser to Turing Funds, the first mainstream exchange-traded fund of cryptocurrencies. Aigars Staks is Co-founder & Senior FIC Network Architecture Adviser who brings valuable experience from working with companies such as Microsoft and PwC.

Advises include Matiss Ansviesulis, who is the Founder and CEO of Creamfinance, which according to Inc. magazine, was the fastest-growing fintech company in 2016. Jon Chou is the Co-founder & CEO of Bee Token as well as an advisor to Solve.Care.

Verdict

Combining the crypto and fiat fixed income market will help make the future crypto market mainstream and sustainable. Existing crypto tokens are operating as currencies or utilities without a fixed-income offering. A crypto and fiat fixed income market can sustainably drive the crypto market into mainstream usage better than the conventionally fixed income market. FIC’s blockchain-based platform will allow users to list, buy and sell any type of crypto or fiat fixed financial instruments avoiding the drawbacks of conventionally fixed income markets such as friction, lack of liquidity, lack of interoperability, asymmetry of information and operational risks. A multi-currency asset agnostic system with a built-in exchange allows users to operate in currencies of their preference, thus eliminating exposure to exchange rate risk and simplifies accounting.

Risks

  • The FIC Network and app aren’t scheduled to be launched until Q4 2018. While Q4 isn’t too far in the future, many ICOs have over-promised and under-delivered when it comes to their roadmap progress after ICO completion. -1
  • As with many ICOs, the majority of the team has outside obligations which result in time being spent elsewhere and not 100% focused on the success of the project. -1
  • Regulations for cryptocurrencies are still undetermined and the outcome on how they will affect ICOs’ dealing with securities, such as FIC Network, is unknown. –1

Growth Potential

  • FIC Network has an MVP – distributed app (dApp) eDepository, which has already been developed and deployed on their Test Network. It allows publishing and managing assets on the blockchain network. +3
  • The team has the right mixture of talent and experience to bring this project to fruition as well as multiple advisers and venture capital backing. +3
  • Token metrics are an extremely important aspect that investors research to determine if an ICO is worthy of investment. A fairly low hard cap of $16 million USD, 50% of tokens being sold during the token sale, and a fixed supply are considered positives. +3

Disposition

With the uncertainty of this market, some investors may choose to remain on the sidelines. However, with the profit potential in this incredibly large market, those that take the plunge could end up with excellent returns if all goes according to plan. FIC Network receives a rating of 6 out of 10.

Investment Details

  • Symbol: eFIC
  • Platform: Ethereum
  • Presale: Current – May 7, 2018 (30% Bonus, min investment 10 ETH)
  • Crowdsale Date: May 7, 2018 – May 15, 2018
  • Hard Cap: $16M USD
  • Token Price: $0.10 USD
  • Tokens for Sale: 316,500,000 eFIC
  • Payments Accepted: ETH

For more information regarding FIC Network:

Website: ficnetwork.com
Telegram: t.me/ficnetwork
Twitter: twitter.com/ficnetwork
Facebook: facebook.com/ficnetwork
Medium: medium.com/fic-network
Reddit: reddit.com/r/FIC_Network_Official/
YouTube: youtube.com/channel/UCm8N9-wdiM8RQ0XRLev7_gw

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 28 rated postsKent Hamilton - ICO Analyst on Hacked and Founder of CryptoDayTrader.io - ICO Insider Info




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ICO Analysis: Arcona

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A Skolkovo-powered Russian start-up set the pace with Augmented Reality apps by developing the so-called “Augmented Reality Time Machine”.

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In 2014, Pilgrim XXI made its debut to disrupt the Russian tourist industry for good. This augmented reality app is an open source ecosystem, where contributors can re-create historical events on three-dimensional landscapes in a digital fashion.

The company aims to create a global network of outdoor AR parks, offering tourists an amazing experience. combining their real trip with the concept of time travel.

While Pilgrim XXI is already one of the most exciting tech projects of our era, the company didn’t stop here, as a combined effort supported by Microsoft, Intel, Google, Skolkovo Foundation and Booking.com brings us Arcona.

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Arcona is Pilgrim XXI’s second move and can be taken as an attempt to join the blockchain revolution, while at the same time trying to expand their network and digital presence.

The Skolkovo start-up created an open source ecosystem, where contributors can create, buy, rent or lease digital geo-locations, or Digital Land, Arcona’s main asset, in order to incorporate AR in every sector of the physical world’s business.

From a corporate point of view, Arcona creates a new layer of Augmented Reality as space. There is minimal space left on billboards and physical reality, in general, while there is an infinite amount of ads that could fit into the digital version of what we refer to as reality.

For a user, Arcona brings Augmented Reality closer to “normal” since currently, there is not one single universal tool for interacting with Augmented Reality. Arcona gives users the ability to add, edit and offer software and assets that can be traded and used by others within the ecosystem.

Creating an indoor AR can be easy nowadays, but setting an outdoor scene of several hectares can be challenging, as the developer must travel to the location, and consume time, money and effort. With Arcona, you can access any geo-location remotely as it visually combines virtual and physical space powered by developers and consumers.

Arcona wants to upscale the concept behind AR on a global scale. Currently, we have more than ten AR systems and each of them supports a single specific hand-held device such as an iPhone, or specific VR glasses etc. Arcona wants to create a cross-platform experience through their ecosystem where more people could access and use AR from anywhere, anytime.

Pilgrim XXI uses blockchain technology to ensure and identify users and land ownership, transfer and marketization.

An operational example of the platform would look like this:

  • An outdoor AR park is designed and built by Arcona and their community workers.
  • Contributors get paid in Arcona tokens according to their contribution level.
  • The park is open for public, and tourists can visit the AR park to experience a time travel paradox, watching historical events about the area, or conceptual events to come on the area.
  • Professional advertisers will expand their market into AR spaces to entertain AR visitors/users in every corner of the world. Users get paid for watching AR ads in Arcona tokens.

Token

Arcona’s ecosystem and economy are relying on their native utility token. This ERC-20 token is necessary for the ecosystem to function properly and being able to establish smart contracts between developers, clients, brokers and consumers within the ecosystem.

The token is also the main currency which is used to purchase or sell Digital Land, and/or other software or digital assets within the Arcona ecosystem.

Arcona token holders will have the right to contribute to the formation of the ecosystem by developing software blocks and visual AR content, as well as by testing the system.

The total token supply is set at 135,000,000 Arcona. The hard cap for the ICO is set at $25 million dollars, while the starting price per Arcona is set at 0.0025 ETH.

60% of the total tokens will be released during the ICO sales. 31% is reserved for Arcona, of which 20% goes to the team, and 11% is reserved as the development fund. Additionally, advisors get the 7% and 2% will be distributed to bounty participants.

Team

Ilia Korguzalov, CEO & Founder, has nine years of experience in the laboratory of the Peter the Great Museum in Saint Petersburg, restoring arts and an additional 15 years experience in business development.

Diana Sorina, CEO/CMO & Founder, has over 12 years of experience in different forms of digital and physical marketing.

Dr. Igor Rozhdestvensky, CSO & Founder, has Ph.D. in theoretical and mathematical physics and IT, and  a 20-year track record in entrepreneurship.

Tatiana Chernih, Founder, has over a decade worth of experience in journalism and PR.

Daniel Girdea, Founder, has more than six years of experience in the construction and real estate.

In the team of advisers we can find Lyubov Simonova, an angel investor on various technological projects on the internet, George Popescu who has several high positions on numerous online platforms and marketplaces, James Haft, who is adviser or co-founder of global ICOs and token offerings, Kairat Kaliyev, founder of Cross Coin currently focusing on project development, Sergei Chmel, who established in almost 20 years several companies in different areas and Sergey Khitov, who will serve as mentor and blockchain expert.

The team looks solid overall, with people who have experience in creating Augmented Reality projects as well as marketing and business-focused solutions.

Verdict

This project of Augmented Reality is a futuristic concept that will enable us to experience different aspects of our everyday lives at any time, anywhere. It can group us with people, regardless of our distance, either from a business or an entertainment point of view.

It can also bring us closer to other people’s ideas. It is easier to understand one another when you can visually witness what the other wants to show you, than hearing about it. When you can create anything you imagine in 3D for others to see, the whole concept of conception shifts meaning.

Arcona wants to do the first step of reaching that level. With this project, 3D editors and animators will be able to create a library of every animation requested by people in Arcona. The more the library grows, the more people can express themselves through Augmented Reality.

Augmented Reality has its positives and negatives, such as every aspect of life, and while the positives are many, there are a few negatives that should be mentioned. One of them is the excessive addition of commercial messages inside the cyber world, to the point that it becomes annoying or even unhealthy for the user.

Another part that users should be careful is the addiction to Augmented Reality. It won’t be long before this technology is available in a variety of new devices, such as projectors on our sunglasses, for example. Users will be able to exist both in physical reality as well as inside a virtual lobby of digital content, and that can be either a gift or a curse.

Risks

From an investor’s perspective, the following facts are important to consider when weighing Arcona:

  • AR is a step ahead of VR, and VR is yet to be commercial. While we all enjoyed PokemonGo for a couple months, AR systems are still years behind in development and pragmatic real-life use-cases. -2,5
  • It may sound spooky, but being paid for watching virtual ads is really something we’re eventually going to face sooner or later. Creating tailored ads just for you to see in Augmented Reality can be almost unethical at the moment. -2
  • Many spatial locations have copyrighted content that you might not be able to pay for or even use in some cases. It might sound really interesting as a conceptual project, but in fact, it will be really difficult to convince governments to allow you to re-create 3D models of their societies and alter them on a digital level. Therefore we assume that in the beginning, there will be a preset amount of various locations to “play with”. -3

Growth Opportunity

  • On the other hand, having a decentralized multi-platform supporting Augmented Reality is definitely an aspect of the near future. Arcona is not one of the first, but the pioneer company behind this concept. +4
  • This Skolkovo-powered start-up is backed by Microsoft and Intel among other industrial titans, while it is also funded by the major ICO angel “Wings”. These companies wouldn’t risk their name for something that has no vision. +3,5
  • AR can help us recreate historical events, and in a sense cheat time on a small scale. A whole new wave of tourism is here, where you can explore places literally built from scratch just to please your visual sensors. Not to mention how this new space could benefit the marketing and advertising sectors. +2,5
  • 135,000,000 Arcona is a decent total cap for such a cheap token. 0.0025 ETH is currently equal to ~$1,60. Similar total supplies come from Binance and Nano, with their price per unit at $13,80 and $7,37 respectively. +3,5

Disposition

Although it can generate interesting growth when it enters the market, Arcona will need most of the initial capital raise in order to headstart with a few outdoor parks, meaning that the price will most likely sink as soon as it enters the commercial cryptocurrency market.

KYC (Know Your Customers) is mandatory for many, if not most, ICOs in order to secure the sales period by scammers and unwanted individuals. It is uncomfortable to know that a project so highly supported by various firms and governments is not using this simple security technique.

A score of 6 out of 10 is reserved for Arcona, based on present facts.

Investment Details

  • Type: Utility
  • Symbol: ARCONA
  • Platform: Ethereum
  • Pre-Sale: Apr. 15, 2018
  • Public Sale: May 16, 2018
  • Hard Cap: $25 million
  • Payments Accepted: ETH, BTC (No KYC)

Official Website

Whitepaper

Disclaimer: The writer has no position in Arcona at the time of writing.

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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