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ICO Analysis: Bubbletone

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Bubbletone Blockchain has generated a lot of buzz in the ICO world. In the age of globalization and heightened cross-border travel, the promise of global telecom without intermediaries is quickly gaining traction. Imagine traveling anywhere in the world and being able to use your mobile device seamlessly without changing your SIM card or paying huge network penalties.

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Bubbletone markets itself as the first decentralized telecom ecosystem connecting operators, service providers and consumers. The company has identified a massive end market for its product, including: 1,000 operators, 10,000 online service providers and 1.3 billion travelers annually. (In reality, Bubbletone is not the first project building decentralized telecom; we conducted an ICO review of TripAlly several months ago, and it too is seeking to rid the world of international data roaming bottlenecks).

The platform works by allowing mobile carriers to publish offers via smart contracts, which are then made available to operators and consumers. When an offer is selected, a smart contract is created through the subscriber’s Digital Identity. This is where payment occurs, and when services under the local telecom provider is implemented.  Under this business model, it is clear that Bubbletone is targeting operators as well as consumers (this fact is further spelled out in the whitepaper). Even by attracting a small fraction of cross-border travelers to its platform, Bubbletone can  offer a strong value proposition to operators and service providers looking for transient business.

Token

Bubbletone is issuing a utility cryptocurrency by the name of Universal Mobile Token (UMT), which is built on top of the Graphene blockchain. The departure from the more common ERC-20 protocol gives UMT a unique advantage from the perspective of transaction speed. Through its native BitShares application, Graphene is capable of producing three-second transactions with the possibility of scaling up to 100,000 transactions per second. In the case of Bubbletone, developers have promised 10,000 transactions per second (although only half will be necessary initially).

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UMT tokens act as a payment method on the Bubbletone platform, allowing users to pay for telecom services that include voice calls and instant messages. Tokens can be purchased using traditional fiat money or at least half a dozen cryptocurrencies.

The company initiated the pre-sale of UMT tokens on Jan. 20 and will keep the early bird window open through Feb. 15. During this period, one token is valued at $0.42 U.S., although a minimum investment of $10,000 is required.

The public ICO begins Mar. 20, and will run for two months. The initial token price is set at $0.50 U.S. and will rise in 5 cent increments every five days until it reaches $1.

Team

Without mincing words, the Bubbletone team is stacked from top to bottom. Telecom experience, blockchain expertise and startup success are all represented on a team that is 25-people deep. The project also retains the services of 13 advisers including crowdfunding legal experts, blockchain entrepreneurs and even the co-founders of ICOBox.

Verdict

When it comes to blockchain-in-telecom, Bubbletone could very well be the most promising project yet. Backed by a solid team and strong business model, Bubbletone could make plenty of headway in evolving global telecom out of the data roaming trap.

That being said, there are some important risks to bear in mind with a project of this nature. In the author’s view, the biggest question is whether traditional telecom is already being eroded by mobile voice and data messengers connected to the internet.

Risks

  • The whitepaper identifies competition from “roaming hubs,” which act as intermediaries between mobile operators, as well as Project Fi (Google) and Apple SIM. However, it does not consider other blockchain-based telecom providers, such as TripAlly, Mobilink and others. Although TripAlly’s token raise wasn’t very impressive (less than 1,250 ETH collected), the market for blockchain-based telecom is becoming more crowded. -1
  • Although Bubbletone is addressing a real need in the market, the author believes there are many alternatives to resolving telecom bottlenecks. All of these alternatives are based on internet connectivity. Billions of people already employ some form of internet-based communications, be it Whatsapp, Facebook Messenger, Skype or Telegram. Wherever you travel, a simple internet connection is all you need to communicate as you normally would in your home network (the growing prevalence of Wi-Fi connections makes this even easier). The only real limits appear to be jurisdictions with weak broadband penetration (i.e., rural and emerging markets) and landlines. The whitepaper did flag emerging markets as a major source of the telecom frustration, so this could be a good start. Otherwise, I’ve never had to worry about my SIM card when travelling. If I’m with friends or family, I log on to their internet. If I’m at a hotel or restaurant, I use their Wi-Fi. There are plenty of cases where these options aren’t available, but that doesn’t diminish the growing trend toward internet-based communications. -2
  • Although Bubbletone is concentrating its efforts on small- and medium-sized mobile operators, it has not listed any of its partners or service agreements. This raises question marks about the project’s implementation and how quickly it will be able to scale up to meet its global vision. There doesn’t seem to be any aversion to name dropping partners, as the whitepaper already lists its partnership with Lingualeo, an English-learning service, as well as the Crypto Valley Association. -2
  • The whitepaper doesn’t present a clear business model. In fact, less than a page is devoted to the subject, and instead of talking about how the platform will make money or expand, it merely mentions anticipated growth of blockchain-based mobile providers. -2

Growth Potential

  • Bubbletone is entering the market at an exciting time for the telecom industry, as mobile communications have successfully penetrated both advanced and emerging economies. With billions of people traveling the globe annually, the need for seamless cross-border communication is growing. +2
  • Although we remain concerned about telecom disruption through internet-based services, Bubbletone does offer clear use cases from the perspective of both consumers and operators. For consumers, calls, data and messenger services are available at affordable local rates without the need to change SIM cards. Meanwhile, operators receive the benefit of greater global network integration and access to potentially millions (billions!) of consumers. +3
  • The Bubbletone project boasts one of the most advanced blockchains available for the telecom industry. As outlined in the whitepaper, the Graphene platform offers many unique benefits, including secure data storage, low transaction errors and faster network speeds due to less traffic transmitted among existing operators. Although these benefits are inherent to blockchain technology more generally, Graphene is a step above due its rapid transaction processing speed. +3
  • On a practical note, the project already has an operational platform, including a beta version of messenger app available through Google Play and Apple Store. The app has more than 100 functions, which should give investors tangible evidence that the ship is moving. +2
  • The team certainly inspires a lot of confidence. Founder Yuri Morozov has already created four telecom companies that generate a combined $50 million in revenue annually. +3

Disposition

Bubbletone is a highly ambitious project that seeks to transform the inter-operator telecom market. If successful, it will have a profound impact on how consumers and operators interact with one another. Factoring the risks and opportunities, we arrive at a score of 6 out 10.

Investment Details

  • Token Type: Utility
  • Platform: Graphene
  • Symbol: UMT
  • Pre-sale: Ongoing
  • Token Sale: Mar. 20 – May 20, 2018
  • Tokens Available for Sale: 500 million
  • Price: 1 UMT = $0.50 USD
  • Payments Accepted: Crypto (BTC, ETH, LTC, XRP, DASH, USDT), fiat currency
  • Jurisdictions Barred from Participating: None identified.

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 358 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. Haspel

    February 4, 2018 at 10:41 am

    Hi Sam. Thanks for the review (I asked for it on Workplace). I couldn’t really grasp the benefits of this ico and it’s good to see you have the same concerns. I’ll make a small bet on this one.

    By the way, minimum contribution has been lowered to 1 eth recently. And the tokens are now pegged to eth instead of USD.

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ICO

ICO Analysis: Emanate

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Perhaps the most glaring use case for blockchain and smart contracts is the music industry. This new technology could easily disrupt the entire billion dollar industry. It’s no wonder numerous startups are rushing into blockchain to carve out their nitch. New ICO Emanate (MN8) believes they have an edge on the competition by building their platform on EOS instead of Ethereum.

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Emanate is a music creation and collaboration platform that allows creative artists the tools to rightfully, and legally monetize their works via smart contract. Brought to us by Pedro Colaco, creator of the world’s leading cryptocurrency streaming platform, Dsound, Emanate will be one of the first apps on the EOS platform.

“With Dsound as our proof of concept on Steem, and some investigation on Muse we have settled on EOS as the best platform to commence build of our production grade platform. EOS covers decentralised storage, ultra fast processing, no transaction fees, and smart contracts. Furthermore we believe that those involved in EOS have the right vision for blockchain technology and we relate strongly to the ethos.”

MN8 is designed to reward creators, producers, distributors and influencers in the music industry ecosystem. According to the company:

“For fans and listeners, Emanate is positioned as the very best place to hear the latest new sounds, to discover the biggest new tracks first, and to earn cryptocurrency in exchange for musical influence and following.”

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Emanate offers six key components for listeners and creative artists:

  1. Web App: The first feature to be released, Web App allows music producers to seal their work with “Smart Collaboration” then publish it on the platform. Music lovers will discover the original content, create playlists and follow their favorite artists. The artists and anyone else involved in creating the song will be programmed into the smart contract so they can receive their fair share of listening royalties. Tracks created on the Emanate platform will be instantly published for discovery and monetization via listener playback, collaboration with other artists and commercial licensing. Listeners can also earn MN8 tokens in exchange for playlist creation and sharing.
  2. Smart Collaborations: The blockchain smart collaboration layer will launch day one of the Alpha release. Each time two artists share some audio, an agreement is executed on the blockchain. This is the backbone of the Emanate ecosystem which is used for royalty calculations and artist payments.
  3. Mac and PC Studio Apps: Used by music producers for track management and sound discovery, studio apps may become nodes in the content network. It will allow streamlining of the music production workflow, leveraging files stored locally on your hard-drive, with IPFS-based Emanate samples.
  4. Digital Audio Workstation (DAW): Emanate will fully integrate with DAW. Sounds, samples and track packages that are shortlisted in the discovery apps will appear in the DAW file browser to be queued and auditioned for tracks. Plugins will be released which will bring Emanate sounds and collaborations directly into the DAW, removing file downloads completely. The journey from sound recording to full track release will now exist in a frictionless, Emanate based workflow.
  5. Audience Attribution: Proprietary algorithms will ascribe ownership to rightful creators and will help identify and reward unique music.
  6. MN8 audio exchange protocol: Emanate Live is built on the MN8 AEP, so new protocol releases will be realized as the platform evolves. They will launch an open source API and SDK development program, allowing the entire music industry to access the ecosystem and leverage its power and interconnected system.

A series of audio-recognition algorithms will ensure only unique, high-quality audio makes it to the platform. Another audio analysis process will look for copyright violation and Emanate will not only protect artists from fraud but will also reward and incentivize musicians for the creation of unique music.

Token

MN8 is a utility token that actually offers utility. Here are the guidelines:

  1. MN8 will need to be staked on the platform in order to run a record label.
  2. MN8 is required for artists and/or labels to publish ‘official’ releases to the platform.
  3. All accounts (listeners, artists, labels) will require a balance of MN8 in order to stay active.
  4. Listener accounts are debited micro-payments as payment for their plays.
  5. Record labels will need to hold a significant amount of MN8 as a deposit in order to receive royalties from their artists.
  6. Emanate tokens will also be used to process transactions and licensing agreements off the Emanate Live platform via the Audio Exchange Protocol.
  7. Listeners can also earn MN8 tokens in exchange for playlist creation and sharing.
  8. Each Emanate application can operate as a node on a studio computer, generating even more value for holders.

The token will be launched on the EOS platform but selling will take place via Ethereum ERC-20. The private sale consisted of 19 million MN8 tokens, which were sold at various prices. The public sale will consist of 88 million units at a price per token of $0.12.

In terms of allocation, the breakdown is as follows:

  • 10.5% marketing
  • 10.5% overhead
  • 10.5% events/PR
  • 5.3% legal
  • 63.2% platform development

Team, adviser and partner tokens are vested over 18 months with 25% unlocking at the end of the token sale and 25% every six months thereafter until 100% is reached.

Accounts/airdrops will be completed at some stage in future to attract new users to the platform

Team

The group of mostly Australians seem pretty solid and better than average. They have a fair amount of hype despite being so early in their marketing plan.  The Telegram and Twitter each boast 4,000 followers.

Reis Colaço (CTO/Founder) is a full stack developer with 30 years’ experience. He is the creator of Dsound, a popular music app build off steemit.

James Frew (Industry Relations Director/Founder) produced, engineered, remixed and curated for Evolution Radio, BBC 1XTRA, KIIS FM and 2DAY FM, Tommy Trash, A-Trak, The Stafford Brothers, Gryffin and Marquee Las Vegas. He has scored film placements for Magic Mike, Trophy Wife, Persons of Interest and the Bold Type.

Sean Gardner (CEO/Founder) spend a couple years as head of technology with DDB Group Australia, a rather large advertising agency.

Trent Shaw (CFO/Founder) has 15 years experience in online technology. He worked as a sales manager  for eBay and served in various roles at other top technology companies.

The team is in the process of appointing experienced professionals in the Digital Rights Management space to help us contribute positively, fairly and legally to the world of Digital Rights Management.

Emanate is assembling a team of artist ambassadors, lead by Jordy Dazz and Thomas Olsen who alone have over three million followers on their social media and music accounts.

Ten advisers, three Territory Influencers, and four partnering artists round out the team. The advisers are a mixed group of seriously well-connected people. One of whom, Michael Trainer, co-founded Global Citizen Festival which raised over $1 billion for charity over three years and hosted Coldplay, Jay Z, Rihanna and hundreds of other massive superstar acts. He is connected to a lot of people in both the tech and entertainment space and is making Emanate introductions to VCs, artists management companies, EOS Foundation, tech partners and various artists.

Learn all about them here.

Verdict

Smart contracts and music go together like peas and carrots. Manufacturing, distribution costs and unfair royalty percentages are all a thing of the past on Emanate. The music technology platform they are building places creative artists, fans and effortless collaboration at the center of its ecosystem, allowing for smart contract creation and precise royalty distribution.

 

Risks

  • Perhaps they were just waiting for EOS before making a detailed plan, but the roadmap just says “Beta Launch 2019 and Production Release 2020.” EOS gives them a chance to be front-runners, would it be nice to see a lot of goals and deadlines to motivate the team to work as quickly as possible. When asked about analytics for owners/promoters/third-parties, as well as the SKD, the mod responded, “Yes for sure, probably more towards maturity as analytics is quite complicated on a decentralized network. The API/SDK part of our project is further down the roadmap.” -1
  • Competition is fierce There are already at least five crypto related music projects. -1
  • Trying to get this out to the masses cant be cheap. They will raise about $15 million. That is going to have to stretch. -1
  • 9.6% of the supply going to bounties/account/airdrops seems too much. Perhaps it will prove to be a good marketing strategy, but for now it is a risk. -0.5

Growth Potential

  • CTO Pedro Colaco created Dsound, the No. 1 music streaming platform in crypto, which gets 134,000 visits a month without any marketing. This proves the demand for this product is here, and that the team is capable of producing. +3
  • When the Emanate platform is ready for beta launch and hosts hundreds of thousands of unique tracks, Emanate will give away 1 million free trial accounts which will be pre-loaded with an MN8 balance. This will be a key moment for Emanate taking us from the stage of early adoption to mass awareness in a matter of months. +1
  • There are many utility uses for the token. including nodes and staking. +1
  • The EOS blockchain has the potential to scale much faster than Ethereum. Since Emanate is the front-running app on  EOS, that gives it a tremendous head start vs competition.+2
  • Partnerships , and networks. They have 10 Advisors, and several talented artists and influencers on their team. The experience and connections are stronger than most startups.+2

Disposition

Out of all music related blockchain start-ups, I believe this looks the most promising. 6.5/10

Investment Details

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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4.2 stars on average, based on 11 rated postsJoshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!




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ICO

ICO Analysis: Senno

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Senno is a NEO-based blockchain for sentiment analysis that includes an open API for third-party apps. Sentiment analysis consists of reading through mounds of user-generated data on sites like Twitter and Facebook to determine whether a certain topic has a positive or negative view in the community. You can use this data for anything from determining brand awareness to forecasting stock prices.

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Right now, there are a couple of major problems with traditional sentiment analysis systems:

  • Expensive. It requires an intensive amount of computing power to scan web pages and analyze the data.
  • Untrustworthy. Like other centralized systems, a lack of transparency may lead to data manipulation.

By bringing sentiment analysis to the blockchain, Senno provides an inexpensive solution with no need to trust a centralized data store. Let’s dive into how it works.

The Process

The Senno process begins with data collection. The platform’s data listeners collect information from popular channels such as blogs, YouTube, and other social media.

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From there, Senno assigns the data channels with a reputability score using the NEO digital identity. This data classification helps to remove data manipulation and ensure consistent accuracy.

Next, the data goes through core analysis and lexical analysis. In core analysis, the party that provided the data receives SENNO token payment, and the platform saves the data in distributed storage. After the data registry smart contract (DRSC) confirms that the storage contributor is actually storing the data, the contributor receives payment as well.

A transfer of SENNO tokens to the hardware contributor kicks off the lexical analysis process. Here, the data and requested analysis are sent to a distributed CPU to perform the sentiment analysis. The result is then sent back to the core platform.

By now, all contributors have received their full payments. The analyzed data is then stored in the Senno database (SennoDB) where third-party apps can access it.

Senno Output

Senno produces two main calculations with this process: buzz and mood. Both results are determined by a set of complex equations that you can find in the Senno white paper.

Buzz is the measure of how much discussion is occurring about the topic. Mood is a measure of sentiment value for the topic. It ranges from negative to positive. The Senno team recommends using the delta values of both these figures when making decisions.

Token

SENNO is an NEP-5 token based on the NEO network. It’s the primary currency on the Senno platform. SENNO is used to pay hardware contributors, plugin developers, and network resource providers. You also receive tokens for sending referrals. To tap into crowd wisdom data and use the API, you also need to pay a subscription in SENNO.

The Senno token pre-sale started on March 31 and will last for 30 days or until contributions reach the $4 million hard cap. During this pre-sale, you’ll receive a 20%-50% bonus when purchasing tokens.

During the regular ICO crowdsale, $0.01 will get you 1.6 SENNO. You may also get up to a 20% bonus depending on when you participate and how much you contribute. You can purchase SENNO with either NEO, Bitcoin, Altcoins, a credit card, or through a wire transfer.

The Senno team is minting a maximum of 10 billion SENNO during the crowdsale, and distributing 4 billion (40%) to crowdsale participants. They will destroy any unsold tokens after the sale.

The token breakdown is as follows:

  • 40%: Crowdsale
  • 30%: Reward tokens for contributors
  • 15%: Company shareholders
  • 10%: Advisers and business partners
  • 5%: Employees
  • As you can see, the distribution is far from decentralized. However, as the team gives out the reward tokens, this should hopefully change.

Team

Co-founders Elad Peled and Rudy Zakuto lead the Senno team. Peled previously founded LibraTrade, a company that developed the first-ever smartphone trading platform. And, Zakuto worked as a cybersecurity advisor for almost 5 years before founding Traffiq Net. At Traffiq Net, he implemented blockchain algotrading protocols into the system.

Although the team isn’t too versed in blockchain technology, they have the support of a well-versed suite of advisors – the most notable advisors being Ophir Gertner, the founder of Stox, and Marc Kenigsberg, the founder of Blocksmarter and CoinJanitor.

 

Verdict

Senno is a sentiment analysis platform built using the NEO network. The team is planning on reducing the cost and upping the reliability of sentiment data so that even small and medium businesses (SMBs) can utilize the business intelligence.

Even with as complex as a subject as sentiment analysis, the Senno white paper is one of the clearest and easiest to understand ones that I’ve read. This should be a testament to the work that the team puts into the product.

Risks

  • Pre-launch. Senno hasn’t finished building the product yet. They’ve even stated this as one of the biggest risks in their white paper. (-3)
  • Not enough contributor incentive. It looks like Senno will be relying heavily on the token reward pool to incentivize early contributors. What happens if that pool isn’t enough or runs out before the platform gains traction? (-2)

Growth Potential

  • Companies love sentiment data. Understanding how consumers feel about your brand is immensely important for businesses. Additionally, investors are incorporating sentiment analysis into their trading strategies more and more each day. (+5)
  • Clear communication. The team has concisely stated their goals and how they expect to reach those goals. They have a clear vision for their product and can explain it well to others. (+3.5)
  • Multiple token uses. The SENNO token has value through several different revenue streams in the Senno ecosystem. Success in just a couple of these streams should drive up the token value. (+4)

Disposition

Senno receives an 7.5 out of 10. The project is addressing a legitimate problem in an important space and doesn’t seem to be facing any huge competition (yet).

As long as the team can hit development milestones on time and launch successfully, there should be no problem securing customers. As the launch isn’t scheduled until Q2 2019, we have some time to wait and see.

Investment Details

  • Type: Utility
  • Symbol: SENNO
  • Platform: NEO
  • Pre-Sale: Mar. 31 – Apr. 30, 2018
  • Crowdsale: TBD
  • Price: $0.01 = 1.6 SENNO
  • Hard Cap: $25 million
  • Payments Accepted: NEO, Bitcoin, Fiat
  • Jurisdictions Barred from Participating: U.S., China

The pre-sale began on March 31st. You can find more information and sign up to contribute at their website here.

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 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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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. 

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4.5 stars on average, based on 16 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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