ICO Analysis: CloudWith.me | Hacked: Hacking Finance
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ICO Analysis: CloudWith.me

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ICO Analysis: CloudWith.me

Introduction

This article was posted on Friday, 21:03, UTC.

Any category is going to have its “me too” products, and its important to be on the watch for them – sometimes they wind up being better and more profitable. Changing a few things and putting a different logo on something doesn’t replace first-mover advantage, it’s really that simple. In several efforts following Storj we see moderate innovation, or even massive innovation, as well as good branding. However in Cloudwith.me, we see a problem with Storj, Golem, SONM, Filecoin, and others, as a group, apparently identified and solved.

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Cloudwith.me believes that business integration with the cloud is slowed by the fact that companies must go many different routes to acquire complete services. In some respects, this makes sense, but in some, it doesn’t. Google offers basically everything companies want, as well as Amazon. In terms of decentralized services, Cloudwith.me thinks that people will have trouble integrating with Storj and Golem and others because they are so many. They want to build, essentially, a gateway to decentralized cloud services, and have the Cloud token become the currency of choice among them. This is not hard to imagine happening, as ERC20 tokens are easily interchangeable and easily added to exchanges, but it does take some reasoning to see it as being a viable business plan.

Storj and the rest of the decentralized cloud companies are going to continue to develop regardless of Cloudwith.me. While Cloudwith.me can certainly find a comfortable living in selling competitive, blockchain-based solutions, it’s unclear after 15 pages as to why this is something the author, as an investor, should be interested in throwing money at. It seems we must have a look at the “in-depth technical solutions” before things become evident.

Using what they have dubbed GridNodes, CloudWith.me believes they can offer more reliable access to distributed/decentralized computing resources in the global network.

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Such an “interface,” as it were, for distributed marketplaces of computing resources would be an interesting addition in the scheme of cloud computing/storage/resources. For one thing, from a consumer perspective, it would eliminate provider arbitrage opportunities for various types of services. The “vendor lock-in” feeling that consumers might get when choosing between Storj, SONM, Golem, and others for resources would be gone, thereby increasing usage of each of those platforms.

However, in a truly ideal situation, Cloudwith.me should also be one of many such gateways.

Yet, back to the first concept discussed in this article, they gain a first-mover advantage on successfully delivering the services. With a cloud computing market pushing the quarter trillion dollar mark, there is a lot of money to be made in bringing the cost of the services down. Platforms like Storj, SONM, Golem, and the rest run a risk of becoming rent-seekers themselves, eating more and more greedily from customer hands until customers look elsewhere. A project like Cloudwith.me, if successful, would not only increase demand for the platforms, lowering their potential to become parasitic on their own ecosystems, but it would also keep them accountable in terms of price and performance.

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Perhaps the above assessment makes Cloudwith.me appear much simpler than it is in nature. In addition to doing all of the above, new service providers will be able to independently build on top of Cloudwith.me, who, in essence, act as the ultimate decentralized market makers and a significant deciding factor in the future of used services.

Cloudwith.me Company

Cloudwith.me already offers managed access to centralized hosting services such as Amazon AWS. The Cloud ICO is perhaps the smartest possible play for a company in their field. Based in Ireland, the company is headed by Asaf Zamir, a well-connected programmer with a lifetime of experience.

Also involved in the founding of Cloudwith.me is Gilad Somjen, who has spent years marketing. Given the nature of this product, it’s not surprising that Somjen is involved – sales play a hugely important role to the company as it is and as it intends to become. Somjen is vague in his LinkedIn profile [https://ie.linkedin.com/in/giladsomjen] regarding his actual previous work experience, only listing a couple actual firms. This can either be a red flag or a sign of someone who doesn’t need employment.

According to their FAQ sheet, Cloudwith.me got into business with 1.5 million euros they privately raised.

Cloud Tokens

Cloudwith.me will invest the proceeds from the ICO predominantly into realizing its vision of decentralized cloud services. This includes the development and deployment of their own unique GridNodes infrastructure and Decentralized Application Protocol (DAP). […] Founders and employees of Cloudwith.me will receive 4% of the total issued Cloud Token, however, they will not be able to sell any of their coins for a lockup period of 12 months. Based on the Etherium [sic] infrastructure, their DAP will enable the easy design and launch of decentralized peer-to-peer cloud applications such as media services (music & film), social peer-to-peer insurance, decentralized banking, financial services and other applications without limitations or central governance – all monetised by a single uniform currency – the Cloud Token. The protocol will allow seamless setup of self-governing smart contracts for unlimited range of social applications.

To do the above, they are charging $10 per Cloud Token. They are not limiting the amount of Cloud Tokens actually issued. Instead, they are limiting the amount of money raised to $300 million – so the amount of tokens will not simply be 300 million divided by 10, but it will be somewhere in that neighborhood. Bonuses began at 20% and lowered all the way to the close.

Betting on Vapor?

While we annoyingly can’t get them to commit to a certain number of tokens being issued during this ICO, what we can do is estimate that somewhere between 30 and 50 million tokens will be out there, 4% of them being held back for the founders and team-members. At ten dollars opening price, we can dispense with a lot of the normal metrics and give you a piece of advice: probably going to be a discount on these tokens after the ICO is over.

No amount of confusion as to what the token entitles people to will actually confuse the point: there’s no working service to use these tokens for. Long-term value is definitely there, supposing you believe their product will be a killer product, but short-term it’s not worth this much to hold the token. Day traders will look for every opportunity to get rid of it once they realize that it is essentially waiting on its use case to be built.

The Verdict

We feel that while this is a great product and there will be man such great offerings to access to the decentralized services of the new web, the buy-in cost per token is incredibly steep. This is viewed as an attempt at artificial inflation of the idea’s actual value. Storj themselves raised a fraction of this $300 million amount and they continue to do the actual work – and their token value remains under a dollar sum and whole, which should indicate the actual infant nature of this niche.

Growth Potential

Long-term, owning tokens which grant access to platforms like Cloudwith.me will be valuable. There will be virtual “vending machines” that people go to for them, and people who wish to sell such things will have to get them from somewhere. There is some wisdom in the long-term buy and hold strategy here, but only in a limited capacity because, as above noted, the novelty that Cloudwith.me seeks to introduce is limited in comparison to the amount of money it envisions such novelty costing.

Risk

At an opening token price of $10, good luck getting your money back in the short term.

Disposition

We feel about 60% certain that investors in this token will struggle to achieve liquidity with them, and 40% certain that they will be able to recoup their investment with profits over a long period of time. As such, we give a 4 out of 10 for Cloudwith.me.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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P. H. Madore

P. H. Madore

http://phm.link

P. H. Madore lives in Arkansas with his wife and children. He 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 is currently nearing the completion of a cryptocurrency exchange in concert with the firm he primarily works for, Vermont Secure Computing Consultancy.

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