ICO Analysis: Cryptoflix

Once considered a niche market, video on demand services have now become mainstream. As these services continue toward mass adoption, Cryptoflix intends to become a player in the industry by tokenizing video streaming while adding it to the blockchain.

Cryptoflix is a blockchain streaming platform designed for anyone, anywhere to view paid and free content. The paid content will include televisions shows and movies. Educational content will be free to individuals and available to schools, companies, governments and institutions via a subscription service. Users will be able to purchase the paid content with common cryptocurrencies and the Cryptoflix FLIX token – which will provide a discount to incentivize use. Cryptoflix will first target undeveloped, highly populated countries to gain traction and set out to expand from there.

Following the completion of the platform, Cryptoflix intends to create a film marketplace. Holders of the FLIX token will have the opportunity to invest in film projects listed on this market using FLIX tokens. This will provide funding for the production of film projects while giving FLIX token holders the opportunity to earn returns. The launch of the film market is scheduled for Q1 2019.

Token

FLIX is an ERC223 token that will be used to purchase paid content on the Cryptoflix platform at a discount and to invest in film projects through the Cryptoflix Film Marketplace. The token sale is scheduled to begin May 15, 2018, and conclude June 15, 2018. The price is listed as 1 FLIX = 0.0004 ETH. The hard cap is set at 22,800 ETH, which translates to $11.4 million USD at the time of writing. More than half (57%) of the tokens are available during the ICO crowdsale and 18% is reserved for the team and advisers with a one-year vesting period.

Team

While it’s not uncommon for many of the current ICOs to have team members working full-time jobs in other companies and/or running other businesses, it’s certainly not the best case scenario for success. The Cryptoflix team is no exception, with their LinkedIn profiles showing outside obligations. It’s worth mentioning that only a couple of team members have Cryptoflix listed. However, they do have excellent experience in the fields necessary to achieve success, including film production and distribution, blockchain and marketing. Christian Falkenberg Husum is the founder and CEO of Cryptoflix, as well as current Managing Director for OptiNordic, Portobello Film Sales ApS and Phoenix Film Investments ApS. Stefan Steen Larsen is the COO of Cryptoflix and Head of Distribution and Marketing for Chili Entertainment ApS.

Verdict

Two billion people are estimated to not have access to bank accounts or credit cards, which is what current streaming and video on demand services require. Cryptoflix will give those people the option to use FLIX tokens or other cryptocurrencies in digital wallets to access video on demand content. Cryptoflix will start by launching its Cryptoflix streaming platform, which will include both free and paid content with ambitions to add additional services such as a film marketplace, a production company, an ebook distribution platform, as well as set up a charitable trust. Everything mentioned will be connected to the streaming platform. At the current price of Ethereum, the market cap for this project is rather low and could possibly give a nice return on investment if successfully implemented.

Risks

  • Team members have outside interests, which don’t allow for total commitment to the Cryptoflix project or its success. -0.5
  • The launch of Cryptoflix Alpha is scheduled for the third quarter of 2018, which is after the ICO. Savvy investors would prefer this to occur before the crowdsale. Although they have a proof of concept website, there isn’t any Github information. -1.75
  • If industry giants such as Netflix and Amazon Prime decide to join the cryptocurrency blockchain industry, they will be extremely tough to compete against. -1.5

Growth Potential

  • Developing nations with high populations create an opportunity for exponential growth, provided that a platform like Cryptoflix is able to successfully integrate and gain popularity. +3
  • While the team may not have what some analysts consider “all-stars,” the members have all the prerequisites to achieve their ambitions. +3.5
  • The free content offered should broaden the project’s consumer base and enable conversion of some free content viewers to paid content viewers. +2.5

Disposition

There is little doubt that streaming and video on demand services will continue to be implemented around the globe and Cryptoflix is positioned to profit substantially if successful at adding this tokenized service to the blockchain. The author would argue that focusing on underdeveloped nations in South America, Africa and Asia is one of Cryptoflix’s best decisions to-date, as this will broaden their chances of success. Getting to these markets first could give Cryptoflix a fighting chance if major players in this industry decide to begin using blockchain technologies. However, it’s unclear how those without bank accounts or credit cards will acquire tokens to use on the platform. Accounting for all factors, Cryptoflix receives a rating of 5.25 out of 10.

Investment Details

  • Type: Utility token
  • Symbol: FLIX
  • Platform: Ethereum
  • Price: 1 FLIX = 0.0004 ETH
  • Hard cap: currently $12,540,000
  • Crowdsale: May 15, 2018 – June 15, 2018
  • Available for sale: 57,000,000 FLIX
  • Payments Accepted: ETH

For more information regarding Cryptoflix:

Website: cryptoflix.io
Telegram: t.me/joinchat/HAI8CFMG4X23G1whB-rnYQ
Twitter: twitter.com/Crypto_Flix
Facebook: facebook.com/cryptoflix.io/