ICO Analysis: DCORP
A decentralized corporation, as opposed to a traditional corporation, allows anyone to participate without any form of discrimination.
DCORP aims to prove that decentralization and crowdfunding can align with some traditional business interests, and that a company can thereby be formed in such a manner that power and control are decentralized. The direction of the company is somewhat dictated by the new investors, who have a stake in the progress of the company’s various efforts. A decentralized corporation, unlike a centralized one, doesn’t need necessarily a small group of people to fire, but rather a large group of people with similar interests and ideas on how to achieve them.
DCORP also wants it to be easy for people to participate, and claims that doing so will be “as easy as using Facebook.” DCORP will have a board of directors who will be compensated for their decisions when they lead to profit. Every shareholder, however, will have a say in the direction of the company. “Autonomous profit” is the goal of DCORP, in one respect.
DCORP is a profit driven corporation that autonomously generates growth and a steady stream of income for its shareholders. […] While blockchain technology is still in development, business concepts are matured and proven. DCORP brings business and programming talent together in a trustless environment that allows them to do what they do best. […] Developers profit from their efforts while investors gain security and a chance to invest in new technology following business rules that make sense. […] DCORP’s core business is funding and managing the development of other Ethereum projects and operating them autonomously.
Therefore, it seems that going into DCORP means you are going to be counting on all the other participants, token holders and the like, to be rational actors in the ecosystem. They will have to be acting in a way that is mutually beneficial to you. For this to happen, everyone has to be clear on what the common goals are, and doing things that lend to that cause. Without this being the case, no one can count on any real profits. But it will probably be the case. The hype bubble surrounding DCORP is not, after all, without merit. The project has a clear projected goal, and a clear plan to achieve it, that looks something like this:
- Launch a decentralized exchange with various pairs, many of them Ethereum-based.
- Distribute profits from the transaction fees of using the exchange.
This seems an easy enough to understand profit model. People can submit other “governance proposals” later on, and if enough fellow shareholders get behind them, then new ideas can become reality. There’s no reason, for instance, the project couldn’t offer other services, like gambling and so forth, if the shareholders were all in favor of it and it could be developed.
The DRP Token
The token is not mined or pre-mined and there is no initial balance that belongs to the founder if unsold. The token’s value is sufficiently guaranteed by ETH remaining in the contract under the control of the token holders. The larger percentage of ETH, acquired through the pre-sale, remains in the token creation contract and is undoubtedly transferred to DCORP’s contract when deployed, with approval of the token holders. The remaining ETH is used to fund DCORP and the seed project (see also the section Funding breakdown).
This is the part that bares speculation, and actually was the hold-up in the publishing of this analysis. We had to determine what we were talking about here. Like many ICOs, there are multiple phases of the DCORP sale. The first is already over, the pre-sale, and its proceeds are mentioned above as being the backing for tokens generated during the crowdsale. Then the funds generated from the crowdsale are what is actually used for the development of the project. While this is an unusual way of doing things, the numbers do work out so long as there was an equivalent or higher amount of Eth raised during the crowdsale than the pre-sale.
According to Forbes writer Nikolei Kuznetsov, this is part of a strategy to lessen the negative effects of dumping:
DCorp goes about this differently by putting up a €724 thousand cap in Ether, and if this funding goal is not reached, participants are refunded. They also set a max cap of €9.5 million in order to keep their initial investors at an advantage. All DRP tokens are paid for to prevent dumping, making it a fair and transparent presale.
Holding the token will give you the value of the token plus ownership over the Dcorp’s future decisions as to investments and business moves.
The DCORP Team
Since this project is decentralized, and will likely live or die based on the actions of the broader network, the team behind it are not going to be given quite so much weight in terms of rating. Nevertheless, leading DCORP is Frank Bonnet, who has almost a decade of experience in enterprise IT work and also previously founded an insurance company.
Next listed we see Hansco Leek, who previously had success in a starting up Autodealers.nl, a consumer tool for finding cars in parts of Europe. His profile says that he took a lot of the money he made from that venture and used it to invest in other Internet companies, and later Bitcoin. A successful, boot-strapped type of investor as this will have a lot of good input on the project.
Leek’s relative Corbin will be handling the systems design, and this is important because DCORP has chosen to run much of its infrastructure on Microsoft architecture, an unusual move for cryptocurrency start-ups, but Corbin Leek claims to have 17 years of experience working in such systems.
By the time Hacked got around to reviewing it, the Crowdsale for DRP was half sold out. The slow adoption is not necessarily a huge drawback, but by comparison to other major ICOs of late, it is a measure of concern. People are perhaps confused by the pre-sale/crowdsale dynamic, and why the DCORP should be a good vehicle for returning dividends. Perhaps if you had a more stellar advisory board running the company itself, you’d have a wider response, because in something like this a proven track record of business acumen is going to play a big role, and the more legendary the better.
The token’s performance and perceived value is going to rely heavily on human actions, which is not a good thing in terms of monetary instruments. The company will actually have to perform, and there will be no shortage of other decentralized exchanges trying to earn trader dollars.
Nonetheless, all things being equal, there is a lot to like about Dcorp. We’re going to call it a 5.5 out of 10 in hopes that over time it does return a significant profit. But overall, there are certainly quicker and lower maintenance approaches to make your money in Ethereum.
Prospective investors still have around 24 hours or a little less to get in on this ICO. Over 4,100 different Ether addresses had already invested in DRP tokens by the time this author checked, generating a supply of over 7 million, or still less than half of what they are going for in total, leaving plenty of room for Hacked readers who are interested in the platform. Investments can be tracked at the smart contract itself’s address – tokens will be issued automatically to buyers. Purchases can still be made here [https://www.dcorp.it/crowdsale#countdown].