ICO Analysis: Dent | Hacked: Hacking Finance
Hacked: Hacking Finance

ICO

ICO Analysis: Dent

Posted on .

ICO Analysis: Dent

Introduction

This article was posted on Tuesday, 19:54, UTC.

Dent intends to launch their token sale on the 12th of July, and that is when their whitepaper will be “finalized.” Nevertheless, we reviewed based on what we saw at hand at the time. It’s the only way forward.

// -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- //

Dent’s mission is to “liberate mobile data.” They want users to “own” data. This is their goal, and they intend to achieve it through a combination of good business tactics and the crowdsale, which will raise funds to make moves that are necessary to the cause of data liberation. The question is: will people even bother to get involved? Is there enough benefit for the users to invest the time and energy to get involved with Dent?

DENT enables a “Data Sharing Economy” where users are able to freely buy, sell and donate their mobile data, from any user to any user. The DENT-Exchange acts as horizontal marketplace for trading of mobile data like on a stock market. The DENT Token will be the world-wide currency for Mobile Data between Telcos and the user community.

Again, while this sounds fine, there’s no reason to actually believe that a critical mass of people will adopt this technology and transact in this fashion. Instead, it’s more likely that a slow adoption rate will occur for a good long while on this product. Which is fine, it just changes the type of investment and the type of people that are looking into it. If you’re looking for something that will probably gain value in the long-term, then this is the type of thing you would want to look into. But if you’re looking for a short-term gain, then this is not going to do it for you, most likely, at least not on the scale you would like.

Value Proposition

Dent will be a fee-gathering service for its connections between buyers and sellers of data. It will enable automatic purchase of data by certain types of devices, which will be a valuable thing to a select minority of the actual mobile user population. Nevertheless, it could be lucrative if such a proposition actually catches on among the developers of say smart devices. On-demand mobile data for things like smart watches, which use limited amounts of data, could be an easy sell. As such, the novelty of the idea does gain it several points in our book.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

It’s hard to imagine a world where people are actively buying and selling their data. People might want to buy data, if they run out or their plans are expensive, but then there is the question of whether they will actually be able to use it without some third-party device or complicated process. The thing is only actually valuable if it is easy, and it’s hard to imagine it being easy across the literally hundreds of different possible devices it could be tried on.

This being the case, we have to deduct one point for perhaps a too-utopian approach to technology.

The value proposition is simple, though: there are a lot of people who need more data than their plans allow, and other people who get data at a discount rate. If you connect these people, you will be able to create a marketplace. If you create a marketplace, you can seek rent from it. And this is the idea.

// -- Get exclusive consultation for as low as $249 per month on MoneyMakers.com -- //

The Dent Token

DENT is the currency and powers the DENT exchange. The actual sale, purchase, and donation of mobile data packages is handled by Ethereum blockchain. The data packages are smart contracts in Ethereum. DENT exchange will drive the smart contracts, effectively making the system a blockchain-based trading platform. As the exchange becomes the de-facto standard for trading of mobile data packages, it will also become the principal method for determining the floating price of mobile data worldwide. Telcos and end-users will interact in a true market driven way to determine the current price. This leads to transparency, increased competition, and better utilization.

A total of 100 billion DENT tokens will be issued in the upcoming sale, for a raise of 152,000 Ether, or roughly $43,405,120 at current prices. This is an incredible raise considering what the firm intends to do, and if they achieve it, it could be a colossal loss to all the investors involved.

Despite the large sum of tokens being issued, as is evident, a single Eth will buy you 400,000 tokens. The token can then be used on the marketplace to buy and sell mobile data. Nevertheless, it can of course also be traded off, if such a thing is enabled by exchanges. This is always a possibility, especially with tokens that have some form of utility people may go seeking – exchanges want to, essentially, be able to vend these coins.

The Dent Team

Founder Tero Katajainen is from Finland and claims several start-ups to his credit. He holds a masters in science and engineering, a definite plus considering the task at hand. He has experience in FOREX, which helps in understanding how markets should be organized, and whether or not tertiary (betting, basically) markets should be allowed to run alongside.

In charge of the smart contract development is Ville Sundell, who is an Ethereum entrepreneur and has a decade of systems engineering experience. This experience will be applicable in developing a market that is functional and fully available at all times. This is crucial to the successful operation of any marketplace – constant availability and reliability of trades.

Michael Wirth will be running payment systems. He has 20 years of experience in transactional work, which is important. It would seem that since this company is trying to raise so much money, if they are successful in doing so, both Sundell and Wirth will have a large team of other professionals working to help them implement the mission of a marketplace for data.

The Verdict

In Dent we find a very novel idea, and for that we lend 5 points at the outset.

Risk

One question that arises with all of this is: will a decentralized option arise? If so, will it kill this? For this risk, we must deduct a full 0.75 points.

Our next element of risk is that user adoption will not pick up, and therefore demand for the token will steeply drop off. For this very real risk, we deduct another 1.25 points.

Growth Potential

Nevertheless, in Dent we find something with a lot of potential for growth. If people do like it, or a few small companies start using it to provide data services, then you’re looking at a significant marketplace and a lot of value being added to the token. For this possibility, we lend back 1.5 points.

For the sake of fairness and this being a first mover in its market, we lend another 1 point.

The outcome of this equation is as follows: 7.5 – 2 = 5.5 out of 10. The possibilities were 0 to 10, so this is not the worst it could be. It is probably a slow-growth investment, and if that is what you are looking for, then perhaps look closely at DENT and consider it.

Investment Details

You can currently pre-register and get a 20% bonus. The crowdsale proper will be opening soon. The rate of 400,000 per Eth plus a 20% bonus would be 480,000 per Eth right now – not bad at all, if you’re actually consider this as an investment vehicle. You’ll have some time after the sale launches – they’re trying to raise a large amount, so it will take some time to actually achieve their goal.

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.



Feedback or Requests?

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.

Comments
  • user

    AUTHOR embersburnbrightly

    Posted on 2:59 am July 5, 2017.

    Very informative review, as always. Thank you.

  • View Comments (1) ...
    Navigation
    The team:
    Dmitriy Lavrov
    Analyst
    Dmitriy Lavrov is a professional trader, technical analyst and money manager with 10 years of trading experience. He covers Forex, Commodities and Cryptocurrencies. He is among the top 10 most Read More
    Jonas Borchgrevink
    Founder
    Jonas Borchgrevink is the founder of Hacked.com and CryptoCoinsNews.com. He is a serial entrepreneur, trader and investor. He shares his own personal journey on Hacked.com. // -- Discuss and ask Read More
    P.H. Madore
    ICO Analyst
    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 Read More
    Mate Csar
    Analyst
    Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive Read More
    Justin O’Connell
    Journalist
    Justin O’Connell is a cryptocurrency journalist who works have appeared in the U.S.’s third largest weekly, the San Diego Reader & VICE. // -- Discuss and ask questions in our community Read More
    Mati Greenspan
    Analyst
    Senior Market Analyst at Etoro.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Important: Never invest Read More
    Rakesh Upadhyay
    Analyst
    Rakesh Upadhyay is a Technical Analyst and Portfolio Consultant for The Summit Group. He has more than a decade of experience as a private trader. His philosophy is to use Read More
    Pamela Meropiali
    Account Manager
    Pamela Meropiali is responsible for users on Hacked.com. // -- Discuss and ask questions in our community on Workplace. Don't have an account? Send Jonas Borchgrevink an email -- // Read More
    Joseph Young
    Journalist
    Joseph Young is a finance and tech journalist & analyst based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering Read More
    Tuesday Market Recap Asset Current Value Daily Change S&P 500…