ICO Analysis: Dock.io

According to Research and Markets, “the online recruitment market in the US is forecast to grow at a CAGR of 6.47% during the period of 2016-2020.” As the online recruitment industry continues to grow in size and popularity, online recruiters have developed in-house recruitment CRMs that are heavily reliant on data intelligence.

Data helps online recruiters find and recruit suitable talent for their clients and also gives them insight through metrics on how their current processes are working. More specifically, data helps online recruiters target actionable applicant pools and highly-qualified passive candidates. Because of this reliance on quality data intelligence, online recruiters have been more aggressive to their approach of data acquisition.

One start-up looking to take advantage of this growing trend is Dock.io. Founded by the team who created Remote.com, Dock.io is seeking to be a blockchain-verified data acquisition platform for online recruiters.

Token

The Dock.io token (DOCK) will be implemented using the Ethereum ERC20. DOCK holders generate value from the token as a means of currency for data transactions. Essentially, the value of the tokens is linked to the amount of data being acquired by third-party applications on Dock.io’s platform. Theoretically, as data acquisition on the platform increases, so would the price of each DOCK token.  

The company has yet to release any information on use of funds. However, the company’s website at least breaks down the total token distribution: 30% towards the token sale, 30% towards ecosystem incentivisation, 20% towards the team (2-year vest), 10% towards cold storage (2 year lock), 6% towards investors, and 4% towards advisors (2-year vest).

Dock.io (DOCK) tokens are valued at US$0.067 per 1 DOCK with a US$20M hard cap (equivalent to 1 billion tokens).

The company has not yet stated its intention to list the DOCK tokens on any major crypto exchanges.

Team

Dock.io’s core team consists of serial entrepreneurs that have all worked with each other in the past. As compared with the majority of ICO’s, the quality of the team seems to be on par.

The company’s Co-founder, Nick Macario, is a serial entrepreneur that’s currently the CEO/Co-founder of Remote.com. Nick previously had success through the acquisition of his company Branded.me by Outsource.com (which was likely an incredibly small deal). The company’s other Co-founder, Elina Cadouri, is also a serial entrepreneur that’s currently the COO/Co-founder of Remote.com. Elina had previously founded Outsource.com (which acquired Branded.me), which has now been closed. The company’s CTO, Stenli Duka, is currently the CTO of Remote.com. Worth noting: Dock.io has no listed CEO.

The rest of the company’s team is a mix of engineers/developers, a data scientist, and two business development professionals. However, they all hold jobs at other companies – just like the company’s core team.

Dock.io’s advisory board consists of Lasse Clausen (serial entrepreneur and blockchain angel investor), Christopher Heymann (blockchain angel investor), Lester Lim (a blockchain advisor that’s involved with many ICOs), Avish Bhama (serial entrepreneur), and Darius Rugevicius (a blockchain investor). Worth noting: none of the advisors lend credibility to the ICO.

Notable investors include: Passport Capital and BKCM’s Digital Asset Fund.

Verdict

Dock.io presents a highly speculative buying opportunity for investors interested in short-term capital appreciation.

First off, Dock.io lacks a dedicated team. Secondly, none of the company’s core team has achieved “true success” with their prior start-ups. Third, the company provides no details on the use of funds from the token sale. Normally, these signals would trigger a major red flag and lots of caution tape. However, this ICO doesn’t seem to be malicious, rather it seems to be more like a project than an actual company. It’s also worth noting that the company has selected Deloitte as its auditor – meaning, the company won’t run away with the funds raised by the ICO.

While Dock.io’s ICO has some notable investor participation, it’s likely that they’re involved as “flippers.” Meaning they’re not long-term investors – they’re only participating for a quick profit.

Risks

  • Any fundraising events (including ICOs) always include the use of funds. No information on the company’s use of ICO funds is a major red flag. Is the money going towards operations and development or towards the team’s crypto wallets? Based on currently available information (at the time of writing), there’s no answer to this question. -3
  • The basic premise of any successful start-up is that it has a dedicated and talented team – yet, Dock.io doesn’t have any of the above. All the current team members are holding multiple jobs – most of them are employees at Remote.com.Which means Dock.io is likely plagued by a high amount of execution risk. Additionally, 20% of total token distribution towards the team is relatively high (especially since they’re not full-time). -1.5
  • The prior companies founded by Dock.io’s core team, never achieved meaningful scale. There’s no reason to believe that Dock.io will be any different, especially since the entire team is balancing multiple jobs. -1

Growth Opportunities

  • Dock.io has announced three partnerships with: Fund Request, Remote.com, and SmartRecruiters. This opens up the company to offer services to over 15M registered users between the current three partnerships. Forward-looking, as the company develops new partnerships (with other recruiting platforms), there’s the potential of rapid mass scale. +4
  • Unlike the majority of ICOs, Dock.io already has a functioning product that’ll fully launch in Q2 2018. Additionally, the current team has created functioning products in the past (Remote.com), so technology risk is relatively low. Market adoption risk has also been mitigated by the company’s current partnership with SmartRecruiter – which proves that larger scale recruiting platforms are interested in blockchain-verified data acquisition. +4
  • The identity and access management market has been experiencing incredible growth – according to research by MarketsandMarkets, it’s expected to reach $14.82 billion by 2021. While incumbents control the broader identity and access management market, niche service providers (such as Dock.io) still have a lot of runway for growth and could potentially be high-value acquisition targets by larger companies. +3

Disposition

Because of Dock.io’s flaws, the DOCK token is worth renting – not owning. Meaning it’s an ICO that’s only good for flipping – this is due to the fact that Dock.io doesn’t seem or behave like a real company (it seems much more like a project).

Even though Dock.io seems to be a “project” by the team at Remote.com, it doesn’t mean there isn’t any profit potential around this ICO. Like some of the institutional investors involved, flipping the DOCK tokens will likely prove to be a profitable trade.

Against this backdrop, we believe that a score of 5.5 out of 10​ is warranted.

Investment Details:

  • Type: Utility
  • Symbol: DOCK
  • Whitelist: Feb. 8, 2018
  • Public Sale: Feb. 21, 2018
  • Price: 1 DOCK = $0.08 U.S.
  • Hard Cap: $20 million
  • Jurisdictions Barred from Participating : China
  • Payments Accepted: ETH

Disclaimer: no position in Dock.io at the time of writing.

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