ICO Analysis: Drep

Founded in Singapore, DREP is a decentralized reputation ecosystem using blockchain technology to empower various internet platforms to quantify and monetize reputation value and uses it for trading, making investments, sharing data and providing services. It is comprised of a public chain, a reputation-based protocol and tools for internet platforms (DRApps -apps developed upon the infrastructure of DREP blockchain) to leverage it all.

DREP’s Vision:

  • to create a reputation-centered blockchain platform by utilizing data sharing, economic incentives and a decentralized mechanism.
  • to break the data barriers between different internet platforms.
  • to monetize and quantify the reputation value of users, content, products, services, etc.
  • to allow reputation-owners to manage their reputation in a safer and more private way.
  • to enable applications on the Internet to maximize the value of reputation data.

DREP’s user cases include the following platforms:

  • E-commerce platforms: B2B/B2C/C2C/O2O, etc.
  • Social platforms: Instant messaging/ integrated social/ vertical social, etc.
  • Tool platforms: system/work/life/entertainment
  • Content platforms: OGC/PGC/UGC, etc.

Common problems that platforms face:

  1. Untrustworthy data
  2. Malicious manipulation
  3. Low user engagement
  4. Low user retention rate
  5. Lack of economic incentives
  6. Difficulty to monetize website traffic
  7. Monotonous reputation evaluation mechanism
  8. Isolated reputation between platforms

DREP intends to improve the quality, increase engagement rate and build trust within the internet community. In an ever-changing world with exponentially growing sources of information, a centralized platform could mean the possibility of manipulation of content pushed through to the viewer, thus causing trust issues, low engagement and problems for platforms. With a decentralized reputation system enabled through blockchain technology, DREP could help tackle all of these issues.

Token

DREPs are ERC20 tokens that will be used as network gas, a payment instrument for value-add services around the reputation connector and network tokens for small-and-medium DRApps (Decentralised Reputation Appls). DREP tokens will also be used to tip users, content, products and services on the DRApp platform.

The crowdsale is scheduled for the end of June with a price of 1 DREP equivalent to $0.011 USD. Three billion (30%) of tokens are available for purchase with a hard cap of $28.7 million USD. There are lock-up periods of 90 days, 45 days, and 30 days for 50% of the tokens sold during the private sale, private pre-sale and public pre-sale. Team tokens are vested for 1 year.

The token Distribution is as follows:

  • 15% (1.5 billion) Team – 1 Year Vesting Period
  • 15% (1.5 billion) Community Development, Branding & Treasury
  • 30% (3 billion) Token Presale & Crowdsale
  • 40% (4 billion) User Acquisition & Strategic Partnerships

Team

The DREP team brings proficient technical and blockchain experience. Ten team members are listed on the DREP website, including:

  • Matt Bennice (Co Founder) – Software Engineer at Google and X, the moon factory, and previously with Accenture.
  • Stephen XU (Co Founder) – Former Lead Developer for QTUM, previous Software Engineer at Tencent; interned at Google.
  • Momo Chang (Co Founder) – Former Securities Analyst at Orient Securities and previously with Kantar TNS.

The five advisers listed help compensate for the team’s lack of business experience. Advisers include Lien Siaou-Sze, former Vice President at HP Asia Pacific, Board Member at NTU’s Confucius Institute, Ph.D. University of Cambridge, ranked in Fortune’s Top 50 Women in business outside the U.S. for six consecutive years.

Verdict

DREP seeks to integrate existing platforms and help them improve and grow rather than compete with them. DREP doesn’t plan to be a stand-alone platform like many existing competitors, but rather provide a protocol for the existing internet platforms. The more the DREP ecosystem grows the better it is for the participants of the system and it creates positive synergies for partnerships. This unique approach could prove profitable in the current highly competetive ICO market.

Risks

  • The beta test of reputation infrastructure network isn’t scheduled until Q4 2018 and the Mainnet isn’t scheduled to be launched until Q1 2019. While this time frame is only months away, crypto investors tend to be impatient. -1
  • Typically the lower the hard cap, the more opportunity for ROI. The hard cap is slightly on the high side at $28.7 million USD, but not too bad. -1
  • Token metrics are clearly in favor of the private and pre-sale investors with only 600 million (20%) of the 3 billion tokens for sale being made available for the public crowdsale and at a higher price. -1.25

Growth Potential

  • ICOs with partnerships tend to perform better than those without them. DREP lists thirteen strategic partnerships including QTUM and QuarkChain. +4
  • The 1-year vesting period for the DREP team indicates long-term commitment and dedication to the project’s success. +3.5
  • DREP aims to have an MVP available prior to the crowdsale which appeals to ICO investors. +2.5

Disposition

DREP appears to be on track to have a successful ICO with a solid team, multiple advisers, excellent partnerships, a reasonable hard cap, an achievable roadmap, and currently building hype towards the beginning of their crowdsale. Whether or not long-term adoption is achieved depends on multiple factors. However, a short-term position could prove profitable in the current ICO market. DREP receives a 6.75 out of 10 rating.

Investment Details

  • Symbol: DREP
  • Platform: Ethereum
  • Price: 1 DREP = 0.0077 USD
  • Hard Cap: $19,800,000 USD
  • Total Supply: 10 Billion
  • Available for Purchase: 3 Billion (30%)
  • Payments Accepted: ETH

For more information regarding drep:

Website: https://www.drep.org/
Twitter: https://twitter.com/drep_foundation
Telegram: https://t.me/drep_foundation
Facebook: https://www.facebook.com/DREPFoundation/
Reddit: https://www.reddit.com/user/DREP-FOUNDATION/
Medium: https://medium.com/@DREP_Foundation