ICO Analysis: Emotiq

Who will become the most scalable blockchain ready for mainstream adoption?

Emotiq is yet another contender in the “next-generation blockchain” space that claims powerful scalability and privacy while making smart contracts easier and more accessible.

In their own words, they want to be the Apple of blockchain vs. other blockchains, which are more like Android and Windows (don’t shoot the messenger). Emotiq is developing a blockchain interface so friendly and natural that even kids will be able to use it! Quite the claim when you consider that most adults can’t currently use blockchain!

Emotiq’s smart contracts are written in Ring, a plain English programming language that’s as easy as reading the news. Not only does Emotiq offer an easy way to read and write smart contracts, but it will also support most Ethereum smart contracts (written in Solidity).

Emotiq is aiming at processing 1 million transactions per second, using zero-knowledge proofs for transaction privacy, and scaling through sharding. Secure cryptographic purging of spent transactions will ensure that Emotiq’s blockchain stays small and manageable.

Emotiq, like other similar projects, will allow for ICOs and DApps. Also, it will feature a decentralized exchange.

In essence, Emotiq wants to be the next Ethereum or Stellar but scalable, private, and accessible.

Token

There will be 1 billion total Emotiq (EMTQ), which will be distributed as follows.

  • 51.3% token sale
  • 16.7% development
  • 10% marketing and ecosystem
  • 10% reserve
  • 10% team
  • 2% advisors and backers

EMTQ is deflationary (max token supply decreases over time). A fixed percentage of yearly transaction fees will be burned. This will be done to increase the value of EMTQ and also to help prevent attacks on the EMTQ network.

In terms of its usage, Emotiq’s FAQ page says that EMTQ will be used the same way that ETH is used for Ethereum. In other words, we can expect EMTQ to be used to pay for resource consumption (sending payments, paying for services, creating child tokens/launching ICOs, etc.) on the Emotiq network.

There will be no public sale but Emotiq is currently in its third round of private sale (4 rounds total). If you are interested in participating in the private sale, contact sales@emotiq.ch with information about you / your fund, allocation you are interested in, and how you can help Emotiq grow.

Here are the details of private sale rounds and seed round thus far:

  • Seed – 150m EMTQ (15% of max supply), $2m cap, 100% lockup – linear release beginning 3 months after mainnet launch (12.5% per month)
  • Private round 1 – 140m EMTQ (14% of max supply), $9.8m cap, 50% released and 50% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (20% each month)
  • Private round 2 – 60m EMTQ (6% of max supply), $6m cap, 70% released and 30% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (33.3% per month)
  • Private round 3 (ongoing) – 139m EMTQ (13.9% of max supply), $18m cap, 75% released and 25% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (33.3% per month)
  • Private round 4 – 23.5m EMTQ (2.35% of max supply), $3.2m cap, no lockup

Private sale inquirers who are deemed qualified will receive further details about past rounds, such as price.

Token sale proceeds will be used to do things like expand the Emotiq ecosystem through educational programs, build a top-notch research team, explore different smart contract languages for their ability to accelerate mass adoption, and provide venture funding for Emotiq-based projects.

Team

Emotiq is led by CEO Joel Reymont, who has 25 years of experience in technology and management. For example, he was Director of Prime Brokerage Technology at Deutsche Bank and CTO of Aeternity, another popular blockchain project.

Ann Soederblom, VP of Marketing – Soederblom has worked as a project manager for multinational companies like Citigroup and Holcim (8th largest Swiss company by revenue) and also runs her own marketing agency.

Vladimir Lebedev, VP of Engineering – Lebedev has an impressive background, having served as CTO of the Russian stock exchange, executive at VEON (telecoms company with more than 200m subscribers), executive at Mail.Ru group (biggest Russian Internet media company), and executive at Sberbank (biggest Eastern European bank).

Verdict

Below is a breakdown of the risks and growth potential of Emotiq.

Risks

  • Bold claims (1m transactions per second and so on) but no mainnet (launch “expected” end of Q4 2018) or even testnet yet (-0.5)
  • Some tokens released after mainnet launch – what if there are problems with launch? Has happened before (-0.5)
  • Lacking in hype thus far (-0.5)

Growth Potential

  • Decently experienced team (+4)
  • Based in “Crypto Valley” (Zug, Switzerland) – favorable regulatory environment and good ecosystem to be a part of (similar to how being a tech company in Silicon Valley means proximity to leading members of the tech community) (+3)

Disposition

Though Emotiq’s ambitions are bold and they have a strong team and favorable working environment (Crypto Valley), their ambitions are as of yet unsubstantiated and hype regarding the project is – to date – lackluster.

Emotiq receives a 5.5/10.

Investment Details

  • Type: Native – Utility
  • Symbol: EMTQ
  • Platform: Native
  • Crowdsale: Private sale ongoing
  • Minimum Investment: $100k
  • Price: Contact sales@emotiq.ch for more info
  • Hard Cap: $39m
  • Payments Accepted: ETH
  • Restricted from Participating: Iran, Sudan, Libya, Syria, North Korea and the rest of the countries on the US sanction list are restricted from participating. Accredited investors from the US are allowed to participate.

For More Information

Featured image courtesy of Shutterstock.

Leave a Reply