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ICO Analysis: Enjin Coin

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We like when entrenched or existing players in industries see the power of the blockchain and identify their own opportunities within it. This is what we see with Enjin, who launched their online gaming-centric content management system in the same year that Bitcoin was getting off the ground. Enjin therefore gets the benefits of extolling its own virtues before pitching a new idea: millions in monthly revenue across over a quarter-million gaming communities around the globe.

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While we have to avoid the fallacious idea that just because an idea worked in fiat sytems it will work even better on a blockchain, it is encouraging to know that the people approaching the project in question are deeply familiar with the subject matter. We lent Rex[] additional points on these grounds, being that their progenitors are established property development professionals and Rex is meant to serve that demographic. In the case of Enjin, they really took some time to find the right tool set for their task: they’re building a Bancor Protocol token, not just any ERC20 token.

The idea of Enjin’s ENJ token is not necessarily a new one. Brock Pierce originally made his real money from a firm that allowed people to sell virtual goods acquired through gaming. What Enjin would like to build is a system wherein players will be able to seamlessly do this, enabling content creators and players to have a much better experience when it comes to the dollars and dimes of gaming. Everyone agrees that game developers and studios should be paid, even subscriptions in the cases where ongoing content and services are in order. What is debatable is whether it should be a zero sum system when it comes to the digital goods and services offered inside of such a platform. It would seem that cryptocurrencies, native to the same way in the same way that massively multiplayer games themselves are, will fit right in to service the need of a solution.

Enjin will develop tools that enable game publishers, game servers, and communities to manage virtual goods and in-game items across multiple platforms. Monetization using Enjin Coin will be a key focus with robust features and toolsets provided. Great benefits will be gained by utilizing a decentralized platform and the supporting frameworks.

Building on Bancor

Enjin says on the token ICO page that they will be using Bancor to issue the tokens, but they don’t mention much in their whitepaper about their thinking here, or how this makes things better. In any case, Bancor is an established way of issuing tokens. It’s one of the purposes of the Bancor protocol, and one of its use-cases.

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Nevertheless, having just enough technical grasp of what is going on with Bancor and Enjin, we can deduce that Enjin is using Bancor for its enhanced smart token capabilities. Bancor explains smart tokens, in part, in the following way:

Smart tokens are compatible with the ERC20 standard and can be used by any softwarethat supports this standard, such as Ethereum wallets. However, smart tokens offer additional functionality not available to regular tokens. Each smart token holds a reservebalance in one or more other ERC20 tokens, thereby enabling anyone to exchangebetween itself and any of its reserve token(s). The smart token’s smart contract issuesnew tokens (expanding the supply) to anyone who purchases it with any of its reservetokens, and withdraws tokens from the reserves (contracting supply) for anyone choosingto liquidate the smart token.

Presumably, ENJ, along with BNT and ETH, will act as base currencies for tokens issued within the Enjin platform.

But Who Needs It?

Enjin are good at identifying their market above all others. This harkens back to our earlier assertion that the best blockchain technologies will derive from those who are already familiar with the industries they intend to disrupt. In Enjin’s case, they’ve been able to install themselves as a medium between game publishers and their communities. In many ways, their company, at over 8 years old, has already outlived many of the games people probably first encountered them through.

Their goal is to produce a platform on which developers, community members, and players will be able to freely transact in digital goods and services related to interests they are already engaged in. Their first target market, although obviously they can expand to new games easier through native integrations, is an existing, global community of players already willing to spend money in a similar fashion.

They are entirely serious about this last aspect, with several developer tools built into their roadmap, one of which being a plugin for Unity, which is a popular engine on which modern video games are built.

The Unity C# SDK will allow creation of transaction requests, reading account balances, creation of subscriptions, and querying toplists.

There are a few other developer tools they speak of implementing right away. Making it easy for developers is a primarily important thing in the early phases. However, Enjin will already see some adoption regardless of this because it will be leveraging existing communities and relationships built over many years.

So far, so good. Where the rubber meets the road is in both the economic purposes and design and design of the ENJ token. We must now get to the heart of that.

Enjin Token (ENJ)

The Enjin platform itself can be seen as a sub-Ethereum, although it is technically sub-Bancor, protocol. Within it, an unlimited number of other tokens can be generated by the individual participant games and communities. These tokens can be used in a variety of ways. One important thing that we must determine before deciding on ENJ is whether or not they ever intend to go full ENJ. Meaning, will they always accept alternative payment methods for developers getting into the network? If so, there would also be a dilution of funds by virtue of arbitrage as well as attrition.

The answer to this question is made in part in the following statement:

Enjin Coin features will be integrated across the entire Enjin CMS platform and natively supported by over 250,000 existing gaming websites.

They go on to stress that it will be much cheaper for developers to accept payments through Enjin Coin and while this may be rue, it is not the confidence builder we’re looking for. We need systems that force the issue, or else the tokens are only a maybe sort of proposition. The systems that will yield more valuable tokens for token investors are those which build demand by having utility. Enjin’s token platform, and the many tokens that can be issued upon it, have such utility, but they are not going to allow themselves room to grow their network effect. A simple fix to this is forcing other payment rails off the site, and only competing with new platforms that want to integrate Enjin Coin in addition. This would create a more valuable token for competitive purposes, anyway.

Nevertheless, they do list out a number of interesting and valid use cases for the Enjin Coin:

  • Promotion on Enjin platform, perhaps within games there.
  • Payment gateway with almost no cost for usage.
  • Donation and reward setups for players and customers.
  • Automated payments.

We have confidence that the Enjin team are far more than capable of completing their technical goals. To this end, they have developed a UI concept which they share in their whitepaper:

Distribution

In total, the sale will allow for the creation of 1 billion ENJ tokens. Since this is not a mineable currency, this appears to be all the tokens that will be created. The presale has been ongoing, and during this time a total $4,143,821.96 had already been raised at time of writing. Adding confusion to the issue, their bonus structure works opposite to the normal way, such that:

$2,000,000 USD and over receives a 50% bonus.

We won’t let this distract too much from the core values of the coin, which outweigh the one setback. Additionally, only 20% of the coins are being held back, whereas in many recent ICOs we have seen ratios as high as 50%, which can be problematic in determining an actual price on something.

The Verdict

The crucial part of a tokenized system is missing, but this doesn’t mean it can’t be repaired level. The author’s gripe with the system is simple enough: Enjin Coin will only be an additional payment option in the Enjin platform. But it will be a competitive one, and the decision to force the issue is at the discretion of a company which might benefit from that handsomely.

Risks

  • Without sufficient motivation, which is to say lack of choice in order to participate in the Enjin platform or any of its games, people will still often choose other payment rails even where Enjin would actually work out better for everyone involved. -3
  • Push-back from companies like Steam could add up to a mighty, unforeseen force of competition. -1

Growth Potential

  • We like building this on Bancor, which is steadily gaining momentum in terms of value, as people begin begin to realize its potential and things are built on its protocol. Like Ethereum or anything else, Bancor’s value relies on the tokens beneath it, which in turn will benefit from the stability provided therein. A similar effect is had on Enjin by its own design, and since it comes on board with a quarter-million compatible platforms, we see dollar signs. +3
  • The variety of developer toolkits will likely add up to actual integration, especially if some of the reserved tokens are used to incentivize user demand through bounty campaigns. Such campaigns could focus on getting developers to build on Enjin. We can foresee a company like Enjin being wise enough to do as much. +2.5
  • The cost of platforms continues to goes down, the adoption of games continues to rise. Enjin will be positioned to profit from the nexus of the rise of both gaming and the blockchain. +2
  • As exhaustively noted heretofore, this company knows what it is doing. That it already has a community to leverage money from, which already willingly pays it money through other means, means that it will be able to extract more value via the blockchain, and provide more value as well, since there will be fewer fees yet more possibilities. +2

Disposition

We arrive at a solid 5.5 for this initial coin offering, with room to go either way depending on developments of the actual rollout. This won’t take long to see, since the company backing it will certainly deliver something.

Investment Details

The presale is ongoing. The total coins generated will be 1 billion. Please follow all instructions carefully when reviewing this ICO and do your own additional research before sending money anywhere.

Further investment details are available at https://enjincoin.io/.

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5 Comments

5 Comments

  1. kyenneti

    September 2, 2017 at 2:09 am

    Hi,
    P. H. Madore, How do the ratings work? Does a 5.5 means a buy or not a buy? Is there a range for strong buy/Buy/Buy with caution/Not a Buy? Are you buying these tokens?

  2. claudio_101

    September 2, 2017 at 11:58 am

    Hey,
    Do you have any idea if the ENJIN coin is going to be traded on exchanges? Because I can imagine that not only gamers would want to invest in this ICO. Well what I’m asking is how are non gamers going to profit from this ICO?
    Thx

  3. cryptonoob

    September 6, 2017 at 6:49 pm

    This one looks like a really great idea with a realistic but ambitious roadmap and a team that looks up to the challenge.

    So, what are we missing ? Why does the presale does not sell completely out yet ?

    Is it because there is no first mover advantage (first blood) or no real marketing effort yet ?

  4. jagrmeister

    September 12, 2017 at 9:18 am

    One thing I’m not clear on: is the team putting this together part of Enjin. Are they on Enjin’s payroll and this is an internal operation of the company? They have titles like Founder/CEO but do they also hold a separate title with Enjin (such as Director, Sr. Software Developer), etc. I’m trying to understand how autonomous this team is; and also how tight their relationship with Enjin is. One concern I have is alignment. Small startup teams work their tail off because everything depends on it. Enjin Coin could disappear and no one use it; and the company would be doing just fine w/its current source of revenue. The people involved, if they work for Enjin, could drift off to other parts of that company. Ultimately startups bust their tail off in ways that drive the coin price up; but employees at Enjin (if that’s what this team is) won’t necessarily have the same mentality. (If this is an internal project, and they’re on salary with Enjin, the coin allocation to the team for this project doesn’t seem sensible. Not a deal-breaker but not the same thing as working without comp. for a year or two to build a crypto asset).

  5. jagrmeister

    September 12, 2017 at 9:23 am

    I got a response from Enjin here to my comment/question above. “The Enjin Coin project is getting full time allocation from the founding team. We already have staff in place to handle the Enjin Business. Enjin is a mature service with minimal maintenance required. Of course we’ll continue to release new features, such as Enjin Coin Integrations and other updates to the network. The Enjin business will be hiring more staff to accommodate any possible shortcomings since the founding team are now fully dedicated on the Enjin Coin project roadmap.”

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ICO

ICO Analysis: Experty

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The business world is changing faster than ever before. One by one each major industry is getting Uberized by blockchain technology and peer-to-peer business ideas. Next on the list is the $200 billion a year consulting industry.

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Traditionally, if I want to consult with an expert in their field I have to spend a lot of time, energy, and money to make that happen. For example, if I want advanced guitar lessons I would have to find an expert, set up an appointment and payment plan,  drive out to meet them, then pay an advanced fee in order to receive my 1 or 2 hour guitar lesson. The guitar expert would have to schedule the appointment and trust that I will show up. With Experty, I can choose any guitar player in the world, agree to their conditions and immediately start receiving lessons from the expert, paying by the minute, while we both sit on our own couches.

Experty is a voice and video application which allows experts in their field to monetize their time and knowledge on the Ethereum Blockchain. It is an application, where payments are automated through an operations contract (OC) allowing voice/video calls to be monetized without an upfront payment. Experts can advertise their services on any social media platform through a QR code or a direct call link. They set their rate per minute, and after the call is over, the OC settles the charges based on how long the call was.

Experty makes it very clear they are “not a marketplace” where users can search for a specialist. They are a decentralized app where experts can share their Experty contact link wherever they want, such as discussion boards, Linkedin profiles, YouTube , and Twitter. For example, if a Kardashian wants to get paid to give makeup tips, she can just post her Experty link (with her price per minute) under her Twitter profile. A user will load up their Experty wallet, click the link, and start getting makeup advice from Kim Kardashian for $20/minute (or whatever Kim’s rate is.)

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Experty has released a video of their demo. They say they will have an alpha app available to the public in a couple weeks.

The Token

There will be 100 million total EXY tokens with a $10 million cap on funds raised (33% for crowd sale, 33% for experty, 30% partners, 4% bounties) The token sale funds that go to Experty will be used for software development, feedback, community, preparation, and marketing.

The start date for the ICO has yet to be set, but the base price will be 1,000 EXY/ 1 ETH.

The presale is going on now at 1,400 EXY / 1 ETH. I believe they are trying to raise $1.5 million during the presale. You can sign up for the whitelist here:   https://pre-sale.experty.io/dashboard

The token raise also enables a process called staking.  Instead of paying for premium memberships, users who have a certain amount of EXY staked, where they will be allowed to use their premium features such as scheduling, paid group calls (webinars), and conversation recording.

The purpose of the token is where this project runs into some issues. According to the whitepaper, the EXY token will be the only form of payment from advice seekers to experts. This sounds great for early contributors because demand for EXY will go through the roof as the app gets more and more attention. The problem though is Experty wants to make using their application as simple as possible, and there’s nothing simple about noobs going onto exchanges to buy crypto. Therefore Experty has decided to allow users to convert their credit cards, BTC, ETH, and other cryptos into EXY right on the Experty app. This way, the experts would still only be paid in EXY, which again sounds great. However, I had a lot more questions, so I went onto their telegram channel and had a delightful little Q&A with Experty co-founder Tom Dyl. Here are some of the highlights.

Hacked: So, this is very similar to adult webcam sites where the viewer pays the model with tokens while she does new and exciting things?

Tom Dyl: “Yes- with Experty it will be able to be done with crypto payments.”

Hacked: Explain your staking feature; it doesn’t pay out interest in coins?

Tom: “EXY is used for payments within our app. if you want to have access to ‘premium’ features you’ll need to stake coins and you’ll get it without real payment – just for staking. We’re going to allow also ETH payments, however, it’s not yet announced right now. The idea is that with ETH (or other cryptos) there’ll be provision paid in EXY but I don’t want to get into details with that yet since it’s a fresh idea.”

Hacked: You’re going to allow experts to be paid in ETH instead of EXY?

Tom: Yes, however as I mentioned this is a really fresh idea. Originally EXY was supposed to be the only currency for payment. The idea is to make payment  with EXY without any provision and if someone wants to use ETH the price will be a bit higher since expert will need to pay fee in EXY (but barrier of entry for his clients is lower)”

Hacked: Does Experty keep a stash of EXY to transfer users credit cards/bitcoins/eth to EXY?

Tom: We’re planning to have it in our application. It will be an external service however probably due to law restrictions we don’t want to be considered as an exchange since it brings additional restrictions and we want to be 100% compliant.”

Hacked: Seems like you are really flexible. How is the price of EXY going to moon if people can use other forms of payment?

Tom: “It’s because of EXY will need to be used anyways, if payment happens with ETH, a provision in EXY will need to be paid by the expert. Its probably going to be based on your total monthly conversations value; however, the details are not yet there. ” (In other words, EXY will be used by the expert when paying their commission to the experty app.)

Hacked: Do you take the dollars, ETH and bitcoin you collect from your customers and use it to buy back the EXY from an exchange? Do you ever burn EXY tokens, how does the price of EXY go up?

Tom: “No we don’t plan buybacks or burning. However, this commission in EXY is actually a kind of buyback.”

Hacked: I can understand the predicament here.

Tom: “Yes we really don’t want to be a security asset. There’s an issue with plenty of projects right now that are most likely going to get delisted on exchanges soon, and I expect them to have problems. Not to mention exchanges aren’t going to list any new projects like that- they already require papers from lawyers.” He goes on a bit later, “[the] basic idea is to have better conditions when you’re using EXY, the details are unknown and that’s why we didn’t announce it yet.”

The Team

Headquartered in Zug, Switzerland, the core of Experty has been working together since 2014. when CEO Kamil Przeorski and COO Tom Dyl founded React Poland, where they have been building web and mobile-based apps since 2014. You can check out some of their work here.  http://reactpoland.com/#/works

Their front-end developer, Grzegorz Kucmiers, was a software engineer at Cisco!

They have about 12 other front/back-end and mobile developers, all really young looking, on their core team. As per the website:

“In addition to the core team members listed above, the Experty team has in disposition our existing team of 10 developers. This ensures prompt product delivery of our roadmap while assuring quality product development for the Experty platform.”

The team impressive list of advisors.

The Verdict

There’s a never-ending amount of use cases for this application. Teachers, chefs, doctors, lawyers, programmers… all need a convenient way to monetize their knowledge, and nothing is more convenient than this. Experty being an app that you can share a link to on every social media site is huge. It means they don’t have to worry about bringing traffic to their site before getting business; the business is everywhere that allows access to the experts’ link.

The Experty team is large, solid, and has shown their abilities to get stuff done in the past. I can tell this is not a money grab, as they are truly trying to be the Uber of the consulting industry. They do face several challenges, the most important from my view being the token. To reiterate what was said during that Q&A, Experty wants to appeal to non-crypto users too, so they need a way to allow for payment other than EXY. They planned to just convert credit cards, BTC, and ETH on their site to EXY, but then found out from lawyers that may make them a security, which they really don’t want. So now they are thinking about allowing ETH payments while finding other ways to bring value to the EXY tokens.

Risks

  • Scaling. Experty does a good job of acknowledging, and staying flexible when it comes to dealing with possible problems with scaling, -1

  • Security is a huge concern with apps like this. Cell phones especially are not designed to secure someone’s crypto. Experty is taking very active measures to prevent problems by partnering with the popular new startup Quantstamp  https://www.cryptocoinsnews.com/quantstamp-solidifies-partnership-experty-smart-contract-consulting/  Quantstamp is a cyber security protocol designed to find vulnerabilities in ETH smart contracts. In exchange for Quantstamps auditing services, Experty will allow them to use the experty application to charge clients for consultations. +1
  • After using this app a few times, it’s possible the experts will quickly raise their price per minute, which will in turn discourage advice seekers from paying them. The reason, at least from my perspective, is that experts have worked for years studying their craft to become masters. They are used to getting paid one large amount while dragging meetings out for way longer than they need be. They are probably going to have a hard time giving their thoughts away by the minute, for cheap. -1
  • The utility of the token is a good sized risk for those looking to make significant gains on their early investments. Going back to that Q&A with co-founder Tom, it really looks like the EXY token will play a fairly insignificant role. If demand for the token isn’t manufactured by the customers’ need to use the token to access the service, then what’s going to drive up the value of the token? -2

Growth Potential

  • Starting out, Experty plans to focus its marketing on people in the crypto community. They are hoping the community’s open-mindedness to new technology, constructive feedback, and their understanding of possible scaling hurdles will be perfect to help prepare the Experty app for mass adoption. They plan to use their marketing budget directly on the crypto community, followed by a wider audience. +2
  • “Global consulting industry revenues (including HR, IT, strategy, operations, management and business advisory services) will be about $488 billion in 2017,” according to estimates from Plunkett Research. +2
  • According to the company’s road map, the very first version of Experty will be a cross-platform calling app, allowing iOS, Android, Windows, and many others to communicate with each other. It will also have a free chat feature so seekers and experts can set up up their call details ahead of time. Also, the app will have a built-in Ethereum wallet for managing funds. This is an excellent start, and with the power of their gigantic team, I’m sure there won’t be much difficulty achieving this goal. According to the road map, Experty will be fully functional by 2019  +3

Disposition

The idea is brilliant and simple, but the team faces so many challenges (security, legal, token metrics). That being said, it seems like they are keeping their options very flexible, and are always open to new ideas and feedback. I think this is a good strategy for a company, but a bad fundraising strategy, because investors don’t know exactly what they are getting. 6 out of 10

Investment Details

  • Symbol: EXY
  • Presale start date:  ongoing sign up for whitelist here.+ 40% presale bonus
  • ICO date: TBD
  • Total Supply: 100 million
  • Max market cap: $10.5 million
  • Token price: 1000 EXY/ 1 eth
  • Platform: ETH

https://pre-sale.experty.io/dashboard

Disclaimer: Author has no investment stake in Experty. 

Featured image courtesy of Shutterstock. 

 

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ICO

ICO Analysis: Sharpe Capital

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Sharpe Capital is primarily an investment company whose core product is creating multiple approaches to understanding the market dynamics of both equities and blockchain assets. The multiple approaches to understanding market dynamics include sentiment analysis, quantitative trading, machine learning, AI and linguistic analysis.

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Analysts at existing hedge funds/investment funds rely on quantitative and fundamental trading models where the value of an asset is tied to its micro and macroeconomic performance. Analysts hope that the trading value of the asset will converge on its “intrinsic value” over time and earn them returns on undervalued assets. Intrinsic value is the value that the analysts calculate based on various economic indicators. Readers familiar with investment analysis will understand these concepts with ease.

However, generating returns based on the calculated search of intrinsic values of undervalued assets is not so easy. Investor sentiment plays a huge role in asset valuation resulting in asset prices consistently diverging from their intrinsic values. For example, Tesla has higher market capitalization than Ford, but does it deserve that high a valuation? In my opinion, no! But investor sentiment is very positive towards Tesla, resulting in its higher market cap.

So, how do you gauge investor sentiment? This is where Sharpe Capital comes in.

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From the perspective of a user who visits Sharpe Capital for the first time, the platform pays Ether for his views on a particular asset. The user is given recent updates about the assets and his opinion is asked. A user’s opinion carries weight based on his previous responses (a reputation system) and the amount of SHP token holding. The payouts on correct opinion will be given accordingly. Opinions of hundreds of thousands of users are evaluated to gauge the overall sentiment about the asset.

Sharpe Capital’s investment analysis methodology is not just sentiment analysis, but also takes into consideration a host of factors like fundamental analysis (macro, micro indicators), linguistic analysis (sentiments, emotions, contextual framing from blogs, twitter feeds, etc.), and machine learning (continuous learning from past experiences).

Sharpe Capital will feed this information into its proprietary investment fund, whose returns will be distributed among all token holders.

The data generated from sentiment analysis and the linguistic analysis will be sold to buyers like investment funds and researchers.

Sharpe Capital is also creating internal auditing tools and enterprise-grade blockchain solutions for hedge funds and corporate clients for transparency and accountability.

Token

The SHP token will serve several functions on Sharpe Capital’s platform. The SHP tokens will give access to the users to earn rewards in ether by voting on bullish versus bearish sentiment of an asset on the Sharpe Capital sentiment platform.

Hedge funds and institutional investors will be able to access information within Sharpe Capital’s Quantitative Trading Model through SHP fees. SHP tokens will help holders participate in governance for Sharpe Capital.

Looking ahead, as regulatory clarity emerges, Sharpe Capital will issue SCDs (Sharpe Crypto Derivatives), a cryptocurrency token that will be tied to the firm’s proprietary investment fund. Holders of SCDs will be entitled to receive dividends from the proprietary fund.

SCDs will have bi-annual Ethereum payouts and will be distributed 1:1 with SHP at a later date.

The ICO began on 13th November and will last until 5th February 2018. The minimum contribution will be $100. The SHP token is valued at 2000 SHPs for 1 ETH. For each 2,000 SHP issued, an additional 2,000 SHP will be held in reserve for future fundraising and an additional 1,000 will be distributed to Sharpe Capital founders and community members for coming platform development for a total distribution of 5,000 SHP for 1 ETH. There is a hard cap of $20 mn for the raise.

40% of the funds raised will be used for the investment fund, while 20% for development and operations.

The bonus structure begins only after $1,500 contributions. You can check out the details here.

Team

According to the company, “The Sharpe Capital team is comprised of a diverse group of experts across the fields of quantitative modeling, financial engineering, linguistic analysis, international law & regulatory requirements.”

There are five members of the core team. Chief Investment Officer James Butler has a Ph.D. in complex system modeling and is responsible for overseeing the development of the Sharpe Capital Investment Platform. This platform was conceived by Butler in collaboration with CEO Lewis M. Barber.

The development of novel approaches to linguistic analysis is supported by leading linguist and anthropologist Mieke Vandenbroucke Ph.D., a Fulbright Scholar and Visiting Researcher at the University of California, Berkeley who is also one of the advisers. There are five other advisers, prominent among them being Dimitri Chupryna, who is the co-founder of TaaS. TaaS will be used for extensive testing of the investment platform.

The team appears solid, with advisers from varied background. One aspect which I personally find somewhat negative is that most of the members, especially the ones developing the investment platform, belong to an academic background rather than one rooted in investment banking. I think this factor is quite relevant for this industry.

Verdict

Let me begin with how well the Whitepaper is written. The team has thought through the project well, with a detailed explanation of the Sharpe Investment Platform. Discussing the technicalities is beyond the scope of this review, but interested readers can go through the document for more information.

That being said, it is quite difficult to judge the quality of an Investment Platform or methodology without historical returns or a product version. The alpha will launch on 12th December with focus on the sentiment analysis part.

Cindicator can be considered the closest competitor, who have been working on the project since November 2014. They have an alpha version and are developing the product from insights coming in from a very active community. Sharpe Capital has some advantages in terms of product quality like the inclusion of linguistic analysis, governance; but then what is stopping a well-funded platform like Cindicator from including these in its product.
Of course, there is space for multiple competing companies, but a segment like sentiment analysis will hold value for only if the platform has thousands of users voting on the platform.

Risks

  • Sentiment analysis will not hold much value if Sharpe Capital is not able to attract enough users. Also, would hedge funds or investment funds find value in sentiments of retail speculators? -2
  • Along with Cindicator, many other companies are working on the same domain. -2
  • The investment analysis methodology although thoroughly developed is purely academic at this moment. -1
  • There are concerns whether the AI based portfolio manager can generate returns, especially in the crypto space where there is so much flux. -1

Growth Potential

  • The product is better than the competitors at this moment. +4
  • Rewards for prediction without the loss of stake is a massive incentive for users to participate on the platform. +3
  • The alpha version will be launching soon on 12th December. The alpha version launch will be a big credibility boost for the project. +2
  • Once the regulatory approvals for SCD tokens are obtained, Sharpe Capital can expand to other dividend based funds. +0.5
  • There will be demand for the enterprise-grade blockchain solutions for hedge funds and corporate clients once regulations demanding more transparency start getting hold. +1

Disposition

We arrive at a score of +4.5 out of 10 for Sharpe Capital. The score can improve +2 points depending on the reception of the alpha version once it launches on the 12th of December.

Investment Details

The ICO began on 13th November. Non-accredited US residents, Chinese and Singapore residents are restricted from the sale. You can participate in the ICO here.

Disclaimer: Writer does not hold an investment position in Sharpe Capital. 

Featured image courtesy of Shutterstock.

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ICO

ICO Update: Chimaera

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Online gaming and entertainment is a multi-trillion-dollar industry that is expected to grow manifold as developers push the boundaries with virtual reality, massively multiplayer online (MMO) and real-time strategy. Data crunched by Statista show that the global media and entertainment industry was valued at $1.72 trillion U.S. in 2015 – a figure that is expected to climb to $2.14 trillion by 2020.

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Naturally, any ICO that enters this space is expected to generate lots of attention. Chimaera (CHI) is certainly no different.

The Chimaera blockchain aims to provide a platform for developers to build futuristic games that leverage the latest advances in gaming technology. It does so by democratizing game development and allowing developers to issue their own cryptocurrency that can be traded for the CHI token.

From the perspective of gamers, Chimaera promises decentralized game worlds with 100% uptime and fair play rules.

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One of the main issues Chimaera aims to solve is that of scaling – namely, bringing to life massive game worlds with their comprehensive inventory of virtual assets. The company says it is overcoming these issues with “Trustless Off-chain Scaling for games (Game Channels) and Ephemeral Timestamps.” This essentially means games can be created on the blockchain without the need for a third party.

Token

Chimaera is a massive undertaking, and one that seeks to create novel infrastructure for the gaming community. To realize the vision, the company has issued a two-phase token sale (pre and public). Funds raised through the token sale will be allocated to the following:

  • Development, operational costs and legal: 33%
  • Marketing: 33%
  • Game developer on-boarding: 33%

The CHI utility token fuels the entire ecosystem and serves as the reserve currency of the Chimaera platform, including:

  • Account creation
  • Account transactions
  • Purchasing game
  • Renting game
  • CHI-powered crowdraises
  • Coin transactions

Chimaera will also enable a Token Exchange Period, which will allow users to exchange bitcoin for CHI tokens. Tokens can be redeemed once the genesis block is mined.

Team

The project is backed by one of the most experienced teams in the blockchain gaming industry. This includes CEO Andrew Colosimo, who has over 20 years of experience in IT and computer gaming . He is the founder of the Huntercoin experiment, which achieved the world’s first decentralized MMO game. When it comes to track records in the gaming industry, very few compare with Colosimo.

His team includes a stable of theoretical mathematicians, game developers, software engineers and business leaders. Andrew Gore is also on the team (he’s the guy who co-founded Soccer Manager, which has over 20 million downloads)

Overall, Chimaera’s core team consists of 13 people. It also retains the services of an advisory board made up of four experts in the field of blockchain technology.

Verdict

Chimaera certainly makes a compelling case for blockchain-based gaming. The promise of a fully decentralized, autonomous gaming platform backed by one of the brightest teams in the industry give the project a unique advantage in a nascent market with very few comparables.

Risks

  • Like any project of this stature, implementation and market buy-in is always an issue worth considering. The Chimaera whitepaper does a great job of setting the scene for a decentralized autonomous universe, but building a system that attracts both developers and gamers may prove tricky. In this vein, it’s worth asking if Chimaera is looking to adopt a similar model as Steam, a digital distribution platform for multiplayer gaming. To be fair, the whitepaper does include a detailed discussion about ecosystem, growth and revenue. Still, the author sees this one as a higher risk venture when compared to other ICOs in infrastructure or gaming. -2
  • Although the whitepaper identifies a detailed roadmap, there is no specific end date specified for the token sale. Additionally, there is no mention of how much was raised during the pre-sale or how much has accrued since the official launch. This isn’t necessarily a “con,” but it may echo some of the concerns mentioned in the first bullet point about buy-in. -2

Growth Opportunity

  • When it comes to growth opportunity, very few projects promise near infinite scalability. Chimaera makes it abundantly clear that this is the objective. It also details a precise way for reaching it (i.e., through Game Channels). +2
  • When it comes to project experience, Chimaera’s staff takes the cake. The brains behind this project successfully delivered the Huntercoin experiment, which reached a market cap of $6.3 million earlier this year. Chimaera’s CEO is not only the creator of Huntercoin, but a member of the Namecoin team. +4
  • Although adoption risks are plenty (as with any project of this nature), Chimaera provides gamers themselves with a unique value add. In addition to immersive game worlds, the platform offers a complete gaming universe. This is a strong value proposition for a project that requires buy-in on both sides of the aisle (gamers and developers). +2
  • One of the most unique aspects of Chimaera is the ability for developers to crowdfund their own projects with ICOs. This makes the Chimaera ecosystem truly multi-faceted with the promise of future growth. +2

Disposition

Chimaera is a highly ambitious project that actually promises something new for the gaming industry. If the project’s potential becomes actualized, we may be looking at a major draw for all segments of the gaming community. That being said, implementation could prove daunting given all the market participants that would need to be involved to make Chimaera a success. Against this backdrop, we give the crowdraise a score of 6 out of 10.

Investment Details

  • Type: Crowdsale
  • Symbol: CHI
  • Opening Sale: Oct. 23, 2017
  • Duration: TBD
  • Platform: Custom
  • Tokens Available: 1,100,000,000 CHI (plus unsold presale tokens)
  • Payments Accepted: BTC

Disclaimer: No position in Chimaera or other ICOs at the time of writing.

Featured Image courtesy of Shutterstock. 

 

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