ICO Analysis: Fantom

Fantom is the world’s first smart contract platform based on the Directed Acyclic Graph (DAG) that solves the current problems of slow transaction times and scalability issues. There are a few other companies such as Nano and IOTA that are based on DAGs, however, they lack the smart contract dAPP infrastructure. To maintain consensus, Fantom is adopting a new protocol known as Lachesis Protocol. Fantom platform’s new technology, called OPERA, will enable transactions that are executed asynchronously with instant confirmations. Transaction fees will be near zero cost at less than 0.01 USD from one wallet to another.

The Fantom architecture is made up of three layers. The top layer is called the OPERA Application Layer which provides APIs that are available to the public for applications. The middle layer is called the OPERA Ware Layer which will take care of payments, incentives, Story data, and issuing rewards. In the OPERA Ware layer, the Fantom token is a fundamental component of transacting. In addition to this core functionality of Fantom tokens, OPERA Ware allows the payment of the appropriate reward associated with transactions based on the reputation scores and the transaction records of participants. The bottom layer is called the OPERA Core Layer that creates events and maintains consensus using the Lachesis Protocol. Fantom is open sourced for trust and transparency. Fantom is also able to scale infinitely as more nodes join the network.

Fantom’s marketing strategy includes partnering with the South Korea Food Tech Association, which consists of the top 90 corporations in the South Korean Food Market valued at $200 billion USD. Fantom’s CEO happens to be the president of this association.

Fantom will provide dApps used for geolocation delivery services, food reservations and supply-chain management, all of which are points of sales to building on top of the Fantom platform. Once Fantom has successfully implemented this strategy and gained momentum, they plan to hold an international consortium to provide worldwide payment systems, Smart Contract templates, APIs for software development, etc. They also plan to invest significant amounts of funds to recruit and retain developers as well as host conferences with international offices in Japan, Australia, Singapore, and the U.S.

To create the world’s first DAG Smart Contract platform, the FANTOM Foundation is collaborating with blockchain academic researchers, institutional investors, marketing firms, and global engineering teams including companies such as Oracle and SBCK.

Token

Fantom’s token economy rewards impartial evaluators with (FTM) Fantom tokens. FTM will be distributed as an ERC20 token and later converted to native tokens after their mainnet has launched. In order to expand the ecosystem, the Fantom platform will begin with a 5% annual inflation rate that will decrease over time as more users join the network. Twenty percent of the total inflation will be used to reward nodes. The remainder will be used to provide incentives, such as near zero transaction fees, for Fantom platform users.

A total of 40% of tokens are available for purchase during the private and public sale. The public sale is scheduled for June 15, 2018, with a price of $0.04 USD per FTM.

The token distribution is listed below:

  • 40% Token Sale
  • 30% Market Development
  • 15% Advisers/Contributors (3 Months Lockup)
  • 15% Team & Founders (2 Year Vesting Period)

Team

Fantom has a fairly large team consisting of top engineering and marketing professionals from around the globe. Listed on the Fantom website are 11 foundation members, 16 platform development members and 10 advisers. The team brings the necessary business experience and developers for the project’s success and the advisors bring blockchain experience and expertise. Their LinkedIn accounts are provided enabling a more in-depth look. A few team members and advisers are listed below.

Team members include:

Dr. Ahn Byung IK, PhD

  • CEO Fantom
  • President – Korea Food Tech Association
  • Founder – SikSin which has over 3.5 million downloads

Bob Tucker – COO Fantom

  • Adviser – Enosi Foundation
  • COO – Digital Currency Holdings
  • Former Partner – Clinton Capital Partners

Sean Yun (Yunsung) – CFO Fantom

  • CEO – Foodntable
  • Auditor – Natural FNP and TCM Bioscience
  • Former Manager of Industrial Bank of Korea

Issac Le

  • CIO Fantom
  • Managing Partner – Blockwater Capital
  • Adviser – LiveEdu
  • Adviser – Bitindia
  • Former COO – KRTG

Advisors include:

Steve Bellotti

  • CEO – Digital Currency Holdings
  • Non Executive Chairman – Douugh
  • Former Managing Director – Australia New Zealand Banking Corp

Eddy Travia

  • Co-Founder and CEO – Coinsilium
  • Expert Adviser to several blockchain companies

Francisco Jo

  • Founding Partner – Blackwater Capital
  • Co-Founder and CIO – Coinhills
  • Member of Advisory Board – Israeli Blockchain Association

Kim Hyeong Joo

  • President of Korea Blockchain Association

Verdict

Fantom has real-world future use cases such as banking, telecommunication, food technology, real estate, etc. by reducing costs, enabling up to 300,000 transactions per second, and increasing transparency. Multiple partnerships are mentioned on their website and whitepaper, which could translate into immediate implementation and spur the success of this project.

Risks

  • Even though investor enthusiasm isn’t waning on new blockchain projects, there are multiple existing competitors in this space. Naturally, some will succeed and some will fall by the wayside. -0.75
  • The mainnet isn’t scheduled for release until Q3 2019. Competitors may develop similar projects sooner and new competitors will surely be coming along. -2

Growth Potential

  • Fantom is comprised of an experienced team that has connections to help capture the South Korean market. The team is showing commitment to the project with a two-year vesting period for their tokens. The advisors they’ve selected bring extensive blockchain experience and expertise. +3.5
  • Solving the problems of scalability and slow transactions is a major target of current blockchain projects. If Fantom succeeds against competitors such as HyCon and Hedera Hashgraph, they will be positioned to gain significant market share. +2.5
  • An ICO that establishes relevant partnerships is always ahead of the game. Fantom has multiple partnerships including Korea Foodtech Association, Oracle, and SBCK. +4

Disposition

Fantom appears to be another blockchain project poised to succeed in the ever-expanding ICO arena. The team and advisors are solid, partnerships are in place, Middleware Beta is scheduled for June 29, 2018, hype is building, and their community and social media presence is growing. Fantom receives a 7.25 out of 10 rating.

Investment Details

  • Symbol: FTM
  • Platform: Ethereum
  • Public Sale: June 15, 2018
  • Price: 1 FTM = $0.04 USD
  • Hard Cap $39.8 Million USD
  • Total Supply: 3.175 Billion FTM
  • Available for Purchase: 1.270 billion FTM (40%)
  • Payments Accepted: ETH
    Barred from Participation: USA, Mainland China, Korea

For more information regarding Fantom:

Website: http://www.fantom.foundation
Telegram: https://t.me/fantom_english
Twitter: https://twitter.com/FantomFDN
Facebook: https://www.facebook.com/Fantom.Foundation.English
Medium: https://medium.com/@fantomFDN
YouTube: https://www.youtube.com/channel/UCHON5FzG4iqFjx8f1pbZC_g

Author:
Kent - Co-Founder of CryptoMarketBeat.com, where we are building Pro Crypto Analysis Tools and share crypto related investment info.
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