ICO Analysis: Game Protocol

Game Protocol is a decentralized gaming ecosystem for blockchain video games, based on Ethereum. Its primary purpose will be to allow game fans to fund developers and benefit from their success. Brought to us by the same team that’s behind GamyTech, a skill-game producing company with a successful Backgammon app that has been downloaded over 1 million times, GamyTech has decided to open up their platform to the public so that everyone can produce and release their own games without dealing with publishers or any other middlemen.

When a development team has an idea for a new blockchain game, the Game Protocol Ecosystem will be its incubator and help it scale in every way possible.

The ecosystem is made up of 4 main components.

  1. Game Starter – A smart contract based, fully automated crowdfunding system. Developers can create and sell their own crypto-based in-game currency based on Game Protocol Token. This is done via smart contracts that allow the easy creation of tokens. With the use of the Bancor liquidity pool, players can easily exchange between in-game currencies
  2. Game Store – A decentralized platform where fans can play games that have been funded and developed.
  3. Community – The GamyTech website has an “existing premium user base (users who actually spent money in the game) of about 700,000 members.
  4. Developers Tools – The developer’s tool contains a set of utilities that developers can leverage to quickly build a new real money game. These tools will simplify a developer’s work and provide API access to the following:
    1. A credit card payment gateway for real money;
    2. A crypto wallet to hold players crypto-currency;
    3. A wagering smart contract;
    4. An SDK for easy accessing the central game server;
    5. A Provably fair random number generator found on page 15 of the whitepaper.

Token

There will be two types of tokens in this ecosystem. The native Game Protocol Tokens (GPT), and Game-Specific Chips (GSC).

When investors contribute to the Game Protocol ICO they will receive GPT to be used for services and resources provided by others via smart contracts. GPT will be traded on different exchanges.

When investors see a game they want to fund, they will exchange GPTs for the new game projects own original token (GSCs). The utility of a new GSC is completely at the game producer’s discretion; they can, for example, exchange it for in-game special features or provide full access to the new game.

Holders of GPT and GSC will be able to quickly exchange back and forth through use of the Bancor Protocol.

Distribution:

  • 58% Crowdsale
  • 10% Gaming Support Fund
  • 10% Advisors and Partners
  • 2% Bounty
  • 20% Company (25% locked up for 6 months)

Allocation is highlighted below:

Team

Game Protocol’s team is 21 people deep. Most all of them currently work for partner company GamyTech. And all the managers also work at Makor Capital.

Jonathan Swerdlow – CEO. He’s been head of marketing at Makor Capital since 2014. And CEO of GamyTech since 2014.

Michael Halimi – Chairman Executive Manager. He is also the CEO of Makor Capital, a global brokerage with offices in Paris, Geneva, New York, and London. 10 years as Managing director for Cantor Fizgerald.

Avi Bouhadana –  President Executive Manager. He was also a founding partner at Makor and a managing director at Cantor Fitzgerald.

Paul Huang – Technology Executive Manager. He too is a senior managing director at Makor. Spent 10 years as a Research Staff Member for IBM Math and Science Dept.

Moshe Elbaz – CTO. He is CTO of GameyTech since 2014. Spent 1.5 years as Head of a game dev team for Bio-gaming.

Sandra Elbase – CMO. She spent three years as Senior Marketing Mobile Manager for Pokerstars (the #1 online poker site ever).

Efraim (Evan) Wolpert – CFO. He was also CFO for Makor Capital since 2010.

They have 11 advisors with different areas of expertise, some of them will be helpful to the project. The strongest advisor on paper is Michael (ByungSoo) Kim, who worked for EA Sporsts, Microsoft, Blizzard, and Wargaming.

Verdict

“GamyTech has developed over seven successful mobile games with millions of downloads in both Apple’s App Store and Google play store. With a focus on real-money skill-based games, this experience has given the GamyTech staff a unique perspective on the video game industry and its issues. Using their knowledge and massive community,  In the past 3 years, we raised over 3 million dollars and released 8 new games. Our games have been downloaded more than 4 million times.” (whitepaper)

It’s very important we note how hard it is to verify this quote. For sure their Backgammon game is a hit. But, there are zero other playable games that we could find. The only game that is available to play that we know of is Backgammon.

If they aren’t being completely honest about creating several successful games, that’s a giant red flag.

Risks

  • Although they probably really need it to compete with the big dogs, the $30 million hard cap is high and will prevent early token price gains. -1.5
  • Lots of competition, including Indigogo and Kickstarter. -2
  • The founders of Game Protocol also founded GamyTech, and also founded and managed Makor Capital. -1.5 

Growth Potential

  • Ten percent of the GPTs issued will be retained in a special Game Support Fund. This fund will allow the company to support promising game projects that will be listed on GameStarter. +3
  • They do have an MVP, if you want to call it that. It’s their Backgammon game. +2
  • With the low supply of 150 million tokens, If just one project that’s created on with Game Protocol becomes popular it would create a huge token price increase. +2
  • They spoke at Consensus 2018 as well as several other conferences.+2

  • Roadmap with realistic goals.  +1

Disposition

It’s a fascinating project with a lot going for it long team. However, the ICO seems too risky. Maybe keep an eye on it, and wait for the probable post-exchange price drop. 5/10

Investment Details

Featured image courtesy of Shutterstock.

Author:
Joshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!