ICO Analysis: Imusify

Imusify is a blockchain music economy, combining the best of crowdfunding platforms such as Kickstarter, music streaming services such as Spotify, social networks such as Facebook and multimedia sharing platforms such as YouTube. Aiming to create a better platform for the 21st-century music economy, Imusify uses blockchain ledgers and smart contracts to ensure a fairer distribution of assets within the industry.

In the current music industry, the middleman gets the highest cut while the actual work is done by artists. In many cases, artists do not have the ownership of their works and this results in a lower income distributed in a quite non-transparent way. Artists using the Imusify platform will have complete control over their artworks and royalties, solving one of the biggest problems in the industry. They will be automatically rewarded on a per stream basis, meaning that not only the fairness of distribution is ensured, but also that no payment will be delayed ever.

Some important components of the platform are as follows:

  • Crowdfunding engine: Any artist can run crowdfunding campaigns for her albums, videos or tours.
  • Transparent and fair payments: Thanks to the blockchain ledger and smart contracts, artists are automatically paid in a transparent and fair way.
  • Reward system: Imusify users who create posts, playlists and comments will be rewarded in return for their contributions.
  • Co-evolutionary copyright management: Content owners will be provided tools to manage copyrights.

Token

Any interaction or transaction between users of the platform will be covered by Imusify’s IMU token pool or it will cost tokens for the exchange of digital assets and services. Some of IMU’s primary use-cases are as follows:

  • Paying artists per streaming.
  • Rewarding users for their contributions.
  • Purchasing and licensing content.
  • Crowdfunding campaigns.

The initial total supply of IMU is 1,000,000,000 tokens with the following token distribution:

  1. 10% presale
  2. 20% private sale
  3. 35% main sale
  4. 8% ecosystem
  5. 2% charity program
  6. 8% company
  7. 2% contributor rewards
  8. 8% strategic partners
  9. 8% team and advisors

The team expects the actual circulation for the first few years to be around 650 million tokens. According to their estimations, only after five years, 1 billion tokens will be in the market. Tokens allocated for the team and advisors are locked for one year and then each month 4% of these tokens will be released.

In the ongoing private sale round, a bonus of 50% is offered to investors, which is quite concerning. During the pre-sale investors will have a 30% bonus and the main-sale contributors will be able to buy their tokens with a bonus between 12% and 0%. Unsold tokens will be allocated to “Ecosystem” and will be vested.

If no strict entry barrier for pre-sale is implemented so that anyone meeting the requirements for the main-sale can buy in the pre-sale stage, it is quite likely that most of the tokens allocated for the main sale will not be sold. Furthermore, no vesting periods for tokens sold in presale and for only some sold in private sale makes a dump just after the token hits the market quite possible.

The team is planning to use the token sale proceeds as follows:

  1. 5% charity program
  2. 20% product development
  3. 20% sales and marketing
  4. 15% operations
  5. 20% supplier development
  6. 20% legal

Team

CEO David Walters: Walters has worked as a portfolio manager at Generali, a German insurance company, and is a former artist, songwriter and performer.

Advisors

Chris Hager: Hager is a developer at City of Zion, a group of developers supporting the NEO ecosystem.

Nikolaj Kuntner: Kuntner is an open source developer at City of Zion and a software engineer at DAQRI, a computer hardware company.

Marcus Brown: Brown has worked as a senior art director for several reputable marketing and advertising companies such as TBWA\Media Arts Lab, 180LA and Crispin Porter + Bogusky.

Dennis Chin: Chin is a former corporate development officer at EMI Music, one of the world’s leading music companies.

Partners

NEO: Neo is a blockchain ecosystem, ranked 15th by market cap as of August 23rd.

City of Zion: City of Zion is a group of developers supporting the NEO ecosystem.

O3 Labs: A leading light wallet application on the NEO blockchain.

Verdict

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

Risks

  • High bonuses offered for private sale and presale make the public sale practically obsolete. It is quite unlikely that all tokens allocated for the public sale will be sold. (-2)
  • MVP will be launched in January 2019 and the platform in November 2019. One can expect a high selling pressure in the absence of any near milestone. (-1.5)

Growth Potential

  • Imusify has the first-mover advantage. (+1.5)
  • Backed by NEO and world-class developers of City of Zion should accelerate its adoption. (+1)
  • A working product already exists. (+2)
  • Blockchain ledgers and smart contracts have a high chance of solving crucial problems in the music industry. (+2)
  • Unless all public sale tokens are sold, the circulating supply will be smaller than initially expected and the value per token will be higher. (+1)

Disposition

Imusify is a blockchain music platform, aiming to solve some of the most crucial problems in the industry. Although the lack of competition and the fact that they are backed by the NEO ecosystem might accelerate their adoption, that there is no milestone before the next year and questionable token metrics raise an eyebrow. Imusify receives a 4/10.

Investment Details

  • Type: NEP-5 – Utility
  • Symbol: IMU
  • Platform: NEO
  • Crowdsale: Unspecified
  • Minimum Investment: Unspecified
  • Price: $0.05
  • Hard Cap: $25,000,000
  • Payments Accepted: NEO, BTC, ETH and LTC.
  • Restricted from Participating: United States, Canada, South Korea, Singapore, China

For More Information

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