There are worse things in life than death. Have you ever spent an evening with an insurance salesman?
– Woody Allen
The great American healthcare debate has put health and other forms of insurance in the spotlight for going on a decade now. While many western democracies have socialized forms of health insurance, America’s are paltry by comparison, and the marketplace here is mostly privatized. In much of the rest of the world, other forms of insurance are still private. Collectively, according to multiple sources, all insurance generates more than 5% of all the economic activity in the world.
London, a historical hub of many types of markets, is where InsureX would like to establish the global insurance mercantile exchange – for companies, brokers, traders, and investors. The concept does not require too much explanation: use Blockchain technology to enable faster, more accurate, more secure, and fairer acquisition and sale of insurance products. InsureX says they are deeply embedded in the global insurance industry, and we will investigate that more under the Team category of this analysis, but their best self-description emerges in the following paragraph:
InsureX offers a disruptive environment which will be beneficial to the currently outdated insurance sector. Participants in this marketplace are able to transact business in a highly efficient, secure and consistent manner with easy access to historical data and valuable market insight. The InsureX platform uses blockchain technology to streamline the process between buyers and sellers of insurance products. Not only does it provide a place to find and trade insurance, but a platform to manage the downstream processes related to programs, policies, premiums and claims.
Who InsureX Is Targeting
The InsureX marketplace is primarily for institutions such as insurers, reinsurers and brokers. Bringing these participants together directly results in an efficient, cost-effective and transparent marketplace.
Thus, for most of our readers, the token itself will not be overly useful beyond a speculative instrument. The details of the token become much more important when most of the people who might buy said token will never use it for its intended purpose. We’ll get to that momentarily, but let’s discuss the type of revenue that such trades can generate:
- The average cost of an auto insurance plan in the US in 2014 was over $700 per annum. The United States contains almost as many registered vehicles as it does human beings, and most states require some form of insurance on all of them. If InsureX were to be used for even a fraction of these plans – brokers used the platform to sell more competitive products, improving the quality while cutting the cost – the revenues would be vast.
That is just one regional market in one type of insurance. Nearly anything that generates or costs money in the world has an insurance salesman eyeballing it – this situation will not change as the world moves into more digital forms of commerce, but rather will increase. A platform like InsureX sure has a lot of potential to serve the up and coming legions of insurance salespeople.
Blockchain Meets Insurance
In the push to blockchain the world, many have neglected to realize that there are plenty of purposes where a simple database is sufficient. Most financial purposes would not fall under this category in a neutral debate, because allowing any party to casually make changes to a ledger is a fundamental risk. Therefore InsureX’s decision to utilize blockchain technology is entirely valid for this project, and moreover, the insurance industry itself has long been interested in the technology.
According to the Deloitte Consultancy, blockchain implications can go even deeper than mere registering and trading of insurance products. It could also imply secondary and tertiary marketplaces for things like claims adjustment.
Adopting a common blockchain across the sector could create a step-change in value in the insurance industry: claims-handling could become more efficient and streamlined, resulting in an improved customer experience. Such an approach could also help to reduce further, if not entirely prevent, fraud if identity management was also enforced on the blockchain – meaning that criminals could no longer crash for cash, or exploit the current challenges of sharing data unless their methods for obscuring identities became significantly more sophisticated.
Is it possible that InsureX could become the so-called “common blockchain” for the insurance sector? Well, for what it’s worth, they do have Ross Campbell advising them. Campbell is the chief underwriter of Gen Re, a US-based insurance provider. He has been with Gen Re since 1995, and in the position as overall chief underwriter and head of research/development since 2010. This is to say he has held a powerful position at a sizable (1200+ employees) insurance firm for most of the rise and rise of cryptocurrencies. The insights and connections Campbell will have developed over a long career are perhaps the most valuable attribute so far for the InsureX platform itself, because, after all, like many of these “industry-wide” efforts, there is always a risk that the biggest players in a given industry will simply hijack the idea and implement it in a way that derives them an even more consolidated position.
Campbell recently wrote on the subject of insurance and technology and can be quoted as saying:
Deciding how best to handle issues around data privacy is among the industry’s key questions. Some people will not wish their personalized data to be put in the hands of insurers making decisions about policies, while others will want their data to be used to drive down insurance costs.
This statement brings to mind the notion that blockchain can serve in other capacities than the transferrance of plans and sales thereof – it can also secure the records of individual companies, and InsureX could act as a place that such products were also bought and sold.
Campbell’s involvement also lends an immediate aspect of realism to the InsureX project – it seems evident that once the platform is working, Gen Re will be interested in making use of it.
CEO and founder Ingemar Svensson has a reasonably long career in financial technology. He previously was “responsible for defining the technology strategy and executing an extensive change programme across the organisation.” A simultaneous effort of Svensson’s is called Finserve, and like InsureX, they are looking to apply the blockchain to an industry. The obvious and contemporaneous split in focus could be concerning for potential investors.
COO Christina Dolan, member of the Forbes Tech Council and 2016 recipient of MIT’s Harold E. Lobdell Distinguished Service Award. Over the past few years she has shown an increasing interest in blockchain technology, having taken part in last year’s IBM hackathon. She can be seen here giving a talk on the potential of the Bitcoin market:
In short, she knows her stuff, so putting her in charge of operations is a good move.
Lead Ethereum Developer Nicolas Cherence public information is limited, as are his coding chops. “He holds a master’s degree in statistical and financial engineering from Paris IX Dauphine University” and claims to have worked on financial applications before. Luckily Ethereum work is easily outsourced, so for the most part we can overlook this potential hiring mistake.
Lead user experience developer Charlotte Holmen has already proven some of her competency, having previously worked at Doctify and presumably being responsible for the following screenshots:
The IXT token will be necessary for use on the InsureX platform, and it has a guaranteed deflation rate in two ways: 1) there is hard cap of ___ tokens and 2) each time the InsureX platform derives a fee from activity in the marketplace, a portion of that is forever destroyed. As a result, the value of outstanding tokens on the markets increases with the decreased supply. An example where someone might spend IXT is if one participant wanted to find someone to fill a quote he had given on an insurance deal. Others in the marketplace looking for such opportunities would be notified, and they would then be able to create a fee-generating transaction, while the fee to list the quote in the first place is already captured – meanwhile IXT itself can be used to make deals on the platform.
It’s important not to get too lost in the details – the basic idea is that you will make money if insurers actually use this platform or decide to horde the token, if you are a holder of the token at time of launch. There will likely be competing plays in this space, but the odds are high that the experienced professionals behind InsureX will know how to leverage their first mover advantage.
- A maximum of 133M coins will be created, 100M of which are to be generated during this crowdsale, with a maximum of 83 778 Eth being raised.
- Inflation is outside of the smart contract, so not happening.
This is a hot one. InsureX has done almost nothing to lose points.
The major risk is a potentially slow adoption rate or adoption being split among several competing platforms. As a speculator, IXT’s value will depend very heavily on how much it is used and needed. As such we have to caution against the acquisition of large IXT bags, however dipping a toe into the water could buy several pairs of shoes.
The growth of the insurance industry will fly in tandem with the growth of the blockchain industry. Technology is enabling new forms of economic activity the world over, and all of these will eventually have insurance products tailored to them. As such, the growth of this platform, if initially successful on even a small scale, is tied to the growth of human marketplaces and population – exponential.
A hard 7.0 out of 10, based on everything above. This figure could see serious deductions if performance/timelines become an issue and competing interests push InsureX off the table. As such, despite the high numeric rating, we encourage caution except for those already directly involved in the insurance industry, as those people can consider any losses as part of attempts at innovation in their business.
Open now and about 25% funded at time of writing. If you really want in, you had better get over to Insurex.co now and make your contribution. The rate at time of writing was still over 1000 per Ether. Full disclosure: this author is hoping his Ethereum wallet syncs before the end of the sale.
ICO Analysis: Experty
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.
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.)
Experty has released a video of their demo. They say they will have an alpha app available to the public in a couple weeks.
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.”
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.
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.
- 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
- 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
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
- 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
Disclaimer: Author has no investment stake in Experty.
Featured image courtesy of Shutterstock.
ICO Analysis: Sharpe Capital
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.
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.
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.
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.
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.
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.
- 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
- 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
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.
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.
ICO Update: Chimaera
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.
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.
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.
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.
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.
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.
- 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
- 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
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.
- 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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- ICO Analysis: Experty November 19, 2017
- Trade Recommendation: Enjin (ENJ) November 19, 2017
- Bitcoin IRA: How to Save for Retirement Using Cryptocurrency November 19, 2017
A part of CCN
Analysis1 week ago
Long-Term Cryptocurrency Analysis: Bitcoin Enters Correction as Altcoins Break Out
Cryptocurrencies6 days ago
Trade Recommendation: Bitcoin Cash
Altcoins1 week ago
Bitcoin Cash (BCH) and Bitcoin (BTC) Showdown – Let the Fight Begin
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Trade Recommendation: Bitcoin Cash
Cryptocurrencies1 week ago
Trade Recommendation: Litecoin
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Technical Analysis: Bitcoin Breaks Below $7000, Altcoins Pull Back, As Bitcoin Cash Jumps
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Trade Recommendation: Ethereum Classic
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