ICO Analysis: Kairos

The global facial recognition market is expected to grow from USD $4.05 billion in 2017 to USD $7.76 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 13.9% during forecast period (From: Research and Markets, 2017). Major forces of growth behind the market are the evolving surveillance industry and government expenditures in the arena of biometric technologies.

Kairos describes itself as “best in class face recognition biometrics…” and goes on to say that it is “trusted by businesses across the planet, and is now democratizing access – enabling anyone to protect their anonymity and truly control access to their identity.”

Kairos will migrate their proprietary database to a blockchain-enabled architecture that enables existing and future customers to form cooperatives, to share, and collectively leverage Kairos database. 

According to the project’s website, Kairos is developing a ‘Human Analytics’ platform driven by “computer vision algorithms to measure faces in images, videos, and the real world.”

Token

In association with a Simple Agreement for Future Tokens (SAFT) offering expected to launch in the first or second quarter of 2018, Kairos intends to further develop anticipated token types and token strategies. The Kairos ICO is an opportunity presented by Kairos to purchase both security and utility tokens.

What’s the Security Token and the Utility Token?

The security token will convert into a class of Kairos shares.  That class of shares will have an ownership stake in Kairos, those shareholders will be listed in the Kairos capitalization table and those shares will include certain quarterly information rights. By default as there are fewer exchanges on which security tokens trade, the utility token may trade on more exchanges than the security token. The utility token will not convert into a class of Kairos shares.

Team

The core team boasts strong development and leadership experience with Brian Brackeen as CEO since inception over six years ago and Cole Calistra as CTO for also over six years. The executive team has experience working with brands like Apple and IBM, as well as running enterprise level architecture. Kairos is not a startup and has an existing client base with case studies ranging from the payments space to airport security.

Verdict

Kairos represents an interesting opportunity for investors. The organization has been around for over six years with an existing customer base.  The team has full commitment to the project and has raised money previously in the VC world for their enterprise product. Their human analytics product suite can have broad application across many industries from security to customer analytics and insight. They will continue refinement of the strategies supporting the existing product suite as well as the expected growth of Kairos including the initial stages of migrating the Kairos database to a blockchain- and smart contract-enabled architecture.  

Risks

  • While the technology of human analytics is impressive with many use cases many large firms like Google are also in this space. However, the whitepaper provides an informative illustration of how Kairos differs versus some of the leading competitors. -1.5
  • In the organization’s use of funds, only 13% is being allocated for sales and marketing initiatives to drive platform adoption. -1.5
  • While the team is strong in product development they admit the company has little to no performance or operational record with cryptoassets, and the company is in the earliest stages of planning and developing its products. -1.5

Growth Opportunities

  • Market growth within this identity verification and human analytics niche will continue to grow as application of the technology can be weaved into many different business situations. +3.5
  • Kairos has REST style APIs for product adoption on any platform so they are device and hardware agnostic, and allows for solutions that can be delivered both in the cloud and on-premise while the database is decentralized on blockchain. +4
  • The company has a three-year lock-up period for employees of the organization so the risk of tokens being dumped by the executives goes away. +3

Disposition

Because of a previous successful VC funding round, an existing product mix in the market and an established customer base Kairos has good traction leading into their ICO. There is still the gap of blockchain experience as well as how the organization will fight off larger competitors like Google.

We believe that a score of 6 out of 10​ is warranted.

Investment Details

  • Type: Security
  • Symbol: KAIROS
  • Whitelist: Yes – not set; join here
  • Public Sale: April. 15, 2018
  • Price: 1 KAIROS = $0.20 U.S.
  • Hard Cap: $30 million
  • Total Token Supply: 450 million
  • Available Tokens for Sale: 40.4% of 450 million
  • Payments Accepted: ETH, USD
  • Jurisdictions Barred from Participation: None mentioned

Featured image courtesy of Shutterstock.