ICO Analysis: Perlin

The ICO we’re going to discuss today has been on a lot of people’s radars. Interestingly enough, the project stayed in “stealth mode” for 6 months, adding to curiosity about it, and just recently re-emerged to release a whitepaper and make other announcements.

The project is Perlin, which, similar to projects like Golem, is a decentralized cloud computing marketplace that allows people to sell excess computing power to others so that everyone can have access to supercomputing capabilities.

Perlin claims to offer a “supercomputer in the palm of your hand” using an extremely fast ledger combined with a powerful compute layer.

Perlin DAG Ledger and Avalanche Consensus Protocol

To make such a vision possible, Perlin will use a directed-acrylic-graph (DAG) ledger (different from a blockchain as a blockchain processes blocks of transactions one at a time and a DAG ledger allows for simultaneous processing of blocks) and the Avalanche Consensus Protocol. By doing so, Perlin’s ledger will be able to handle 1,300 transactions per second (TPS), have a consensus protocol that doesn’t require a leader (e.g. one miner mines a block, one proof-of-staker validates a block), protect privacy even if there are malicious actors, and support the development of decentralized applications (DApps) that are truly scalable, secure, and stable.

Perlin’s Cloud Computing Vision

Perlin allows people with everyday devices (even smartphones) to rent away idle computing capacity in Perlin’s decentralized cloud computing marketplace, which aims to be a competitor to inflated pricing models set by the oligopoly of a few cloud computing providers.

Perlin envisions a decentralized cloud computing future where even devices like smartphones are collectively helping to process computationally intensive algorithms in groundbreaking areas like cancer research and artificial intelligence.

Token

Perlin is powered by PERL, which customers, such as companies and researchers, pay to those who rent out their extra computing power.

PERLs will initially be ERC20 tokens until mainnet is launched and ERC20 tokens are swapped for native PERL tokens.

20% of tokens were issued during the seed sale (token price of $0.04 with 12-month vesting from token generation event), 20% of tokens were issued during the strategic sale (token price of $0.12 with 6-month vesting from public sale), and 7.5% of tokens were issued during the private sale (token price of $0.20 with 3-month lockup from exchange listing).

Team

Dorjee Sun, Project Manager and Co-Founder – Sun is the ex-COO of Santiment, a cryptocurrency investment analysis platform, and serial entrepreneur who has raised over $400m in investor funding, co-founded 20 companies (2 acquisitions, 4 exits, asset sales). Sun is also a World Economic Forum (WEF) Young Global Leader and advisor to other blockchain projects, such as Powerledger, Airbloc, Blue Frontiers, and Republic Protocol.

Kenta Iwasaki, CTO and Co-Founder – Iwasaki is a software and robotics engineer who has worked at companies like Naver Corporation (company behind products like Naver – aka the Korean Google – and LINE – the lead or close to lead messaging app in countries like Japan, Thailand, and Taiwan). He is also known for winning around 20 internationally-renowned hackathons at Stanford University, IBM, University of Pennsylvania, US Department of State, ETH Denver, EOS, etc.

Mirza Uddin, Head of Business Development – Uddin was an investor at Two Sigma, one of the world’s top hedge funds as well as a venture capitalist at companies like East Ventures (Japanese VC that was an early investor in OmiseGO and Bitflyer) and Index Ventures (invested in companies like Dropbox and Facebook). He also has advised other blockchain projects like EdenChain and OneLedger.

Advisors

Perlin’s advisors include the likes of the following:

Michael Arrington, Founder of TechCrunch and Co-Founder of CrunchFund – Arrington is known for founding TechCrunch, a leading tech and tech startup blog. His venture investments include Airbnb, Uber, and Pinterest.

Investors

Investors in Perlin include Bitmain, Beyond Blocks, Signum Capital, and more.

Verdict

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

Risks

  • No working product (but multiple favorable code reviews, such as the one discussed below) (-1)
  • Not much information released on token economics and token sale metrics (e.g. for a presale or public sale) (-1)

Growth Potential

  • DAG has shown its promise in projects like IOTA and Nano (+3)
  • Perlin underwent a code review by OpenToken (led by Daniel Chen, former Partner at Andreessen Horowitz, and CTO Michael Graczyk – former VP of Engineering at self-driving startup comma.ai, whose CEO is known for turning down a job offer from Elon Musk, and Engineer at Google). OpenToken deemed Perlin’s code to be better than DAG-based projects like IOTA (perhaps the most famous DAG project) (+3)
  • Quite hyped (+2)
  • Infrastructure platform that allows for development of DApps (+1)

Disposition

  • Perlin, thanks to its innovative technology and overall hype, is an ICO to watch closely. If a good working product as well as favorable token economics and token sale metrics emerge, it could very well be a home run.
  • Perlin receives a 7/10

Investment Details

  • Type: ERC20 – Utility, Native – Utility (upon mainnet release)
  • Symbol: PERL
  • Platform: Ethereum then Native
  • Crowdsale: post-private sale TBA.Minimum Investment: Unspecified
  • Price: Unspecified (post-private sale).Hard Cap: Unspecified.Payments Accepted: Unspecified, presumably ETH.Restricted from Participating: Unspecified

For More Information

Featured image courtesy of Shutterstock.