ICO Analysis: Senno
Senno is a NEO-based blockchain for sentiment analysis that includes an open API for third-party apps. Sentiment analysis consists of reading through mounds of user-generated data on sites like Twitter and Facebook to determine whether a certain topic has a positive or negative view in the community. You can use this data for anything from determining brand awareness to forecasting stock prices.
Right now, there are a couple of major problems with traditional sentiment analysis systems:
- Expensive. It requires an intensive amount of computing power to scan web pages and analyze the data.
- Untrustworthy. Like other centralized systems, a lack of transparency may lead to data manipulation.
By bringing sentiment analysis to the blockchain, Senno provides an inexpensive solution with no need to trust a centralized data store. Let’s dive into how it works.
The Senno process begins with data collection. The platform’s data listeners collect information from popular channels such as blogs, YouTube, and other social media.
From there, Senno assigns the data channels with a reputability score using the NEO digital identity. This data classification helps to remove data manipulation and ensure consistent accuracy.
Next, the data goes through core analysis and lexical analysis. In core analysis, the party that provided the data receives SENNO token payment, and the platform saves the data in distributed storage. After the data registry smart contract (DRSC) confirms that the storage contributor is actually storing the data, the contributor receives payment as well.
A transfer of SENNO tokens to the hardware contributor kicks off the lexical analysis process. Here, the data and requested analysis are sent to a distributed CPU to perform the sentiment analysis. The result is then sent back to the core platform.
By now, all contributors have received their full payments. The analyzed data is then stored in the Senno database (SennoDB) where third-party apps can access it.
Senno produces two main calculations with this process: buzz and mood. Both results are determined by a set of complex equations that you can find in the Senno white paper.
Buzz is the measure of how much discussion is occurring about the topic. Mood is a measure of sentiment value for the topic. It ranges from negative to positive. The Senno team recommends using the delta values of both these figures when making decisions.
SENNO is an NEP-5 token based on the NEO network. It’s the primary currency on the Senno platform. SENNO is used to pay hardware contributors, plugin developers, and network resource providers. You also receive tokens for sending referrals. To tap into crowd wisdom data and use the API, you also need to pay a subscription in SENNO.
The Senno token pre-sale started on March 31 and will last for 30 days or until contributions reach the $4 million hard cap. During this pre-sale, you’ll receive a 20%-50% bonus when purchasing tokens.
During the regular ICO crowdsale, $0.01 will get you 1.6 SENNO. You may also get up to a 20% bonus depending on when you participate and how much you contribute. You can purchase SENNO with either NEO, Bitcoin, Altcoins, a credit card, or through a wire transfer.
The Senno team is minting a maximum of 10 billion SENNO during the crowdsale, and distributing 4 billion (40%) to crowdsale participants. They will destroy any unsold tokens after the sale.
The token breakdown is as follows:
- 40%: Crowdsale
- 30%: Reward tokens for contributors
- 15%: Company shareholders
- 10%: Advisers and business partners
- 5%: Employees
- As you can see, the distribution is far from decentralized. However, as the team gives out the reward tokens, this should hopefully change.
Co-founders Elad Peled and Rudy Zakuto lead the Senno team. Peled previously founded LibraTrade, a company that developed the first-ever smartphone trading platform. And, Zakuto worked as a cybersecurity advisor for almost 5 years before founding Traffiq Net. At Traffiq Net, he implemented blockchain algotrading protocols into the system.
Although the team isn’t too versed in blockchain technology, they have the support of a well-versed suite of advisors – the most notable advisors being Ophir Gertner, the founder of Stox, and Marc Kenigsberg, the founder of Blocksmarter and CoinJanitor.
Senno is a sentiment analysis platform built using the NEO network. The team is planning on reducing the cost and upping the reliability of sentiment data so that even small and medium businesses (SMBs) can utilize the business intelligence.
Even with as complex as a subject as sentiment analysis, the Senno white paper is one of the clearest and easiest to understand ones that I’ve read. This should be a testament to the work that the team puts into the product.
- Pre-launch. Senno hasn’t finished building the product yet. They’ve even stated this as one of the biggest risks in their white paper. (-3)
- Not enough contributor incentive. It looks like Senno will be relying heavily on the token reward pool to incentivize early contributors. What happens if that pool isn’t enough or runs out before the platform gains traction? (-2)
- Companies love sentiment data. Understanding how consumers feel about your brand is immensely important for businesses. Additionally, investors are incorporating sentiment analysis into their trading strategies more and more each day. (+5)
- Clear communication. The team has concisely stated their goals and how they expect to reach those goals. They have a clear vision for their product and can explain it well to others. (+3.5)
- Multiple token uses. The SENNO token has value through several different revenue streams in the Senno ecosystem. Success in just a couple of these streams should drive up the token value. (+4)
Senno receives an 7.5 out of 10. The project is addressing a legitimate problem in an important space and doesn’t seem to be facing any huge competition (yet).
As long as the team can hit development milestones on time and launch successfully, there should be no problem securing customers. As the launch isn’t scheduled until Q2 2019, we have some time to wait and see.
- Type: Utility
- Symbol: SENNO
- Platform: NEO
- Pre-Sale: Mar. 31 – Apr. 30, 2018
- Crowdsale: TBD
- Price: $0.01 = 1.6 SENNO
- Hard Cap: $25 million
- Payments Accepted: NEO, Bitcoin, Fiat
- Jurisdictions Barred from Participating: U.S., China
The pre-sale began on March 31st. You can find more information and sign up to contribute at their website here.
Featured image courtesy of Shutterstock.