ICO Analysis: Shopin
Online shopping has grown exponentially resulting in the rise of some extremely successful and profitable companies such as Amazon, eBay and Alibaba. Shopin aims to add their name to that list using blockchain technology to create a “decentralized Amazon” business model.
Shopin is a universal shopper profile that empowers retailers to compete with Amazon by offering better product recommendations, easier and more secure transactions, and more valuable rewards to customers who give retailers access to their purchase history and preferences. Using decentralized blockchain technology and artificial intelligence, Shopin is creating a more sustainable retail economy where retailers become stronger by working together and shoppers get rewarded based on the value of data that they fully own, control and share. Retailers will work with Shopin to onboard their shoppers and create a Shopin profile passing years of purchase history and SKUs to the shopper’s profile. The retail sites you visit will receive that data from Shopin, driving a personalized shopping experience leading to increased transactional conversion and increased revenues for the retailer. Using their Shopin login details, Shopin users will log into retail websites and be instantly recognized along with their historical purchase data.
Consumer data from retailers is combined with user-verified preferences to form the most accurate and up-to-date view of the shopper. The more the consumer shops, the more complete and defined the profile becomes through use of state-of-the-art AI. Shopin’s engine will collect the shopper’s data from every participating retailer, defining the shopper’s profile in real time enabling more accurate product recommendations. A secure profile that enables shoppers to own their complete purchase data, giving the power back to the customer and rewarding them financially.
Shopin recently worked with Bed, Bath and Beyond and Ermenegildo Zegna for a pilot program that produced excellent results. Both invited their registered customers to create Shopin profiles, resulting in over 700,000 sign-ups. Extracting shopper purchase and preferences data, Shopin provided those registrants with curated recommendations, leading to a 22% lift in conversions, and yielding $14.7 million in additional sales. 72,000 of the shoppers who created Shopin profiles invited 65,000 additional new users to go through a Shopin onboarding.
The benefits to shoppers:
- A shopping experience personally tailored throughout the web and retail
- “Just for you” personalized experience targeted to their spending habits
- Know who has their data and manage access to up-to-date information
- Benefits of one-click checkout on every site, manage shipping tracking, returns and more all through one profile
- Share your profile with friends and family to allow them to shop for you and only get the gifts you want
Benefits to retailers and marketers include:
- Access to accurate shopper-verified preferences to increase engagement
- Build more powerful recommendation engines with quality up-to-date shopper data
- Increased ROI on marketing and communication through live attestable shopper data
- Fewer returns
The Shopin token will be an ERC20 utility token use to manage incentives offered by retailers. Shoppers will be rewarded with Shopin tokens when they allow their data to be used by retailers for analytics on their websites. Making cumbersome reward cards obsolete, shoppers will see the value of their tokens (rewards) on their app and be able to use them at any participating Shopin retailer (online or physical store). Shopin users will also have the option of gifting Shopin tokens to each other.
There will be a total supply of 1.5 billion tokens with 33% available for purchase. The token sale price is $0.10 USD per token with a hard cap of $50 million USD. The public sale will continue through May 2018 unless the hard cap is reached.
The token allocation is as follows:
- 33.00% Token Sale
- 33.00% Partner & Community, Incentives
- 24.42% Team
- 5.28% Seed Investors & Advisers
- 3.30% Employee Option Pool
- 1.00% Ethereum Foundation Developers
The use of proceeds is as follows:
- 50% Software Engineering, Data Science
- 30% Marketing, Sponsorship, PR
- 15% Business & Corporate Development, Operations
- 5% Legal, Accounting
Shopin consists of a large team and advisory board (27 members strong) that brings over 15 years experience in successful e-commerce startups, user profiles and behavioral marketing solutions. The core engineers that built the entire Priceline system from launch are included in Shopin’s engineering team and plan to do for online retail what they did for the online travel industry. The executive team includes:
CEO and CoFounder Eran Eyal, winner of the United Nations World Summit Award for Innovation, brings over a decade of experience in retail and e-commerce.
CTO and CoFounder Divakar Rayapaty, a Principal Software Engineer at Priceline for 14 years and CoFounder/CTO at Maker’s Brand.
CMO Doron Wesly brings extensive B2C and B2B marketing experience having worked for companies such as Samsung, Applebee’s, Lotame, Tremor Video, Mindshare, Millward Brown and IAB.
Blockchain Technology Officer Jeremy Harkness served as the CTO/Head of R&D at Barrows, CTO of HP Ticket, and CTO/Founder of Strattice, where he invented the first remotely managed mini server and failover router.
Chief Revenue Officer Michael Herman, Former President of Global Sales at Elie Tahari and brings 20 years’ experience in senior executive positions.
Shopin boasts an impressive list of advisers including:
- Sothi Thillairajah – CEO of Block One Capital, CoFounder of Finzat Block, and former Managing Director at Revere Capital Advisors.
- Steven Nerayoff – the architect of the Ethereum Token Sale, an inventor of Gas for Ethereum, Founder, and CEO of Maple Ventures, CoFounder of Alchemist Ventures, and Founder and CEO of CloudParc.
Shopin is based in New York with recent offices recently opening in Korea.
Current retailers are looking for a solution to compete with the likes of Amazon, and Shopin could be exactly what they are looking for. Shopin is turning the retail and e-commerce web into a decentralized Amazon, built on the blockchain, with a universal shopper profile and cryptocurrency. Based in New York and opening offices in Korea as well as having successful pilots, Shopin is aiming to become one of the blockchain success stories of 2018.
- Even with a larger team than some ICOs and Shopin offsetting 30%-50% of retailers’ initial contracts to jumpstart token adoption, a $50 million USD hard cap is still on the high side for an ICO in today’s market. -1
- The team has the required experience from both business and blockchain to be a successful ico and it’s definitely a good sign that the team members are listing Shopin first on their LinkedIn profiles, but most of the team still has outside obligations which don’t allow for 100% of their time to be devoted to the project. -0.75
- Although Shopin lists a large number of highly experienced team members and advisers, a token allocation of 30% is still considered high in comparison with other ICOs. However, this does include the seed investors allocation which is normally included in the token sale section. -1
- Shopin has already engaged in two successful pilots with retailers Bed, Bath and Beyond and Ermenegildo Zegna resulting in over 719,000 sign ups with Shopin customers purchasing 22% more than customers without a Shopin profile. +4
- Shopin was voted the Best ICO and Startup by CoinAgenda Global. It was also the Winner of Best ICO at the 2018 North American Bitcoin Conference in Miami, FL. +3
- Already approached by significant payment processors for partnerships, Shopin aims to be available to over 3,000 retailers and 20 million consumers. +3
The Shopin project has won multiple ICO awards and boasts a stellar team of executives and advisers. It employs offices around the globe, partnerships soon to be announced, and recently completed a successful pre-sale. There is massive upside potential and rewards for retailers, consumers and investors if shopping with Shopin comes to fruition and is able to achieve mass adoption. Shopin receives a 7.25 out of 10 rating.
- Token Type: Utility
- Platform: Ethereum
- Total Supply: 1,500,000,000
- Available for Purchase: 33%
- Hard Cap: $50,000,000 USD
- Crowdsale: Ongoing through May 2018
- Price: 1 token = $0.10 USD
- Payments Accepted: ETH, BTC
- Jurisdictions barred from Participation: USA, China, New Zealand
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