ICO Analysis: Swace

So, you are using Facebook, Snapchat or some other social network. Once in a while, you come across advertisements of your favorite brand, yet you do not feel like engaging with this text, picture or video. It is passive, non-customized to your digital identity. In most cases, you would prefer that these advertisements do not bother you at all.

Such cases are not rare, and this is easily provable by pointing out the high number of people who use ad blocking applications. Evidently, digital advertisement methods do not work that well and brands are not presented by low engagement solutions other than images, video posts, and contests. To improve digital advertisements’ ways and engagements with brands’ target audiences, some alternative methods have been proposed. One method which is recently gained high interest is rewarding users with some financial incentives for their engagement with advertisements.

Following this same spirit, Swace proposes a social gaming platform where users are rewarded for their digital engagement with brands. Aiming to make the user experience fun as much as possible, the team is planning to correlate the user’s experience with brand engagement relative to the “fun” he or she had, which should improve the brand’s position in the public’s eye.

But this is not all. If you wish not to participate in events sponsored by brands, you can just complete quests as well. Upon accepting to participate in a quest, a pre-determined number of tokens are removed from the user’s wallet and once he or she completes it, the player gets reward tokens. In some cases, they will be rewarded with virtual or real items as well. The platform allows any user to become an influencer as well.

But most importantly Swace introduces a fun, new and exciting way to take place in a new social platform. The planned introduction of augmented reality to the platform will enable the possibility of quests similar to Niantic’s Pokémon Go, which gained tremendous interest from people all over the world. Given the fact that young people like to experiment with new social platforms, Swace should see some serious attraction if the team plays their cards right.

Token

Swace users are rewarded with SWA tokens in return for their digital engagement with brands. These tokens will be used in marketplaces of Swace’s partners. As the team has signed contracts with at least seventeen international companies, we can safely say that the project has attracted high corporate interest so far.

Through the private pre-sale period, investors were offered bonuses between 30% and 60% which should be a concern for the ICO investor. Also, a hard cap of $23,000,000 seems too high for a project like this.

The initial total supply of SWA is 2,700,000,000 tokens with the following token distribution:

  1. 3% advisors and partners
  2. 7% bounty, airdrop, and test rewards
  3. 12% the team
  4. 23% community growth
  5. 55% the public

Any unsold token will be added to community growth budget after a lock-up period of one year. Founder and team tokens will be locked for two years.

The team is planning to use the token sale proceeds as follows.

  1. 5% unforeseen expenditure
  2. 11% legal
  3. 18% marketing and community growth
  4. 23% hr & corporate development
  5. 43% research and development

Team

Jean Claude Edorh: Edorh, a former athlete who participated in the 1996 Olympics in Atlanta and has founded JC Sport.

Paulius Kaminskas: Kaminskas is a senior software engineer at NFQ, a software development company located in Kaunas, Lithuania.

Advisors

Andrew Barros: Barros was a senior adviser at Perpetual Limited, a financial services company.

Alain Heureux: Heureux has worked at CPM UK, a sales agency, for three years.

Partners

Bancor Network: Bancor is a decentralized liquidity network.

Verdict

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

Risks

  • The existence of so many similar projects creates competition. (-1.5)
  • High bonuses offered to private pre-sale contributors. (-2.5)

Growth Potential

  • At least 17 international companies have signed contracts with Swace, implying high corporate interest in the project. (+2.5)
  • Rewarding users for their engagement with brands is a good and trending idea to increase brand awareness. (+2)
  • According to the roadmap, Google Play and App Store applications will be released before ICO. (+1.5)

Disposition

Standard digital advertising methods seem to fail to reach to brands’ target audiences. Rewarding users with tokens to increase brand awareness and user engagement has become a trending approach to solve these problems with digital advertising. Swace is a social gaming platform which rewards its users not only for digitally engaging with brands but also for completing daily quests and becoming an influencer. Many international companies have shown interest in the project, which is definitely a good sign. Yet the ICO investor should note that earlier stage investors have been offered high bonuses up to 60%. Swace receives a 2/10.

Investment Details

  • Type: ERC20 – Utility
  • Symbol: SWA
  • Platform: Ethereum
  • Crowdsale: Unspecified
  • Minimum Investment: $100
  • Price: $0.02
  • Hard Cap: $23,000,000
  • Payments Accepted: ETH
  • Restricted from Participating: Unspecified

For More Information

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