ICO Analysis: SwipeCrypto

Although some might see apps as a good way to “get rich quick” (a lot of people have an “app idea”), that isn’t always the case.

Depending on which part of the world the app is based in, around 2 percent (or less) of app users end up making in-app purchases. This percentage is even worse in developing markets, where consumers may not have the same purchasing power that they do in places like North America.

As such, app developers turn to things like advertisements, which unfortunately turn off a lot of users from continuing to use the app.

Still, another option is data monetization, or selling user data. For example, things like user preferences and other general behavior can be anonymized and sold to interested parties, such as businesses, who can use the data to improve their products and services offerings.

However, data monetization is not ideal, even when data is anonymized to protect users (vs. not anonymized in cases like Cambridge Analytica). The current model makes it so that data is non-transparent and non-auditable for data purchasers and that users have little control over their data and aren’t compensated for providing it.

SWIPE aims to revolutionize data monetization with their software development kit (SDK), which will help developers, users, and data buyers:

  • The SDK will have in-app marketing tools that will help developers increase user engagement and retention and ultimately, actionable data, and allow for easy integration of apps and their users to the SWIPE network. And since developers will be selling data to buyers directly, they can earn more since they will be rewarded every time their data is traded vs. once when they sell it to a data marketplace or middleman.
  • Users will be rewarded for sharing their data instead of being left out of the equation as well as be able to opt in or out of data monetization campaigns and control their data sharing and privacy.
  • Data buyers will be able to buy data on SWIPE’s decentralized marketplace (vs. through a centralized data middleman), which will offer data that is logged (data requests, reward distribution) from start to finish and auditable via the blockchain, giving buyers confidence that data is accurate and legitimate. Plus, data will offer complete user profiles (e.g. interests data and transaction data) – vs. data mashed up from various sources by a middleman – so that buyers are able to make better business and marketing decisions using purchased data (e.g. know what users are interested in and how much they’re willing to spend on it).

An alpha version of their API is available for viewing here, and the Blockpost app on the Play Store is a demonstration of SWIPE’s SDK capabilities.

The team behind SWIPE already has experience in apps and data monetization: between their top-rated apps AGILA Rewards and cepatswipe, both of which are advertising-based apps that reward users for engagement (similar to what they want to do with SWIPE), the team has nearly 1m app users. Both apps are Southeast Asia-based (one of the fastest growing regions in the world) and have rave reviews and high user engagement.

AGILA Rewards has 10 times more engagement (CTR or click-through rate for advertisements) than typical digital media (less than 2% CTR).

Cepatswipe, like AGILA Rewards, is a top-rated app but while reviews may say that an app is good, what’s even more impressive is that 80% of cepatswipe’s users were brought on organically through other users’ referrals, demonstrating the app’s quality.

Token

SWIPE is powered by the SWIPE token.

An app developer connects his or her app to SWIPE using the SWIPE SDK.

The SDK tracks users’ app activity and generates data based on it. The data is then purchased by a data buyer through the decentralized marketplace. This data is paid for in SWIPE and both users and app developers receive SWIPE for their efforts.

Besides data purchases, SWIPE is also used for other aspects of payments, rewards, and staking.

Payment Utility

Along with buying data, SWIPE can be used to pay for advertising and costs associated with SWIPE missions and marketplace fees.

Missions are similar to bounties on SWIPE. For example, a mission owner can create a survey, which is defined via a smart contract (mission length, reward distribution rules, etc). Mission participants who complete the survey mission receive rewards in the form of SWIPE. Mission owners, then, pay for mission rewards and mission listing fees (paid to SWIPE Network).

Rewards Utility

Advertising engagement, data sharing and mission completion are rewarded in SWIPE.

Staking Utility

To participate in missions, users have to stake SWIPE. Once the mission is completed and the mission length defined in the smart contract passes, staked tokens are returned to mission participants.

SWIPE is currently in its private sale phase. Interested investors should contact the SWIPE team. Token distribution and token sale details are available to interested investors as well.

Team

The team behind SWIPE is SwipeRich, a mobile advertising company behind leading, Southeast Asian, advertising-based rewards apps AGILA Rewards and cepatswipe. The userbase of nearly a million (between the two apps) was built up in less than 2 years (first app AGILA Rewards was released in late 2016).

Advisors

Shaun Djie – Djie is the Co-Founder of DigixGlobal, which is actually the first Ethereum DApp, as well as the Founder of the Ethereum Singapore Meetup, the largest meetup of its kind in Asia. Djie’s network should be of great help to SWIPE, which is based in Asia.

Megain Widjaja – Widjaja is Chairman of Indonesia’s Alternative Media Group (AMG), the largest digital advertising company in Indonesia.

Davy Makimian – Makimian is CEO of Alternative Media Group. Him and Widjaja’s support for SWIPE should say something about the project.

Partners

SWIPE partners include myphone, the biggest smartphone original equipment manufacturer (OEM) in the Philippines and AMG in Indonesia.

Verdict

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

Risks

  • Although past performance is not always indicative of future results, marketplace ICOs typically don’t fare well (-0.5)

Growth Potential

  • Team has relevant experience (+3)
  • Meaningful and relevant advisors and partners (e.g. Asia-specific, digital media/advertising-specific) (+2.5)
  • App developers could be enticed to use SWIPE’s SDK for its in-app marketing suite alone given that SwipeRich (SWIPE parent company) has proven experience when it comes to in-app user engagement and retention. Such adoption of the SDK by app developers could have a positive impact on SWIPE’s growth (+2)

Disposition

Though marketplace ICOs don’t always fare well in the ICO market, SWIPE’s experience building relevant, successful apps and relationships with meaningful and relevant advisors helps tip the scale in their favor. Add to the fact that Southeast Asia is a huge growth market, with only 51% currently using the Internet on a monthly basis (but that number is growing – fast) and Southeast Asians spending more time on mobile than people in any other region, and you might just have to swipe right on this ICO. SwipeCrypto receives a 7/10.

Investment Details

  • Type: Ethereum, presumably ERC20 – Utility
  • Symbol: SWIPE
  • Platform: Ethereum
  • Crowdsale: TBA
  • Minimum Investment: Unspecified
  • Price: Unspecified
  • Hard Cap: Unspecified
  • Payments Accepted: Unspecified
  • Restricted from Participating: Unspecified

For More Information

Featured image courtesy of Shutterstock. 

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