ICO Analysis: Trust Platform

It’s been about 10 years since the release of Bitcoin and blockchain technology.

While the larger blockchain and cryptocurrency spheres have come a long way, adoption is still very low relative to the overall global population.

Trust Platform is one of many projects aiming to solve the adoption problem.

In their opinion, things like poor User Experience (UX) are holding back the mass adoption of blockchain technology.

With their secure, yet easy to use mobile applications, Trust Platform wants to encourage the adoption of blockchain and crypto by offering a one-stop shop for Ethereum-based solutions. The main problems they want to solve are as follows.

  1. Complex user interfaces
  2. Not many real life uses for crypto
  3. Grueling processes for registrations as well as account and password management
  4. Lack of decentralized application (dApp) accessibility on mobile devices
  5. Poor incentivization of dApp development
  6. Lack of reliable dApp marketplaces that have things like ratings and reviews

So far, they’re doing a good job:

Trust Wallet has glowing reviews both on the App Store and Google Play Store.

According to Trust Platform’s whitepaper, Trust Wallet has experienced ~1,100% growth since the beginning of 2018.

With Trust Wallet, users can send, store, and receive Ethereum-based assets like Ethereum, Ethereum Classic, and Ethereum-based tokens (ERC20, ERC223, ERC721).

Also provided in the app is Trust Browser, which allows for interaction with any dApp like Bancor, CryptoKitties, etc. straight from the app.

TST Token Economics

So where does Trust Platform’s token (TST) come into play?

TST is an ERC20 token that powers Trust’s ecosystem:

dApp Listings

dApp developers have to deposit TST to list their dApps and get in front of Trust’s user base. Listings are subject to a vetting process (voting, vouching, and reputation) to prevent listing of undesirable dApps.

Deposits can be withdrawn but doing so means dApp de-listing.

Rejected or removed dApps lead to a forfeiture of deposits, which are distributed according to the Token Contract for In-app Proceeds – explained below.

dApp Promotion

Developers can use TST to feature their dApps in the Trust dApp marketplace.

Proceeds will be distributed according to the token contract’s distribution for platform revenue.

dApp Reviews and Ratings

Trust users can use their TST to leave dApp reviews and influence dApp ratings. This will ensure that only quality dApps survive in the marketplace. TST collected by the Trust team will be allocated according to the Token Contract for In-app Proceeds.

Rewards will also be given to active reviewers.

Vouching, Reputation and User Validation

Once users are verified, they can use TST to vouch for or flag other users and dApps on Trust Platform.

For example, not only do dApps have a rating or reputation, but developers themselves do as well.

TST used for Trust Platform participants’ reputations will also be distributed according to the token contract.

Collectible Marketplace

Digital collectibles (e.g. cats on CryptoKitties) are growing in popularity rapidly.

However, these collectibles are not just Ethereum-based but available on various other platforms as well.

Trust Platform, with their simple but secure interface, wants to become the go-to for anyone looking to trade their digital collectible(s).

Since collectibles are hosted on different blockchains like Ethereum’s and so on, Trust wants to enable cross-blockchain (e.g. between Ethereum and Stellar) trading of collectibles. To standardize the pricing of collectibles across different blockchain markets, collectibles that trade on Trust’s collectible marketplace will be priced in TST.

According to Trust, a single currency for collectibles should make collectible trading easier, increase collectible adoption, and promote collectible value.

Small transaction fees that are collected by Trust Platform will be distributed according to the platform’s token distribution contract for revenues.

dApp Grant Program

30% of fees and commissions collected by Trust Platform will be used to incentivize developers that develop dApps promoting promotion of blockchain technology on mobile through Trust’s dApp Grant Program.

Community Incentivization

Trust will have a reward pool of TST for users that actively test and review dApps.

This should also draw in developers who want to benefit from the insights of many beta testers.

Token Contract for In-app Proceeds

Fees collected by Trust Platform will be used in the following manner:

  • 40% Development Team
  • 30% Community Reserve Pool
  • 20% dApp Grants
  • 10% Marketing

Trust Platform’s ICO or token sale will have 2 phases.

  1. Private sale (before the public one)
  2. Public sale – held on Kyber Network

No bonuses or discounts are offered for either private or public investors.

The public sale will have a maximum contribution limit (unspecified as of writing), but for both public and private, no greater than 15% of the total circulating supply will be sold to any one person or group.

Total TST Supply: 100,000,000 TST

  • 50% crowd sale (50,000,000 TST)
  • 24% reserve (24,000,000 TST)
  • 16% team (16,000,000 TST)
  • 6% advisors and partners (6,000,000 TST)
  • 4% marketing (4,000,000 TST)

There will be no vesting or lock-up for the crowd sale.

Reserve tokens (used for building the ecosystem) will be vested over 2 years (released every 6 months).

Team tokens will also be vested over 2 years with releases every 6 months.

Advisor and partner tokens will be vested over 9 months with 25% released every 3 months (first release starts at initial token distribution).

Token sale proceeds will be used for the following (subject to change according to whitepaper):

  1. Core development 60%
  2. Marketing 20%
  3. Legal and operations 10%
  4. Security 5%
  5. UX 5%

Team

Trust’s team is mostly based in San Francisco, USA with other offices in Canada, China, Australia, Russia, Ukraine, and Gibraltar.

CEO Viktor Radchenko – was Co-Founder and CTO of Trucker Path, a highly-rated app for truck drivers.

Advisors

John-Paul Thorbjornsen, CEO of CanYa, a cryptocurrency-based services marketplace. Advisor to numerous other blockchain/crypto startups.

John Ng Pangilinan, Founder of Signum Capital, blockchain-based investment fund with investments in notable projects, such as OmiseGO, TenX, Kyber Network, and more.

Renqi Shen, part of Investment Team at Fenbushi Capital, first China-based, blockchain venture capital firm and one of the earliest blockchain VCs in general (2015). Fenbushi has numerous investments in high profile projects like Circle, Parity, Sia, TenX, VeChain, and ZCash.

Partners

On their website, Trust Platform lists partners like Kyber Network, Changelly, and more but the details of said partnerships are undisclosed.

Verdict

Below is a breakdown of the risks and growth opportunities associated with the Trust Token platform.

Risks

  • Trust apps doing well but growth of ecosystem depends on continued growth of apps, e.g. apps have to be popular for developers to want to buy TST and list their dApps on them. Also faces competition from other mobile crypto solutions. -0.2
  • Some of the other uses for TST seem weak – e.g. why would someone pay TST to leave a dApp review? -0.2
  • Not a lot of hype so far – e.g. Trust Platform’s Twitter has less than 1,000 followers and Telegram less than 6,000 (as of press time). Worrying since ICO about 2 weeks away -0.3
  • No information on private sale max contribution – could be up to 15% of circulating supply for any group or individual. Combined with no vesting or lock-up for crowd sale, very worrying. -0.5
  • Team not as strong as those of other projects -0.5
  • No details on partnerships -0.3

Growth Potential

  • The apps are doing very well thus far. If they continue to do well, the ecosystem has potential +4
  • Decently influential (in the blockchain and crypto spheres) advisors, such as Renqi Shen of Fenbushi Capital +2

Disposition

Though Trust Platform already has some decent mobile apps that are being used by a decent amount of people, continued growth of the ecosystem depends on these apps continuing to gain adoption relative to other apps. Given the team’s weak marketing efforts and abundance of similar competitors, this could prove difficult.

Moreover, TST demand largely depends on growth of the apps and larger ecosystem.

Relatively weak team and lack of details on partnerships don’t help either.

Lastly, private sale max contribution is unspecified but potentially high (15% for any group or individual), which could mean potential dumps by whales.

Trust Platform ICO receives a 4/10

Investment Details

  • Type: ERC20 – Utility
  • Symbol: TST
  • Platform: Ethereum
  • Crowdsale: July 10th, 2018
  • Minimum Investment: Unspecified
  • Price: 1 ETH = 2,500 TST
  • Hard Cap: 20,000 ETH
  • Payments Accepted: ETH
  • Restricted from Participating: United States of America, Canada,People’s Republic of China, New Zealand, Republic of Korea, Cuba, North Korea, Serbia, Tunisia, Somalia, Zimbabwe, Congo, South Sudan, Sudan (north), Sudan (Darfur), Turkey, Iran, Iraq, Libya, Syria, Ethiopia, Yemen, Sri Lanka, and Venezuela.

For More Information

Trust Platform Website

Featured image courtesy of Shutterstock.