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ICO Analysis: Viberate.io

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It’s dishonest not to begin this analysis with the author’s gut reaction upon being informed about Viberate: yet another great idea that probably won’t make enough money to succeed. In analyzing new financial instruments, especially volatile ones with no real history, there are a lot of pitfalls to avoid. Common wisdom would have cautioned against an investment into Google, which is why Yahoo! passed on their historical opportunity to purchase the giant in its infancy. Therefore avoiding the “small minded” fallacy is important, but also important is demanding that investments actually have a profit model. In Viberate, on the surface at least, we don’t find a lot of that. Instead, we find a lot of talk about building a community around live music and expanding a database of live acts.

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The Viberate business model isn’t quite simple. It’s a 21st century middleman approach. By aggregating venues and acts to perform in them, they create a garden inside of which they can charge for activities.

Viberate is a platform that joins the entire live music ecosystem under one roof. Currently it acts as IMDB for live music, where profiles are ranked according to their online popularity. It is built and curated by the Viberate user community. Our end game is to disrupt the music industry as we know it – by becoming the biggest global talent marketplace.

They themselves speak to the problem this author is establishing, a couple pages later in their whitepaper []:

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[…] We managed to build the database we have today with the help of over 50,000 contributors and we will always keep it open for anyone to take part in maintaining its relevance. […] Those 50,000 Viberate contributors didn’t get anything in return for their contributions. Now the blockchain technology allows us to reward them for their work with Vibes (VIB) from our bounty allocation.

For their part, Viberate wants to expand the usage of their token beyond just the Viberate platform. They aim for it to be “default token in the music industry” which would mean it could be used in digital music sales, ticket sales, busking, merchandise, and more. To this end, they have a number of potential and untested revenue models. Most interesting among these, and perhaps the emergent winner in terms of the firm’s actual focus, is their Decentralized Ticket Exchange service (DTX).

The DTX will allow people to buy and sell tickets to events via the Ethereum blockchain. Every ticket will be created as it its own ERC20 token that can communicate with the Vibe application itself, meaning that any Ethereum wallet could be taken to an event, or an Ethereum ATM could vend the tickets. This alone disrupts the model of Ticketmaster and several other ticket scalping professionals in a huge way and could represent large revenues if integrated into a few large arenas early on. For reference, Ticketmaster’s parent company is worth over $7 billion.

Another revenue model, that seems most obvious, is the booking commission model. Agents today earn up to 20% of an artist’s take from each event. Viberate can compete with these figures for obvious reasons, offering a better price and a far greater variety of potential venues.

Then there is advertising, which will be hit or miss. Viberate wants to develop partnerships with other sectors of the music industry and sell advertising to its member artists. It could sell it directly or through smart contracts built into the platform, between artists and ad markets. However, one can easily see this aspect being unprofitable or undesirable, since 21st century promotion is a totally different ballgame.

Another probably less valuable feature is paying for access to members of the act, such as the manager. One assumes they intend to expand this to a sort of backstage access situation, but ultimately this is, again, not the sort of thing that will have broad appeal.

Vibe Token Details

Viberate has always been a community project. The initial database of musician profiles was built with the help of over 50 thousand contributors, who got nothing in return for their work. Sometimes being a true music fan and feeling like a part of something big is enough. But we believe that community work should result in sharing the proceeds of its efforts. One of the main purposes of the Vibe is investing into the growth of the service. We will reward community efforts with Vibes from our bounty pool. The pool will be fuelled by the profits from excercising our business models. The below scheme illustrates Vibe’s circle of life.

Viberate tokens will, like many in their class, have real value only within the ecosystem itself. They can be used to buy tickets, book musicians, add musicians to the database, and more. A fixed supply of 200 million tokens will be generated on September 5th, with 60% of them being offered for sale. The initial price is tied to the US dollar, at 10 cents each, with daily tranched bonuses.

The value of the tokens can only increase if demand for access to the platform does, so in a sense, the commitment to the previous community and to running bounty programs is very forgivable. To this end, they are dedicating 5% of the 200 million at the outset to rewarding participating community members who continue to expand the platform. An additional 27% is withheld for awarding early investors, distributing to staff, and future partnerships that may require Vibe tokens.

Vibe tokens will be useful in either the Viberate app or in a standard ERC20-compatible wallet which can be used to transfer them in person, at events or otherwise.

Verdict

This may be the greatest idea ever to grace the music industry, but that does not mean that there will be financial rewards for investing in it. Disrupting an established industry which has a lot of internal competing interests is difficult and potentially dangerous. Stumbling blocks for Viberate will include simple “didn’t like the color” reactions from legacy parties they are trying to bring on board. The risk in this product is higher than many because it requires a lot of social capital to really get legs. As such, the following verdict can be considered positive in light of all the potential negative factors/headaches that a behemoth, consolidated, and opaque industry can give to a would-be cure-all like Viberate.

Worth a look, and at ten cents a pop, maybe a swing, but probably mediocre in terms of ICO returns unless your motive is pure speculation. In that case, a sell-off point of 30 cents per token seems an easy gain.

Risk

  • An industry as full of middlemen as live entertainment will significantly resist disruption of this type. Market penetration could be very slow and tenuous, which will take a toll on the value of the tokens. -2
  • Too great a focus on community rewards and issues could take time and resources away from developing money-making ventures. The project is overwhelmingly consumer-facing. -1

Growth Potential

  • Live music isn’t going away, and becomes more valuable as recorded music sales continue to decline. The potential to provide disruptive services which actually benefit the industry they target is great, and even a 10% take of the industry leader in ticket sales (via the DTX product) would equate to almost a billion dollars in annual revenues. +5
  • Incoming industry executives will realize the value of products like Viberate and partnerships will likely flourish as a result. We lend another +2.9 for the potential that venues, promoters, and other existing industry actors will carry water for Viberate and make it bigger than it could make itself.

Disposition

We land on a 4.9 with Viberate, having exhausted its positives and negatives.

Investment Details

On September 5th, Viberate.io will have all the details for investment available. They already have user-friendly guides available, and a mailing list for reminders.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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ICO

ICO Analysis: XYO Network

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Traditional location service providers, like the common GPS system, which is a project under the jurisdiction of the United States Air Force, are now facing multiple problems regarding their operational capabilities, that are constantly being left behind as technological advancement improves by the minute.

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There are various issues with the current GPS system, including the fact that it is a centralized service, fully controlled by the United States Army. GPS systems can experience a single point failure and result in a non-functioning service, the signal is not accessible by underground locations and sometimes even by indoor locations, urban density increases signal multipatch, energy-intensive components are not tailored for devices with long maintenance cycles. Traditional GPS systems are also volatile against signal jamming and spoofing.

Back in 2016, during the second annual Ethereum developer’s conference in Shanghai, Eleftherios Karapetsas introduced the concept of Proof Of Presence and its functionality. Today the concept is an Ethereum backed protocol called Proof of Location and it’s being used by a dozen of start-ups who are striving to disrupt the monopoly of the location tracking industry.

One of these innovative projects would be definitely XYO Network. The network they are trying to build will be composed of “Sentinels”, (devices that serve as transmitters) communicating with “Bridges” (location data transcribers) and then “Archivists” (databases), concluding to the Diviners (oracles) that give you the answer to your request.

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For example, you own a car rental company and want to review the location of all cars at your disposal. You simply make your request to the Diviner who then collects the data gathered from the Sentinels, transports them to the Archivists through the Bridges. A complex mechanism compares the data gathered at the Archivists as well as data from other Diviners to ensure the accuracy of the answer you will be given. Once the answer is the best answer, meaning that it is as accurate as possible according to the XYO Network, the answer to your query will be revealed.

XYO is not your ordinary blockchain-powered start-up. They are present in the industry since 2012, from when they managed to spread 1,000,000 beacons all over the globe. Now they are planning to deploy over 1,000,000 more microdevices, satellites, and sticker-based trackers (using RFID technology) and they even plan on expanding their Network to Mars.

From Location tracking to IoT and Mesh networks, XYO Network’s use cases affect multiple industries including eCommerce, Medical, Rental Car Agencies, Commercial Airline Logistics, Insurance Agencies, National Security Agencies, and Drone Package Delivery Systems, among others.

Token

The XYO token, which is the network’s native currency, is a utility token used to purchase ultra-specific geo-location data, exchange, and/or sell and buy location data, as well as rent your tracking information to the XYO Network in exchange for XYO tokens.

You can use the tokens to purchase various products and services coming with the XYO platform or translate them into major cryptocurrencies like Ethereum (ETH) from where you can find a gateway to Fiat currencies or other cryptocurrencies respectively.

The total amount of XYO will be determined after the token sale since any unsold tokens will be burned and not additional XYO tokens will be generated in the future.

The starting price will be equal to 1ETH = 100,000 XYO, while the price per unit will be maxed at 1ETH = 33,333 XYO. The exact price per XYO is yet unknown since Ethereum’s price is constantly shifting. One thing is certain, and that is XYO Network’s goal to reach a capital of $48 million at the end of the public sale.

Team

Arie Trouw (Founder & Architect), who started writing software with his TRS-80, moved from Atari to Apple and Microsoft during his early career days. He is an experienced serial entrepreneur with multiple companies under his signature raising 8-digit capitals.

Scott Scheper (Co-Founder & Head Of Marketing), started working for Arie Trouw back in 2009. In 2013, he launched Greenlamp, a programmatic advertising agency focusing on direct-response media buying. In the first year of its operation, Greenlamp managed to generate over $12M in revenue.

Markus Levin (Co-founder & Head of Operations) has over 15 years of experience in building and managing several companies around the globe. He is the one who utilizes the talents of every employee and gets the best out of his team.

In the board of advisers, we can find among others Tom Kysar (Advisor – XYO token market economy), who is the operations lead at Augur and has ties with Ethereum, and Raul Jordan (Advisor – XYOMainChain Scalability) who received a Thiel Fellowship after dropping out of Harvard.

In general, the team looks solid and professional, with a board consisting of over 20 people all specialists in various spectrums of the location tracking industry, blockchain technology, and information technology.

Verdict

Proof of Location, in general, is a very disruptive concept and within a year we already have individual companies with their own platforms based on the initial protocol.

XYO is not a newcomer when it comes to technological marvels. But they are the first to integrate a big spectrum of location and information services all into one single blockchain-backed platform.

The XYO Network consists of a series of physical, digital, hardware and software products and services that will eventually be able to communicate with each other using the XYO Network.

Of course, it would be a challenge to compete with the U.S. Army, the provider of traditional GPS systems, but we already have seen what blockchain did to banking and even governmental institutions, this shall be not a problem for XYO if considered with accuracy.

Risks

From an investor’s perspective, the following facts are important to consider when weighing XYO Network:

  • XYO Network plans on competing with one of the most difficult players in the industry, the American Army. Of course, Proof of Location is a unique innovative concept that will alter the way we interact with location services in the future, but it won’t be an easy task to fulfill. -2
  • Establishing a complex network relying on multiple concepts including Internet Of Things (IoT), Mesh Networks and location tracking services can be challenging and really difficult to maintain. XYO must prove itself before attracting serious investments. -2
  • The XYO Network is not only highly complex, but also very expensive and requires a significant amount of time to be deployed. Therefore early investors will have to be patient in order to see some interesting growth generated by their initial investment. -1.5

Growth Opportunity

  • On the other hand, Proof of Location as a concept is one of the most revolutionary ideas not only in the sphere of blockchain but in disrupting technologies overall. XYO Network among other start-ups who are focusing on this new protocol might be exactly what we needed to escape the American Army’s “Big Brother”. +1.5
  • A real-time location tracking system that relies on multiple systems, hardware and software is going to be absorbed by the logistics industry in no time. People could track their physical or digital assets in no time with extreme accuracy that will indicate not only the exact location of the desired package but also its travel/exchange history, current condition and more. +3.5
  • The XYO team is consisting of professionals who have proven themselves at work in the previous decade generating accurate business plans that led to extraordinary profits. +3
  • The Proof of Location concept is backed by various industrial companies and individuals both in the blockchain and traditional markets scene, including Ethereum’s own Vitalik Buterin. After all the concept was created by young Ethereum’s engineer, Eleftherios Karapetsas. +2.5

Disposition

As previously mentioned, XYO might sound like an ideal futuristic project, but it will require a lot of time, energy and funds in order to achieve its goals.

Traditional ICO investors usually invest for fast profit within six months or a full year. XYO is definitely not the solution for these investors, as it might need more than a couple year to grow into a fully developed and functioning product.

The closest project to XYO that we could think of would be IOTA, without a doubt. It’s a long-term (if not the longest) opportunity, but it requires patience and understanding.

A score of 5 out of 10 is reserved for XYO Network, based on present facts.

Investment Details

  • Type: Crowdsale
  • Symbol: XYO
  • Platform: Ethereum
  • Pre-Sale: Mar. 20, 2018
  • Public Sale: May. 20, 2018
  • Payments Accepted: ETH (KYC Required)

 Official Website

White Paper

Disclaimer: The writer has no position in XYO Network at the time of writing.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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ICO

ICO Analysis: Nezly

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Nezly is an online marketplace that connects legal Marijuana dispensaries with suppliers and customers built on the Stellar blockchain. Nezly plans to leverage the capabilities of the Stellar blockchain to:

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  1. Facilitate payments
  2. Allow for transactional data to be recorded on the blockchain so that a historical snapshot is visibly transparent and immutable.
  3. Create a transparent ecosystem that is more secure and convenient buy having both buyers and sellers information verified in a decentralized fashion.

Despite seemingly being committed to building off of Stellar, the Nezly team bizarrely stated in their whitepaper that, “We are currently looking into new technology provided by IOTA (Internet of Things) that uses a DAG (Directed Acyclic Graph) or “Tangle” that structures a ledger in a tree formation to allow for faster lookups and better scalability.”

This gives this Analyst the impression that the authors of the whitepaper are merely namedropping Blockchains they deem fashionable in an attempt to look knowledgeable rather than expressing any specific business use case for the technology.

There are four main products that Nezly is developing within their ecosystem

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1. CannaX, or what they dub “the wholesale Cannabis exchange.”

They envision this as a place where growers, dispensaries, labs, and transports connect, gain data insight, and perform transactions.

In practice, this would work based on user participation in the platform.

For instance, a dispensary looking to buy product could obtain data on what’s popular, what’s selling, and what isn’t.  Meanwhile, farmers would also know what to grow based on what’s selling to dispensaries.

This would theoretically yield increased efficiency and exponential growth to the industry as a whole.

Another important feature of CannaX is what the whitepaper describes as, “A true seed to sale timeline” documented on the blockchain.

This entails an “easy to use tool” for Farmers to record what growing products are being used, images of all the growing stages throughout a growing cycle, and the ability to upload lab test results of the completed plants.

Dispensary buyers would have access to this data after the purchase of a product. They would then be able to provide their customers with superior information on where the products came from, what methods were used to grow them, and lab testing validating the quality of the products themselves.

The customers would be able to access this information by scanning a QR code.

The whitepaper did not elaborate on how this would work for customers in detail.

CannaX would also provide remittance services. They state that the Nezly token (NEZ) would also be utilized to charge Nezly’s fee for service, or FFS.

The remittance amount would determine the fee charged within a range of 1.5-3% of the total transaction.

They also state that they will create several remittance technologies themselves capable of handling large transactions in an effort to reduce the volatility of the NEZ token once it’s listed on exchanges.

They also state that they have proprietary intellectual property to assist with this, but do not elaborate upon whether this has already been created or is merely aspirational on their part.

Nezly does, however, state that they would run their own Stellar Core nodes for increased reliability of their token.

Their stated reason for building CannaX and the NEZ token on Stellar rather then Ethereum is the superior transaction speeds of Stellar’s network.

2. White Labeling & Branding Services Of The Nezly Mobile App By Dispensaries

This allows for the creation of custom dispensary-branded apps that customers can use to order cannabis products from their Dispensary of choice with Nezly tokens storable on a wallet within the app.

For customers, Nezly thinks the ability to have accurate & live-synced inventory data of what products are actually in stock will lead to decreased frustration and therefore increased brand loyalty to a given dispensary.

According to the whitepaper, dispensaries would also able to “interact with customers through real-time interactive comments.”

How this is different from other methods of supposedly “interactive” communication such as SMS or instant messages evades the understanding of this analyst.

These white-labeled apps will also provide dispensaries with up to date pricing and purchasing trends information from the CannaX exchange.

3. Nezly Buddies

Nezly Buddies is described in the whitepaper as, “An international social engagement app connecting Cannabis partakers together.”

They describe the app as having swipe features analogous to Tinder, while also having separate sections for

  1. Nezly Buddy Events
  2. Gamification Rewards
  3. Product Voting Polls

They will also offer an upgraded premium version of the app that will feature:

  1. Live Member Video Chat
  2. Member Messaging
  3. Member To Member Gifts

Nezly plans to release this app separately from the main Nezly app (the former of which can be white-labeled by dispensaries).

4. Nezly Wallet + Nezly Card

They further state that this is to ensure the app stays as “lightweight and functional as possible.”

Nezly already has beta versions of its mobile wallets for both Android and iOS.

Windows, Mac OSX, and Linux native applications are also in development.

The Nezly card will work by allowing users to load Nezly tokens onto it and use it like any other credit/debit card.

There are some interesting security features specific to the card, however. These include:

  1. Version ID: Denotes the version of the card and what format it will use.
  2. Region Code: A code base on proprietary numbers set forth by Nezly.
  3. Crypto Wallet Checksum: A proprietary checksum that can be used for additional security to verify the Nezly wallet associated with this card.
  4. Nezly App Account Number: A special encoded number based on the user’s actual ID in the system which is generated after signing up for the Nezly app.
  5. Checksum: A Standard checksum similar to other credit cards.

All Nezly Wallet applications will work in tandem with the Nezly Card. Specifically, the Nezly Card has its own hot wallet that the user would load Nezly tokens onto from their software wallet.

It should be noted that although Nezly Wallet applications are immune from any tampering from Nezly staff by the nature of the blockchain, the Nezly Card is only functional because Nezly will act on behalf of users to facilitate payment.

Token

The Nezly token, or NEZ, is the lifeblood of the entire ecosystem. It is the transactional currency customers will pay dispensaries with. It is what dispensaries will pay suppliers with. Essentially any transfer of valued data that occurs within the platform in any capacity is done using NEZ tokens.

The total amount of NEZ tokens is 240,000,000 Of this amount, 168,000,000 tokens total, or 70% of the total supply, will be available to the public via crowd-sales.

The crowd-sales will be divided into three rounds for the NEZ token:

  1. Presale: 36,000,000, or 15%.
  2. ICO: 84,000,000, or 35%
  3. Public Sale: 48,000,000 or 20%

According to the whitepaper, if the hard cap of tokens sold during the pre-sale is not reached, Nezly reserves the right to extend the closing date up to thirty days three separate times.

Any unsold tokens of the 120,000,000 set aside for the presale and the ICO will be burned.

The Public Sale tokens (they label it very confusingly in the whitepaper) are reserved for sale to the public at market prices to facilitate transactions on the Nezly platform once the ICO is over.

Team:

The Nezly team is fairly large. Upon first glance, they seem fairly capable. In this analyst’s view their weakest player is their CEO, Cory Kelly.

The whitepaper describes him as an accomplished and awarded UI/UX designer who has designed for prominent companies such as Nike and Spotify.

Upon review of his Linkedin however, I determined that he was a contract worker for Nike for three months, and a contract worker for Spotify for three months.

These are not nearly long enough periods to demonstrate his true capabilities.

It does appear that the team has recruited a large amount qualified developers and advisers. Notably, they have a prominent biomedical research who specializes in analytical chemistry as an adviser.

Given their emphasis on providing product quality (including lab testing) on the blockchain, it is good that Nezly seems to be seeking truly distinguished expertise. What bothers this analyst is that the core team itself (especially the CEO) seems underwhelming for a project of this scale. The CEO’s influence can clearly be seen in the mockups of the UI, which admittedly does look sleek and easy to use.

Verdict

The cannabis industry is as nascent and untapped a market as the Cryptocurrency industry itself.

In many ways, solutions relying on blockchain technology to meet the needs of an emerging Cannabis industry that struggles to obtain basic banking services and credit card processing seem obvious.

It is apparent that Nezly put forth an interesting proposal envisioning what blockchain technology could do to streamline the Cannabis market.

But in the view of this analyst, their business model fails on a variety of levels.

In essence, Nezly suffers from the issue most new marketplaces do, that is, “the chicken and egg problem.”

For Nezly’s ecosystem to have any value to any participants, there have to be enough participants to generate valuable and actionable data.

For instance, their CannaX Exchange is premised on the idea that the sharing of dynamic product supply & demand information will be valuable to dispensaries and growers because both parties will use the data to make better and more valuable decisions.

But what happens if there aren’t that many dispensaries or farmers to draw data from?

That results in a limited pool of data that does not necessarily reflect the broader market accurately.

To their credit, Nezly seems aware of this and talks up their connections in the Cannabis industry, seemingly to demonstrate that they will have many partners signed up quickly.

But this remains to be seen and is a big IF that may singlehandedly determine the success of their platform.

In addition, while it is currently difficult for Marijuana businesses to access banking and credit/debit processing services, it is not impossible.

The political climate is also steadily heading towards full decriminalization.

Hypothetically, if the legal floodgates opened for standard banking & payment services to service the Marijuana industry tomorrow, I don’t see this platform being able to offer enough value to most businesses to differentiate themselves.

Another huge issue I see with their business model is their focus on making white-label apps for each individual dispensary to use themselves.

In my view, this is the quintessential example of what happens when companies think that everything and every product is better if it’s in some way decentralized.

Consumers don’t want to order from a million different mostly identical apps that only each work for one dispensary.

They want to order from one app that has all potential dispensaries in one place.

That’s why when a customer wants to order takeout food, they use Grubhub or Seamless or a competing platform which offers them all the restaurants they could order from in one application.

The idea that an average customer would download a separate app for each dispensary they would ever want to order from is so ludicrous that part of me is shocked it made it into the whitepaper.

Nezly is missing the forest for the trees.

Risks

  • No guarantee that Nezly will get enough ecosystem participants to generate valuable data. -5
  • A frankly moronic approach to consumer-dispensary interactions. -5
  • A CEO that seems more skilled at exaggerating his capacity to make things look pretty then he is truly making a sustainable platform. -3
  • It seems like they just took a bunch of blockchain related terms, put them in a hat, and picked one at random to inform how to build their platform. -2.5
  • The whitepaper says that 10% of the total token supply will be retained by the Nezly team but that 20% would be put into the Nezly reserve. What this reserve will be used for according to the whitepaper is “future distributions, project initiatives, or promotions.”
  • They also describe it being used to, “help address issues surrounding fluctuations in the circulation of Nezly tokens that might otherwise impact the ability of Nezly tokens to serve as a useful medium of exchange. To that end, we may use Nezly reserve to purchase or sell Nezly tokens on the open market, burn, or lock, a percentage of Nezly tokens in escrow if it is deemed necessary.” So in reality, they have given themselves full control of 30% of the coin supply with no lockup period whatsoever and only a vague suggestion of what they will do with it moving forward. That is a huge red flag that could suggest a possible ICO pump and dump scam. -6
  • Their whitepaper is riddled with typos and in one section even repeats two identical paragraphs. -3

This can be seen here:

-24.5

Growth Potential

  1. The low token supply means that it wouldn’t take a lot of capital to raise the price significantly (When combined with the red flags suggesting an ICO pump and dump scam, this might not be positive.) +4
  2. The platform does seem to have a beautiful UI +4
  3. The CannaX exchange as described does seem to be a potentially very valuable product for the cannabis industry as industry standards begin to formalize. +3.5
  4. Although the political climate may change swiftly, it hasn’t fully yet, and they may have an easy sales pitch by Nezly for dispensaries who don’t want to deal exclusively in cash (a major headache.) +5

Disposition

We arrive at a score of -8/10 for Nezly.

Although it looks very impressive at first glance, the entire project falls apart under closer scrutiny, and may even be a scam.

In short, Nezly is half-baked.

This article should serve as a reminder for all Hacked readers to do their own research and not rely on one short article to determine whether or not they should make an investment.

Investment Details

  • Token Type: Utility
  • Platform: Stellar Lumens
  • Symbol: NEZ
  • Token Supply: 240,000,000
  • Token Crowdsale Prices: Presale: 1 NEZ=.20 USD ICO Round One: 1 NEZ=.25 USD ICO Round 2: 1 NEZ=.30 USD
  • Hard Cap: $7,200,000 For The Presale & $23,200,000 For The ICO
  • Minimum Purchase Price: Presale: $1000 USD. ICO: 100 USD.
  • Accepted Crowdsale Payment Methods: Stellar Lumens, Bitcoin, Ethereum, USD.
  • Public Sale: Apr. 20, 2018.
  • Jurisdictions Barred From Participating: Unclear from Whitepaper.
  • Website: https://nezly.com
  • Whitepaper: https://nezly.com/Nezly-Whitepaper.pdf

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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ICO

ICO Analysis: Dream

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Freelancer

Dream (originally called Moneo) is an advanced marketplace for freelancing work that uses AI to improve projects. In their own words, “DREAM validates ideas and builds teams, enabling more projects and startups to succeed. Powered by AI, driven by real-world success.” They plan to distinguish themselves from entrenched industry leaders like Upwork and Fiverr by focusing at first on curating the best platform to hire blockchain-specific talent.

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According to their whitepaper, they have had over $8 million of job postings, 6,000+ development hours and a tested and proven bitcoin escrow payment system that was successfully deployed on their platform. In addition, Dream has had a hand in multiple crowd fundraisers, platform initiations and development, and collaborated with hundreds of blockchain organizations and CTOs.

Building on the success they had with Moneo, Dream has envisioned an ecosystem where every project built using Dream contributes to the efficacy of their AI solution. This AI solution, called Dream Builder, is described in their whitepaper as, “an advisor, project manager, and team builder—guiding entrepreneurs through the exciting, yet treacherous first stages of building out an idea. The knowledge that was previously lost from project-to-project is captured and used to deliver qualified answers and validated solutions to clients.”

The way Dream Builder does this is to analyze the outcomes of projects built using the platform, then making recommendations for workers or freelancers who have been pre-vetted by their reputation platform, called Dream Reputation. Dream Reputation is another way that Dream differentiates itself and in the analysts opinion eclipses the value of more mainstream contractor marketplaces like Upwork.

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Essentially, Dream lets contractors import their existing ratings and reviews from all the major platforms, making their reputations portable. Not having the barrier of building a reputation from scratch on an entirely new platform is a very savvy strategy and accomplishes two main things. 1. For contractors, not having to build a new reputation lowers the barrier to entry for joining the Dream platform.

This makes it more likely that there will quickly be a large amount of talent for hire on the platform. With more talent on the platform, customers are more likely to use it, creating a multiplying effect continuously making Dream more appealing to all parties. After contractors for a project have been suggested, machine learning modules suggest an optimal team structure for the project. If certain freelancers have worked together in the past (and had a successful outcome) they are more likely to be paired together.


Token

The Dream token is the lifeblood of the platform. According to the whitepaper, “The nature of the DREAM Tokens is twofold: they are a utility token that can be used to buy premium services and hire talent, and are also reward tokens that incentivize community members for Advisers using and growing the platform.” Dream tokens are used in every process from the payments to contractors to rewarding people for training the AI system. They also have plans to allow partners such as fundraising or legal platforms to offer their services in Dream tokens. Dream plans to use the token raise for three years of runway and to enable rapid growth.

The token distribution is as follows:

  • Token Buyers: 60%
  • Rewards Program: 4%
  • Founders 8%
  • Core Team: 4.7%
  • Advisers: 9.8%
  • Rewards Pool: 10%
  • Reserve: 3.5%

Team

The “Dream Team” so to speak is stacked with experienced talent.

The founder and CEO of Dream is Richard Foster. According to Dream’s whitepaper and Linkedin, Richard founded and raised funding for financially regulated payments company. He also has twelve years’ work experience as a Cisco CCIE freelance network architect in finance and energy in London. Virtually his entire career has been spent as a network engineer and architect, at huge companies like BP. He also seems to be a prolific fundraiser for all the projects he’s been involved with.

Dream’s CFO Amy Diez is an ACCA chartered accountant, financial modeler, and Management Consultant. She was formerly the Associate Director at KPMG London for 12 years. She was also previously awarded the Jon Lopategui Memorial Prize for Monetary and Macro Economics at Kingston University London, in recognition of excellent performance in the area of Monetary Economics.

The Development team is huge, with five blockchain developers working on the overall platform and four specialists dedicated to working on the chatbots used within the platform.

The marketing team is small to medium-sized relative to the size of the other teams but seems to have decades of experience in launching/marketing platforms of this nature.

The members of the advisery board that Dream has gathered are genuinely impressive. They include members of the Ethereum core developer team, Ph.D. specialists in AI, and several blockchain legal experts.

Verdict

I am extremely impressed with Dream. Not only does their platform seem incredibly well thought out, but they have already built the foundation of it with Moneo and had immense success doing so.

Although contractor marketplaces such as Upwork and Fiverr are entrenched, their core value proposition centers on the idea that contractors are willing to pay 20% of their project payments to Upwork in exchange for access to a large client base and a trusted escrow system. Yet over time, contractors find long-term clients and no longer need the security of Upwork’s platform. When that happens, they cannot take their reputation with them, locking them onto the platform.

If Dream were just a marketplace that solved the reputation issue, they would already be an interesting investment. But they appear to be much more. They are a platform for the blockchain era, using the technology to maximize efficiency. By using a crypto escrow system that they themselves designe, they offer flexibility not available anywhere else. In short, Dream is a next-generation platform that matches projects with workers and continuously improves itself from studying the outcomes of these pairings.

Risks

  • Upwork and Fiverr have huge brand recognition and it could prove challenging to earn the trust of contractors who rely on them for their livelihoods. -3.5
  • Allowing reputation portability is great unless the accuracy of ratings from other platforms is low. This would then throw off the accuracy of Dream’s recommendations. -3

Growth Potential

  • Dream has a highly qualified team that has already built and refined the core product. +4
  • They solve essentially every issue that contractors have with existing centralized platforms. +3
  • There is an unusually low fixed token supply which means that it takes far less capital going in to raise the price. +4
  • Their platform will continuously refine itself thanks to AI and machine learning. +3

Disposition

Dream earns a 7.5/10.

Although this rating is incredibly high, I believe in this case it is justified. Everything from the token economics to the quality of the team to the product they already have running smoothly begs the question why there is not more publicity around this project.

Investment Details

  • Token Type: Utility
  • Symbol: DREAM
  • Platform: Ethereum
  • Token Supply: 100,000,000
  • Available For Purchase: 60,000,000
  • Hard Cap: $33.4 Million
  • Pre-Sale: May 12, 2018 – May 18, 2018.
  • Public Sale: May 19, 2018 – June 15, 2018.
  • Jurisdictions Barred From Participating: Unclear in Whitepaper.
  • Website: https://dream.ac/
  • Whitepaper: https://tokensale.dream.ac/whitepaper/dream_whitepaper.pdf

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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