ICO Analysis: WatermelonBlock

They say to really get a feel for the cryptocurrency markets across digital currency prices, ICOs, etc, you have to visit social media platforms like Reddit to see what market insiders are saying and feeling. WatermelonBlock examines cryptocurrencies and ICOs “with a social lens” via its artificial intelligence (AI)-fueled platform, and they’re launching an ICO to engage the community and finance the development of the platform, which is primarily a mobile app.

It’s one thing to look at how bitcoin is trading or read an ICO white paper, but it’s entirely something different to understand the reasoning behind trades as well as the interpretation and experiences of the cryptocurrency community. WatermelonBlock uses a familiar technology — IBM Watson — “to scan, categorize, weigh and analyze big data sets in seconds, providing real-time global sentiment insights” on the NEM blockchain, an alternative to Ethereum.

Having access to the supercomputer that outsmarted humans on Jeopardy is a major advantage for a startup looking to leave its mark on the decentralized world. Incidentally, the crypto community is often more impressed by innovation than by any existing technology that can be applied to the blockchain, but IBM has proven its commitment to distributed ledger technology with patents and IBM Blockchain for business.

WatermelonBlock’s algorithms comb through sites like “Reddit, Steemit, Facebook, Google, Instagram, Twitter and other media and social platforms that are reviewed every second for sentiment,” according to the white paper. It’s designed to give retail investors who might not have the time or tools to trade like a pro an edge with data analytics.

The maiden product is a smartphone app that’s available on both iOS and Android systems. The app is free but users gain access to premium features in exchange for WatermelonBlock (WMB) tokens. Below is an illustration of the WatermelonBlock ecosystem –

Source: WatermelonBlock White Paper

The company’s crypto analytics app is in beta testing and will be available in Q4 2018. WatermelonBlock is registered in Singapore and operates out of Melbourne, Australia. Funds raised in the ICO will be directed toward the following in descending order:

  • “Development of the app suite and bot”
  • “Financial regulatory license compliance”
  • “White label and B2B marketing”
  • “Ongoing mass marketing”
  • “Maintenance and hardware infrastructure”
  • “Building a data center”

Token

WatermelonBlock (WMB) is an ERC20-based token.

Source: WatermelonBlock White Paper

Team

Elliot Rothfield / Director and UX Designer. The website refers to Rothfield as the “leading force behind the experiential design of the WatermelonBlock app suite.” He’s launched businesses before and has a penchant for “creating communities … around empowering millennials.”

Sonia Miles-Khan is COO and an alum of blockchain-friendly financial firm EY.

Verdict

WatermelonBlock has the potential to resonate with both newbie and experienced traders alike, given its access to real-time data analytics based on the crypto community. The website could be a little cumbersome to navigate, particularly the team section, but the overall project has the potential to strike a chord with retail consumers. Its use of AI and its access to the IBM supercomputer stand to give it an edge over other projects, but there are also other ways for novice investors to trade.

Risks

  • Technology. The WatermelonBlock (WMB) token is an ERC20 based asset, while the company’s products will be built on the NEM blockchain. As a result, there is an increased chance for a malfunction in either of those technologies to impact either the ecosystem. (-2)
  • Competition. There are other options for novice investors looking to trade like an expert. eToro exchange, for instance, lets investors copy the investment portfolio of successful traders without having to make their own decisions if they don’t want to. (-0.5)
  • The app remains under development and isn’t expected to be unveiled until Q4 2018. While this is a common feature of ICOs, that doesn’t diminish the risk of possible delays for one reason or another (think Tezos ICO). Also, as is the case for most innovation, there’s no precedent to determine the effectiveness of the data analytics tool, no success stories from average traders who have made successful investment decisions from the app. (-0.5)

Growth Opportunity

  • Key partnership. WatermelonBlock has inked a partnership with Big Blue, otherwise known as IBM, to access the AI and the Watson supercomputer. This is a boon for any startup, especially one that’s looking to win investor trust.  Both sides seem similarly enthusiastic to work with one another. (+4)
  • Technology. AI is underrated and is likely to grab more of the tech spotlight in the coming decade. WatermelonBlock’s focus on AI now positions the project for long-term success and gives it a key advantage over its peers. (+4)
  • A global team of ICO advisors, including NEM Blockchain Consultant Jason Lee, who was named among the Asia Forbes 30 Under 30, as well as Boris Peter Manitius, an IBM Watson Specialist, and other crypto enthusiasts. (+2)

Disposition

We arrive at a score of 7 out of 10 for the WatermelonBlock ICO.

Investment Details

  • Project Websitehttps://watermelonblock.io/
  • Token Type: Utility
  • Platform: NEM
  • Symbol: WMB (an ERC20 token)
  • Private Sale: Now
  • Public Pre-Sale: July 27
  • ICO Public Sale: TBA
  • Token Supply: 400 million
  • Tokens Available for Sale: 240 million
  • Price: 11.6¢ per WMB
  • Investment Minimum: Round 1 = 15 ETH; Round 2 = 5 ETH; Round 3 = 1 ETH
  • Payment Methods: Fiat and cryptocurrencies, as per the white paper.
  • Jurisdictions Banned: United States, China, China, Republic of Korea and Japan
  • Contacthello@watermelonblock.io

Featured image courtesy of Shutterstock

 

Author:
Gerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.