ICOrating. JURY.ONLINE Rating Review (

Transcription

1 ICOrating JURY.ONLINE Rating Review ( ICO dates ( ) Web: icorating.com

2 1. Ratings 3 2. General information about the Project and ICO 4 3. Description of the services and scope of the project 5 4. Market Review Market analysis Competitors 8 5. Team and stakeholders Token analysis Analysis of factors affecting the future value of the token Investment risk analysis 15

3 1. Ratings We assign the Jury.Online project a "Stable" rating. Jury.Online positions itself as a platform for making deals and transactions, on the basis of which an ICO platform will also be launched. This diversification reduces the risks related to the future of ICOs in general. On the other hand, staging ICOs is likely to be more of a sideline for Jury.Online compared to its general transaction platform. The project team is sufficiently technically competent; the developers experience is relevant to the goals they have set. The team lacks financial, legal and ICO experts however; they will have to solve this by using third-party contractors. The team did not present a financial model for the project or a scheme for allocating funding received. This prevents assessing whether the margins and revenues are sufficient to create the intended token economy. At the same time, the token economy itself is competently built and thought out; if the service proves popular and Jury.Online able to fulfill its obligations, the token s price could rise due to infrastructural demand.

4 2. General information about the Project and ICO Jury.Online positions itself as a platform for concluding transactions, on the basis of which an ICO platform will also be built. The basic platform will facilitate transactions that, in the event of a claim, are arbitrated by a group of independent expert judges who can pronounce a verdict on the transaction in favor of one of the parties. The ICO platform will provide phased control over spending of funds via smart contract based on the Ethereum blockchain. Jury.Online is launching its own utility token, JOT, for use in transactions on the platform. JOT is the local currency for the platform, offering the ability to pay for an ICO, pay for arbitrators and for internal services. The Jury.Online team have prepared an in-depth Legal Memorandum and Terms and Conditions together with an independent legal advisor. There is no detailed information on the legal aspect of the project; however, the jurisdiction for the project has been chosen wisely from the regulatory point of view - the shell company will be located in Estonia. Total emission: 30,000,000 JOT Pre-ICO: start date: November 3, 2017 Offering price: $0.36 (30% discount) Collected: 1540 ETH ICO: Size of offering: 14,700,000 JOT ICO start date: February 12, 14:00 UTC ICO end date: March 14, 14:00 UTC Token: JOT, standard ERC20 ICO price: 1 JOT = $0.51 (20% discount for first 2 days, second 2 days - 10% discount) Accepted payment: ETH, BTC, LTC. Hard cap: 6,000,000 USD Soft cap: 3,000,000 USD Token distribution Total emission: 30,000,000 JOT 6,300,000 - pre-sale ( sold) 14,700,000 ICO 9,000,000 JOT: o 66% - Foundation & Team (33% allocation) o 21% - Advisors, Partners & Bounty o 12% - Liquidity Allocation of funds: no detailed information Minimum purchase amount: 5 JOT.

5 3. Description of the services and scope of the project Jury.Online offers a set of services intended to be implemented consistently. These services will be available in parallel with the launch of the initial three ICO projects which planned for the platform. The key services offered by Jury.Online are as follows: Staging of ICOs Creation of smart contracts for the use of funding raised during ICOs A jury service for resolving disputes Implementation of additional paid services. We will describe the ICO service first. With the development of the market, ICOs have evolved from being relatively cheap sources of finance to expensive, complex procedures. Not every start-up can afford a successful ICO. Jury.Online intends to help standardize the ICO process and to provide savings as a result. It is assumed that an ICO on the Jury.Online will enable non-professionals to use crowdfunding to achieve their goals. The Jury.Online team will require projects to prepare standard documentation describing the ICO process, the need for financing, ICO goals, project objectives, a business plan and a project roadmap. The team plans to select viable projects both independently and with the help of experts from the crypto industry, thereby contributing to risk reduction for unskilled investors. In addition, Jury.Online puts its reputation on the line to help avoid risks of fraud. To enable this the team is proposing the use of smart contract for the disbursement of funding received from ICOs. Normally, funds raised during an ICO will be divided into portions that will be gradually released in accordance with the linear roadmap of the project. Project teams determine targets and means of documenting when they achieve a new portion of the funds. In addition, the team is testing a protocol for applying nonlinear roadmaps. In fact, the founders are seeking to create an environment/ecosystem where three independent parties can interact - a project, an investor and expert arbitrators. By default, all parties have an interest in making the transactions successful but in the case of any problems, the platform provides an effective tool for resolution - that of independent and expert arbitration. The basic service offered by Jury.Online is a dispute resolution algorithm implemented via a smart contract, which is the the Jury.Online team s know-how. Jury.Online offers two related services - the safe conduct of transactions via use of collateral for the conclusion of a smart contract in blockchain, and an option for resolving conflict situations. At the same time, only logs for the contract and the agreed rules for arbitration are stored on blockchain; the jury s tasks are implemented on the

6 platform. The developers plan to provide these services with an appropriately wide and detailed functionality. All transactions will be recorded in a smart contract. Essential conditions for the smart contract are: Identification of counterparties. A subject of the transaction, as well as links to relevant documentation and attached files. Time of commencement of the transaction, execution period and time allotted for acceptance and terms of payment of court costs. Deposits from counterparties and collateral for dispute resolution. The type of dispute resolution, for example via judges determined by random selection from a pool. Identification data for other smart contracts used in the protocol: Rater, the selector responsible for choosing a judge based on random number generator (RNG). Cryptocurrencies used to pay for transactions will also be stored in the smart contract. Therefore, escrow is one of the key functions of the platform. Remuneration for judges will be nominated in JOT tokens. The platform will also introduce a rating system for judges again using smart contracts. It is assumed that economic interest and a ratings system will oblige judges to study and resolve disputes fairly. In terms of how it has worked out the blockchain architecture of the smart contract and the algorithm for the functioning of the infrastructure, the project s technical aspect is highly organized and relevant to the goals set. It has a well-formed service infrastructure. Nevertheless, in the process of development of the service aspect, the project team will have to go through a lengthy procedure for eliminating initial technical glitches; work on marketing the pool of ICO projects and the pool of investors is also inevitable.

7 4. Market Review 4.1. Market analysis The use of ICOs became extremely popular in the start-up investment market in According to ICOdata, $5 billion was attracted in Although most of the funding was attracted during the period of May to October, November was the most active month - new projects received more than $900 million. Despite a degree of decline during the Christmas holidays, the market is currently in the growth phase. According to Coinmarketcap, the capitalization of the digital currency market as of January 27 is $553 billion. Source: Coinmarketcap Thus the service industry for the ICO market is currently quite attractive for projects such as Jury.Online. The ICO market also has obvious drawbacks requiring solutions, such as the lack of control on the part of the investor (this is what the project service is aiming to remedy). Estimating the magnitude of the potential market for Jury.Online, it should be borne in mind that the bulk of ICO funding went to just a few projects in For example, the five largest ICOs attracted almost $930 million, almost 20% of the market: Fillecoin (decentralized data storage) - $257 million Tezos (infrastructure) - $218 million EOS (infrastructure) - $185 million Bancor (finance) - $159 million

8 Status - $108 million At the same time, the amounts are not as large as for the real economy. Small ICOs experiencing problems with platform, infrastructure and primary capital for entering the market are up to 80% quantitatively and up to 40% in terms of market value. As a result there is an overall market potential for Jury.Online of up to $2 billion in 2018 if market volume is maintained at last year's level. This is the potential volume of Jury.Online s market; it should not be confused with the potential of Jury.Online itself as it is not the only player in the market Competitors Here we consider key competitors for Jury.Online as an ICO platform. The idea for ICO was derived from crowdfunding. The first online crowdfunding platform was created in IndieGoGo - and is still in force. Rockethub is another such successful project but undoubtedly the most famous is Kickstarter. Jury.Online s key differences from crowdfunding platforms are presented in the table below. Comparison with largest competitors Company Jury.Online Kickstarter LendingClub Seedrs Type of investment tool Return on Investment Liquidity risk Issuer Decentralized token 1. Speculative income; 2. Payments on the part of the issuer; 3. Payment for products / services High (the token is listed on exchanges; however, demand is required for its implementation) Start-up (undergoes a primary check) Charitable enthusiasm Letter of Appreciation Debt instrument Fixed payment on a debt instrument 100% Low risk A start-up based on the finished product Proven business history Stock Sale at IPO, M & A High (equity) risk Local start-up

9 In fact, the information in the Jury.Online column is applicable to any ICO platform. This digression was not made in order to demonstrate the obvious advantages of the emerging class of ICO platforms over classic crowdfunding and crowdsourcing; we believe that any of the above crowdfunding platforms entering the ICO market could transform this nascent segment into a mature market with clear leaders and clear rules. Kickstarter declines to work with ICOs but the Indiegogo crowdfunding platform has already begun supporting projects intending to attract money through an ICO. As we have already noted, 2017 became the year of the ICO. This has not gone unnoticed by several small successful (in terms of raised funds) projects which started a race to create a platform for ICOs between September-December 2017: Waves a blockchain and "start-up incubator" with a wide range of services for the implementation of projects from the real economy. Waves is the largest ICO platform operating. The project can organize the collection of funds for development and launch of a business, taking over the development of contracts, the White Paper, evaluation of the ICO and selection of anchor investors. Comsa a platform for staging ICOs and assisting development companies using Bitcoin, Ether, NEM and the Mijin private Blockchain. Comsa belongs to the Japanese IT company Tech Bureau, operating since The COMSA platform includes tools for staging ICOs (in development), the functioning Zaif multi-currency exchange and the Mijin private blockchain, also operational. The Bitcoin, Ethereum and NEM blockchains are involved as well (you can stage your ICO, issue tokens and build your own blockchain based on these blockchains). ICOs staged on the platform are legal in Japan. Kickico a platform for raising funds for various projects, including businesses. Kickico enables a variety of fundraising campaigns - ICO, pre-ico, crowdfunding and crowdinvesting campaigns. The funds are transferred to the startup s founders in ETH. A founder himself can choose which country to incorporate his company in and in which country to pay taxes. The difference between Kickico and other platforms is that payments can be accepted from anywhere. An important feature is that Kickico is available to residents of any country including Asian ones. Chinese-based projects for ICO platforms were closed in ICOBox is platform that focuses on reducing the cost of conducting ICOs in all areas: Technical, legal and marketing. ICOBox is the first company to operate on both sides of the ICO market - on the side of the startup conducting an ICO, as the company offers relevant professional services; and on the side of the token holder, as the company itself buys tokens from other projects and acts as their fund. Jury.Online has the same goal. Blockstarter a development solution for ICO projects. After its release, Blockstarter will help to conduct crowdsale campaigns: To create smart contracts, create ERC20- compatible tokens, interact with investors and bounty program participants, raise funds, and find professionals for a project. All this is done without any actual coding required

10 on the part of a user: An advanced interface will enable any entrepreneur with a basic understanding of modern technologies to launch his own crowdsale campaign. Another project planned for launch is Starbase, a platform for crowdfunding as well as a labor exchange: Users will be able to search for work on the platform, where projects are outsourced. The volume of crowdsales on these platforms is not possible to estimate due to the closed nature of this data; however, placement on ICO platforms is already commonplace. It is also impossible to estimate a project s potential share before its implementation, but it is obvious that in order to compete in a $2 billion market, the Jury.Online team will require significant marketing efforts. Fortunately the Jury.Online project has an interesting mechanism for protecting interests of investors. Jury.Online s concept, the participation of an arbitrator in a smart contract, is not a new one; it could be replicated by Indiegogo eventually. The monthly audience for Indiegogo is already 10 million worldwide. Most likely it will be the platform that provides the best service for the best price will win in the competitive struggle. Jury.Online s pricing policy is built as follows: For the first 10 projects, collection rate is 1% in ETH or 0.5% in JOT projects: collection in ETH - 2%, collection in JOT - 0,5% projects: collection in ETH - 3%, collection in JOT - 0,5% projects: collection in ETH - 4%, collection in JOT - 0,5% projects: collection in ETH - 5%, collection in JOT - 0,5% projects: collection in ETH - 6%, collection in JOT - 0,5% projects: collection in ETH - 7%, collection in JOT - 0.5%. Given that the first three projects are currently being prepared, the competitive environment is unlikely to help Jury.Online to attract more than projects in The pricing policies of its key competitors are rather heterogeneous; however, the market leaders are focused on a commission of 3-10% of the volume of a crowdsale. Thus, Jury.Online, like many competing blockchain projects, is aimed at capturing the ICO market for start-ups. Time will tell what portion of this young market Jury.Online will take in its initial stages of development.

11 5. Team and stakeholders Information about the team of developers is available on the main project site page. In general, the developers experience is relevant to the goals set. Alexander Dmitrievich Shevtsov - Founder and Main Developer. A mathematician with a background in abstract and theoretical fields of mathematics, he has been engaged in cryptography, and is author of a number of serious scientific developments, "Advanced Encryption Standard," "Hash Algorithms." A blockchain developer and enthusiast, he works with smart contracts based on Ethereum. Konstantin Kudryavtsev - CTO of the project. Previously engaged in the development of fault-tolerant, highly loaded information systems. Has worked for large banks such as UBS, Alfabank, Privatbank. Has experience of business development as CEO since Developing a number of his own projects. Valeriy Strechen - Marketing Director. Specialist in sales, marketing and PR with more than 8 years of experience. The latest relevant achievements include work as head of media for InStat Sports Co. Nikolay Prudnikov - Business Development Officer. Has worked in the market more than 10 years and acted as a founder or CEO in a number of his own media projects; has experience of successful business development at Krypton Capital, InStat Sports Co. Igor Lavrenov - DevOps. Has been involved into IT industry for more than 5 years ago, beginning his professional way from support and development network infrastructure, backend core services & deployment auto-testing and turning it into the skills in deployment apps across various environments, bug tracking, monitoring of systems, research and development. Sergey Mishin - DEVOPS-specialist. No detailed information is available. Nikita Alekseev - Art director. No detailed information is available. The founders are a team of competent specialists in the field of blockchain. There are also marketing, PR and business development experts involved in the project. In general, the team is quite strong and and is a definite advantage to this startup.

12 6. Token analysis JOT is an internal project token. As part of the basic functionality, it will be used to pay dispute settlement fees on the Jury.Online platform. The volume of these fees will be fixed and distributed in a certain proportion between the arbitrators and the platform. After the project reaches its planned capacity, Jury.Online plans to charge 20% of fees as remuneration; 80% will be for the arbitrators who participated in the resolution of the dispute. Deals on the platform will be denominated in cryptocurrency; JOT tokens will not be required for their implementation. Half of the collected tokens will be burned. As part of the concept of the responsible staging of ICOs, JOT tokens will be used to pay for Juri.Online services along with ETH. The team aims to motivate users to pay in JOT, offering a flat rate: commission in JOT will always be 0.5% of the amount of funds raised, while in ETH it will grow up to 7.0% as the platform's popularity also grows. Clearly, if Jury.Online is successful as a platform for ICOs, all services will be eventually be paid for in JOT tokens. In the long term the project team also states that JOT will be used for additional services: Evaluation of official project documentation Premium project selection Newsletter distribution to registered investors Third-party evaluation by Jury.Online partners Articles and advertising via selected media partners of Jury.Online However, the terms of implementation for these plans and their pricing are not provided. Blockchain and cryptocurrency are well integrated into the project, especially in the basic functionality which assumes that settlements between parties will be in cryptocurrencies. This has its risks, which we will consider in the relevant section; however it also shows the advantages of blockchain. At the same time, it is a rhetorical question whether the project needs its own token. The functionality of the token could replace ETH. However, as payment for platform services in JOT involves a number of advantages for customers, and given that some of the tokens will be burned, the asset may be interesting to a crypto investor.

13 7. Analysis of factors affecting the future value of the token We have indicated above that the asset may be of interest to crypto-investors. The team subsidizes the use of JOT tokens from its margins. This is achieved by a discount for payment for ICOs and the burning of half of the tokens collected as payment for the dispute resolution service. We will analyze separately the commission charged by Jury.Online and their impact on the future value of the token. A) Commission for the dispute resolution This will be up to 20% of total remuneration paid for arbitration. Jury.Online plans to incinerate half of the reward received in JOT tokens. In this context, it is important that the reward will be nominated in absolute figures in fiat and that the number of JOT tokens will decrease. Given the divisibility of the JOT token and in conditions of a reduction in their number in free circulation, if demand is static, the value of the token should increase. However, this effect will be noticeable only if Jury.Online s services are in demand. Despite the fact that the valuation of the market is large, competition is also significant. B) Commission for ICOs The team does not specify whether it plans to burn tokens received in the form of commission for ICOs. This is important, since otherwise token demand from payers can be compensated by Jury.Online itself, which could sell the revenue in JOT to finance its own expenses. According to the roadmap, the team plans to launch an alpha web version in the spring of 2018 and a mobile version of the application in the summer. In parallel, the technical aspects of the ICO platform will be developed. Thus, theoretically, utility demand for JOT tokens could arise in Q2-Q3. It is likely that between the launch and the appearance of clients, a significant marketing campaign will be launched to attract users to the platform. As a result, utility demand will increase over several months. In general, the token economy is thought out relatively well. It is important that users will not require tokens for the basic service but they will be needed only for payment. This will not repel users from the platform. It is also important that the team both gives users a choice and monetarily stimulates the use of JOT.

14 8. Investment risk analysis The future dynamics of JOT tokens will largely depend on the degree of infrastructural demand for coins within the framework of the Jury.Online platform. In turn, this will depend on many factors, including the final quality of the product being developed, the number of users, the qualifications of the arbitrators who will spend their own time resources on the platform, the advertising campaign for the product, etc. It is impossible to assess the potential of the advertising campaign, since the team does not show a scheme for the allocation of funds raised during the ICO. The lack of a financial model for the project is also a risk for future token holders. We noted above that Jury.Online will in fact subsidize the use of JOT tokens; however, we cannot state with certainty that the project will have enough money for this, since we do not understand the intended expenses budget. Jury.Online has some special product risks, given that the project is essentially two in one. For a transaction platform, it is important first of all to ensure the quality of the service; in the case of a platform for the ICO, new problems arise. Firstly, the number and quality of ICOs to come in the future; there may be forecasts and opinions on this but we can almost certainly say that in some way quantity will be replaced by quality (which will only increase competition in the market), and regulation will come to the market in some way (and maybe investment banks and other major players from the traditional financial market). Ultimately, Jury.Online may not have time to take its place in this segment; these factors are out of the team s control. The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, or other means of communication. Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud. We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.