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AirToken Basic Review

PROJECT REVIEW

About the Project

Name: AirFox

Ticker symbol: AIR

Project type: Unlocking the mobile internet via a blockchain micro-loan and advertising system

Website: https://www.airtoken.com/

Whitepaper: https://www.airtoken.com/paper/AirFoxICO_WhitePaper_v3.0.pdf

 

ICO details

ICO:September 19th, 2017, 10:00am EST

Sale length: 31 days

Token type: ERC20

Total tokens: 150,000,000,000 AirToken "AIR"

Available in Token Sale: 70% Fundraising goal: $21,000,000 Price: $0.02

Accepted: ETH

 

Team

Team size: 6 members + 8 advisors;

GitHub: none

 

Social media

Telegram: 728 members https://t.me/airfoxico\

Twitter: 69 tweets, 2 715 followers https://twitter.com/airtoken

Medium: 99 followers https://medium.com/@airfox

PROJECT DESCRIPTION

AIR tokens are the main function and the unit of account for the AirFox system.

AirFox is a system for providing a mobile internet service and access to digital payments through the use of advertising and micro-credit. The AirToken team enters its ICO with an already released product, AirFox, created in the Harvard Innovation Lab and sponsored by several investors (TechStars, Project 11, LaunchCapital, NXTVentures); it has earned $600,000 during the first 10 months of operation. During this period, users were offered the chance to reduce wireless communication costs by placing advertisements aimed at an audience of low socio-economic status (AirFox Wireless B2B, www.airfoxwireless.com). The ICO team for the AirToken project is probably considering introducing a blockchain architecture into the project as an opportunity, to provide a payment ecosystem, as well as to attract finance.

At the heart of the AirFox system is a simple and concise idea: The user interacts with advertising content in order to receive intra-platform accounting  units (AirToken), which in turn are used to pay for their used mobile internet traffic, or for the purchase of goods and services. Also AirToken can be provided through micro-credit within the system. Providers of advertising content are advertisers with whom AirFox has concluded an agreement.

An important feature is the fact that the intra-platform accounting units of AirToken are not blockchain tokens issued during the crowdsale (AirToken "AIR") via Ethereum smart contract. AirToken operate their own ecosystem so as not to overload the Ethereum block system with a large number of small transactions. If necessary, AIR can be converted into "real" ERC20 tokens of the same name. The project team has announced plans to transfer internal payments to the block infrastructure, but so far the system remains centralized. The actual conversion of internal units to AIR tokens occurs via transfer from the main Airfox wallet to the user's cryptocurrency wallet and vice versa.

The purchase and sale of AirTokens for other crypto- and fiat currencies, as well as the exchange of tokens for the intra-platform currency will occur according to available cash flow in the currency of advertisers or other corporate counterparties (suppliers of goods). AirFox will establish an exchange rate based on the market rate in the Ethereum system and redeem the blockchain of AirTokens for other crypto currencies, accumulating them in the reserve fund from which users are paid.

Physically the AirFox platform consists of their AirFox Recharge application and the AirFox Browser. At the moment, both programs are available on Android, are fully working and allow you to earn AirTokens (after the ICO, these will be converted into Ethereum smart contract tokens using AirFox reserves).

RESUME

"AIR" tokens should be considered for purchase in long-term investment portfolios, since the project has many positive features and it is a working system that has proven effectiveness in practice.

Closing our eyes to the individual nuances, we can say that the team is perfectly prepared for the ICO and is fully realizing its marketing potential, reporting its achievements to the maximum. Obviously having a working product (which is friendly to the introduction of blockchain technology and the release of tokens for the ICO) and the first round of financing already completed, AirToken is immediately among the most attractive start-ups.

The declared goal for the ICO of $20 million looks very realistic. In addition the project has already attracted more than $7.6 million from venture investors and a pre-ICO.

CONCLUSION

The project has many pros:

  • availability of a working product on the market, including initial positive results;
  • a strong team of professionals in the sphere, plus a strong pool of advisors;
  • a simple and concise idea, the availability of infrastructure and opportunities for its implementation;
  • a successful Pre-ICO: $ 6.5 million was raised;
  • detailed documentation and marketing materials on the description of the project;
  • active PR for the company on social networks and profile resources;
  • realistic goals for raising funds for the ICO - there are no sky-high sums for the hard cap.

There are few negatives for the project. Those that are present are formal in nature:

  • a significant risk lies in low popularity of the project with consumers during the initial stages of launching the product on the market;
  • the financial model is not formally presented and the cash flows from the activity are not predicted; a long-term strategy is not presented.

REVIEW OF COMPETITORS

In terms of large direct competitors, equivalent in terms of target market and type of services, AirToken cites LotusFlare and Janna. Both these companies offer narrower-scope services and do not show interest in blockchain technology.

The AirFox team cites its combination of blockchain, microloans and advertising services as its strong point in comparison with its competitors. In our opinion, the greatest potential for the platform is provided by the development of the blockchain architecture aspect. In particular, the significant limitations of platforms based on fiat currencies are due precisely to the need for using the traditional monetary and credit system in developing countries.

MARKET AND INDUSTRY REVIEW

In its white paper, the team considers the mobile internet market in terms of the availability and high cost of prepaid internet (payment for traffic, regardless of its use). For 4 billion people worldwide, mobile internet is expensive and inaccessible. For the rest, the cost of mobile traffic is the main limiting factor. At the same time, within the traditional mobile ecosystem (applications and browser), up to 50% of traffic is spent on advertising and tracking tools. Paying for 500 Mb of traffic, the user receives only 250 MB. Taking into account the length of the chain from the advertiser to the consumer via intermediaries and mobile operators, the authors of the project point out the potential for facilitating better access to the internet.

In our opinion the team, in its review of the market (in the white paper) gives quite generalized figures, not taking into account the objective difficulties of introducing a mobile ecosystem into society. In particular, the markets most lagging behind in the penetration of mobile internet are those of the problematic African and Asian countries, where the level of development is simply not comparable; the introduction of AirToken technologies in these countries is currently impossible. Nevertheless, the market potential even without these countries is truly enormous.

TECHNICAL ASPECTS OF THE PLATFORM

The AirFox system is a micro service based on cloud architecture (AWS and Digital Ocean) and automatically scaled to the number of users on the system. The client interacts via a mobile application (AirFox Token app) and the browser (based on Brawe Browser, which is based on Chromium).

Microservices interact with providers and external services. The microservice, created to interact with the blockchain infrastructure of Ethereum, is isolated from the others and is protected.

DOCUMENTS

Documentation of the project includes standards for ICO, the white paper, AirFox Airtoken Creation Event Terms & Conditions; a detailed description of the model of micro loans entitled AirToken Decentralized Micro-loan Platform. The quality of the documentation is high; the information is structured, and all main topics and necessary additional information on the released tokens are disclosed. Considerable attention is paid to the theoretical basis and a review of competitors.

ICO

Starts: September 19th, 2017, 10:00am EST Sale length: 31 days

Token type: ERC20

Total tokens: 1,500,000,000 AirToken «AIR» Available in Token Sale: 70%

Fundraising goal: $21,000,000 Price: $0.02

Accepted: ETH

AirToken is issuing 150,000,000,000 tokens of the same name, 70% of which are to be offered to investors during the ICO. The remaining AirToken "AIR" is deducted from a reserve fund, necessary to the operation of the services.

A bonus program for the ICO is announced: depending on the amount attracted, the bonus will be from 30% (for the first $2 million) to 10% (for $ 4-8 million). There is also a bounty campaign.

Distribution of funds raised within ICO:

PLANS OF THE PROJECT DEVELOPMENT

In the white paper, the authors identify 3 phases of development for the AirFox Recharge application, and 2 phases for the AirFox Browser:

  • In the case of the mobile application, it is planned to gradually integrate a working model of microloans (Phase 2 - Q1 2018) and expand opportunities to purchase internet traffic, goods and services. Completion of work on the application is due by the second quarter of 2018.
  • The development of the browser is based on optimizing its operation and size, increasing the number of consumers with low-power devices, and functional improvement. The final phase is planned for the 1st quarter of 2018.

Note that the full strategy for the team has not yet been shown in the documentation. The section presented in the WP is called the Product Roadmap.

TEAM

The project was founded by employees of Google through the business accelerator TechStars Boston, in 2016. The project is led by a team of 6 people. 8 advisors and 3 token sale advisors are on board. There are links to LinkedIn profiles within the description of the project team.

Victor Santos - Co-Founder, CEO - Victor is an ex-Googler, UC Berkeley alumnus, and telecoms entrepreneur. He has experience of launching the platform of a virtual mobile operator with advertising revenue with his company Ciao Telecom.

Sara Choi - Co-Founder - is a Harvard graduate, marketer and media marketing specialist. She began her career with YouTube, then moved to Google where she became the youngest leader (Media Lead). She participated in the creation of a mobile virtual operator, Ciao Telecom together with Victor Santos.

James Seibel - CTO - a graduate of Boston University, James has extensive experience in software development and was the head of engineering at Apperian. He is an architect and developer of a number of patented technologies in the field of protection of mobile applications using various algorithms.

MARKETING

The team is implementing an active marketing strategy, aimed at large investors as well as others. In particular, news is published on authoritative financial (Yahoo Finance, Boston Business Journal) and blockchain resources, and social network profiles are maintained. After the ICO it is planned to spend 20% of the proceeds on marketing.

The information contained in the document is for informational purposes only. ICORating received monetary compensation from the entity rated in this report for completing the ratings report. However, the entity rated in this report did not have the opportunity to approve this rating report before the report was published, nor did the rated entity have the opportunity to edit or remove this report once it was published. The views expressed in this document are solely those of the ICORating Team, based on data obtained from open access and information that developers provided to the team through Skype, email 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.