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DMarket Basic Review

About the Project

Name: DMarket

Ticker symbol: DMT

Project type: Decentralized marketplace trading in-game items worldwide.

Company: DMarket

Website

Whitepaper

 

ICO details

Starts: November 03, 2017

Sale length: no data available

Token type: ERC20

Total tokens: no data available

Available in Token Sale: 85%

Fundraising min goal: 5,000,000 DMT

Price: 750 DMT = 1 ETH

Accepted: ETH, BTC, ETC, LTC, BCC

Bonuses: +5% for the first 24 hours

 

Team

Team size: 4 members + 8 advisors

GitHub

 

Social media

Slack: 564 followers

Twitter: 88 tweets, 2044 followers

Medium: 14 posts, 64 following

Reddit: 700 subscribers

Facebook: 1464 likes, 1564 followers

Telegram: 1013 members

DMarket is a global marketplace for trading items from computer games. Game items won or received can be exchanged for tokens and vice versa. Thus the project offers a method of exchanging virtual goods for real cryptocurrency.

The founders are optimistic about the development of the game goods market and are therefore implementing a very narrowly-specialized project. Additional functionality associated with broadcasts for e-sports and betting is not expected yet.

DMT tokens will act as the internal currency of the platform, by which users will pay for game goods.

The Dmarket project is a niche game industry project that specializes in trading virtual assets from computer games. The project turned out to be highly specialized which in our opinion is a good point, in contrast to a number of competitors who are more inclined to bet on e-sports, with the sale of goods from games considered as an additional function of their platforms. Thus Dmarket can closely serve the needs of an interesting new, dynamically developing market.

From our point of view, Dmarket is an interesting investment for a number of reasons. Firstly, investors have already purchased more than half of the total supply of DMT tokens in the first phase of crowdfinding. It turns out that the project has already collected the necessary funds to launch the platform.

Secondly, Dmarket has partner agreements both with developers of computer  games ready to work with the new platform, and a large investment fund - Pantera Capital - which has invested in the project for pre-sale.

Thirdly, Dmarket has a strong professional team that has proven experience, both in the gaming industry and in blockchain development.

Positive features of the project are the following:

  • A competent team with proven experience
  • Support from the industry and a large blockchain investor
  • The minimum funding goal of the project is already collected

Disadvantages of the project include the following:

  • An early stage of project development.

Regarding competitors for DMarket, the Steam platform is the primary one. Despite the fact that gaming content trade is not yet implemented to a full degree, this potential for the largest gaming marketplace is huge. Indeed, currently it does not seem that Steam’s management is concerned with such a segment as the game item market as much as the Opskins platform, which is the largest trading platform for gaming items. In fact, they are doing work on behalf of Steam simply supporting this market.

Among decentralized projects, Unikoin is notable, specializing in e-sport gamblings. However the trade of gaming items is not their priority.

The video game market is already large and continues to grow dynamically. New technologies constantly support video games. Mobile gaming applications have become commonplace, and already occupy almost half of the entire computer games market. Below is a graph of NEWZOO data with a growth forecast up to 2020.

As can be seen from the forecast, CAGR is expected at 6.2% until the end of 2020, and the market itself will be US$128 billion. It may be that the growth of the popularity and technical capabilities of VR platforms will allow growth much higher than the figures given.

The market for game goods is relatively new and has more modest volumes. But turnover for the first half of 2017 amounted to about US$250 million according to Opskin.

Like most projects approaching their ICO, Dmarket is at a fairly early stage of development. An alpha version of the platform will be available in Q4 of 2017. Some technical details can be picked up from the documentation however.

It is known that the initial development was started on popular platforms such as PHP 7, PostgreSQL, Node.js. The team is already actively working in the direction of Erlang and Nitrogen + N2O. Moreover, the possibility of further transition from the Ethereum blockchain system to a more suitable one is being considered.

The DMarket project has an official repository on GitHub. Currently the code for the DMT project ERC20 token is disclosed there.

The DMarket project presents exemplary documentation on its website. There is a classic white paper in four languages: English, Russian, Spanish and Chinese. The document addresses all the main issues; it is well written and designed.

In addition, the mandatory WP is complemented by a One Pager brochure, also in four language versions, designed to quickly convey an idea about the project to a potential investor. The brochure also fully meets requirements for this.

The SEC Howey Test can be called an additional advantage, unofficially used to recognize the token as a security (share) in accordance with the logic of the American securities market regulator. Overall Risk Score according to the test was 20 points, which is classified as ‘unlikely’. This should be interpreted as low probability of recognizing the token as a security.

The fourth document posted on the website is entitled Token Sale Policy, within which the process of selling / acquiring the DMarket token is scheduled.

Starts: November 03, 2017

Sale length: no data available Token type: ERC20

Total tokens: no data available

Available in Token Sale: 85%

Fundraising min goal: 5,000,000 DMT

Price: 750 DMT = 1 ETH

Accepted: ETH, BTC, ETC, LTC, BCC

Bonuses: +5% for the first 24 hours

The first thing to note is that in November the second round of DMarket ICO project will be held. The first round was held in mid-August and allowed the founders to sell 35,948,175 tokens. The maximum bonus of 10% could be obtained on the first day of sales. In the upcoming round there will be no bonuses, and all participants will be in the same position.

The project has a rather interesting approach to the creation of the total number of tokens. In the first round, the hardcap was determined to be 50 million tokens. For the second round as described in the documentation a hardcap will also be installed, but the final number is yet undefined.

To ensure the strategic distribution of tokens after the end of the second round, after the placement is completed, 20% of tokens will be added to the total amount of tokens sold. Thus after the second round of placement, final distribution of DMarket tokens will be the following:

  • 85% - Token sale
  • 10% - Core activities reserve
  • 5% - Advisory board and partners

The list does not include the team’s share, but it is unlikely that the founders forgot about themselves. Most likely their share will be distributed during implementation of the project; after all, 18% of the funding raised is earmarked administrative and general. The general plan of distribution of funds has the following appearance:

  • 36% - Marketing and advertising 27% - Product development
  • 18% - Administrative and general 18% - Game developer bonuses

It may seem that 27% is not a large share of product development, but we want to believe that the founders know their business and thought this through well.

The DMarket project details its development plans up to the second half of 2020. The roadmap of the project states that the alpha version of the platform will appear by Q4 of 2017. In the same period the DMT token will be listed on stock exchanges and will be available for trading. The plan indicated in the white paper and on the website is given below:

Q1 2018 - DMarket security audit and product launch

Q2 2018 - API integration in 10 games with 1M users, in-game items value exceeding $200M

Q2 2019 - API integration in 100 games with 10M users, in-game items value exceeding $2B

Q2 2020 - API integration in 2000 games with 100M users, in-game items value exceeding $40B

Perhaps $ 40B by 2020 is overestimated, but overall the development plan is sensible.

In the white paper, development plans were indicated according to the amount raised in the first round of the ICO. There were 4 key amounts involved: up to 5M tokens, from 5-15M, from 15-25M and from 25-50M. The founders have managed to place almost 36M, which falls into the 4th group and allows hope that implementation will be in full and by the stated deadlines.

The DMarket project team consists of just 4 people, but each of them is well-known in narrow circles such as the Ukrainian IT community.

Volodymyr Panchenko - Founder & CEO

#1 private merchant for digital games in the world (15M games sold over the past 5 years via Ebay, G2A, Kinguin). Founder of skins.cash, the second biggest marketplace for virtual items (12M items sold over the past year.) Founder and CEO of SunTechSoft.

Alexander Kokhanovskyy – Co-founder

Founder of Na`Vi (Natus Vincere) – The second most popular and one of the most successful e-Sports teams. In 2016 became shareholder of ESforce Holdings - 3rd biggest e-Sports entity funded by the USM Group (Mail.ru, VK.com, Megafon) with more than $100M of investments in the last round.

Sergey Nemesh – CTO

Blockchain   development   and   implementation. 8 years of experience in AI development and integration (Smart sensors, Databases).

Andriy Khavryuchenko - Blockchain architect

Senior Developer of the DASH cryptocurrency. 26 years in software development. Currently the team has 8 advisors, including project partners, crypto-investors and representatives of the computer games industry.

The DMarket project has received strong marketing support. Announcements and reviews in a variety of blockchain publications both global and Russian-language can be easily found on the network. The project website contains links to the most important publications - The New York Times, Forbes, CoinTelegraph, Bitcoin Magazine and many others are among them. The founders clearly understand the role of marketing in the success of the ICO.

The project also enjoys support and popularity on social networks. Each official page of the project has a decent number of subscribers, the founders use Telegram and Slack groups as well as the bitcointalk forum to communicate with the community.

The following details may be used to contact the development team:

Telegram

Slack

Facebook

Twitter

Bitcointalk

Vkontakte

Reddit

 

 

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, 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.