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Faireum Basic Review

1. Project overview

Faireum is a public blockchain which aims to provide infrastructure for online blockchain gambling and gaming solutions.

The following information about the project is available from public sources:

PROJECT BRIEF

Name

Faireum

Ticker

FAIRC

Project type

Infrastructure

ICO BRIEF

Pre-sale start date

March 25th,2019

Pre-sale end date

April 24th, 2019

Public sale start date

June 1st, 2019

Public sale end date

August 31th, 2019

Token type

ERC20

Token usability

Utility

Total token supply

1,200,000,000

Token supply for sale

600,000,000

Percentage of tokens for sale

50%

Soft cap

USD 2,500,000

Hard cap

USD 7,500,000

Token price

1 FAIRC = USD 0.015

Bonuses

Yes

Lock-ups

Yes

Currencies accepted

ETH, BTC, LTC, EOS

Min/Max contribution

USD 10 / USD 100,000

KYC

Yes

Additional emission

No

Registration country

Singapore

Restricted list

United States of America (USA) and China

TEAM & ADVISORS

Team members

21

Key member (executives)

Ishinara Yoshihiko

Evan Dai Shore

Jixing Jin

Advisors

4

Partners

42

2. Documentation

This report is based on information received from the project’s website, whitepaper and social media accounts. We note that the documentation is quite comprehensive, however, there is a lack of technical information.

The project has a publicly available GitHub account.

The MVP of the blockchain itself is currently not available, however, there are several games which are already available on their GitHub account.

With regards to the content of the official documentation and webpage, a comprehensive explanation of all key business aspects of the project is provided but there is a lack of information regarding the technical details.

Conclusion

The official documentation provides detailed information about the project, however, there are some aspects that may need additional clarification (like the technical nuances and some business model aspects). There is no blockchain MVP yet, however, the Smart Contract codes and the MVP of several games are available.

3. Business model overview

As we’ve already mentioned above, the Faireum project aims to develop a public blockchain for online gaming and to release a platform with games.

The current major problems in online gambling include:

  • Tax evasion and money laundering

  • Security

  • High fees

  • Unfair odds

  • A bad reputation in society

  • A lack of transparency

All of the above problems may be addressed by blockchain, if implemented correctly.

Faireum plans to have the following types of games on its platform:

  • Lotteries

  • Casinos

  • Digital games

  • Sports betting

According to the project documentation, the core revenue stream for the platform will come from game developers’ commission-based revenue, through the provision of several payment plans:

  • Developer plan: Developers may develop their games and are allowed to publish smart contracts on the Faireum Blockchain. In such cases, Faireum will charge a transaction fee for publishing a smart contract and charge a listing fee for listing the game on the mainnet. For games which reach a certain number of users, Faireum will return the transaction fee and listing fee as a reward and will provide further rewards from the community reserve pool, if the game is popular.

  • 100% RTP and subscription plan: Faireum will support a subscription mode, which can be authorized or revoked by the user at any time. Based on the subscription model, developers will have a chance to build 100% RTP gambling games and profit by charging the players periodically.

  • Core player plan: The platform will be able to reward users for their activity or good scores.

  • Network service provider plan: The network service providers, like storage providers, and third-party service providers can also be rewarded by Faireum based on the volume of contributions they have made to the network.

From a marketing perspective, Faireum aims to focus on the creation of a healthy gaming community, empowering users through increasing consumer awareness and involving active network supporters.

Conclusion

The Faireum business model is quite typical for an online gaming platform, however, it aims to improve the industry with all of the advantages blockchain implementation may provide to the online gaming sector. Therefore, the project’s reliance on blockchain may be a key competitive advantage, if utilized and marketed properly.

4. Technical overview

At the time of writing, the project had not launched an MVP of the blockchain itself, however, the source codes of several blockchain games may be found on the project’s GitHub.

According to the technical description, the Faireum blockchain solution will have the following features:

  • Random BFT-dPoS as a consensus mechanism

  • Special wallet encryption support

  • Multisig support

  • High-level random number generator

  • Blockchain APIs for gambling

The main components of the platform, apart from the Faireum blockchain itself, will be as follows:

  • Faireum smartnode - A blockchain node running on the user's computer or phone, which can provide both a wallet function as a client and a proxy function as a server. It will be able to work as a node server, client server, wallet and as a game center.

  • Side chains - A side chain can be produced to support increased capacity and improve performance. The side chain can communicate with the main chain and extend the functionality of the main chain.

  • Cross-chain exchange – A feature that will support cross-chain asset integration.

Conclusion

The team has not provided an MVP of the blockchain solution itself yet, and the technical description is lacking in information, so important features like cross-chain integration cannot be assessed properly. On the other hand, the base solution (blockchain and games) is relatively simple.

5. Roadmap

The following roadmap is available on the project’s website and relates to the current period:

Conclusion

The roadmap is not detailed and does not cover marketing campaigns or business development activities. We also note that several milestones on the roadmap are not very specific (e.g. upgrade main network) and will be difficult to assess in the future. In addition to that, it is unclear what is the project’s blockchain development progress so far (framework and protocol design should have been done in Q4 2018, as well as the game platform itself, which is supposed to be released in Q1 2019, therefore, development should have already begun, however, there is no information about that on their website or GitHub account).

6. Team & Advisors

The following information on the team members and advisors was taken from the project’s website at the time of writing. Team consists of 21 members, we note that only core team members are listed below:

Name

Position

Total Experience

Professional Achievements

LinkedIn

Affiliation with project

Connections

Endorsements/ Recommendations

Team

Ishihara Yoshihiko

CEO

18+ years

-

Yes

Yes

173

Yes

Evan Dai Shore

COO

11+ years

CSPO

Yes

Yes

327

No

Jixing Jin

CIO

10+ years

-

Yes

Yes

500+

No

Jun Fei Yap

CMO

10+ years

-

Yes

Yes

336

Yes

Mykola Vdovychenko

Legal Expert

8+ years

Several certifications

Yes

Yes

500+

Yes

Maxim Byakow

Technical team lead

2+ years

-

Yes

Yes

47

No

Mykola Melnyk

Frontend dev

<1 year

-

Yes

Yes

292

Yes

Denys Krolevetskyi

DLT dev

1+ year

-

Yes

Yes

500+

Yes

Alina Zorilo

Frontend dev

3+ years

-

Yes

Yes

74

Yes

Dmytro Dubsky

Backend dev

3+ years

-

Yes

Yes

57

Yes

Mark France

Blockchain dev

13+ years

Publication

Yes

Yes

281

Yes

Andriy Cholak

Blockchain dev

2+ years

-

Yes

Yes

46

Yes

Mitsunori Kamimura

Product manager

13+ years

-

Yes

Yes

10

No

Vince Howard

Marketing expert

14+ years

-

Yes

Yes

500+

Yes

Vladimir Solin

Product manager

4+ years

-

Yes

Yes

121

Yes

Advisors

Nicolas Fleiderman

iGaming advisor

14+ years

-

Yes

Yes

500+

Yes

Eugene Lavrinenko

iGaming advisor

10+ years

-

Yes

Yes

500+

No

Marcin Zduniak

Blockchain advisor

14+ years

Certifications

Yes

Yes

500+

No

Gregory Tkach

Blockchain advisor

8+ years

-

Yes

Yes

128

Yes

Overall, the team seems sufficient for the purposes of the project, however, we note that more experience in blockchain would be beneficial for the project which aims to develop a blockchain ecosystem.

According to the project’s website, partnerships with the following companies have been agreed:

Conclusion

We note that more blockchain experience would be beneficial for the project, however, team composition overall seems sufficient.

Some team members are simultaneously employed in other projects/companies.

There are many partnerships mentioned, however, confirmation of them hasn't been discovered in social media.

7. Market outlook

According to the Zion Market Research report, “Online Gambling & Betting Market by Game Form (Poker, Casino, Sports Betting, Bingo, Lottery, Horse Racing Betting, and Others) and by Component (Hardware, Software, and Service): Global Industry Perspective, Comprehensive Analysis and Forecast, 2017 – 2024”, the online gambling market is expected to reach USD 94.4 billion by 2024 at a CAGR of 10.9%:

 

As can be seen above, the online gambling market is steadily growing and the growth rate is rather high, which gives an opportunity to new players to enter the market.

However, we note that the market is very competitive and there are a lot of players already in it. The market is highly segmented and there is no exact key player.

Faireum will have to face competition from both traditional players and blockchain projects like Trueflip, VDice, etc.

The key competitive advantages of Faireum against traditional players are as follows:

  • Blockchain reliance

  • Relative security

  • Transparency

  • Additional customers due to a heavy crypto focus and possible cross-chain integration

The key competitive advantages of Faireum against the existing blockchain players are as follows:

  • Native blockchain – In theory, it can provide faster speeds that Ethereum and similar speeds to those of EOS or Tron

  • Cross-chain, if implemented

  • Blockchain developed specifically for the needs of gambling

 

A major disadvantage of Faireum is that the blockchain mainnet will not be launched until Q3-Q4 2020, which may give enough time for potential new competitors and existing ones to launch dedicated solutions first. The other thing to keep in mind here is that there is still no MVP of Faireum’s blockchain, so the technical feasibility of major features cannot be verified.

Conclusion

We note that Faireum’s target market is highly competitive and the main success factor for Faireum is to deliver its blockchain solution as promised, with all features mentioned in the whitepaper. Another concern for the project is that the blockchain launch is going to be in late 2020, and there is no blockchain MVP at the moment.

8. ICO details

According to publicly available information, 1,200,000,000 FAIRC tokens will be supplied, with 50% of the tokens for sale.

Token allocation will be as follows:

The whitepaper states that 5% have already been sold during the private sale, however, no details of the private sale are provided.

Unsold tokens will be burned.

According to the whitepaper, the following discounts/bonuses will be available:

25th March 2019 - 8th April 2019

40%

8th April 2019 - 24th April 2019   

30%

1st June 2019 - 8th June 2019

25%

8th June 2019 - 15th June 2019  

20%

15th June 2019 - 22nd June 2019   

15%

22nd June 2019 - 30th June 2019   

5%

We note that the bonuses are rather high and there are no limits for tokens purchased within each bracket. Bonuses will be locked up until September 1st, 2019.

We also note that there is no information about whether or not there are lockups for private sale and presale participants.

Reward funding pool tokens will be locked for 1 year, team and advisors tokens will be locked for 1.5 years, vesting for 6 months + 12 months. Founders’ tokens will be locked for 1 year, and marketing/bounty/partner tokens will not be locked. We note that the vesting/lock mechanism is implied within token smart contract.

The team provides the following funds allocation scheme:

Based on the size of the hard cap, the funds allocation scheme looks reasonable. However, we note that the team does not provide a use of proceeds scheme for a worst case scenario (e.g. when only soft cap is reached).

Conclusion

We note that there is no information about whether there are lockups for private sale and presale participants, and bounty/marketing tokens. We would also like to state that the bonuses are rather high.

9. Token economics

FAIRC is an Ethereum-based ERC20 utility token. 1,200,000,000 FAIRC tokens will be
minted and 50% of them will be distributed during the Token Sale, no further tokens will be issued. Once the Faireum blockchain is launched and released, all FAIRC tokens will be swapped 1:1 to a native Faireum blockchain currency.

All unsold tokens will be burned.

Tokens will be used to:

  • Play games

  • Reward contributors

  • Pay for services on the platform

Conclusion

We note that FAIRC is a regular utility token, however, according to the documentation, other means of payment, like fiat and other cryptocurrencies, may be accepted for gambling, so FAIRC may experience some price pressure based on that.

 

10. Social media

At the time of writing, the project had the following social media coverage:

 

 


 

At the time of our review, the social network accounts were regularly updated.

The Faireum website does not have sufficient data on Similarweb.com yet, so traffic analysis can’t be estimated.

Conclusion

The project has decent social media coverage, however, we were not able to corroborate the number of social media followers with traffic data from Similarweb.com.

11. Conclusion

Based on the available information and ICORating analysis, we have identified the following strengths and weaknesses of the project:

Project strengths:

  • The team already has experience in online business.

  • Available GitHub account.

  • Fast-growing target market.

  • The project has reasonable token allocation and use of proceeds schemes.

  • Decent social media coverage.

  • Vesting terms for the team are stipulated by the smart contract.

  • Smart contract audited by SmartDec.

Project weaknesses:

  • There is no information regarding vesting terms and lock-ups for private sale and presale participants, as well as for bonus and bounty tokens.

  • The project’s target market is highly competitive in terms of both traditional and crypto players.

  • The claimed partnerships cannot be verified via public sources (the project’s footprint on the internet is small).

  • There is no blockchain MVP, however, the roadmap states that the MVP will be ready before the main sale.

  • The testnet is going to be online in Q4 2019 and the mainnet is supposed to be released in Q3-Q4 2020.

  • Token sale bonuses are high.

  • The technical description needs to be clarified further, particularly on some matters like cross-chain.

12. Contacts

The project can be contacted through the following channels:

 

Website

Facebook

Medium

Telegram

Twitter

Youtube

 

GitHub

 

Instagram

 

Reddit

 

Bitcointalk



 

The information contained in the document is for informational purposes only. The views expressed in this document are solely the personal stance of the ICORating Team, based on data from open access and information that the 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.

 

The information contained in the document is for informational purposes only. ICORating received monetary compensation in the amount of $4000 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.