Herocoin Basic Review
|Start ICO||12 Sep 2017|
|End ICO||12 Oct 2017|
Ticker symbol: HERO;
Project type: Betting platform;
Company: byte heroes GmbH, Siebenbrunnengasse 17/7, 1050 Vienna, Austria;
Starts: September 14th, 2017
Sale length: Until October 14 2017
Token type: ERC20
Total tokens: 2 000 000 000 HERO
Available in Token Sale: 600 000 000 HERO
Fundraising goal: 14 000 000 USD (42 000 ETH);
Price: 1 ETH = 8 500 HERO
Team size: 7 members;
Slack: 682 members;
Twitter: 57 tweets, 1259 followers;
Facebook: 3091 likes, 3134 followers;
Telegram: 349 members.
Herocoin team started its activity with thesocialbet project in 2014. During this time, the company's customer base has grown to 200,000 users with daily visits of more than 1,000 people. Currently, the company has renamed the project into a herosphere and continues to expand into the e-sports market.
Judging by activity indicators, the popularity of the service is increasing, so the intention of the company to conduct the ICO looks quite reasonable. At the same time, the introduction of its own crypto-currency can qualitatively expand the functionality of the entire service.
HERO token is the future crypto-currency that is used in HERO Network. HERO Network is a decentralized pooling system that allows you to bet on future events in the game world. At the same time, HERO Network is planning to eliminate the main shortcomings of betting services - closeness, opacity and distrust of the participants due to full-scale decentralization. In fact, players will play against each other, as expected, and not against the "casino" as in the classical system.
Having analyzed open information, we came to the conclusion that the potential profit can significantly exceed the risks associated with investing. It can be seen that the project is well developed. The team already has the necessary experience in e-sports industry, and they are well-oriented in the market on which they are planning to develop.
The decisive moment will be the focus of the ICO process on the further development of the project, rather than the short-term interest of the community in order to form speculative demand. This can be seen for example by the fact that the ICO will take place almost a year.
The Herocoin project in general looks interesting. The main idea is clear as well as theses developers operate. The positive aspects of the project are the following:
- Presence of an existing business, on the basis of which a new technology will be introduced.
- Reasonable time for the ICO. Objective interest of developers in business development.
- A clear business model and sources of income
- Declared dividends of the token as a percentage of the winnings of network participants.
The project, of course, has some negative aspects:
- High competition. Many other teams create a similar product. In addition, projects from related areas are also expanding into the betting sector.
- The general risk of legalization. Since the team officially declares that tokens are not securities, potential investors are not legally protected from possible conflicts of interest with the company.
Market and Industry review
In 2016, the global revenues of e-sports industry exceeded $460 million, and according to Newzoo, by 2019 it will grow to $1,1 billion. 38% of the entire e-sports market is concentrated in North America alone, and its share continues to increase. It is expected that at an average growth rate, the incomes of the cybersport industry will grow by more than 40%. According to Newzoo, cybersport market includes 5 categories (not counting betting on eSports and fantasy games):
- Rights to publish in the media
- Goods and tickets
- Advertising on the Internet
- Partnership with brands
- Additional investment of gaming publishers
Review of competitors
Herocoin team is planning to integrate new service into a very highly competitive market. There are already several projects that are engaged in the integration of blockchain technologies in the sphere of computer games.
SKINCOIN: The project proposes to integrate its crypto-tokens into the world trade turnover of "skins" of various online games.
FIRST BLOOD: With this service, the user can bet on games in which other players participate, or play independently by making the appropriate bet. All bets are accepted in the local currency of the system. In fact, the service provides services for decentralized matchmaking - a competitive mode in games where the winning party receives a reward in the form of system tokens.
ROUNDCOIN: In this system you can bet on the ongoing e-sports competition both formal and informal. Bets and rewards are accepted in system tokens. Also, the matchmaking mode is possible.
Technical aspects of the platform
The infrastructure of Hero Network is the following:
- "Contest Interface" is a template for the implementation of Competition.
- "Contest Implementation" is a specific implementation of Competition interface. It embodies the real Competitions (games) in which the Players take part.
- "Provider" provides a platform where players can place bets and predictions.
- "Player" takes part in Competitions held by the Providers.
- "Pot" is the sum of all bets. It is stored on the platform during the Competition. At the end of the Competition players and coin holders are paid a prize.
The team provided the GitHub repository where the updates to the development of smart contracts are laid out. Tokens are developed on the popular truffleframework.
The white paper can be found on the website. It is provided in 6 different languages. Documentation is well-designed, easily readable; contain basic information about the project. Documentation also presents Disclaimer, where it is announced that HERO tokens are not securities and do not give the right to a share in the issuing company of the token.
Tokens will be distributed as follows:
- 40% for the development of the Hero project
- 30% marketing and sales
- 12% to third parties (for PR companies, engineering, marketing, affiliate programs, etc.)
- 10% for administration (legal issues, security, financial accounting and etc.)
- 8% for unforeseen expenses
The project issues 2,000,000,000 HERO tokens, 30% of which are offered to investors during Token Sale. The project is planning to attract $14 million. The good point is that a large volume of tokens will be kept in reserve. Due to that all interested participants will be provided with tokens for their rates in the future. This will also provide a long-term incentive for HERO team. In addition, 8% will be allocated to the fund of third-party ecosystems for the development of HERO network and the attraction of new providers to the network.
Developers reserve the right to exchange the remaining HERO tokens to other virtual currencies, the Euro or any other traditional currency at any market price if necessary. However, they will try to adhere to the restrictions on the use, exchange or sale of tokens stated in the white paper.
There will be "dividend" payments in the form of a percentage of the winnings in each game for the holders of the tokens. The amount of payment will be calculated as the ratio of the "main reward bank" to the number of tokens issued. Due to the results of each competition, the prize fund will receive at least 1.00% of the bank to all holders of coins as the "main reward".
There is no information on whether the funds will be returned to the investor if the project does not gain a minimum limit.
Plans of the project development
The roadmap is presented as a flowchart on the website and in the while paper. It consists of 8 stages two of which have already been passed:
- Q3 2014 Project foundation;
- Q3 2016 HERO crypto currency emission;
- Q4 2017 Start of the ICO;
- Q4 2017 Closed beta - implementation of HERO on the developer platform;
- Q2 2018 Official launch of the project
- Q2 2018 Launch of open API for betting providers
- Q3 2018 Issue of various competition templates
- Q4 2018 Full integration of decentralized games
The team consists of 7 members and 9 consultants involved. The white paper has a separate section with a short description of each team member. The list of participants is also published on the official website. The team has announced six major investors who were investing in the project in the early stages.
We did not find any public information about the involvement of the founders in any kind of fraudulent schemes in the past.
Main participants of the project are the following:
- Paul Polterauer, Co-founder & CEO - Before he founded herosphere with a current user base of more than 200k users, Paul has worked at PwC Advisory for Corporate Finance, M&A and Deals. At PwC he worked on one of the largest deals in Austria at this time and projects like the asset quality review for the European Central Bank’s stress tests. He studied business administration in Austria, Hong Kong and Hawaii. Passionate soccer, tennis and Star Craft II player.
- Philip Peinsold, Co-founder & CTO - Philip is one of the founders of herosphere and as CTO responsible for the technical background of the start-up. Before that, he worked as Software Developer and Project Manager in the field of eHealth. He studied eHealth at the university of applied science in Austria. He was a semi-professional volleyball player and early adopter of Dota.
- Bernhard Blaha, Co-founder & COO - Having founded two companies before, both of which are still running, he knows how startups work. He not only brings economic expertise but also technical knowledge into the company. Bernhard has studied Mobile Compu-ting followed by Executive Management. He also claims to have introduced the daily table tennis challenge to the team, but nobody knows for sure.
The project’s marketing budget includes 8% of all issued tokens, to be used towards the popularization and promotion of third party services and the attraction of new "providers" to the platform. An overview of the project can be found on some popular resources, for example BitcoinExchangeGuide and the Merkle.
The project team is present on social media such as Twitter, Facebook, Reddit and BitcoinTalk. Chat channels are available on Telegram and Slack where the developers actively answer questions from users.
We note the high popularity of the project in the community; there are already more than 15 discussion pages on bitcointalk.
The founders actively participate in relevant conferences. At the last Bitcoin Austria event on September 12, 2017, Paul Polterauer spoke about the prospects for the Herocoin project in the e-sports market.
The developers may be contacted using the links below
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.