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Simple Token Basic Review

The project

Name: SIMPLE TOKEN

Ticker symbol: ST

Project type: Tech/an ecosystem for consumer app tokenization

Extended company description: SIMPLE TOKEN offers a service for the tokenization of applications and platforms via its own protocol and utility token.

Company: OpenST Ltd. Simple Token Company

Website

White paper

 

ICO details

Public ICO start date: 14.11.2017

Public ICO end date: 21.11.2017

Token sale duration (weeks): 1.0

Token type: ERC-20

Total emission: 800,000,000

Tokens available (Pre-Sale + Public ICO): 240,000.000

Investment goals:

  • development of a protocol;
  • development of a prototype and confirmation of concepts;
  • marketing;
  • development of strategic partnership;
  • overhead expenses;
  • legal expenses;
  • insurance expenses;

and administrative expenses

1 ST price: $0.0833

Accepted payment: ETH

Bounty: As of 23.10.17 a bounty program has not been announced 

Token role: Utility

 

Team

Team (number of people) 28

Advisors and partners (number of people) 30

GitHub

Social media

Twitter: Subscribers: 13900

Telegram: Subscribers: 650

Medium: Postings: 9, Subscribers: 111

Reddit: Subscribers: 5

Linkedin: Subscribers: 75

Facebook: Subscribers: 485

Youtube: Postings: 5, Subscribers: 21, Views: 21,000

 

Project information

SIMPLE TOKEN offers a service for the tokenization of applications and platforms, via its own open-source protocol and utility token.

Simple Token will provide the following services:

  • Branded token (BT) creation
  • Token design
  • Identity management
  • Wallets (purchase / sale of tokens, payment history, currency exchange)
  • Support for transactions within applications, such as incentives and rewards, P2P, B2C, API and B2B
  • Rights management
  • Public accounts
  • Administration tools for monitoring
  • Analytics and reporting

Project advisors:

Trent McConaghy. Trent likes to develop projects that will matter to people in the long term. He is working on democratizing data via the Ocean decentralized data exchange protocol and network, BigchainDB and the IPDB blockchain database protocol and network, the COALA IP protocol, and via advising the Estonian E-residency program. His long-term goal is to help ensure that people have a role in an increasingly autonomous world.

Brian Lio. Brian is the founder and CEO of Smith and Crown. He is the chief research adviser to the Digital Chamber of Commerce’s Token Alliance, and a Fellow at the Singapore University of Social Sciences. Previously, he founded the Bright Iron Group, a design, strategy and user experience consultancy based in NYC and has held positions at Microsoft and DDB.

Allen Morgan. Allen has been involved with technology startups for more than 35 years. He is an early-stage investor and startup advisor. He also serves as Managing Director for New Ventures Group and at Idealab, where he is on the Board of Directors. Previously, he was Managing Director at the Mayfield Fund. Prior to this he was a partner at Latham and Watkins and at Wilson, Sonsini Goodrich and Rosati. 

Jehan Chu. Jehan is a co-founder and Managing Partner of Kenetic Capital (formerly Jen Advisors), one of the first Blockchain Venture Capital and Cryptocurrency Funds as well as Token Sale Consultants in Asia. An early investor in crypto-currencies, Jehan Chu founded the Ethereum Meetup Hong Kong and grew it from 5 members to over 1,100; he has hosted more than 60 Blockchain events (including 7 with Ethereum founder Vitalik Buterin.)

David Bohnett. David is a philanthropist, a technology entrepreneur, and the founder of the early stage private equity firm, Baroda Ventures. David began investing in digital currencies and cryptocompanies in 2014. An internet pioneer, in 1994 David founded GeoCities.com, once ranked one of the four most trafficked websites in the world. GeoCities became publicly traded on NASDAQ and was acquired by Yahoo.

Sebastian Quinn-Watson. Sebastian is a partner at Blockchain Global, leading the Blockchain marketing and advisory business. He has advised on a number of successful and market leading projects such as Viberate (sold out in 45 seconds), Bankera (largest presale in history), Powerledger, Etherparty, Playkey.io, Airswap and others.

Gary Nuttall. Gary is well recognised in the Blockchain / Distributed Ledger Technology arena, with particular expertise in the commercial insurance and legal sectors. He is a founding partner of Team Blockchain, a global virtual consultancy practice, and sits on the TechUK DLT Working Group. He writes articles for magazines and thought leadership blogs with a particular emphasis on blockchain.

Chris Dark. Chris is President International at C2FO. Based in the C2FO Hong Kong office, Chris is responsible for C2FO business in EMEA, Asia-Pacific and LATAM. Prior to C2FO, Chris held key leadership positions at Atomico, AOL (advertising.com) and Bain and Co. Chris is a former entrepreneur and the Founder of GameReplays.org, an early eSports community founded in 2002.

Daniel Weinberg. Daniel has over 20 years’ experience in financial trading and technology. He was a Senior Partner of Optiver APAC and founding member of the Optiver Global Foundation board. He is also a member of the Derivatives advisory committee for the Hong Kong, Singapore and Korean Exchanges and an adviser to a number of businesses spanning multiple industries and jurisdictions.

Thomas Power. Thomas is a cutting edge Board Member to numerous companies involved with Bitcoin, Ethereum, and Ripple, deeply connected in Silicon Valley, NYC, London, Australia, New Zealand with over 200,000 Twitter followers since March 2007. Raised and sold over £1bn since 1980. Focused on AI, Big Data, Bitcoin, Blockchain, Crypto, Ethereum, FinTech, ICO, SaaS, Social Media Tokenomics …very Geeky, Social and Likeable.

Adam Jackson. Adam is a technology entrepreneur and investor obsessed with creating beautiful and intuitive software. Currently an active investor and advisor to early blockchain projects. Prior he was CEO and co-founder of Doctor On Demand. Previously founded DriverSide and MarketSquare. Angel investments include: Bolt, Placer, Aktana, Rapportive, MyTime, Automatic, Womply, Superhuman and Zenefits. 

Matt Chwierut. Matt Chwierut is the Research Director at Smith and Crown. He guides a research team in evaluating new cryptocurrency protocols, authoring briefing memos on key emerging topics, and reviewing countless white papers, and is a Fellow at the Singapore Institute of Management. He holds degrees from the University of California Berkeley and Stanford University.

Tony Evans. Tony is a specialist in fiat and cryptocurrency based in Tokyo, Japan, with over 12 years experience in Asia. Tony has over 14 years’ experience in Europe and Asia in the finance industry from client facing and portfolio management, to managing teams.

Project partners:

Smith and Crown - consulting partner. Provides information and advice in the field of token economy.

Enuma Technologies - technical partner. Assistance in developing the technical side of the project.

King and Wood Mallesons, Perkins Coie (https://www.perkinscoie.com/en) - legal advisors.

Kenetic  - consulting and technical partner.

Pepo - infrastructure partner, implementing the first prototype integrations.

Duoh  - partner in the field of design.

Investment attracted:

OpenST and The Simple Token Company have been bootstrapped by the founders Jason Goldberg and Nishith Shah, and with financial support from Pepo’s seed investors who include Tencent, Greycroft, and 500 Startups.

Summary: According to the results of the study, we recommend purchasing Simple Token ICO tokens as a long-term investment; in our opinion, this token does not work as a speculative instrument.

The project strategy is balanced. We believe that the project will be able to attract the necessary number of commercial partners for its success.

 

Conclusion

There are experienced specialists in the Simple Token team.

Strengths of the project:

  • The project as a whole is positively accepted by the blockchain industry, but in our opinion is still not sufficiently recognized.
  • The target market for the project will grow at a rapid pace in the next 4 years.
  • The project has attracted investments and technical partnerships.

Weaknesses of the project:

  • The project does not disclose its commercial strategy, which does not allow a deep assessment of market capacity.

 

Market and industry

  • According to a Forbes and Cox Business study, 31% of small or medium-sized businesses cited changes in technology needs as one of the most important challenges for a company.
  • Capitalization of current currency (23.10.2017) - $166,999,020,647.
  • According to an Infoholic Research LLP report, the Cryptocurrency and Blockchain technology market will grow by 35.2% in the next 5 years.
  • According to the New York Times, amounts raised through ICOs will only grow; however, with the advent of regulatory legislation, there will be difficulties with access to ICOs. More than 200 projects are planning a start date for their ICOs up to 2018.
  • According to a Global Crowdfunding Market 2016-2020 report, it is expected that the crowdfunding market will grow at CAGR level of 26.87% between 2016-2020. 

According to the white paper:

  • less than 0.5% of internet users have a cryptographic wallet;
  • 100% annual growth of wallets to 16 million from 2016 to 2017 is expected. 

Comments: The market analysis presented in the white paper does not quite fit the declared business model. The company does not distinguish its main target segment and there is no stated strategy for entering the market.

 

Competitors

Applicature  - an agency that provides technical support for ICOs, from the conceptual design of tokens and intellectual contracts to the deployment of websites and infrastructure services.

Blockchain Developers  - an agency that provides for the creation of your own token and running your own crowdsale. 

Summary: The service provided by Simple Token is already provided by other companies; the only difference is that Simple Token tokens are required to use the platform.

Competitor companies do not have their own currency.

 

Engineering features of the platform

Technical description

Simple Token is an ERC-20 (ST) token and a protocol to support a token economy in major internet companies. The contribution of the OpenST protocol consists in the creation of branded tokens on Sidechain by placing ST on the Ethereum network. OpenST protocol establishes a bridge between two blockchain systems - the Ethereum network and Side-chain.

The protocol also publishes a set of API REST which makes it easy to work with smart contracts and Blockchain.

Comments: According to the white paper, Simple Token is also a "middleware" platform that allows applications to run and manage their own tokens without requiring developers in the field of blockchain technologies. Branded tokens of a customer company (BT) released on the Simple Token platform cannot be sold outside the platform nor outside the community (outside of the Member Company's community) 

Technical Roadmap

In the future, with the development of technology and data capacity, it is planned to implement:

  • 7 November 2017: Utility of the Open ST protocol achieved, live end-to-end integration of the Pepo app to the side-blockchain using OpenST protocol. Protocol published on Github.
  • Q4 2017 - Protocol architecture development.
  • Q4 2017 - Q1 2018 - Introduction of protocol utility (any tokenholder can issue tokens on side-chain.)
  • Q1 2018 - Q2 2018 - Launch with Pepo.

Comments: The roadmap presents how the technical aspect of the project will be developed. However, development plans are interrupted in 2018. The OpenST MVU protocol will be shown before the sale and issue of tokens.

The following active blocks are represented in the open repository:

There is 1 open repository, SimpleTokenSale - Simple contracts for a tokensale.

Comments: There is low activity on the repository.

 

Documentation

We have analyzed the Simple Token website and documentation for sufficiency and consistency for making an investment decision.

The documentation includes the white paper, terms and conditions, technical white paper and privacy policy. Documents are presented in English only. In the submitted documents Simple Token is described in sufficient detail. Promotion or market entry strategy are not disclosed.

The website also provides information about the project, the staging of the public ICO, the team and answers to the most frequently asked questions. The website is presented in English.

Summary: Documentation permits forming an idea about the project.

 

ICO

Tokens for sale, % 30%

Public ICO start date: November 14, 2017

Max amount Token type: ERC-20

Accepted payment: ETH 1 ST price: $0.0833

Crowdsale duration: 1 week, till November 21, 2017

Token ST - Utility token, enables use of the services of the platform.  ST usage options:

Token limitation: 240,000,000

The advantages of token holders: tokens of a limited number, allow using the services of the platform.

Max goal: $ 20,000,000

Min goal: N/A

The first $120M of funded pre-sale purchasers are being offered the following bonuses:

a. 20% bonus for pre-sale purchases up to $.999M

b. 30% $1M to $1.999M

c. 40% $2M to $2.999M

d. 50% >$3M

The token sale is implemented in several stages:

- Private Pre-Sale: started on September 5th. Available for accredited buyers from authorized countries when purchasing ST tokens for at least $200,000.

- Public ICO:

  1. Early Access: November 14, 2017 (previously registered participants)
  2. Sharing: November 15-21, 2017 (if necessary)

Comments: Sale of general access cannot occur if the tokensale achieves $240 million during the period of early access.

All potential buyers must create an account on OpenST (https://simpletoken.org) and perform mandatory "Know Your Customer" (KYC) and "Money Laundering" (AML) checks for purchase consideration. Individuals from or residing in U.N. sanctioned countries and/or residing in China

Bounty

Comments: The bounty program has not yet been announced at the date of review.

 

Token and capital distribution

Tokens and capital are distributed according to the following

Summary: Tokens do not affect the distribution of shares in the company. The incentive system is set up so that it is more profitable to buy tokens early.

 

Development plans

According to the roadmap: - Q4 2018 - 2019 - development.

Summary: There is no information about the advertising campaign or development strategy. A concrete answer from the project team was not received, except that it plans to focus on VC projects and startups.

 

Team

The team consists of 28 people and  30+ advisors. Information about the main team members based on LinkedIn is given below:

Jason Goldberg - Chief Executive Officer - 18 years of internet entrepreneurship. Founder and CEO for Pepo. An experienced serial entrepreneur, previously founded Fab, Hem and Social Median.

Nishith Shah - Chief Technology Officer - Experienced technical director and co-founder of Hem, Fab and Social Median.

Ben Bollen - Chief Technology Strategist. Benjamin Bollen is a physicist working on building decentralized computing systems since 2009. Benjamin previously built Hyperledger Burrow, formerly Eris-DB, and as lead developer at Monax Industries. He worked on the routing layer when at MaidSafe, and researched computationally efficient representations of strongly correlated quantum systems at university.

Comments: The whole team indicates its ownership of the project.

Summary: On LinkedIn 18 people indicate their ownership of the project (not all of the specified employees in the white paper and on the website).

The team mainly consists of technical specialists in these fields: development, technical strategy, programming, and blockchain technology.

Three technical specialists in the team are employed complimented with in partner companies Enigma and Pepo

 

Marketing

Information about the project is available on Twitter, Facebook, Telegram, Medium and YouTube. The team communicates with users on social media and has placed videos on YouTube about the platform’s functioning. The bounty program will appear soon.

The project is active on social media. The team answers users’ questions on Facebook and Telegram. The Twitter and Facebook channels regularly update news. The format for articles about the project shows that they were written mainly at the project's request.

Comments: The basic marketing campaign is carried out on Twitter and Facebook. However, in our opinion, interest in the project from users is not high enough. 

Analysis of website traffic based on Similarweb.com data showed the following:

Comments: 79.13% of the traffic arrives by a direct link, 8.94% arrives by following a link, 10.22% goes through social media.

Search traffic: According to SimilarWeb, from 21.66% of search traffic, 100% is "organic ".

Referral links: 8.94%

Comments: Since there are no data on website traffic, it is not possible to talk about popularity among users.

Summary: Having analyzed the marketing campaign, it can be concluded that interest in the project among users is growing quite strongly. The team conducts an active advertising campaign on social media (Twitter, Facebook), maintains a blog on Medium, and communicates with users via Telegram.

 

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.