1. Home
  2. Analytics
  3. Investment Rating

BLOCKv Rating Review

Positive

Investment Rating

Expiry date: Expired 22 Jan 2018

We assign the BlockV project a "Positive" rating. 

The idea of the BlockV project seems to us very promising. By combining two fast-growing areas - augmented / virtual reality and blockchain technology, the functionality of the BlockV platform can assume a leading role in these areas. A strong open-ended management team and authoritative advisors invite confidence in the project’s success.

BlockV already has a minimum viable product; only a small number of projects conducting ICOs can boast of this. Moreover, prospects for the project are highly rated by other participants in the cryptocurrency community, a result of which the company already has several interested partners.

The key risk of the project is the difficulty of realizing the idea in the real sector of the economy, in connection with which the company will have to work seriously hard to attract a large number of developers to use their technology.

The main goal of the BlockV project is to develop a user interface for blockchain technologies. The company, registered in Switzerland, is conducting an ICO to raise funds for platform development and promotion in the market.

Website

Whitepaper

Twitter

Telegram

Facebook

Bitcointalk

GitHub

Reddit

Medium

LinkedIn

ICO start: October 19, 2017 at 9 am EDT

ICO completion: November 16, 2017

Token: VEE

Target cap on crowdsale: $40 million, with $20M raised in the presale

ICO price: The final price per token will depend on the total sum raised in the main sale, with a maximum price of $0.02 per token. The FX rates for BTC/USD and ETH/USD will be fixed 1 hour before the main sale starts.

Minimum Buying Transaction: no

Maximum Buying Transaction: no

Bonus: no

Accepted payment: BTC and ETH

Total emission: as soon as the final token price is determined within the framework of the main sale, the number of tokens to be issued as a result of the pre-sale will be calculated, and a finite distribution of the tokens will take place.

35% will be allocated to contributors to the launch

25% will be reserved to incentivise the development community

25% will go to the company, early contributors and advisors

15% will be locked for 6 years to fuel future innovation and ecosystem health

Distribution:

Token Issue Date: mid- to late November 2017

Vesting: team tokens will be locked for 2 years, with 1/5th being available after the token sale and 1/5th being unlocked to the company every 6 months thereafter.

The BlockV project is a platform on the basis of which users will be able to create customized "digital objects" - vAtoms. In fact, a vAtom is a structured object that can be in different digital environments and move from one application to another, preserving its properties. All ownership of vAtoms is recorded on the blockchain. In this case, BlockV will support work with different blockchain-platforms, and will not  be specifically tied to any of them. Thus, each vAtom is a unique, non-copied object that holds value in itself. A vAtom exists regardless of how it was received or on what device it is currently viewed. This allows the ownership of vAtoms just like with any physical object.

The BlockV project takes the main principles of blockchain and smart contract technologies, expands them, and offers technically unskilled users the ability to create vAtoms from pre-installed templates via a convenient "drag and drop" system.

BlockV will use a fully visualized object creation process: The user can add 3D models, animated effects, audio and video to a vAtom. Multimedia will be playable  on any device, including smartphones, smart TV, as well as augmented and virtual reality devices. Each vAtom can have multiple views and is able to display differently in different environments. For example, the same vAtom might look and have different properties on iOS platform compared to Smart TV.

That's what a "wallet" with different vAtoms inside may look like:

The peculiarity of BlockV architecture will allow application within the following segments of the economy:

  • In-game items in computer games. Users will be able to exchange, store and sell various game products without binding to a particular platform, being sure of preserving their uniqueness.
  • Tickets for events. Free pricing will help to reduce the cost of the ticket for the end user. Using the technology of smart objects, tickets will be able to "open some properties" when certain events occur.
  • Virtual collectible cards.
  • Virtual goods that respond to events from the real world, such as weather, stock prices, sports results, etc.
  • Secure medical records with user-owned information about medical care.

The above examples are far from exhaustive possibilities for applying BlockV technology. If the team manages to achieve the goals that it has set, BlockV could be a main contender for the popularization of blockchain-based services among a wide range of users.

The above examples are far from exhaustive possibilities for applying BlockV technology. If the team manages to achieve the goals that it has set, BlockV could be a main contender for the popularization of blockchain-based services among a wide range of users.

According to the founders, work on the project has been ongoing for two years. In the 3rd quarter, demos of vAtom were created on the Bitcoin blockchain and the demonstration of the iOS application was launched. The process of further development was divided into 4 stages:

 

Q1 2017

  • Release of API and technical documentation for a closed development team and publishers.
  • Development of SDK for iOS, Android and Web.
  • Successful tests of system scalability and stability

 

Q3 2017

  • Integration with Ethereum blockchain and vAtom prototypes based on Ethereum smart contracts

 

Q1 2018

  • Open version 1.0 of the BlockV platform for developers and publishers
  • Launch of core (vACore).
  • Blockchain-abstractor and hybrid integrator (vAChain)
  • vAtoms user identity management system (vAIMS)
  • Release of the API, SDK, and code examples for the community

 

Q3 2018

  • Launching version 2.0 of the BlockV platform and the following additional components
  • vAtom locator service (vASL)
  • vAtoms state management system (vASMS)
  • Structure of v-atom contactor framework (vACF)
  • vAtom code center (vAHub)

 

Note that the team has completed some of these stages earlier than planned. For example, the user API functionality is already done.

The white paper provides detailed information about the volume of the market in which expansion is planned. The team is sufficiently acquainted with the market in which further work is planned.

It is known that the market for services aimed at popularizing the blockchain is growing steadily. In this regard the team has every chance to develop its project due to extensive growth within the entire sector.

Currently, the capitalization of the market for cryptographic assets is estimated at $9.5 billion. However, only in 2017 the market grew by more than $1 billion. Assuming that such growth rates continue, the demand for companies providing services in this segment will be increased at the same pace.

The company is planning to integrate its products into the booming market segment of virtual and augmented reality. According to forecasts, AR / VR market volume will amount to $108 billion by 2021. With such a growth rate, there will be a need for digital goods that can interact in AR / VR space.

In addition, the project is planning to expand into the e-sports market. In 2016, worldwide revenues of the e-sports industry exceeded $460, and according to the Newzoo portal, they will grow to $1.1 billion by 2019. 38% of the entire e-sports market is concentrated in North America alone,. It is expected that at an average growth rate, the income for the cybersport industry will grow by more than 40%.

Technical development of the system is currently conducted in closed mode. The team has not published either the development process or the source codes for prototypes.

Despite the fact that the development has been implemented for more than two years, the team has not yet published examples of source codes for either the product itself or the smart contracts developed.

Documentation on using API services can be found in GitHub repositories:

The BlockV Viewer API - this API is typically used by front-end devices that cater to the end-user (wallet app, register users, manipulate and view vAtoms, call actions and interaction with other users).

The BlockV Publisher API - this API is used by vAtom creators (e.g. advertising agencies) to create templates, template Variations and vAtoms.

The description is presented in detail. Sufficient information can be found on the functioning of the future system.

The creators have also posted several videos on their YouTube channel, demonstrating the prototype system at work.

The future architecture of the system is as follows:

The main components are given below:

  • VATOM CORE (vACore) - basic tools for creating v-atoms; provision of API for managing user identification, template registration, and analytics; provision of processing of transaction token flow.
  • VATOM IDENTITY MANAGEMENT SYSTEM (vAIMS) - manages the process of user identification (authorization, authentication)
  • VATOM IDENTITY MANAGEMENT SYSTEM (vASL), STATE MANAGEMENT SYSTEM, (vASMS), CYCLERS FRAMEWORK (vACF), CODE HUB (vAHub) - the purpose of these components is to allow the distribution of pre-registered reactor, platform and brain code to a network of registered infrastructure providers (“cyclers”), which will provide their infrastructure stacks to the network for computation. The platform will route requests based on analytics to this network, use a consensus-approach for state modifying results and will pay to those whose output has been accepted by the vAtom State Management System.
  • Blockchain Abstractor & Hybrid Integration Engine (vAChain) - is responsible for recording and ensuring the registration of ownership on the network, as well as for conducting financial transactions with cryptocurrency.
  • SDK Tools - a set of tools for cross-platform application development (Android, iOS, Web).

BlockV tokens will meet the common ERC-20 standard and will be available for storage in most popular crypto wallets.

BlockV is founded by 4 professionals who have successful experience in managing large-scale projects. In addition, a team of 13 qualified advisors with a strong background in projects such as UBER, Blockchain Capital, Singularity University, SofaVR and TrustCloud is involved. The main advisors include Brock Pierce, Peter Diamandis and Jeff Holden.

In general, the team has very strong skills in the core areas of activity.

Founders:

Reeve Collins, CEO - LinkedIn

Reeve has been a long-standing pioneer in the Bitcoin/Blockchain space and was cofounder and CEO of Tether. His efforts revolutionized the way currency is transacted by creating the world’s first fiat currency platform on the Bitcoin blockchain. In just over one year from inception, Tether was acquired by Bitfinex, the world's largest bitcoin exchange.

Gunther Thiel, CTO - LinkedIn

Gunther is a veteran technology entrepreneur and blockchain business model consultant. He has diverse experience in leading multi-disciplinary and international teams. Notably, Gunther co-founded and served as CEO at SmApper Technologies, a company which provided intelligent and automated file management solutions for enterprise customers to manage unstructured data, and headed Cloud Products and Technologies at Swisscom, a leading telecommunications provider in Switzerland. Previously, Gunther led projects across various verticals, ranging from IT to media.

Lukas Fluri, COO - LinkedIn

Lukas is a technology entrepreneur and executive with nearly 20 years of experience in founding and leading companies which have developed uniquely innovative technological products. His efforts led Swisscom, a leading telecommunication company, to the highly successful development and market launch of the first cloud based IP-TV solution and several other mobile and cloud products for Swisscom in Switzerland. Prior to that, he was the leader of Product and Innovation groups at a mobile venture for Telefonica and for Alcatel-Lucent.

Craig Sellars, Blockchain Architect - LinkedIn

Craig leads the development of global innovations on top of the Bitcoin blockchain as the Chief Technologist of the Omni Foundation and acts in a variety of roles as Co-Founder, Technologist, Facilitator, Director, and Advisor for several blockchain projects and companies including Omni, Tether, vAtomic, Bitfinex, Unsung, Fuzo, Factom, Synereo, Tau Chain and the MaidSafe Foundation.

The founders state that currently there are no direct competitors for their product, since they are launching a new segment on the blockchain market. However, there are a number of teams that provide in our opinion, projects with similar functions. Among them we can distinguish the following competitors:

  • BlockCat (https://blockcat.io) - a project designed to promote the use of smart contracts among technically unspecialized user groups. The team is developing a platform through which any user can create a smart-contract in a special application that does not require specialized knowledge in the field of programming.
  • Etherparty (https://etherparty.io/) - a project providing a similar service: “Etherparty is a contract wizard that removes the complexity of creating, managing and executing smart contracts on any blockchain. The platform allows users with zero          knowledge of smart contract programming to create an enforceable, self-executing digital agreement for all types of transactions.”

 

Nevertheless, the audience for these projects in our opinion, is unlikely to overlap significantly, as the functionality of BlockV seriously exceeds the capabilities of the competitors represented.

The key risk of the project, in our opinion, is the difficulty of integrating the platform’s functionality into the real sector of the economy. The project team is planning to introduce a turnover of "digitized" consumer goods, such as soft drinks, fast food restaurants, etc. Success in this direction will directly depend on legal arrangements and the desire of retailers to exchange vAtoms for fiat money or goods.

Secondly, the fact that there is no budget for expenditure in the documentation can also be attributed to risks. First of all, the share of fixed costs in the cost structure is not clear. Due to this, it can be hardly assumed what should be the minimum income of the platform to ensure its viability.

Also, the risks of the product simply being unclaimed cannot be ignored. Distribution and popularization of the service after the ICO will depend entirely on the quality of the marketing campaign at the later stages of the company’s development. Funds for such a marketing campaign, most likely, will be attracted during the ICO. This is also a risk for early investors, as it is unclear how successful the end of crowdsale will be.

Taking into account the wide potential application of BlockV technology and its innovative features, the target audience of the project implies the coverage of  several categories of potential interested parties. One of the marketing strategy  goals is to attract the attention of large global companies to the project with a view to subsequent development of the entire ecosystem.

25% of the proceeds of the crowdsale funds will be used for marketing and further development of the community. Unfortunately, the details of the team’s strategy in this direction are not currently disclosed. However, we know of two project partners who are already developing applications based on BlockV-Epics technology operating in eSports, and another company from the AR / VR industry.

In addition, the interest of the audience is supported by the ongoing marketing events. BlockV won first place at D10e ICO Pitch Competition in Kiev, held in mid-September 2017. In early October, the founder of Reeve Collins held AMA session (ask me anything) on Telegram chat room with 1200 participants, during which he answered all questions of interest to the public. In addition, earlier this year the project took part in a music festival in Switzerland, tickets for which were sold using a specially developed application based on BlockV technology. Users of the application could also conveniently order cocktails at the bar, resulting in a lot of positive feedbacks.

Regarding promotion for the ICO, the team uses standard channels to advertise the project (Telegram, Facebook, Bitcointalk, etc.). The BlockV channel on Telegram is the leader for number of followers (over 1500); the main source of information is the Medium blog. In general, marketing activity on social networks is low.

To stimulate audience interest in the project, a bounty program is also launched. The initial remuneration of participants is 2.5 million VEE (about $50 thousand). In the case of achieving the indicators presented below, the bonus pool will be increased to 3.75 million VEE (min $75,000):

1,000 Medium followers

2,500 Telegram members

3,000 Twitter followers

3,000 Facebook followers

The documentation describes the model for monetization of the project rather poorly. In the white paper, the founders give the following examples of payments that will come in favor of the BlockV platform:

1. When creating vAtoms:

  • For creating templates and template samples
  • For registered images
  • For registered scripts of reactors or brains
  • For vAtoms release
  • For linking ownership to the blockchain

2. In transactions with vAtoms:

  • For vAtom transactions initiated by the reactor
  • For using long-term scripts that use the "brain" functions of vAtoms

At the same time, no data are provided on the projected size of these commissions, their volume or the required number of participants on the platform to support sustainable development of the project. In addition, there is no detailed description of the costs that arise during the company's activities, which makes it difficult to assess the financial effectiveness of the project.

In general, the success of BlockV will depend on how many developers and customers will be attracted, which in turn will depend on the number and quality of the opportunities provided by the platform. If the project does not manage to involve large business in the system, there is a high probability that users will quickly lose interest and stop using it.

VEE tokens are an infrastructural element of the platform and do not imply payment of dividends or redemption. Regarding this, the only scenario in which their cost will grow is an increase in the number of users of the platform, i.e. those who wish to purchase these tokens.

VEE tokens will be released on the Ethereum platform; there will be no problems with their listing on cryptocurrency exchanges. The unconditional advantage is their role in the system, which, most likely, will be classified as a utility. This also significantly increases the chances of adding the token to leading exchanges.

During the ICO, the company intends to raise $40 million, quite a large sum. In our opinion, given the low number of participants on social media, the demand for VEE tokens will most likely be completely satisfied, as a result of which the probability of short-term growth rate is quite low.

From the point of view of long-term investments, the project seems to us very interesting; with good management, observance of the terms outlined in roadmap and the attraction of large partners, chances of success are high. In this case, the cost of VEE tokens could grow several times over 1 to 3-5 years.

 

 

 

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.