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Bigbom Eco Rating Review

Stable+

Investment Rating

Expiry date : Expired 10 Sep 2018

Rating

We rate the Bigbom project as "Stable +".

In our view, the development of a decentralized advertising platform to boost marketing efficiency is quite a promising project. An advertising marketplace with transparent pricing and cost optimization that employs top-notch AI technologies, could attract serious businesses. Bigbom is clearly a B2B-oriented project, which only shows that the founders take the platform’s development seriously. 

Despite the fact that the project is in its early stages, Bigbom seems to be a robust and well-thought-out  startup, which is pretty uncommon for such ICOs. Well-developed documentation and the support of multiple partners are usually associated with more mature projects. 

A major advantage of the project documentation is that it includes a financial model and various project implementation scenarios, depending on the funds raised.  Moreover, we appreciate how reasonable the team are when it comes to self-representation. They do not describe the platform as “a state-of-the-art product that will revolutionize the digital marketing world”. They position the project as one that can prove to be useful for various businesses.  We think that Bigbom, assuming they successfully implement their intended services, could win over some of the potential market.

One intrinsic drawback is that the project is localized to Asian countries. Many investors are often known to be ill-disposed towards local projects.  However, this is purely a marketing problem that can be resolved after launch of the platform and obtaining initial feedback from clients. 

Additional risks arise from the competitive environment. Although Bigbom’s founders do not mention any direct rivals, marketing industry ICOs are quite popular and common. The first company to launch a convenient service is usually the one to win over clients; that is why Bigbom should do their best to launch the platform as soon as possible.

General Information About the Project and ICO

Bigbom is a project that aims to develop a decentralized advertising marketplace both for publishers and advertisers. The Bigbom ecosystem is based on the Ethereum blockchain (employing smart contracting) and decentralized system architecture. Bigbom’s solutions could help resolve some current digital advertising problems, for example low KPI, high costs, credibility and trust issues (failures to perform obligations or pay), etc.

Advertisers will be able to use the Bigbom platform to devise marketing campaigns, manage them and maximize income whilst staying within budget limits. All processes will be performed in line with market pricing based on the bid-ask principle, where both parties can bid.  Publishers will also have ad space, corresponding advertising platforms (mainly through API) will also be able to participate in the marketplace.  This means that the main advertising channels such as Facebook ads and Google AdWords can be employed as well.

At the moment the project has several key partners; one of them is Tomochain. This project offers solutions for scalability problems with the Ethereum blockchain. Bigbom and Tomochain have signed a Memorandum of Understanding (MOU) that ensures the provision of advisory and technical support at the development stage. Other partners include Bancor, legal consultants, etc. A business partner has also been found - Zalo, based in Vietnam, which is both a successful advertising platform and a marketplace.  

The legal entity Bigbom Pte Ltd is based in Singapore (UEN No 201801349C). However, the ICO tokens are being issued by Bigbom Limited, a parent company based in the British Virgin Islands (BVI Company No 1971098).

The crowdsale has three stages: A private presale, public presale and token sale. The public presale has just ended, but the founders say they have reached their softcap during the previous stage thanks to interest from major investors.

ICO

Start Date: 28 May 2018

End Date: 10 June 2018

Hard cap: 12,000 ETH

Price: 1 ETH = 20,000 BBO

Token: BBO, ERC-20 standard

Accepted Currency: ETH

Issue Volume: 2,000,000,000 BBO

Fund Allocation:

  • 16.25% - Token sale
  • 30% - Network growth
  • 31.75% - Reserved
  • 13% - Founders and staff
  • 9% - Advisors and bounty

Total tokens for sale: 325,000.000 BBO

In addition to the standard allocation of ICO funds, Bigbom’s documentation includes a three-year budget plan (from 2017 to 2019). The calculation is based on 15m USD raised.

In case the project does not raise the desired amount, the allocation will be as follows: 

Tokens not sold during the crowdsale will be burned.

Description of the Services and Scope of the Project

The Bigbom platform is an advertising marketplace for both advertisers and publishers/ad apps. The service architecture is based on the Ethereum blockchain and smart contracting, i.e. marketing services are decentralized.

The marketplace will support advertising from both the supply and demand side. Publishers can create two types of request, either a fixed price (offer) or a floating type determined by the second party through bidding.

Advertisers can execute multiple campaigns simultaneously and have access to the parameters and results of each of them. Additionally, Bigbom envisages ad campaign optimization architecture (iAds). The utility employs AI and other software tools. Thus, clients can operate on the platform not only with particular publishers, but with major ad platforms as a part of a multifaceted ad campaign. As a result, Bigbom claim to be able to reduce up to 80% of personnel costs and 20% of marketing costs.

The general process flow can be described as follows: An advertiser can set campaign parameters and the system will then automatically manage the campaign and contract publishers.

The reputation system aspect of the Bigbom ecosystem in addition to the services, is a useful supplement to the marketplace functionality. Advertisers are able to see the best platforms chosen on by reputation; at the same time, the most popular publishers can demand higher prices for their services.

After services have been provided, an advertiser will have a chance to assess the work done by the ad platform/publisher and review it. Such advertisers will receive BBO from the bonus fund as a reward. Advertisers can see all the ratings and reviews in a special section of Bigbom. 

Regarding the technical parameters, Bigbom creates and employs several types of Ethereum smart contract:

  • The Service Offer Contract is designed for ads platform or publishers. This contract specifies the services, timeframe, KPI and payment terms. 
  • The Service Bidding Contract is also designed for ad platforms or publishers. The only difference from the Service Offer Contract is that the service price is based on a bidding process and not specified in the smart contract.
  • The Payment Contract is designed to regulate the payment process within the smart contract entered by the advertiser and ad platform/publisher. The smart contract functions together with the Service Bidding/Offer Contract.
  • The Review/Rating Contract is designed to assess and provide reputation rankings for the ad platform/publishers. Advertisers receive BBO tokens as a reward for assessments and reviews.

Bigbom’s documentation includes a short list of technologies and architectures employed. It specifies not only the techniques used when designing its centralized database, but also tools the advertiser can use to optimize workflow and advertising campaigns.

The project’s white paper includes a three-year financial plan, which is clearly a positive. The team intend to be profitable by 2020. However, profit is not their top priority; the main goal is to create a customer database. The cash flow includes publishers’/ad platforms’ commissions and iAd fees for advertisers. Below is a chart showing number of partners and the correlation between market and partner numbers as a percentage.

The team’s financial objectives are quite optimistic. Taking into account that there are no direct competitors and both market and idea seem promising, the BBO token could prove to be an interesting asset in the long run. At the same time, the team’s plan to capture 8% of the market within a year of the launch could be too optimistic.

Market Review

Last year the marketing services industry faced a major change. In 2017 advertisers, for the first time ever, spent more money on digital ads than on the TV segment.  The best illustration of this is a chart published by Magna.

The gap between classical TV and more forward thinking digital/online segments will only become bigger. By the end of 2017, volume for digital marketing was more than $209 billion. By 2020 it may well reach $290 billion or more. The chart shows that the digital segment started growing rapidly from 2014. As per Magna’s analysis, the trend will continue for the whole forecast period.

Based on this premise, Magna [https://www.recode.net/2017/12/4/16733460/2017-digital-ad-spend-advertising-beat-tv] have arrived at the following conclusion: “Digital growth is expected to remain strong in the next five years, reflecting fast changes in media consumption and marketing technology”. The main growth factor will be mobile advertising, mostly for smartphones. It is hard to deny that the majority of people use their phones to go online and there is still much to explore in terms of marketing. 

Based on data provided by Zenith [https://www.publicismedia.de/wp-content/uploads/2016/12/2016-12-05-aef-executive-summary.pdf], Felix Richter (Statista data journalist) has come up with a forecast on how much advertisers will be spending on different marketing channels over the period from 2016 to 2019 [https://www.statista.com/chart/5096/worldwide-ad-spending-growth-by-medium/]. As expected, the leader is mobile advertising.

Another good illustration would be the infographic put together by JCDecaux [http://www.jcdecaux.com/blog/ad-spend-forecast-update-2018-dooh-google-and-facebook-drive-growth]. As well as Magna’s [https://www.magnaglobal.com/wp-content/uploads/2017/12/MAGNA-Global-Forecast_Winter-Update_Final.pdf] research cited above, they have incorporated data from ZenithOptimedia [https://www.zenithmedia.com/digital-roi-catches-fast-growing-digital-adspend/] and GroupM [https://www.groupm.com/news/groupm-global-ad-investment-will-grow-43-in-2018-six-countries-to-drive-68-of-incremental-investment]. Based on these forecasts from three agencies, it is safe to predict that in 2018 the advertising market will show an annual growth of 4.5%. 

It is time to discuss the key players in the digital ad market. Felix Richter, mentioned above, has devised another infographic illustrating revenues for the largest online advertisers [https://www.statista.com/chart/12179/google-and-facebook-share-of-ad-revenue/]. The undisputed leaders are Google and Facebook, who hold 25% of the global media advertising market. 

Thus Bigbom, a local project, is entering a large, promising market that is controlled by the tech giants. There is nothing negative about this fact because Bigbom can obtain some market share, assuming they provide high quality services. Integration with Google and Facebook will help popularize the platform as well.

Bigbom’s official documentation contains a brief analysis of rival blockchain solution providers.  There are probably no direct competitors for the project; however, the team does mention Adex and Adhive platforms. Without getting into details, the number of competing platforms employing blockchain is much higher. Cryptoslate.com has recently listed 60 projects under “advertising” and the majority of them are holding ICOs [https://cryptoslate.com/category/advertising/]. Most of these projects could not possibly be Bigbom’s direct competitors. We just wish to note that blockchain solutions for digital advertising remain popular.  

Team and Stakeholders

Judging by information available via the site and in the documentation, Bigbom’s founders have put together a team of professionals. Their spheres of expertise include marketing, advertising and high-tech.  There are three co-founders; the whole team consists of 10 people.

Vung Nguyen, CEO & Co-Founder
Vung Nguyen is the Founder & CEO of Bigbom. He has 11 years of technology start-up experience and 8 years of experience in digital advertising. He is also the founder of Adtop, an online advertising company established in 2011. Adtop has steadily increased in revenue and currently generates millions of dollars of revenue per year. Starting in 2013, Mr. Vung and his partners developed an advertising solution that has displayed over 3 billion impressions per month. In 2015, Mr. Vung Nguyen graduated from the Silicon Valley Founder Institute, a startup training program involving people from over 50 countries.

More detail: LinkedIn

Tuan Co, CTO & Co-Founder

Tuan is an experienced engineer with over ten years’ experience in high-tech business. He has worked for large enterprises such as VNG and Lazada. He has designed and developed many scalable, high-performance systems which serve millions of users. He is also a blockchain enthusiast and active investor.

More detail: LinkedIn

Anh Huynh, CMO & Co-Founder

Huynh graduated from the RMIT faculty of Marketing. She has worked for companies such as Nguyen Kim, Vietnamworks and Adtop. She is currently in charge of all Bigbom's marketing plans, including building and expanding Bigbom's community of potential stakeholders around the world.

More detail: LinkedIn

Hung Nguyen, Lead Engineer

With seven years of experience in the field of technology and systems development, Mr. Hung has successfully built advertising systems that serve up to a billion impressions per month.

More detail: LinkedIn

Cau Trang, Lead UI/UX Engineer

Cau is a surprising discovery of Bigbom’s team. His designs have brought new life to the project. With experience of implementing many projects for clients around the world, he easily grasps the latest design trends for website and mobile platforms.

More detail: LinkedIn

 

 

Khanh Nguyen, Backend Developer

Khanh is one of the first members of Bigbom’s Engineering team. Together with Bigbom’s Lead Engineer, Khanh is responsible for developing the backend for Bigbom's products, especially Bigbom iAds

More detail: LinkedIn

Thinh Au, Front-End Developer

Thinh is a talented Front-End engineer. He specializes in building applications with ReactJS. Thinh brings creativity and sophistication to Bigbom's interface. Together with UI / UX design, they become a great collaborative team in both work and life.

More detail: LinkedIn

Thanh Nguyen, QC Engineer

Thanh ensures that Bigbom's products are delivered with optimum customer experience. Graduating from one of the most reputable universities in Vietnam, Thanh has the fine qualities required of a QC engineer including hard work, responsibility, creativity and eagerness to learn.

More detail: LinkedIn

An Nguyen, Marketing Executive

An is a Marketing Executive for Bigbom. She is responsible for all activities related to Bigbom's marketing campaign including PR, Events, the Community. A graduate of RMIT University, she is one of the most dynamic and active members of the marketing team.

More detail: LinkedIn

 

Advisors

David Carnell
LinkedIn

Mr. David Carnell is currently Managing Partner of Clean Energy Capital Pty Ltd, a panelist and advisor on ICO & Funds Management at Blockchain Intelligence Group LLC Singapore – who are industry experts offering all the services required to launch a successful ICO including marketing, legal, technical and financial support. He was also CEO of International Fluid, Acqua International and SAFER Energy Groups. Former Director of Finance for BWN Industries.

Niels Jense de Ruiter

LinkedIn

Niels is a cryptocurrency advisor and investor. Advises and assists several ICOs with marketing. Graduated with an MSc in Strategic Management from Erasmus University, Rotterdam, with an extracurricular MBA semester at Keio University, Tokyo. He has worked in digital production & marketing with clients such as General Electric, Adidas, Shell and Heineken. Previously held several positions ranging from founder of a web shop to online marketer.

David Nguyen Vu

LinkedIn

Founder of the Blockchain Intelligence Group, co-author with Mr. Loi Luu of Kyber Network of a book, "Blockchain and basic ICO Investment - Pathway to Financial Freedom". Dr. David is the President of the Vietnam Chamber of Commerce in Singapore (VietCham Singapore), Chairman of Regulus Investment and Capital Holdings, a Singaporean private equity firm managing US$50m in funds; he has helped over 120 Vietnamese SMEs and startups expand into the global market through the Singapore gateway.{n} Dr. David holds a PhD from the Université du Maine – France, and a double MBA in Marketing and Strategy from Nanyang Business School – Nanyang Technological University, Singapore

Victor Tran

LinkedIn

Victor Tran is a senior backend engineer and Linux system administrator. He has experience in developing large-scale infrastructures for multiple social marketing platforms and advertising networks. He is interested in building high performance multi-platform applications. Victor has been involved in blockchain and cryptocurrency development since early 2016 and is a lead engineer at the SmartPool project and Co-founder/Lead engineer at KyberNetwork

Minh Chu

LinkedIn

Director of Blockchain Research at Tomochain, Chief Cloud Architect of VCCloud - one of the biggest “AWS-like” local cloud services in South East Asia. Minh has deep technology research expertise and is a security expert.

Token Analysis

Bigbom’s BBO tokens, issued at the ICO, perform standard utility functions for the platform. Payments to and from advertisers and publishers/ADS platforms as well as commission payments are performed using these tokens. Users also pay for the iADS functionality provided within BIGBOM using the tokens. There are no additional mechanisms for stimulating demand or value in the project, nor are there other ways of using tokens other than selling them in the open market.

The scheme for commissions on the platform is built in such a way that Bigbom charges 3-5% of revenue from publisher/Ads platforms, and advertisers do not pay anything. For the use of iADS developed and supported by Bigbom, advertisers will pay commission depending on funds spent on advertising (3-5%).

We highlight the large size of the token issue compared to the small percentage placed. This structure of placement is justified by necessity for initial stimulation of clients and partners’ involvement with the platform. Such a mechanism is standard for startups, but in the case of Bigbom the small hardcap is a positive moment; the total amount of generated tokens is quite moderate when calculated in fiat currency.

Bigbom has also fixed periods for token lockup, not only for tokens allocated to the team and consultants, but also for its reserve funds.

A gradual release of funds is planned as the platform evolves; this is necessary for the contingency and development funds. The shortest lockup period is provided for airdrop tokens, 2 months; the team’s tokens have the longest lockup period.

Analysis of Factors Affecting the Future Value of the Token

When considering factors contributing to the future value of BBO, one should take into account the standard nature of the token, so until the existence of fundamental demand in the market, one may only expect price growth as a result of interest in the project and hype.

The project’s marketing policy is ambiguous: Against the background of a large number of subscribers on social media and discussions in the community, we do not observe particularly strong interest in the project. Interest from a wide range of investors cannot be transformed into infrastructure demand, because target customers for the Bigbom marketplace are businesses; the project mainly uses a B2B model. Thus in the short and medium term, hype around BBO may occur due to regional popularity, however this is unlikely.

In terms of the long-term horizon, it is worth looking initially at the published roadmap for the product’s development. The terms for the milestones in the roadmap are different for the website and white paper; we will focus on the more conservative version published in the WP.

The release of a beta version of the ecosystem and the final version of iAds are planned for Q3 2019, given the completion of the ICO during Q3 2018. According to the financial plan, by the end of next year 163 partners-advertising platforms should be recruited, i.e. the team expects rapid expansion after the completion of development. By the end of 2019 we may see a significant demand for tokens, and in the further future, with the projected amount spent on the growth of the ecosystem, demand will result in higher prices in the market.

Investment Risk Analysis

The Bigbom project has many early-stage startup risks. The project’s basic services are under development, but customers can evaluate the main functionality using a beta version of the platform.

As well as the fact of an early stage of development, the project’s locality could also affect marketing and promotion: the Asian region is the starting place for future expansion of the Bigbom platform. It should be noted that clear positioning can be a significant plus in further development.

At the moment, the marketing and promotion of the project is not being carried out at a high level. The project team has more work to do to make the western public more interested in the development of Bigbom.

As already mentioned, the digital advertising market is controlled by IT giants who constantly increase their efforts towards further expansion. Against this backdrop, decentralized platforms may face particular difficulties in promoting their own solutions.

There is also increased activity inside the AD ICO segment. But given the more infrastructural focus of Bigbom and interest in b2b services, with proper implementation the platform could benefit from partnerships with other services.

The information contained in the document is for informational purposes only. ICORating received monetary compensation in the amount of $17764 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.