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Carry Protocol Rating Review

Stable

Investment Rating

Expiry date : Expired 15 Nov 2018

Rating report

According to our analysis and the issues identified, ICORating have assigned the Carry Protocol project a “Stable” rating.

Positive factors for the rating assigned are as follows:

  • An experienced team

  • Well-known partners and advisors

  • Existence of a large network of potential participants for the platform

  • Existence of an infrastructure for the project

Carry Protocol is the brainchild of a co-founder of Spoqa, the developer of the biggest Asian loyalty point program, Dodo Point. Dodo Point clients total 12 million, almost 25% of South Korea’s population. Carry Protocol will use Dodo Point’s infrastructure and client network as well as Spoqa’s high quality employees. The project is supported by the Hashed fund, the largest Korean crypto fund.

Negative factors considered are as follows:

  • Lack of an MVP

  • Non-comprehensive whitepaper

  • Unverifiable ICO details at the date of analysis

Based on the analysis performed, and taking into consideration all the risks associated with the Carry Protocol project as of June 2018, we assign the Carry Protocol project a “Stable” rating. This rating may need to be reassessed once further alpha/beta versions of the product are released and feedback on the first testnet is received.

Project & ICO information

Commerce, both offline and online, is of course one of the fundamental economic spheres. Though estimated to be $25 trillion in size, the offline market still faces a number of significant problems:

  • Merchants do not possess full and transparent information about their clients, as no comprehensive database is available

  • Consumers cannot manage and monetize their data

  • Offline advertising efficiency is extremely hard to estimate

Despite some aforementioned problems being partly solved by online merchants, offline commerce still includes the majority of buy-sell transactions and therefore these problems are of great importance.

Carry Protocol aims to solve all three bottlenecks by introducing a platform where retailers and consumers will be connected through a blockchain. Through creating a distributed and transparent transaction database supported by smart contracts, Carry Protocol aims to create a tool that will enable consumers to monetize their data and merchants to effectively target and approach their target audience.

Essentially, the project was started by co-founders of Spoqa, who created the largest royalty point system in Asia known as “Dodo Point”. In a sense Carry is the transition of Dodo Point to blockchain with the addition of several new features.

Here are the main links to the project’s online presence.

Website: https://carryprotocol.io/

Spoqa website: https://www.spoqa.com/

Medium: https://medium.com/@carryprotocol

Telegram: https://t.me/carryprotocol

Facebook: https://www.facebook.com/carryprotocol.io/

Twitter: https://twitter.com/carryprotocol

On 8th June, Carry’s team announced some of the forthcoming ICO’s characteristics.

 

 

PRE-SALE

ICO (PUBLIC SALE)

 

Start date

 

No data

 

July (subject to change)

End date

No data

No data

Token distribution

375,750,000

650,000,000

Ticker

CRE

Token

ERC-20

Token supply (for sale/total)

4,000,000,000 / 10,000,000,000

Soft cap

25,000 ETH / USD 11,800,00

Hard cap

48,000 ETH / USD 22,656,000

Estimated capitalization

120,000 ETH / USD 56,640,000

Token price

1 ETH = 74,750 CRE

1 ETH = 65,000 CRE

Bonus

15%

No bonuses

Lock-ups

Lock up for 3 month

No data

Minimum investment

Not specified (see below)

Not specified (see below)

Maximum investment

Not specified (see below)

Not specified (see below)

Currencies accepted

ETH

Restricted list

All, except China & USA

KYC procedures

Yes (TBA)

Country of legislation

Korea

From 4 billion tokens available for sale, only 1,025,750,000 tokens or 25.6% will be sold via the pre-sale and public sale. The other 74.4% are to be sold in private rounds. Bonuses on these rounds will be 30% and the respective token price will be 1 ETH = 84,500 CRE.

Carry Protocol has also announced a Carrier campaign for early supporters. A total of 3,000,000 CRE tokens will be distributed among Carriers who promote the project. This amounts to 0.075% of the tokens available for sale, and will not affect the token’s value.

Token distribution was announced to be as follows:

We consider this distribution healthy and reasonable. In addition, tokens distributed among the team, partners and advisors will be locked up for 2 years.

The partner program is a reward program for counterparties supporting Carry Protocol, such as device providers and wallet services. Their role in the project will be discussed later in this report.

The team plans to use the funds accumulated for the development of the project. Primarily, funds will go on research and development and payments to device manufacturers.

Below is the funding allocation structure provided by the Carry team.

By operations and business development, the team means gaining business stability and the development of business processes. 25% will go to device manufacturers providing the project with the infrastructure for scanning BT offline and connecting merchants with third parties. The team retains its right to change funding allocation according to actual needs.

The amount of funds allocated to marketing raises questions, as it seems too small. Though Carry has a powerful partner, Spoqa, that will help to promote the new service, this may be not enough to reach the target audience and stimulate the demand for CRE token use in real life.

In addition, without any growth plan or business strategy it is hard to estimate the adequacy of the announced soft and hard caps.

Technical overview

At the date of the analysis, the team had not yet decided on a base protocol for the blockchain. However, the team eliminated the Ethereum blockchain as an option due to the transaction-per-second rate being lower than desired.

Despite uncertainty about the blockchain, the team already has a clear understanding of the platform’s architecture. Carry Protocol will consist of 4 major components:

  • Carry transaction database

  • Carry smart contracts

  • Carry wallet API

  • Carry device API

The transaction database will be a key asset for the project. It will contain all data generated by users. Users will decide whether they want to share their data with the network or not.

Smart contracts will be used for the generation of branded tokens (BT) by merchants. The idea is that these BTs can be used both as digital flyers and coupons. A merchant can customize a BT smart contract in a way that it will act either as a promotion flyer or as a coupon, so that consumers will be able to exchange it for SKU or partly pay for SKU. BTs cannot be exchanged between consumers and can only be spent on merchants’ sales points.

By now, the team has uploaded the smart contracts on GitHub for public testing. We point out that the smart contracts are not a subject for analysis and their quality is not considered in our rating.

The wallet API and device API are for external use by counterparties. Both are created to facilitate cooperation with wallet apps and device manufacturers which will be crucial to Carry Protocol’s growth and successful development.

There is no information on how much it will cost to maintain this app, but presumably 30% of the attracted funds will be allocated to development and research.

Throughout the whitepaper, the team mentions user data security as a key factor for success. Despite this fact the team does not offer any information on how this security will be provided. Encryption and an anonymity shield are mentioned, but there are no details about how this will be technically implemented on the platform. We consider this as an issue increasing risks for the project.

Though it is hard to say without a detailed technical description, which was not provided, the proposed system seems clear and does not have any unnecessary complexity, thus can be perceived as efficient.

Description of services and their applicability

Carry is a blockchain-based platform for merchants to effectively market their products and services. Through a network of smart-contracts, users will acquire control over their data and gain tools to monetize it, thus retrieving their right to benefit from their own data, instead of being deprived of it as in the past. On the other hand, merchants and marketing agencies will be able to improve the efficiency of their targeting and increase retention rates.

Users will be stimulated to share their data through positive incentives involving rewards of CRE tokens. Rewards will be linked to the value of the data provided for the database.

Merchants will be able to customize their marketing with a BT mechanism as described above. Merchants are given two payment schemes for the emission of BT. One is a fixed prepayment for a certain number of smart contract executions, with additional payments for every execution above the prepaid amount. The other involves payment for every execution. No information on pricing for such schemes or numbers of prepaid executions is given; these values are fundamental for estimation of the efficiency of the whole service for merchants and its attractiveness for them.

For agencies, the incentives to participate in the project are the same as for merchants.

Both merchants and agencies will have to pay for emission of BT using CRE; this will stimulate demand for the token.

There are also three major groups of third parties:

  • Device providers

  • Wallet apps

  • Settlement service providers

As Carry is targeting offline retail it needs to provide merchants with equipment to scan BTs and recognize transactions on the blockchain. Devices will also act as a link between merchants and settlement services. Device providers are supposed to generate revenue by charging merchants a fee for use. Currently, Spoqa is the only provider of devices with more than 10,000 partners.

Wallet apps are needed to simplify the management of both BTs and CRE for consumers, as they will be able to keep track of their transactions and manage their BTs and CRE through these apps. In addition to charging fees, a wallet may also benefit from distributing ads amongst its users.

The last third party category is settlement service providers. As merchants will accept not only fiat, but also cryptocurrencies, such as BTC, ETH or CRE, they will need someone to convert crypto to fiat. Settlement services are those who are supposed to provide this service. At first, Carry plans to work with major cryptocurrency exchanges. Obviously, these providers will also charge merchants a fee.

All in all, merchants will have to pay Carry Protocol a fee for the execution of smart contracts plus fees charged by third parties. Moreover, Carry will have no control over these side costs, therefore the real efficiency of Carry Protocol’s services is questionable.

At the moment the team is in search of a base protocol for their blockchain’s infrastructure that will meet the following criteria:

  • A high transaction-per-second rate

  • Immediate transactions

  • Low transaction cost and a staking-based model instead of a pay-as-you-go model

  • Web assembly compatible.

Roadmap

Carry Protocol provides the following road map in their whitepaper:

The team has already published test smart contracts, so it is ahead of schedule. Testnet will be launched in Q4 2018.

This roadmap gives information on only the technical development of the project and ignores business matters such as a marketing campaign. This is a drawback, as clearly marketing will be a significant source of income for the project, directly influencing the number of merchants and consumers on the platform. There is also no data on the quantitative metrics that the project aims to achieve by any of these dates.

Roadmap milestones are set each half-year, which makes things quite vague due to significant time spans between milestones.

Market outlook

Total retail sales are estimated to reach $24.86 trillion globally in 2018 and $27.73 trillion by 2020, when Carry Protocol plans to finalize the development of its platform. The 5-year compound annual growth rate (CAGR) for 2015-2020 is projected to be 6% which is 2 times higher than current worldwide GDP growth rate forecasted by World Bank. Korea’s retail market has grown with the same pace of 6% annually over the last three years.

Despite such an enormous size and promising growth rate, retail is still ruled by traditional offline sales, even though such e-commerce giants as Amazon or Alibaba have become notable players. According to AT Kearney’s research, 90% of USA retail sales still take place offline.

Realizing offline potential, the aforementioned Amazon and Alibaba have started their expansion into offline, spending billions on acquisitions.

In addition, according to Oliver Wyman, the average US household participates in 29 different loyalty programs, all of which are managed separately. Carry solves this problem by creating a single place to store all loyalty points.

Carry Protocol aims to solve these and other problems by creating a transparent blockchain platform that will benefit both customers and retailers. Backed by professionals from Spoqa with their experience in retail business and development, Carry Protocol has every chance to achieve its declared goals. Unfortunately, Carry did not specify their targets in any quantitative or qualitative form, therefore it is hard to judge how adequate its strategy is to its goals.

No competitor analysis is provided in the project’s whitepaper, therefore competitors were chosen by ICORating for the purpose of analysis.

 

CARRY PROTOCOL

NUCLEUS.VISION

MOMENTUM TOKEN

APEX

 

Ticker

 

CRE

 

nCash

 

MMTM

 

CPX

Key functions/features

Blockchain platform that allows merchants to create branded tokens that act as flyers and coupons and give customers control over their transaction data.

IoT and intelligent analytics-empowered system, which creates a comprehensive source of data about customers to enable customized loyalty programs and ads, whilst giving customers control over their data.

Platform with automated marketing tools analyzing complex data about consumers, whilst giving consumers control over their data such as geo-location, search history or shipping data

Network for marketing optimization through access to user data

Key users

Consumers, merchants and marketing agencies

Customers and retailers

Customers and retailers

Customers and retailers

Key products

Transaction database; platform for creating customized branded tokens for marketing.

System that analyses customer data to give customers recommendations and individual pricing schemes and let them monetize their data.

System where merchants can create branded tokens and find customers by sending them questionnaires and obtaining information via the system.

App where customers can manage data and provide access to brands for them to customize their offers

Development stage

Smart contracts released for public testing

System is already operational

Beginning of development

Beta under development

ICO status

Presale date not announced

Ended

Ongoing

Ended

Funds collected as of ICO date/Hard cap

N/A / USD 26.6m

USD 40m / USD 40m

N/A / USD 51.4m

USD 25m / USD 25m

Percentage of tokens for sale

40%

50%

50%

50%

Valuation on date of ICO

120,000 ETH / USD 56.6m

USD 80m

USD 102.8m

USD 50m

Market capitalization

N/A

USD 72.8m

N/A

USD 42.8m

 

We note that at the date of analysis, Carry Protocol’s consensus mechanisms are not yet defined, as the team is leaning towards a base protocol which meets certain criteria, and this protocol has not yet been determined.

The transition of royalty programs to blockchain is a clear trend, as blockchain provides mechanisms for efficient data management, a key factor in loyalty program success. In addition, blockchain makes it easier to manage loyalty programs customers are engaged in.

There are two major loyalty solutions on blockchain. The first creates a tradable token that acts as a unified loyalty point for all participants on a network. This is supposed to increase program efficiency for retailers in terms of marketing, but does not offer any insights into customer behavior. The second group, of which Carry Protocol is a member, focuses rather on gaining insights through data investigation. They provide customers with incentives to contribute their data to the network, thus giving merchants a clear understanding of their target audience.

Carry Protocol targets Korea as its primary market, which is a pro, as they are backed by the biggest loyalty point program in Asia. On the other hand, it lacks data analysis features available with, e.g. Nucleus.Vision. In Carry Protocol merchants have to draw conclusions themselves. In addition, creating the platform for a specific market may lead to difficulties with entering new markets, especially European ones, as there are many cultural differences.

Nevertheless, Carry has a strong team with competence in data analysis, therefore this feature may be added in later versions.

As mentioned, the competitor analysis was done by ICORating’s team and is not provided in the whitepaper. We can’t currently tell whom the project considers as its competitors.

Team

Carry Protocol was founded by high level management personnel from Spoqa, the developer of the largest loyalty point platform in Asia. The Carry Protocol team consists of Spoqa employees with extensive experience. The team is backed by professional advisors with experience in both blockchain projects and consulting.

 

 

Grant Sohn

Richard Choi

Position

CEO and Co-Founder

CEO and Co-Founder

Total experience

10+ years

10+ years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Co-founder of Spoqa

Co-founder of Spoqa

LinkedIn

Yes

Yes

Affiliation with project

Yes

Yes

Connections

500+

500+

Endorsements / Recommendations

Yes

No

 

 

Swen Mun

Hong Minhee

Position

Lead Developer

Developer

Total experience

10+ years

N/A

Relevant experience

Yes

Yes

Relevant education

Yes

N/A

Professional achievements

CTO of Spoqa

Developer of Spoqa, keynote speaker at PyCon.KR 2017

LinkedIn

Yes

N/A

Affiliation with project

No

N/A

Connections

69

N/A +

Endorsements / Recommendations

No

N/A



 

 

Jungwon Yu

Yujeong Nam

Position

Head of Business Development

UX Designer

Total experience

15+ years

10 years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

GS Shop CoE(Center of Excellence), Founder of Ensight Media, Inc., Yahoo!Korea

Product owner of Spoqa

LinkedIn

Yes

Yes

Affiliation with project

Yes

No

Connections

200+

100+

Endorsements / Recommendations

No

No

 

 

Heeyeun Jeong

Jisun Park

Position

Product designer

Product designer

Total experience

9 years

5+ years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Product designer of Spoqa, host of Behance portfolio reviews Seoul 2017,   top CSS GitHub developer in Korea

Product designer, Spoqa

LinkedIn

Yes

Yes

Affiliation with project

No

Yes

Connections

100+

80

Endorsements / Recommendations

No

No

 

 

Minjune Kim

Young Kang

Position

Developer

Product designer

Total experience

N/A

5+ years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Full-stack developer, Spoqa

Product designer, Spoqa

LinkedIn

N/A

Yes

Affiliation with project

N/A

No

Connections

N/A

200+

Endorsements / Recommendations

N/A

No

 

Extended team

 

 

JC Kim

Young Kang

Position

Developer

Project Manager

Total experience

15+ years

5+ years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Former CTO of Spoqa, Forbes 30 Under 30 Asia, creator of South Korea’s first Twitter SMS client

CEO of Decentie, KB Investement(VC), Uberple(Co-founder)

LinkedIn

Yes

Yes

Affiliation with project

No

Yes

Connections

200+

300+

Endorsements / Recommendations

No

No

 

 

Boyoung Chung

Position

Project Manager

Total experience

10+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

CSO of Decentier

LinkedIn

Yes

Affiliation with project

No

Connections

25

Endorsements / Recommendations

No

 

Advisors

 

Simon Kim

Ryan Kim

Position

Advisor

Advisor

Total experience

10+ years

10 years

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

CEO and Partner of Hashed, CEO and Partner of Hashed

Chief Acceleration Officer and Partner at Hashed, founded a mobile app builder serving more than 100 online retailers

LinkedIn

Yes

Yes

Affiliation with project

No

No

Connections

500+

300+

Endorsements / Recommendations

No

No

 

 

David Park

Lily Liu

Position

Advisor

Advisor

Total experience

20+ years

10+ years

Relevant experience

Yes

Yes

Relevant education

Yes

No

Professional achievements

20 years’ experience as product leader and management consultant for leading companies and firms including Facebook, Nextdoor and McKinsey & Company

Co-founder of Earn.com

LinkedIn

Yes

Yes

Affiliation with project

No

No

Connections

500+

500+

Endorsements / Recommendations

Yes

Yes

 

 

Shaun Djie

Darren Lewis

Position

Advisor

Advisor

Total experience

3 years

N/A

Relevant experience

Yes

Yes

Relevant education

Yes

Yes

Professional achievements

Co-founder of DigixGlobal, founder of Ethereum Singapore meetup

Former senior engineer for Gmail

LinkedIn

Yes

N/A

Affiliation with project

No

N/A

Connections

500+

N/A

Endorsements / Recommendations

Yes

N/A

It is clear that Carry Protocol has a comprehensive team that covers both the technical and business aspects of the project. As all members of the team come from Spoqa, they all have experience with IT projects, loyalty programs and marketing, but the team’s profiles does not mention if they have any knowledge of blockchain development. The team is backed by a leading Korean crypto fund founder, which offers extra confidence in the project. Besides Hashed, Carry also has Spoqa as a partner, so, if needed, the project’s team could be enlarged with experienced professionals very rapidly.

Token analytics

Within the Carry Protocol platform there will be two types of token: branded tokens and CRE.

Branded tokens (BT)

BTs will act as a tool for marketing. They will be governed by customizable smart contracts to enable retailers to tailor their offers to customers.

BTs will have the following properties:

Merchants can use a BT as a flyer; in this case it will have no financial value. BT can also be used as a coupon; in this case, a merchant defines a price and conditions for execution of the coupon. The third application of BT is when a merchant attributes BT to physical SKUs, for instance 2 cups of tea.

BTs are not tradable and can be used only at a merchant’s sales points. Merchants pay using CRE for the creation of BTs.

Carry Protocol tokens (CRE)

CRE is an ERC20 token. 40% of a total of 10 billion tokens will be available at the token generation event (TGE). The team will keep only 10% of the total amount, and 25% will go on partners as device providers or wallet apps to stimulate growth for the platform.

CRE is the original token of Carry Protocol. It will have the following functions inside the platform:

  • A stake to execute smart contracts

  • As a reward in exchange for advertisments

  • A means of payment

As already mentioned, merchants will have to pay for the execution of smart contracts governing their BTs. CRE will also act as an incentive for customers to contribute their data to the system. Customers will be able to choose the extent to which they expose their data. A reward will be calculated according to the value of the data, which will be judged according to uniqueness of data for the database.

This begs a question. Logically, the longer the project exists and the longer one unique customer stays in the system, the lower will be the value of his data for the network, unless he frequently changes his habits. The whitepaper does not consider this dilemma, which is an issue for discussion.

Customers will also gain CRE if they agree to receive ads from participating merchants.

Last but not least, CRE can be used in participating retail stores as a payment method.

As a result, the major source of demand for CRE will be merchants and marketing agencies needing it to stay on the platform and run campaigns.

Another CRE issue is the process behind value creation. The value of CRE to customers is unclear. Carry Protocol allows merchants to accept other cryptocurrencies as payments. In addition, BTs can also be used for payment. Customers can also pay by cash. As a result, the platform will have four different payment means. We put cash aside, and consider the other three. Alternatives to CRE will be ETH, BTC and other cryptos; these alternatives will be more widespread and liquid compared to CRE, therefore they will be more convenient. BTs advantage is that their value will not fluctuate as they will be assigned a value in dollars or in SKU. We note that from these three, CRE seems the least convenient method.

In addition, it is unclear whether CRE could act as a source of investment in the long run. The token will not capture the value created by the platform if it will not be used on it, therefore the token price may collapse.

Merchants also have no incentive to hold CRE for long, as they will use it for marketing immediately after they receive it to pay for the execution of smart contracts. For them, the value of CRE is represented in the number of executions it covers. Therefore, if consumers do not use CRE inside the platform, CRE’s value will be determined by the cost of execution of smart contracts on the platform.

If consumers do not perceive CRE as a convenient and valuable mean of payment or as an investment, they will not have any incentive to share their data, which will crush the whole idea of the project.

Inflation of CRE will be governed according to the value of new transactions and characteristics of the time period this rate is calculated for.

In conclusion, the token economy is relatively clear and transparent, but demand is stimulated only by one incentive, which is a need to support smart contract execution. Though on one hand this adds transparency, it may be a reason for higher liquidity risks.

Token price factor analysis

FACTOR

DESCRIPTION

PRICE EFFECT

Development and release of new products according to the roadmap

 

As Carry Protocol follows its roadmap, entering new stages will affect the market price either positively or negatively depending on how well the team performs. If they stick to deadlines and realize exactly what they committed to, then this will have a positive effect on price and vice versa. The next milestone is the pre-sale due to start in June 2018. Platform will be developed by Q1 2020.

⬆︎⬇︎

Demand for the platform

 

Carry Protocol provides a platform for merchants and consumers that satisfies the needs of both parties. It already has a developed channel for distribution which is Dodo Point and 10,000 of its partners. Moreover, no similar blockchain projects in Korea are known to exist. Nevertheless, the platform is not yet released, and the costs for merchants of using it are unclear, so we cannot be 100% sure of its success.

⬆︎⬇︎

Demand for CRE inside the platform

 

Carry Protocol’s platform will have three major means of payment: CRE, BTs and other cryptocurrencies as BTC or ETH. If CRE is not used on the platform, it will not capture the value of the platform and will decrease in price.

⬇︎

Decrease in retail sales in Korea

 

If the Korean economy slows down, citizens’ spending will decrease and loyalty programs will not be that effective, as total revenue will decrease. But this is not likely.

⬆︎⬇︎

Sales of tokens by private sale investors

 

As 74.4% of tokens available on TGE will be sold on private rounds with a significant bonus of 30%, these investors may sell CRE after it is listed on exchanges, thus dragging the price down.

⬇︎

Sales of tokens by the team, crowd-sale, etc.

 

Lockup after token generation will last for 30 days. The team’s, advisors’ and partners’ tokens will be locked up for two years, therefore they will not be able to sell in the sort-run. Though crowd-sale is possible, if the project fails to meet its goals.

⬇︎

Volatility of cryptomarket

 

Carry consider CRE also as a payment method, just like BTC or ETH. In this case correlation between CRE and cryptomarket increases and CRE become more exposed to market risks.

⬆︎⬇︎

Inflation in upcoming periods

 

Carry Protocol states that there will be an inflation of CRE in the future to meet demand. Therefore, if CRE quantity increases faster than the price, CRE value will decrease and vice versa.

⬆︎⬇︎

Investment risk analysis

RISK

DESCRIPTION

LEVEL

Lack of MVP

 

The team plans to launch its MVP in Q4 2018. Currently it is unclear if the team will be able to develop all the planned features.

High

Development risk

The team has just started developing the platform. The smart contract appeared on GitHub at the beginning of June. Currently, the team is ahead of schedule, but there is no guarantee that it will be able to keep pace in the future. Also, the team has still not decided on the base blockchain protocol. There is a risk that it will have to develop its own blockchain, which will increase capital expenditure.

 

Medium

 

Incomprehensive whitepaper

We believe that the whitepaper has the following issues:

  • Absence of competitor analysis.

  • Previews of marketing activity and plans for product promotion are not covered in the whitepaper and it is thus impossible to analyze or draw relevant conclusions regarding potential market exposure without them.

  • The roadmap is purely technical.

  • It lacks the key metrics needed to evaluate the project’s prospects.


 

 

Medium

 

Decrease in token price

There are no fundamental factors indicating that the token price will face significant pressure, and the bonuses are relatively low. However, the ICO and pre-sale have not taken place yet, therefore uncertainty about CRE’s performance remains.

 

Medium

 

Target market is narrow

The project defines Korea as a target market, as it has access to the infrastructure there and has experience in this market. Though this is useful for the initial stages, it makes geographical expansion more difficult, as the project is not planned to be global in the first place.

 

Medium

 

Legal/commercial risks

Data reliability and information security are extremely significant issues in all countries and industries, and all stakeholders around the world might be interested in the internal details. However, blockchain is a solution designed for reliability and security. At the date of the analysis, the team had not disclosed how data will be protected, apart from making general statements.

 

Medium

 

Increased competition

Carry Protocol has strong rivals, such as Nucleus.Vision and Momentum Token. Neither operate in Korea as yet, but Carry Protocol will have to compete with them in the global arena if it intends geographical expansion. In addition, there are no evident barriers preventing those companies from entering the Korean market. Neveretheless, Carry Protocol has a great team and partners, therefore a significant reduction in market share in this scenario is unlikely.

 

Medium/Low

 

Incomprehensive roadmap

The roadmap only covers the technical aspects of the project, and does not specify the business development process in much detail or the team’s plans regarding market coverage/number of platform users, etc.

 

Low

 

Team composition and expertise

The project has a strong and experienced team, therefore the chances that everything planned will be carried out are high.

Low

 

 

 

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.