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dock.io Rating Review

Stable+

Investment Rating

Expiry date : Expired 21 May 2018

Ratings

We assign the Dock.io project a Stable+ rating.

Dock.io is a blockchain project operating in one of the most frenetic and fastest growing areas of the crypto industry - that of internet data. Dock.io is a decentralized platform for the exchanging of recruitment data, data regarding user activity on social media and social applications based on the Ethereum blockchain protocol.

The project is managed by an experienced and competent team with a reputable background. The team's background will serve as the foundation for implementing dock.io, including the integration of the remote.com user database into the new project (consisting of 2.5 million people). This will facilitate the project’s entry into a highly competitive market.

DOCK tokens are utility tokens, implementation of which is justified by genuine needs within the ecosystem. The team has carefully worked out the economy of the token, excluding any speculative elements. At the same time, DOCK tokens will be interesting to long-term investors due to their built-in combustion mechanism.

The risks for the project lie in the technological and competitive areas. We also point out that the team has not provided any information regarding the project’s economy or a plan for the allocation of funds raised. This prevents us from assessing the viability of the concept from the economy angle.

General information about the Project and ICO

Dock.io is a blockchain project in one of the fastest growing areas of the crypto industry - that of internet data.

Dock.io is a decentralized data exchange protocol aiming to transform the professional industry. On the one hand, dock.io provides encryption of information, protects data during storage and transfer and limits the possibility of its leakage; on the other hand, it enables recruiting companies, applications and users to exchange data quickly and is also responsible for its completeness.

Dock.io is aimed at a professional audience in the recruiting market, professional advertising and marketing applications at various levels from large corporations to the blogger community. Dock.io provides solutions for data collection when interacting with existing professional networks not having incentives to or not wishing to distribute their statistics.

Data collected by dock.io, such as work experience, education, location, contacts, qualifications, activity, statistics, work results, certificates, portfolio, etc., will be integrated and transferred to user profiles. When accessing the profiles, different platforms will be able to share data with other platforms via the dock.io protocol subject to the approval of the particular user.

Dock.io will enable a user to synchronize  employment records, evidence and confirmation in one protocol. In this case, users will be able to moderate in updating and moving data between different platforms.

Platforms and applications, whilst gaining paid access to protocol data, will at the same time be data providers. Blockchain will allow the provision of encrypted data storage and control over its transfer. Ethereum also provides the basis for ensuring voluntary exchange of data between various parties.

Thus, dock.io is aimed at creating a professional competitor to recruitment industry giants such as LinkedIn, Upwork and Glassdoor.

As a blockchain project, dock.io is staging its ICO not only to attract funding (although this is the main goal), but also to ensure transactions within the developed protocol. The dock.io token carries utility functions which include access to the protocol, the calculation of rewards, and an opportunity to participate in the management of the project’s strategic development.

The legal structure of the project’s shell company, its name, organizational and legal form and country of registration are not disclosed at this stage of the project.

Website

Whitepaper

Token: DOCK

Token emission: 1.0b

Token distribution: founders – 20% (2 year freeze), ecosystem Incentivization - 30%, for sale – 30%, cold storage – 10% (2 year freeze), for pre-investors – 6% (3% - 4 month freeze), advisors – 4% (2 year freeze).

All unsold tokens will be burned. The project also includes a built-in mechanism for burning tokens suspected of any operations that discredit the platform.

Round 1: Private pre-sale (closed)

Price: $0.07

Bonus: 40%

Raised: $12 million (according to information provided by the team)

Investors: 9 professional funds:  Digital Asset Fund (DAF), Passport Capital, DCH, 1xk, Connect Capital[KV1]

 

Round 2: Public sale

Start: 21/02/18

End: 12/03/18

Soft Cap: $12m

Hard Cap: $20m

Price: $0.08

Bonuses: -

Minimum Buying Transaction: -.01

Maximum Buying Transaction: - TBD

Accepted currencies: ETH

Token Issue Date: after ICO ends

Additional information:

  • The system of emission and circulation of tokens will have a mechanism for converting the price of the token into fiat money on top exchanges quotes using data from Basecoin, Dai etc.

  • System of emission, circulation of tokens will have a mechanism for converting the price of the token into fiat money on top exchanges quotes [KV2] using data of Basecoin, Dai etc.

  • Registration for participation in the ICO will be implemented from 08/02/18.

  • KYC verification is required for registration.

  • Restriction on participation: China.

  • Bounty Campaign: $150.000

Description of the services and scope of the project

Dock.io is a decentralized data exchange protocol that enables people to connect their reputation, experience and profiles online with the help of blockchain and data technologies. The prerequisites for creating dock.io include:

  • Information exchange among professional platforms and social media.

  • Limited access to exchange with the professional community.

  • Lack of a proper level of standardization, protection and encryption of data.

In this section, we consider the services offered by the project. Dock.io is aimed at eliminating the shortcomings of key IT solutions in the field of recruiting. The protocol will allow users to collect and monitor recruiting information while motivating applications and platforms to engage in data transfer transactions. Thus, there are two parties in the relations under consideration - users and applications (platforms, sites and networks).

Services for users

Dock.io provides an application for storing and collecting data by engaging new applications in the common application environment. Users have access to a profile that is automatically updated with statistics and rating data. Users check, moderate and verify this content. Dock.io has prepared and submitted an alpha version of its user application available at https://app.dock.io.

Service for applications

Applications act as consumers as well as data providers. They accumulate information about users and create statistics. This information is collected and submitted to a user's account, in which it can be moderated, and then it passes into the blockchain. Examples of information include CV updates, platform reviews and ratings, freelance transactional data, Git commits, application specific data, etc. Applications can also be data consumers; DOCK tokens are needed to access blockchain when making a request. Trust between users and applications, and the ensuring of the permissive nature of data usage, is based on blockchain transactions.

The structure, algorithm and mechanism for transferring, storing and providing data has been elaborated in great depth.

The data transmission model is based on the use of IPLD2 technology developed for the IPFS protocol (InterPlanetary File System – a content-addressable, peer-to-peer hypermedia communication protocol). An example of data processing is shown in the graph below:

Another technology used for the project is ChainPoint, an open source platform used for its network of professional contacts.

Dock.io will also develop the following services:

  • Standardization of data, limitation of public information, verification of profiles, data vouching by external participants, application of smart contracts.

  • The developers have proposed several additional services to ensure greater viability and applicability in practice; thus dock.io can act as data-broker between applications, offer data storage, collaborative work on documentation, and a social network for applications.

The project is highly developed; it is fully based on the use of the Ethereum blockchain and relevant to the ICO method of attracting funds.

Market review

Market analysis

The dock.io project aims to operate in the recruiting services market; this goal is stated in the white paper. We note that the project team has had successful experience of implementing the remote.com project in this market.

The key aim of truly effective recruiting is the involvement of motivated employees who are able to achieve high productivity and ensure stable growth of human capital. On the one hand, specialized systems and software products for recruitment can reduce the time and costs associated with hiring employees; on the other hand, they can ensure successful promotion of the resume or working hours for the outsourcer. Almost any problem - from repairing a tap to selecting a top manager for a large company - can be solved by online recruiting platforms.

According to payoneer.com, the role of social media in job searches has grown significantly. If only 8% of job seekers were looking for work via online professional networks in 2015, this figure grew to 38% in 2017. Previously, LinkedIn was used for this purpose; now more and more users are choosing Facebook for professional promotion. For example, 54% of applicants use Facebook to advertise their services. LinkedIn takes second place; this platform for professional communication is used by 40% of applicants.

Source: payoneer.com

Social media are not only communication platforms but also provide additional information about applicants and enable identifying users who are in “passive search” of a job. Nevertheless, their share of the recruiting market cannot be determined. There are only general numbers available. Thus, according to Boston Consulting Group the volume of the "digital economy" created by social media in 2017 has amounted to $4.2 trillion worldwide.

At the same time, the market for freelance services or crowdsourcing is the most easily monetized segment of the recruiting market online. By 2017, freelance exchanges have grown into international client bases where 73% of freelancers may find work. The crowdsourcing market is open and transparent. The largest crowdsourcing platforms are as follows: Upwork (Odesk + Elance), Freelancer, TopTal, Guru and 99design. Together they generate revenues of up to $2 billion per year.

An analysis of the largest crowdsourcing sites is presented in the table below:

 

Exchange

Commission

Number of freelancers (x1m)

Number of projects per year (x1000)

Estimated turnover (xUS$1m)

Upwork (Odesk + Elance)

5%-20%

15

10000

Up to 1000

TopTal

500 USD

1

100

Up 100

Freelancer

3%-10%

20

8000

Up 800

Guru

12%

1.5

2400

N/A

99designs

from 300 USD

1

1000

N/A

Total:

 

 

 

More than 2000

Source: payoneer.com; processing and collection of information: ICOrating.com

In addition, highly specialized websites are also a popular way to find work for job seekers. For example, there are exchanges for translators (Proz.com); programmers (Devhuman.com, Modber.ru, Freelansim.ru); copywriters; HR-specialists; designers and illustrators; photographers; artists, musicians; engineers; specialists with technical education (Chert-master.com); bloggers, and lawyers. Freelancers are not limited to one channel when searching for work; they typically use two or three exchanges. They also actively use connections and social media recommendations.

At the same time, despite a large number of built-in rating mechanisms and services, the main problem for buyers and  sellers of freelance services is dumping. The saddest consequence of dumping is that it affects society's view of freelancing. No average freelancer can work properly or improve his professional level for low fees. This significantly reduces the quality of services available on freelance exchanges and promotes  employers' consideration of freelancing as a low-quality employee environment. An increase in the number of relevant statistics, as well as decentralization of the process of selling freelancing services, can solve this problem.

Another important aspect that we wanted to highlight in this section is the emergence of recruiting applications related to recruiting platforms and social media. For example, open source conditions on LinkedIn enabled the typical figure of 30,000 active job searches.

As a result, the monetary evaluation of the most plausible market segment for the dock.io technology currently can reach up to US$ 2bln. At the same time, this market segment is extremely competitive.

Competitive analysis

The dock.io protocol serves a two-sided market - a market for applications and a market for users. If the protocol cannot quickly attract users from both sides, the impact of the network will be reduced. Dock.io was able to overcome this drawback as remote.com (an already-functioning service for freelancers) will form the basis of dock.io.

Given that dock.io will not directly compete with crowdsourcing exchanges (we will only discuss indirect price competition), we will compare dock.io with existing or planned blockchain and non-blockchain projects for recruiting platforms based on synergy with social media and recruiting applications.

Thus, the AmazingHiring search engine helps headhunters find IT professionals who are not actively searching for work. The service aggregates data from more than 80 sources, including Facebook, LinkedIn, GitHub, Stack Overflow and Habrahabr. As a result of scoring, HR receives a sample of the most relevant candidates, who can then be invited to interview.

The GoRecruit service enables evaluating and screening candidates based on social media data, and also seeks information on availability of executive production. The algorithm analyzes applicants’ professional and personal qualities. As a result recruiters save time significantly, interviewing one candidate instead of five.

The Lever application and its website appeared in 2012. The company offers to cirvumvent manual data entry. Just a few clicks and information from documentation and social media will appear in a profile. The company can create a branded page and post real-time vacancies. The system is integrated with social media, so one can discover vacancies there. It is easy to assign interviews and evaluate a candidate on a proprietary scale with the platform’s assistance.

Smartrecruiters: This platform enables linking a LinkedIn profile with its system and the use of ready-made templates to describe vacancies and send them to open sources. Recruiters can submit scores and rank applications received from candidates. The system enables the creation of template letters of invitation for interviews or refusals, and candidates can do the same.

Cornerstone (a cloud platform) concentrates on the recruitment of top management; it unites 191 countries, has 20.5 million subscribers and speaks 42 languages. Cornerstone offers a universal solution for publishing vacancies and responding to them. The profile can be linked to social media and other websites. The system ranks candidates according to their experience, recommendations and level of education.

Greenhouse - this platform automates the entire recruiting process. The system enables cooperation with recruiting agencies and has access to their databases and social media, where automatic posting of vacancies can be implemented. In addition, Greenhouse is preparing social media analytics, so you can find out which network the most suitable candidates came from.

Careerify offers an IT solution for finding candidates through social media.

The platform helps companies to build a strategy to involve their own employees in the search for new recruits, encouraging social media activity.

Aworker – a new generation blockchain platform based on artificial intelligence.

Dreamteam – a blockchain platform for recruiting and managing cybersport teams.

R_Block – a platform that enables creating an ecosystem for resumés, where proven skills and experience are stored on the blockchain.

In summary, we note that the dock.io service is unique compared to recruiting platform services. In fact, it complements these services rather than replaces them. Dock.io’s complimentary property, from our point of view, could cost 1-2% (actually an additional commission) from the existing market, or $20-40 million.

Nevertheless, at this stage of development and the initial stage of the project’s implementation, dock.io will compete with the huge number of existing and developing recruiting platforms, which will make it very challenging to achieve their intended goals.

Team and stakeholders

The project team has relevant experience in the crypto market. Most of this came from the successful project remote.com (End-to-end solutions for hiring managers and employees; a network connecting over 2 million professionals to remote and freelance jobs). Remote.com is actually the parent project.

Nick Macario, Co-founder and CEO - more than 10 years of experience in internet marketing and applications, with his recent experience as leader of Remote.com.

Elena Kadouri, Co-founder and COO - more than 8 years of experience in research and marketing with her most recent experience as a co-founder of Outsource.com.

Stanley Duka, CTO - more than 4 years of experience in software development with most recent experience as technical director of Remote.com.

Eugene Zabolotniy, Leading Backend engineer - more than 10 years of experience in system administration and program architecture.

Todd Scheuring, Head of Design department - more than 15 years of experience in web design.

Sergey Ermakovich, Leader of Frontend development - more than 10 years of experience in website and interface development.

Jeffrey Grarrison, Director of Cooperation – an expert in sales and recruitment.

Gabriel Monkarz, Data technology researcher - 10 years of experience at Data Mining, Big Data.

Fausto Wolfin, Chief engineer - developer of python-based microservices.

Peter Sviev, Blockchain engineer - more than 10 years of experience in software development, introduction of distributed systems with microservice architecture.

Samuel Hallwell, Senior developer, engineer-developer of applications, games, and websites.

Makik Bodek, Frontend developer - more than 10 years of creating web-products and interface.

Having analyzed the team, we observed that it mostly consists o technical experts, which indirectly confirms the deep engineering study involved in the project. There are no marketers, lawyers or financiers among team members. On the one hand, the transfer of these functions to outsourcing will reduce costs of operation; on the other hand it can significantly weaken the viability of the project.

Dock.io has partnered with large projects such as Remote.com, FundRequest (a decentralized marketplace for secure open source collaboration) and SmartRecruiters (a leading recruiting application with over 12 million users).

As we mentioned in paragraph 2, there are 5 IT market investment funds among the project’s investors - Digital Asset Fund (DAF), Passport Capital, DCH, 1xk and Connect Capital.

Thus the team strives to replicate the success of remote.com, operating in the same market but creating a product for a narrower professional audience.

Token analysis

The Dock.io token has utility functions - access to the protocol, calculation of rewards, and an opportunity to participate in managing the project’s strategic development.

The token’s infrastructure is well-designed; it is included in the common transaction infrastructure of dock.io:

  • Firstly token holders can create new propositions and vote for the future development of the protocol. The voting mechanism involved is not described in detail in the documentation.

  • Secondly, project tokens provide a mechanism for indirect remuneration of applications.

  • Thirdly, tokens constitute direct payment for data access.

Any attempt to use tokens to exchange data which could discredit the platform will lead to the burning of the tokens involved. This technology is called spam defense and is an anti-DDoS mechanism for the smart contract.

The team has worked on the economy of the utility token to a high level. In the white paper, the team rightly points out that if users could directly sell information about themselves for tokens, this would lead to the creation of a huge number of fake accounts and false information. In order to avoid this, it is aimed to completely exclude users from the token exchange process.

Tokens will be used by applications to pay for access to user data, available to other applications. In the event that an application buys information from a user directly, not from another application, 100% of the fee will be burned.

The value of the dock.io platform for users will not be due to the possibility of generating additional revenue in DOCK tokens, but in obtaining guaranteed control over personal information. Undoubtedly this decision reduces the speculative aspect of the token and increases its value as an infrastructural payment tool.

Analysis of factors affecting the future value of the token

Demand for DOCK tokens will be stimulated by the fact that the team has already launched the dock.io app in January 2018, i.e. before the beginning of the crowdsale. In order to determine how the demand for the utility-functionality of the DOCK token will grow, let us discuss what in our opinion the key points from the project roadmap are:

In January, a reward program was launched which is designed to encourage users to attract others to the platform. Any interested person can send referral links to their contacts at registration. He will receive DOCK tokens to the equivalent of $3 for each new registration by link.

The main factor that will contribute to activating the dock.io platform will be the integration of remote.com as a partner. Users will be able to update information on remote.com and automatically sync those updates with dock.io. The number of remote.com users is estimated at 2.5 million people.

A network data exchange will be launched in Q4 2018. This will open up the ecosystem to developers as well as process data saved through the protocol. Applications will be able to exchange data via DOCK tokens with encrypted packages over the IPFS network.

The team promises to work actively to conclude additional partnership agreements in the period between the crowdsale and the launch of the network data exchange, although partners for this process are not yet named.

Given the size of the market and the background for the launch (i.e. loyal users of remote.com), we can expect the pace of development for dock.io to be very rapid during 2018-2019. After this the competitiveness of the developed product will be more important.

At the same time, we note that DOCK token is a genuine utility token model - an infrastructural payment tool. Due to the combustion mechanism as the number of users increases, it is reasonable to expect a smooth increase in the token value in the long term.

Investment risk analysis

Dock.io is an advanced project that aims to introduce a pool of modern technologies. We traditionally single out risks of technical implementation for such projects first of all. In this case, the team’s qualifications do not cause any doubts, which minimizes the probability of a negative scenario; the possibility still exists however.

The dock.io project does not disclose any details of its own economy. The documentation does not mention commissions charged by the platform, and the forecasted budget for expenditures is not provided. All this precludes assessing the viability of the platform from the economic point of view.

The project does not disclose their allocation for raised funds either.

In all other respects, the project looks promising; it is a high-quality one and it certainly deserves a high rating

 

 

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.

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.