DomRaider Rating Review

Positive

Investment Rating

Expire date: 09.01.2018


We assign DomRaider a "Positive" rating and recommend the purchase of DRT tokens to long-term investors who are aware of the risks and features of this project that we have identified.

The undisputed advantage of DomRaider is that it is officially a business in France since 2013 with a well-formed team, well-established business processes, has previously attracted investments from institutional investors and has had audited reporting from KPMG.

The project team consists of more than 30 people and has carefully approached the preparation of the ICO, has provided an exhaustive white paper and other materials, and has thoroughly worked out legal issues and warnings about risks. The "drop catching" segment of the market in which the project operates, in recent years has grown significantly in absolute terms, which is also favorable for the project as a whole.

Currently, most blockchain technologies are experiencing serious difficulties with their practical application. DomRaider already has an established structure, sufficient funding and a proven business model, which has already demonstrated its viability. Auctions for the reservation and subsequent sale of released domain names conducted by DomRaider will be the first to be integrated into the new platform, which will immediately support DRT tokens.

In turn, DRT tokens are infrastructural, and the growth of token attractiveness will be closely related to the following factors:

  • Increase in the number of organizers publishing new sales at the auction;
  •  Increase in the number of sales made by organizers;
  •  Increase in the number of potential buyers tracking and participating in proposed trades;
  •  Increase in the number of intermediaries promoting the proposed bidding and providing access tools;
  •  Increase in the number of additional service providers expanding the network functionality for organizers and buyers.

Thus, we can talk about the strong growth potential of DRT tokens in the long term after a full launch of the platform. Any significant additional risks or classical risks inherent in a typical ICO-based project were not found. There are significantly fewer risks than average in the ICO market.

 

DomRaider is a French company (founded in 2013), which is responsible for the reservation and subsequent sale of exempt domain names that have expired. This process is called "drop catching". The purpose of the project is to create a decentralized network of auctions in real time using the advantages of blockchain technology.

After launching the auction platform, DomRaider will integrate its current business for selling domain names into it. Among the company's clients are large organizations such as Warner Music Group, the French National Education Ministry, Axa, the French National Olympics and Sports Committee, and the French weather forecast organization, Météo France.

Website

Whitepaper

Slack

Twitter (4253)

Telegram (208)

Facebook (2221)

Bitcointalk (read 4611 times)

GitHub 

Reddit: No

Medium (498)

YouTube  (464)

ICO start: 12/09/2017 at 0800 UTC/GMT

ICO duration: 11/10/2017 at 8h00 UTC/GMT

Token: DRT (ERC20)

Target cap on crowdsale: €35M

ICO price: 0.10€

Bonuses:

Accepted currencies: DRT may be bought using fiduciary currency via paypal, SEPA transfer, SWIFT transfer or bank card + Ether or Bitcoin.

Tokens available: 35% of tokens or 350 000 000 DRT + 210 000 000 DRT

Total emission: 1.3 billion; unsold tokens will be purchased by DomRaider’s two principal shareholders, Inovaa and Eefficiency

Distribution: 35% will be sold during the ICO, 50% will go to a reserve fund, 15% to the advisors, community and team.

Token Issue Date: DRT will be tradeable on exchanges. DomRaider are currently in discussion with Bittrex, Coinone and Huobi

 

DomRaider is a French company dedicated to the reservation and subsequent sale of exempt domain names that have expired. The team is conducting an ICO to fund the creation of an open, decentralized platform for managing worldwide real-time online auctions, based on blockchain technology. After the launch, it is planned to integrate this with the current business of selling domain names. The team is aiming to attract third-party users who can sell products, organize auctions or offer services within the platform ecosystem. DomRaider is introducing a DRT token to pay for goods, services and commissions.

The bidding process will be based on BigChainDB technology. To control transaction costs, BigchainDB will be placed on its own servers of DomRider. Each bid, advance or winning bid will be a transaction on BigchainDB. The possibility of increasing the volume of transactions on BigchainDB allows you to manage many trades in real time.

The project documentation details the process of bidding through auction. The auction organizer creates a BigchainDB asset which initiates the start of trading and the participants deposit a security in DRT, bitcoin or ethereum. By default, this must cover at least 10% of the purchase amount. Each bidder will have the right to adjust this percentage.

The deposit can be made in two ways: freezing the DRT token, inserting Bitcoin or Ethereum to a DomRaider robot that generates the bail address and freezes DRT tokens in the user's account.

During the auction, users place bids and bets through the BigchainDB transaction. Each new rate is matched against the amount of collateral pledged for the adequacy of collateral, then the winner is announced. To complete the operation, the winner must pay the balance. Other participants in the auction will be able to pick up their DRT token or leave it as a security deposit for participation in other trades.

So, the system of bidding through an auction developed by DomRaider, will enable users:

  • to earn DRT;
  • to use DRT.

You can earn tokens as a vendor, selling goods through auction or as auction organizer, by appointing a commission from the winning price offer. In addition,  developers of mobile applications will be able to receive a commission in DRT from sales, in which winning participants come through via the app in question.

You can spend tokens as collateral and winning (paying) trades.

In this way, users worldwide will be able to connect to the system and sell products, organize auctions or offer services directly related to auctions. The service can be accessed using either a computer or a mobile application.

Upon using up its reserve of DTR tokens, DomRaider will launch a continuous DRT buyout program to continue operations.

 

Finding reliable statistics on the global auction market is problematic. To understand the approximate scale of the auction market, we decided to look at one of its most popular segments - the art market.

In a published report on the world auction market for art for 2016, prepared by Artprice together with the Chinese Artron Art Group, the following trends were noted:

  • Sales for the global art auction market (including China) in 2016 amounted to $12.45 billion, which is 23% less than in 2015.
  • Sales volume of the Chinese auction market rose to $4.79 billion. This is 38% of the world market – number one turnover in the world. America is in 2nd place (28% of the market), and the UK is in third place (17% of the world market.)
  • In the Chinese market, 91,400 lots were sold and 398,000 lots were sold in the western auction market in 2016.
  • The world leader in terms of sales in 2016 remained the auction house Christie's: $3.05 billion turnover and 14 thousand lots sold. Sotheby's is in second place: $2.88 billion. Next are Chinese Poly International ($989 million), China Guardian ($609 million) and Beijing Council ($552 million).
  • Analysts note the rapid growth of the importance of the internet as a channel for auction sales. In 2016, already 97% of the world existing 6,300 auctions operated on the internet, while in 2005 only 3% of auction houses did so.

Since DomRaider has a "drop catching" specialization and the project integrates with an auction platform, it is much more important to understand the size and trends in the secondary domain name market. In the white paper, actual statistics from reliable sources are given; we will outline the main points.

According to VeriSign (capitalization of $10.33 billion, traded on NASDAQ (VRSN), the world leader in domain names and internet security), total number of domain names was approximately 330 million in all top-level domains (TLDs) as of December 31, 2016. The growth of the market is about 6-7% in annual terms; in 2016, the growth of domain names amounted to more than 20 million. As of December 31, 2016, the .com domain name database was almost 127 million, which is the most popular segment of the market.

The largest corporation in the world managing domain names is ICANN (The Internet Corporation for Assigned Names and Numbers); this nonprofit regulatory organization has delegated their management to different registries worldwide.

Delegated registrators manage almost the entire market, which consists of approximately 2500 extensions for the identification of domain names, including:

  •  300 common extensions (.com, .net, .org, ....)
  •  260 extensions indicating the name of the country (.cn, .de, .co.uk, .fr, ....)
  •  More than 1,930 new extensions (.club, .xyz, .global, ....)

The most popular segment of the market is .com domain names, and they are the subject of the most expensive transactions. The .net domain is also gaining popularity. In the .com domain and .net TLD a total of about 144.3 million domain name registrations took place in the second quarter of 2017. This means an increase of 0.8% year to year. As of June 30, 2017, the .com domain name database had 129.2 million domain name registrations, and 15.1 million domain names were registered in the .net domain database.

Registration of new .com and .net domain names amounted to 9.2 million in the second quarter of 2017. In the second quarter of 2016, the registration of new .com and .net domain names amounted to 8.6 million.

In recent years, there has been considerable interest in ccTLD (country code Top-Level Domain) domains. These are the domains of geographical expansion:

As of June 30, 2017, 302 global extensions of ccTLD, including internationalized domain names (IDNs) were delegated, with the top 10 ccTLDs accounting for 64.8% of all ccTLD domain name registrations.

More and more new ngTLD domains appear. As of June 30, 2017, ngTLD domains accounted for 24.3 million domain name registrations, representing 7.3% of the total domain name registration. The top 10 ngTLDs accounting for 61.5% of all ngTLD domain name registrations are given below.

Domain names have become a real asset in the field of digital technologies; 120 transactions worth more than $ 100,000 were made in 2016. Such a situation helped attract new large investors to the market. In recent years there has been a significant increase in interest in domain names in the Asian market: in 2016, for example, about 50% of the largest transactions were made by investors from China.

 

In view of the fact that the main strategic goal of the project is the creation of an exclusive blockchain infrastructure for conducting online auctions worldwide, DomRaider will compete in the classic online auction market.

Almost all platforms for online auctions can be included in this group of competitors, which are currently based on centralized systems, relying on their own and closed software architectures.

Using of transparent electronic voting systems based on blockchain technology and taking into account the decisions made, gives a number of undeniable advantages over competitors. In such a system, there is no intermediary or general regulator, which makes it almost impossible to deceive and bribe: it is simply impossible to forge a choice of participants in the chain.

An important competitive advantage of the project is a strong team and an existing working business, which has already conducted more than 20,000 online transactions.

 

The DomRaider team is multinational. It has more than 30 people, and citizens of seven states are represented in it. The company already operates in three countries. Judging by the information published on open sources, all members of the team are specialists with a high level of competence and rich experience in their areas of activity.

DomRaider has a solid client base including such prestigious companies as Warner Music Group, the French National Education Ministry, Axa, the French National Olympic and Sports Committee, the French weather Forecast organization - Météo France.

Founder and CEO of DomRaider - Tristan COLOMBET. There is a lot of information about Tristan on open sources related to his successful activity in the IT industry. He established his first company, Prizee.com, at the age of 18. After several years this platform, offering all kinds of games and contests to the general public, took the leading position in the French market. In 2012, the total number of "Prizee" platform players exceeded 35 million people, after which Tristan decided to merge the platform with the international group "Digital Virgo" in order to bring the website to the international arena.

In 2013, he founded DomRaider which in less than 2 years became the leading "drop catcher" in France. In 2016, the company grew exponentially with its headcount increasing from 5 to 28 employees. In 2017, DomRaider has accredited in more than 20 countries and has opened its first 3 international branches. According to Tristan: "The ICO of DomRaider unites 2 key success factors: Innovations from blockchain experts and the maturity of an already experienced team."

The project team and its numerous advisors are one of the strongest aspects of the project and its undisputed competitive advantage. In 2017 DomRaider received "Happy at Work" title among start-ups offering the most favorable working conditions.

 

By December 2017, the project team intends to have launched an open platform for real-time management of any online auction worldwide based on blockchain, and to transfer DomRaider auctions to a blockchain network by February 2018.

The platform will acquire additional functionality and services for both auction buyers and auction participants. The scheme is given below:

All plans for development are realistic, and explanations are detailed as well. Obviously, the first stage will involve the integration of the platform with the current business. In 2018 it is planned to fully integrate the platform with the existing DomRaider business.

Furthermore, the team has set a goal to attract third-party users who will be able to sell products from different areas, organize auctions or offer services within the ecosystem of the platform by the end of 2018. DomRaider emphasizes that professional market participants will be able to gradually move over to implementing DomRaider’s proposed solution without making drastic changes to the mechanism of their work.

 

The prospective ICO is well covered in the media. There is a lot of information about the project on open sources, a huge amount of video material and a lot of information on specialist resources used by the blockchain community:

  • Twitter: (4253)
  • Telegram: (208)
  • Facebook: (2221)
  • Medium: (498)
  • YouTube: (464)

Interest in the project is also confirmed by the achievement of target cap on crowdsale of €35 million within 3 days.

However, information regarding the marketing strategy for promoting the product itself is not disclosed in detail, and the budget for these activities is unknown. We do know that 50% of tokens will be held in reserve for the following purposes:

  • Promotion of the project for increased recognition and use of the network
  • Bonuses and bounty (premiums) for the community;
  • Purchase and exchange of advertising support and media.
  • Introduction of incentives for increased use;
  • Bug bounty (bonus for detecting bugs);
  • Funding for open source participants;
  • Partnership with organizers of auctions;
  • Partnership with additional service providers.
  • Additional sales to finance new project branches or new acquisitions for the development of the DomRaider network.

Thus the project's reserve fund becomes a kind of marketing foundation and can be used at the discretion of the team for various purposes. With an increase in DTR token price, the cost of the reserve will also increase, which in theory will increases marketing possibilities for the project.

An important point is the presence of the large and experienced project team, which was able to develop its business over the past 3 years with a much smaller budget than already collected in the first stage of the ICO.

 

DomRaider is a joint-stock company of a simplified type, registered in France since 2013; the auditor of its annual financial statements is KPMG.

DomRaider already has an established structure, sufficient funding and a proven business model and thus has already proved its viability. Due to the support of the investment funds Inovaa and Eefficiency, the public bank BPI France, private banks Crédit Agricole, Banque Populaire and CIC, DomRaider previously attracted finance of €3.5 million.

The white paper presents a detailed financial model for the period up until 2021.  A summary diagram of profit and loss analysis is given below:

The diagram shows that the trade turnover is growing and is increasing 2.5 times by 2021, and results for the financial year are increased by almost 7 times.

It is important to note that the developers worked out this financing plan in detail and, combining the final data in the overall chart, it is evident that DomRaider will have almost fully self-financing ability by 2020, taking profit and loss into account.

In general, there are no critical remarks on the financial model. It has been elaborated in great detail, and the results of project activity are audited by KPMG. Based on the data above, we assess the prerequisites for successful economic development at a high level. The project team strives for the widest possible recognition of the DomRaider network throughout the world. The profits from the sale of the tokens allow DomRaider to fund:

  • Growth of DomRaider’s business
  • Development of the blockchain dedicated to auctions
  • Acquisition of stakes in strategic targets in order to develop the use of the network and its functionalities

 

The main risk of the DomRaider project is the lack of a working platform for holding auctions. Implementation should take place by December 2017, and the integration of the DomRaider business with the existing service will occur during 2018.

Since the platform is under development, it could undergo significant changes before launch. According to the developers, all expectations regarding the form and functionality of DRT or DomRaider network from the buyer’s point of view may not be fulfilled at launch for several reasons, including design changes and the realization and implementation of other plans for the DomRaider network. Also, there is a risk that the launch time may shift and the platform will start to gain users only later.

Regarding legal risk, the adoption of restrictive laws, the issuance of prohibitions by national regulators, regulatory actions including restrictions on the use or possession of tokens -  all these would potentially affect the operation of the DomRaider network and DRT. Each buyer is strongly encouraged to conduct a legal and tax analysis related to the acquisition and ownership of DRT in accordance with his citizenship and place of residence.

It should be noted that the general risks associated with the crypto industry which the project may face, as well as typical threats related to information technologies used in the implementation of the project, are carefully worked out by the project team and are described in the white paper.

 

DRT Tokens do not give their owners ownership rights, nor the right to vote, nor the right to dividends. It means that tokenholders do not participate in making any decision or in voting, have no right to profit and no economic or other interest in the DomRaider company.

The DRT Token is infrastructure-based and is a payment unit within the DomRaider network. DRT can only be used for participation and access to trades organized on the basis of DomRaider technology, and cannot be used before blockchain-auction technology is developed by DomRaider and the platform is functioning. Accordingly, there will be no infrastructure demand for DRT tokens until the full-fledged launch of the working version of the platform (this point is worth paying special attention to). However, they can be freely used from the moment of their receipt.

Note that DomRaider has successfully ended its main ICO, which should have a positive effect on the attractiveness of the token. But immediately after the completion of the ICO, an additional issue of tokens (as previously declared in the white paper) to the amount of 300 million DRT started. In our opinion, it would be correct to allow unsatisfied demand pass to the secondary market and to abandon the additional issue.

Under the terms of the additional issue, 90 million DRT (30%) of the 300 million will be distributed free of charge to all owners of DomRaider tokens, in proportion to the number of tokens they purchased during the main ICO. Thus, there will be 210 million DTR available to buy at the same price during the additional ICO (under French law, you cannot issue additional tokens at a different price) at €0.10.

On the one hand, early investors will receive an extra 30% of tokens and should welcome additional emissions; on the other hand, new buyers find themselves in a less advantageous situation, despite the same purchase price as early investors. Thus, the purchase of DRT tokens for participants in the additional issue appears less attractive, but offers the chance to enter the project to those who did not have time on the basic ICO.

From our point of view, the growth of the total number of tokens from 1 billion to 1.3 billion DTR delays the point when fundamental demand begins to exceed the total number of available tokens. Conversely it offers more resources to DomRaider to achieve long-term project goals, which is undoubtedly more important. The growth in  attractiveness of the token is closely related to the following factors:

  • Growth of the number of organizers publishing new sales at the auction;
  • Increase in the number of sales launched by organizers;
  • Increase in the number of potential buyers tracking and participating in proposed trades;
  • Increase in the number of intermediaries promoting the proposed bidding and providing access tools;
  • Increase in the number of additional service providers expanding the network functionality for organizers and buyers.

Thus as the platform is increasingly recognized among auction participants and experts in the field of organizing auctions, the value of the token will increase. Summarizing the above, the main point is the potential value of the token after a full-fledged launch of the platform. We can recommend the purchase of DTR tokens in the additional emission for long-term portfolios, for customers who accept the risks we have identified.

 

 

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.