We assign the Eloplay project a "Stable" rating. We believe that ELT tokens may be interesting for long-term investors.
The project implements a simple and understandable idea in a promising and growing market.
Among the pros for the project, we highlight the presence of an operating platform (more than 90,000 users over the last 1.5 years), as well as a developed smart contract, which was audited by Ambisafe.
The project has a clear economy; part of the tournaments fee will be settled in the form of a commission, and the larger the turnover of the platform, the greater will be its revenue in ELT tokens. However, we draw the attention of investors to the growing competition, including projects that use blockchain technology.
We are not satisfied with the amount of information disclosed regarding the financial plan for a longer period than 12 months. We also think that the marketing strategy is described very superficially, and that the organization of cybersport competitions with an increased prize pool is not enough to popularize the platform in the long term.
The main risk of the project in the long term is the difficulty in popularizing the platform among a wide range of gamers. Therefore, the token is attractive for an investment plan only in the long term, when the project will start to gain popularity, and its tournament prize pools grow substantially and will take place on an ongoing basis at an attractive level for titled players.
Despite measures taken for promotion of the ICO (the project recently concluded a partnership agreement with KICKICO, we see low activity of potential investors on social networks, which also carries a corresponding risk for the ICO.
Eloplay is an e-sports platform with decentralized prize pools, which allows players to organize tournaments and participate in them. It is built on the Ethereum blockchain platform and is designed to facilitate:
- Players and teams competing for prizes and awards;
- Brands and organizations to hold tournaments independently;
- Advertisers interested in reaching out to an e-sports audience.
Eloplay provides an opportunity for non-professional players to participate in a competition with a relatively large prize pool.
Eloplay in turn, provides full administration for its following sections:
- Technical support
- Tournament broadcasting and Streaming (a commentator studio with analysts).
Bitcointalk (read 1148 times)
Smart-contract platform: Blockchain Ethereum
Contract type: ERC-20
ICO start date: October 16, 2017 (12:00 PM London Time, UTC + 0)
ICO completion: November 15, 2017 (12:00 PM London Time, UTC + 0)
Token rate: 1 ETH = 10,0000 ELT
Min goal: US$3,000,000
Max goal: US$12,000,000
Accepted payment: ETH
Number of tokens per person: unlimited.
Max amount of transaction: unlimited.
Min amount of transaction: 0.1 ETH.
Token release takes place at a time when a certain amount of ETH falls into the smart contract for the tokensale. This means that buyers will receive tokens immediately after purchase.
At the time of providing tokens for buyers, an additional number of tokens will also be issued, which fits the following scheme of token distribution:
The number of issued tokens is limited by the maximum goal of the tokensale: US$12,000,000. Upon reaching the goal, the smart contract automatically stops issue. In case the maximum value is not reached, the smart contract will stop issuing new tokens on November 15, 2017. At the beginning of the tokensale, the amount in ETH required to collect a given amount in dollars is calculated. This value will be recorded in the smart contract.
The project functions in Russian and English and supports popular game disciplines - League Of Legends, Hearthstone: Heroes of Warcraft, Dota2 and Counter-Strike: Global Offensive.
Currently, an internal virtual unit - Elocoin - is used for calculations within the platform. Elocoin has a fixed exchange rate (1 Elocoin = US$ 0.01).
The platform has 3 modes of competition:
- Quick fight - a mode for quick selection of a random opponent.
- Dueling - a mode in which a player can call other players to fight.
Quick fights - you can play 3 fights for free for training purposes, or 5 fights for 50 Elocoins, with the possibility of winning 15 Elocoins in case of a victory for each fight.
Duel - for participation it is required to have at least 500 Elocoins on the account, the bet for participation is from 100 to 1000 Elocoins; the winner takes his and his opponent's bet.
Tournaments - there are two types of tournaments:
- For amateurs, where an entrance fee is not required;
- For masters and professionals - tournaments with an entrance fee.
By "Amateurs", "Masters" and "Professionals" are meant the types of subscriptions purchased on the website in exchange for Elocoin and differing in their capabilities:
The withdrawal of funds is available through the Payeer payment system; minimum withdrawal amount is 500 Elocoins, i.e. US$5, provided that on the player's account will remain at least 50 Elocoins.
Also, there is a referral system where a player receives an additional reward for each client involved.
There are several types of tournaments implemented on the platform:
- «Single Elimination» (the Olympic system), in which the loser is eliminated from the competition, and the winner of the pair goes to the next stage and so to the final.
- «Double Elimination» – the winner of the pair goes to the next stage, and the loser gets in a pair with another loser. As a result, two branches are formed, the winners of which meet in the final.
- «Best of N» - the popular scheme of the tournament, held between several teams, the team that scored N wins (usually 3 or 5) wins the tournament. The figure below shows the scheme Best of 3.
Up to 256 players can participate in one tournament, but Eloplay has implemented a scheme that allows combining tournaments and collecting a total of 512, 1024 or more participants in one tournament.
The settings for tournament formats have many variations - for example, a qualifying part of the tournament can take place on the "Double Elimination" system, and the final on the "Best of 3" system. Due to the large number of participants, combined tournaments can be split for several days.
A further development of the platform will be smart tournaments - their introduction will allow players to independently organize tournaments with decentralized prize funds.
Another means of organizing tournaments is sponsorship; this is implemented by brands, companies, e-sports communities, etc. Such tournaments do not require an entrance fee from participants, but the criteria for participation are set by the organizer. The prize fund is also created by the organizer and cannot be less than 100 ELT.
By creating a tournament, the organizer gets an opportunity to place his banner and logo on the tournament page, and the tournament is displayed on the home page for all users.
Tournaments have appointed moderators - people who track the appearance of teams, the launch of fights and other administrative functions that do not affect the results of fights.
ELT token is a cryptographic token with an open source code, developed according to the ERC20 standard. A repository is available on Github:
The audit of the smart contract was conducted by Ambisafe.
The ELT Token will be integrated into the platform within three months of the end of the tokensale, in several stages:
- Implementation of smart tournaments
- Implementation of the bonus fund
- Implementation of the advertising module
Since the platform is already functioning, the integration of "duel" and "quick fight" modes with blockchain will not take place immediately, so these modes will work with Elocoin, and after the integration and full transition to ELT, Elocoin will not be relevant.
During the creation of a Smart-Tournament, a smart contract on the Ethereum network is utilized, with Eloplay paying the commission for the transaction; this commission is then included in the entry fee for players. The next appeal to the smart contract occurs at the end of the tournament.
Technically, Smart-Tournaments on Eloplay are an automated platform that controls the conduct of fights, combined in a tournament; their task is to determine the winners in competitions and prize funds distribution. In this case, the human factor is eliminated in determining winners. When creating a tournament and recruiting participants, the smart contract receives tokens that form the prize pool, which is kept until the end of the tournament - the moment when winners are announced. At this point, the API tournament passes to the smart contract ID of the winners, the numbers of their blockchain-wallets and the amounts they won.
When a player creates a tournament, he sets the following parameters:
- Start and end date of the tournament.
- Tournament name.
- Cards, rounds and other game settings.
- The cost of the entrance fee.
- Number of winners - if there are more than one, it is indicated how the prize fund will be distributed among them.
When the tournament is created, Eloplay creates a page for the tournament which is placed on the home page and visible to all users of Eloplay.
The architecture of user interaction with Eloplay (the modules that are planned to be added in the medium term are dotted out) is as follows:
After the tokensale, users will be able to access 2 wallets - one for Elocoin electronic points on the website, and the second one for ELT on the Ethereum blockchain. Elocoin cannot be converted to ELT.
Cybersport is a new form of sport, holding regular tournaments worldwide.
Currently, e-sports is showing rapid growth. A global audience of 191m active participants and 194m viewers will total 385m people in 2017. According to forecasts, by the end of 2020, this figure will reach 589m.
The market's revenues are predicted by experts to reach US$1.5billion by 2020. Experts call e-sports the best opportunity for investment of the decade.
Prize money for the largest tournaments can reach very high values. Thus, the total prize fund in 2016 amounted to US$93m, increased by 50% compared to 2016.
The main audience for e-sports is young men (71%) aged 21-35. Most fans are in Asia, North America and Europe.
Studies show that 65% of fans are between the ages of 18 and 34; 38% of fans are women.
Most players have constant employment and a good income. The global marketing firm Mindshare found that 43% of players have an annual income of US$75,000 and 31%, US$90,000. This allows us to conclude that this segment of the market is extremely attractive for various organizations and brands.
Thus, Eloplay is planning to expand its activities within a very promising and fast-growing market.
At the time of writing, there were only two major competitors on blockchain:
- Firstblood is a platform that has been operating for more than a year; at present it has only one discipline – Dota2, but the developers are planning to expand the list of disciplines.
- Gilgam.es — according to their roadmap, an alpha version of the platform available for testing will appear in October 2017; game disciplines are not specified.
The main competitors for Eloplay outside blockchain are:
The total number of available disciplines is 62, and tournaments are available not only for PCs but also for Xbox one and PlayStation 4 consoles. It is possible to select the nearest region for holding a tournament.
- Cyber Sports League — tournaments for PCs (8 disciplines) and PlayStation 3 consoles, PlayStation 4, Xbox 360, and Xbox One (3 disciplines are available for all consoles).
- Cyber Sports League — the number of disciplines, more and more different platforms are supported.
Eloplay has a number of advantages:
- The platform itself has operated for more than 1.5 years, has 90,000 registered users and supports 4 disciplines (against only one for Firstblood);
- Compared to ESL and Cyber Sports League Eloplay has the advantage of being able to hold automated smart-tournaments with decentralized funds.
- A tournament and a prize fund can be organized by any player or brand.
In addition to the main competitors, there are a large number of medium-sized and small-size projects. Given the growth in the number of platforms using blockchain, one can assume that direct competition in the cyber sports tournaments segment will soon begin to grow.
Apart from the traditional risks associated with the crypto industry, the project also has a number of additional risks that should be highlighted.
Firstly, growing competition in the market. While the founders consider only a few companies as competitors, we cannot agree with them. To date, it is possible to count more than a dozen such services, varying in sizes. Moreover, the Eloplay project is not a pioneer in providing this service using blockchain technology.
The lack of a clear financial model on the development horizon for more than a year creates an additional risk. The team has an understanding of how to distribute money from the ICO for a period of 12 months only. We were unable to ascertain whether the project has a financial plan.
This risk is complimented by the lack of a description of any marketing strategy. The founders emphasize that the platform will become popular through holding large-scale tournaments; however, this is not what might be called a marketing strategy.
Currently, there is low activity on social media, which affects the visibility of the upcoming ICO and the project itself, and this jeopardizes the success of the crowdsale.
The project plans to hold large-scale tournaments with large prizes in its platform, but major tournaments are usually organized with sponsorship. Nowhere in the project is it specified how large sponsors will be attracted, which also poses risks to the successful implementation of the project.
The Eloplay team consists of more than 20 professionals, including developers, marketers, consultants in various business areas, and tokensale smart contract auditors.
Vitaly Balakhonov. Co-founder, CEO of Eloplay. (LINKEDIN)
The founder of the Eloplay project. Responsible for developing and implementing the project’s development strategy.
Vitaly is also the CEO of Qooors OÜ, a company that is the issuer of the ELT ICO tokens.
From February 2015 to July 2015 he was the Senior Creative Manager of the Innovation Group company.
In this project Yuri is responsible for web development and software development. He is the CTO of Qooors OÜ.
Has a lot of experience in developing IT projects.
Education: Zaporizhzhya National Technical University. 2003.
Dmytro Salnikov. Founder, CIO. (LINKEDIN)
Dmytro is an experienced expert in cybersecurity. He holds the position of CIO for Qooors OÜ.
Education: Classic Private University, specialist in engineering and software development.
- Linux system administration
The team also has 7 advisors, including legal and tax specialists, experts in media and in advertising. A cyber sport advisor is also represented.
ANIL TESLENKO "Zeus" (Wikipedia)
Cyber sportsman, a professional Counter-Strike player, Captain of the Natus Vincere team, and the founder and director of the Pro100 cyber sports organization. In 2017, the Gambit Esports team became the World Champion in the main tournament of Major.
The white paper contains little information about key participants. Their individual entries do not confirm that they are employees of the Eloplay company. However, it has to be noted that key positions are occupied by people who, over the past two and a half years, have been working together for Eloplay and Qooors OÜ, which has been chosen as the issuer for the Eloplay (ELT) tokens.
The Qooors OÜ company is registered in Estonia. According to the CEO of Qooors OÜ, Estonia was chosen as a European country with a favorable economic climate as well as a favorable attitude towards cryptocurrency. Qooors OÜ develops software solutions and implements ICO projects; Eloplay is one of them.
The roadmap and the site describe the main stages of development of the Eloplay project.
The main goal of the Eloplay team is to ensure that players and brands are effectively interacting within the developed ecosystem. The basic principle is to communicate directly with users so that one can quickly implement various ideas required by the platform’s community.
The founders of the project are planning to achieve their objectives over the next two years.
- Expanding the project's audience (China, Japan, Korea, Spain).
- Implementation and launch of regular Eloplay smart tournaments;
- Launching ad campaigns
- Opening a commentator's studio
- Launch of a rating system for skill based Token Distribution System team
- Platform support for games consoles (Xbox, PS4) and adding new games
- Launch of winner-forecasting system;
- Introduction of rates
- Creating a system of contracts with teams and transfers of players.
The project's creators believe that success of the tokensale will help expand the project's geographical scope, involve additional players in smart tournaments through new game disciplines, and engage the audience in smart tournaments through game consoles.
So we note the consistency in the team's actions. The project has a development strategy, clearly articulated objectives for each phase and implementation of plans in accordance with stated deadlines.
The documentation provides very little information about the marketing of the project and its promotion plans.
The team is planning to allocate 40% of funds raised during the ICO to the marketing program and advertising.
The Eloplay site contains pages designed to hold and attract user attention, such as tournament landings, stream section, and a store.
To develop the popularity of smart tournaments, Eloplay is developing a special promo program:
- When tournament collects 16 participants, Eloplay publishes promo posts on their pages on social media;
- When a tournament collects 64 participants, Eloplay arranges transmission of the tournament and coverage on its Twitch channel.
Currently, the Eloplay team is drawing the attention of the community to its project and to the upcoming ICO by:
- Overview articles on the upcoming ICO, published on many online cryptocurrency resources such as FORBES, BlockchainNews, Bitcoin.com, and Golos.io.
- Interview with the project's CEO - VITALY Balakhonov.
- Interaction with the community. On Bitcointalk and on Telegram (89 subscribers at the time of the review). The number of subscribers on Facebook was 305 at the time of the review and the number of Twitter subscribers was at the point of 120 subscribers.
- YouTube Channel with 34 subscribers;
- Through the project's partners: Forklog, brightlaw, itsynergis, adex, wings, bancor.
Moreover, the Eloplay team is cooperating with the Wings forecasting platform; some of the tokens are reserved for it. It is also planned to expand the bounty campaign on social media.
In talks with the founders of the company, we have tried to find out the details of the global marketing strategy and have received the following comments on this issue: "We plan to conduct a series of online tournaments with a prize fund from US $150,000 to US $250, 000." The size of the prize fund will make it possible to attract players worldwide, and all interested cyber sportsmen will be able to learn about the project. "Tournaments with such a prize fund will not go unnoticed."
The team's position on this issue is based on the experience of the world champion in the discipline of Counter-Strike, Danila Teslenko, who is one of the project's advisors.
In our opinion, the marketing strategy requires a more serious approach. The founders expect to increase the project’s popularity by holding large-scale tournaments; however, serious sponsors are needed to hold such tournaments. How the sponsors will be attracted to the platform is not indicated anywhere. In general, we can conclude that the project's marketing campaign is weak.
The team reports plans to implement a large-scale advertising campaign immediately after the ICO to reach new markets (EU, USA, China). However, details of the primary ad campaign are not disclosed. Since its scale will depend entirely on the results of the ICO, the project needs to urgently increase its activity on social media to successfully carry out tis crowdsale. At present, the activity is very low.
The internal economy of the platform is currently based on the virtual currency of Elocoin.
Benefits of using Elocoin:
- Implementation and integration simplicity
- Possibility to connect classic payment systems (Visa and Mastercard, WebMoney, Payeer, Yandex.Money, QIWI)
- The ability for the team to conduct research on the willingness of users to pay for services at any time
Elocoin has a number of limitations listed below:
- It cannot be transferred to third parties
- It has unlimited emission
- It cannot be used in decentralized prize pools
ELT tokens are devoid of all disadvantages mentioned above.
According to information provided in the white paper, minimum entry fee for the start of a tournament is 10 ELT, and the tournament fund (consisting of the amount of entrance fees of all participants), at the end of a tournament will be distributed as follows:
- 90% - prize fund, for distribution among the winners
- 8% - bonus to the organizer
- 2% - deductions to Eloplay Long-Term Bonus Fund
Currently, to take part in battles one of two tariffs must be purchased:
- "MASTER" tariff. The cost is US$1.5 (150 Elocoin)
- "PROFESSIONAL" tariff. The cost is US$2.5 (150 Elocoin)
After the integration of tokens into the platform, tariff changes are not planned.
The pricing system on the platform is arranged in such a way that the organizer determines the fee for participating in tournaments.
In order to increase the activity of users and, consequently, increase the number of transactions, it is planned to create a Long-Term Bonus Fund, the formation of which will be made from:
- 2% of tokens received from the tokensale;
- 2% of commissions from Smart-Tournaments;
- Tokens received for advertising.
The fund's money will be used to develop gaming skills for beginners.
During our communication with the founders, we were provided with some calculations regarding the project budget for the next 12 months. In the calculations, two scenarios are envisaged, depending on the outcome of the ICO. However, the project lacks any financial model for a longer period.
ELT tokens are infrastructural. This means that they do not confer ownership or voting rights to holders. Nor does the project provide any right of tokenholders to dividends; there are no built-in options giving investors any additional benefits.
At this time, the token is issued as a substitute for the existing payment unit (Elocoin) on the platform. The basic idea of token integration is to address the drawbacks inherent in this virtual currency.
The documentation does not specify rates for platform services in tokens. During our talks with the project's founders, we were provided with the explanation that there were no plans to change the current rates after the token is integrated into the system. This means that for the platform's members, nothing will change in terms of prices for the services offered.
Thus it is logical to conclude that the only factor that can cause the increase in the price of tokens may be an increased number of participants on the platform. However, the founders themselves say this when they try to explain possible price growth drivers for the token.
However, the increase in number of users depends on a large number of factors (including external ones) and is, therefore, difficult to predict. In the theory of investment, one of the characteristics of an evaluation of a financial instrument is the predictability of its price, supported by some fundamental indicators. In this case, the increase in the number of users is unsupported.
The project involves the establishment of the Eloplay fund, which is intended for building the skills of novice gamers, as well as for holding tournaments in order to make the platform more popular. So, the fund tokens will not be destroyed, but will be reinserted into the system, which partially reduces their investment attractiveness.
To increase the attractiveness of ELT on ICO, a bonus program has been developed that can increase interest in tokens for platform members to pay for future services.
In order to increase attractiveness of the token for investors, the project may have to revise its financial model in the future.
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.