Experty Rating Review
|Start ICO||24 Jan 2018|
|End ICO||26 Jan 2018|
We assign the Experty project a "Stable" rating.
The Experty team is working on the creation of a communication application for the exchange of experience and knowledge on a commercial basis. Within the platform’s ecosystem, two roles will be available – advice seeker and knowledge provider. The latter will sell their knowledge to the former in the form of remote consultation. Everything will be recorded in blockchain, and payment for services will be made by means of smart contract functions. Thus blockchain in this project really looks quite organic.
The Experty team is one advantage for the project. It consists of people who have a fairly high level of competence and professional experience in IT development, which will contribute to the success of the implementation of the idea. However, it is impossible to say the same about the business background of the team or at least, information about this is not provided in sufficient quantity.
The service has several advantages over traditional communication applications, but the demand for the product being developed can be questioned. It is difficult for us to imagine that knowledge providers with years of experience and useful knowledge acquired would be willing to abandon the "sale" of this experience in large amounts for appropriate payment in favor of minute consultancy in small volumes for a low fee. However, we understand the subjectivity of this assessment. Moreover, the team claims and promises to tell us in the future about high-profile personalities who intend to be users of the service.
The ICO marketing campaign could be considered quite successful. However, we do not recommend buying EXY tokens for speculative price growth. Firstly, the current market situation is not conducive to this; secondly, we have identified a sufficient number of pressure factors on the token price that could be realized in the first two years after the crowdsale (see the chapter Project Risks).
However, Experty's token economy is worked out well enough. We believe that EXY tokens have a long-term fundamental potential for value growth. For those crypto investors who like the idea and believe in its implementation, we can recommend participation in the ICO assuming they are aware of the risks identified by us.
General information about the Project and ICO
Experty is a project from the software development company React Poland. The team is working to create a communication application for the exchange of experience/knowledge to take place on a commercial basis. The work in fact started in early 2017.
The main difference of Experty from many other programs that provide text, voice and video communication is the idea of communicating between holders of any information or experts in a particular area (knowledge providers) and users ready to pay for consultations and communication with professionals in this or that sphere (advice seekers). The creators themselves characterize the application as "Skype-like".
In other words the team, creating this service on the basis of blockchain technologies, takes on the role of an intermediary in communications between experts and clients, providing an infrastructure the functionality of which will reduce the cost of consulting, increase the income of knowledge providers (due to lower costs of third-party participation) and, in some ways, increase efficiency through the global use of Experty. Thus superfluous personal data, such as phone numbers of participants of a conversation, will not be disclosed.
It is important to understand that the program is not a marketplace of specialists nor a service for finding specialists, but a platform for IP communications which can be only used if the address of a particular participant in the system is known. Therefore in our opinion, the view of the developers regarding a large future role for Experty in the worldwide consulting sector is too optimistic.
ICO Website: https://www.experty.io/
Bitcoin Talk: https://bitcointalk.org/index.php?topic=2337020
ICO Start: January 25, 2018
ICO End: February 25, 2018
Hard cap: $9 million or 33000 ETH
Pre-sale hard cap: 5000 ETH
Soft Cap: 2000 ETH
Token: Experty (EXY)
ICO Price: 1ETH = 1000EXY
Accepted currencies: ETH directly; ETH, BTC, CHF, USD, EUR, JPY using Bitcoin Suisse
100 million Experty, which are scheduled to be issued by February 2021, of which:
• 33% Crowd Sale Tokens
• 33% Company Tokens (vested for 3 years)
• 30% Partner Tokens (locked for 18 months)
• 1% to cover tokensale costs
• 3% Airdrops and bounties
In using the received funds, the team is focusing on software development, product marketing in the blockchain community and research, according to the roadmap.
Project services and their usage
As mentioned above, Experty is an application for communication, users of which can be divided into two groups: Possessors of any unique knowledge in specific fields and people ready to pay for consultations with experts. The future platform will consist of applications for mobile phones, web and desktop applications and include services for making calls, receiving/sending messages, maintaining a personal schedule (a kind of employment schedule), and a currency wallet inside the system. Payments will be made on an automatic basis using EXY tokens. Features for user groups will include:
• For knowledge providers:
- Ability to determine the cost of 1 minute of your time of conversation, thus to earn from consultations without advertising personal data like phone numbers.
- Ability to receive notifications about requests for consultations.
- Ability to use text messages with a potential client for example, for choosing the best communication time.
- Developers and ICO experts will be able to be involved in new projects, again earning from their knowledge.
• For advice seekers there are the following:
- The possibility to replenish the wallet with cryptocurrency such as Ethereum and Bitcoin or fiat currencies such as USD and EUR
- The ability to initiate calls to a selected subscriber or send/receive text messages; maintaining a list of contacts
- The chance to create group conferences, webinars and screensharing.
- An option to have money refunded if a low quality service is provided
- Paid premium services are also announced, for example a user making a call could skip waiting on the line.
The Experty team illustrates the process of user interaction with the following scheme:
The creators give a positive assessment and emphasize that Experty is created not by a typical scheme for consulting agencies, where users can find an expert using certain parameters, raising certain doubts in terms of the creation of a user base and an application’s attractiveness to an end user. It is intended that, for example, popular YouTube-bloggers have links in their accounts to their Experty profile as one possibility for communication with them. Experts in a certain area will have to place links to their accounts on other sites, and a user seeking advice, for example, in the legal field, will not be able to choose from a list of legal advisers based on any sample or, for example, on their ranking, but will only choose whether to contact an expert whose profile he sees on certain social media. In some ways, portals such as LinkedIn will assume a function of providing expert choice if such integration plans are implemented by the team. On the other hand, the Experty team are correct about the oversaturation of the market for services for finding consultants and experts.
The possibility of extended expert profiles and a possibility for adding brief feedback from users who receive consultations would help to improve the impression of the functionality.
The overall impression from the beta version of the mobile application demonstrated by the team on their YouTube channel is positive; the application has a convenient and intuitive interface.
From a technical standpoint, the project team characterizes the platform as follows:
The project team gives the following assessment of the state of the market in its white paper:
According to Plunkett Research, the volume for the consulting market in 2017 will reach $488 bln; the previous year this figure was estimated at $470 bln. Here it is necessary to understand that firstly, the basis of the market is big players providing local consulting services and, at least at the first stage of development, Experty will hardly be in a position to take their share of the market. Secondly, these estimates take into account only the "white" market.
Obviously, the team plans to take a niche in the growing "global digital consultations marketplace" and in this case it would be most appropriate to conduct research into the market for providing private consultation, especially with the use of IP communications.
Considering the services that Experty has already developed however, it is possible to tell that there is no already-formed market for consultations utilizing micro-size tariffs. The sphere of electronic communication systems is actively developing; it is obvious that in the future it will be a priority type of communication and the fact that the Experty team sees the development of the project in the blockchain sector offers advantages when entering the market. As an example, the Skype program, towards which the Experty creators are oriented, has more than 300 million active users per month.
The project team has an impressive international make-up. The team includes developers from the company React Poland which has created more than 30 mobile/web applications, including a small crypto project for Satoshi Pay. The description of the project indicates that employees have both sufficient experience in application development and a deep understanding of issues and organization for the field of consulting. The site and the white paper provide the following information about the team members:
The key figures are:
- KAMIL PRZEORSKI (Facebook, LinkedIn) – Founder and CEO of the project. Educated at the Asbiro Polish Business school. Listed places of work: MobileWeb Pro sp. z o.o. (Vice chairman), Unit9 production (IT manager). Co-author of the book «Mastering. Full-stack react web development». It is stated that Mr. Przeorski has many years of experience in managing a development studio, a technical background and a deep understanding of blockchain technology.
- TOM DYL (LinkedIN) – Co-founder. Co-author of the book «Mastering. Full-stack react web development». It is stated that Mr. Dyl has experience of working with mobile and web applications. He the leader of the React Poland developer team.
- GREG KUCMIERZ (LinkedIn) – Co-founder, blockchain engineer. It is stated that Mr. Kucmierz has been involved in the blockchain industry for several years and has long-term experience in large technical companies such as Cisco (he took part in the development of international applications).
Among positive points for the project is the fact that the site also lists 15 advisors whose reputation is undeniable. It is indicated that some consultants intend to become users of Experty services.
The major project partners MME deserve a special mention, also the Swiss financial services company Bitcoin Suisse specializing in crypto assets. The work of the Experty platform is built on interaction with Bitcoin Suisse.
In general, we can conclude that the project team has a fairly high level of competence and professional experience in their field, which could enable successful implementation of the proposed idea and is clearly one of its strengths. In this case, we are talking about the development sphere, and not about the business background of employees, where the information is insufficient. An added benefit is that the team consists of experienced application developers which will reduce development costs and the need for engaging third-party developers.
Project development strategy and roadmap
The white paper presents the roadmap for the project up to Q2 2019.
In Q1 2018 mobile applications (IOS, Android) and a WebApp will appear. In Q4 2018 a full desktop application will be launched; its beta version will be launched a quarter earlier. Voice calls will be available from Q1 2018, video calls – from Q3 2018, Screen Sharing – from Q1 2019, Group Call – since Q2 2019. In addition to the key functionality the Experty team will further develop additional and interface functionality, which is reflected in the white paper.
Voice calls and video calls are most likely to be the most popular services. Therefore, it is possible to predict that this functionality will be available in a relatively short time after the crowdsale.
The plan for development assumes that in 2019 the project will have 5000 non-crypto customers, in 2020 —15,000, and by 2022 — 135,000. Compared to messengers this is not a large audience. This coverage indicates in our view that the project will move in very narrow circles and that random people will not use it. However, the figures do not take into account how many people will use the platform and accept payment in cryptocurrency.
In their documentation the team pays attention to the marketing of the product, although, in our opinion given the peculiarities of the application, the main "locomotive" for Experty will be its users, giving links to their profiles on various social media and themed platforms as a means of reaching them. Of course, the team has worked out a strategy to popularize the product in the market by integrating the platform into large online projects such as bestdoctors.com, ratemds.com, healthgrades.com, quora.com, github.com, linkedin.com etc., planning to use their client bases. In the long run, the team intends that the platform will be presented on themed sites and cover the following areas:
We asked the team about the motivation for these named services to work with Experty: promotion of the services of a startup on one's platform always carries at least a reputational risk. Here is the answer we received: «We will incentivise large portals with the possibility to generate additional income, so yes they will earn extra money thanks to integration. We will talk individually with each portal about their commission, i.e. % from each consultation that occurred via their website; at first the commission will be paid in crypto, later in crypto and FIAT. In this case we will also provide software development services and we will support those websites on various levels in order to provide them the highest quality product, so there won’t be a problem with their reputation.» Leaping ahead, we should note that the costs of monetary incentives for owners of such online resources are not directly specified in the economic model of the project.
In total the team expects to spend 40% of the funds raised during the tokensale on Marketing and Sales. This portion will be spent in the following way:
30% of EXY tokens will be transferred to partners; this is also a marketing tool. Advisors, influencers, YouTubers, ie all those who will advertise the services offered by the project are understood as partners. Some individuals are already known – they are listed on the site under "Who plans to use Experty?". The newest one is one of the most popular YouTubers - Jeff from The Dollar Vigilante channel(135k subscribers).
Since the Experty ICO has not yet launched, it is difficult to talk about marketing aimed at promoting the ICO, but, in our opinion, the current activity of the team online, in the media and the crypto community is a good foundation for promoting the planned emission of EXY. At the moment the team maintains blogs on Twitter (8500 followers), Medium (590 subscribers), chat in Telegram (10500 participants), and a thread on Bitcointalk, with extremely high discussion activity. The bounty program is also briefly announced in the white paper. Working with the community using the standard communication channels is done to a high level.
There are also a significant number of references to the project in specialized media; first of all, we would like to highlight a mention in an article in Forbes magazine about cryptocurrency startups. The project is also mentioned in articles on the following portals: hacked.com, Btcmanager, Cryptovest, inc.com, etc. Thus the project is also receiving decent coverage in the media.
The project website has a good interface; this impression is spoiled by details such as a poorly designed FAQ section.
Competitors and competitive advantages of the project
Despite the fact that Experty presents the idea of creating a kind of "revolution" in the consulting market, it is necessary to compare the project not to representatives of the consulting business primarily, but with communication applications. This is due to the fact that the creators purposefully reject the idea of turning the platform into a database of specialists. In this segment, the main competitors are popular voice and computer systems, including those with instant text messaging. They include the following:
- Skype. This program also enables conference calls (as Experty plans to do), video calls and sending text messages. A function for transferring an image from the monitor screen, announced by Experty, is also one of Skype’s services. Skype is the leader in the world market (about 40%). Google Talk and Yahoo! services can also be considered similar to Experty. Messenger has a similar set of features.
- WhatsApp. One of the most popular instant messaging platforms for mobile and other platforms with voice and communication support. Has about 1.3 billion users. In contrast to Skype is primarily a mobile application with a focus on sending messages; however voice and video calls are available to users. Other analogues of the program are Viber and WeChat, boasting a similar set of functions.
The team itself indicates the following advantages of the application in its white paper:
We ourselves believe that the blockchain component could become the main advantage for Experty. Indeed, blockchain in this case optimizes accounting and speeds up the process of payment for the service rendered.
The idea of receiving benefits for the time of communication is certainly innovative and interesting, at least in terms of the availability of an alternative type of communication, due to clip fees, for example, a certain amount of spam or excluding "empty calls" by some means. In certain areas of activity, expert service could really be in demand.
However, e a significant portion of the services are already available, to a degree defined by the knowledge provider. For example, in the case of clients seeking contact with an individual and/or a consulting company, access can be granted via commenting on videos on YouTube-channels or to a specified e-mail addresses or direct number.
In general, the consulting business is based on providing customers with the possibility of convenient communication, even when it comes to individuals. Experty provides users with a simplified means of communication, another advantage of which is to reduce costs by excluding third-party participation.
In conclusion regarding competitors, it is impossible to avoid mentioning LinkedIn, a social network focused on business contacts, integration with which is planned by Experty’s developers. In some ways, the scope of these projects overlaps but LinkedIn of course focuses on a service for searching and maintaining a list of business contacts.
Economy of the project
The Experty service will charge customers for its use. Payment will be made by the knowledge providers. Payment will be charged on a periodic basis and give the right to provide services for a predetermined amount. According to the information provided to us, thus the maximum rate of commission on the amount of income for knowledge providers will be 5%. The greater the turnover the knowledge provider makes within the system, the lower the relative values of the commission.
It is important to note that Experty will not charge those users who accept rewards in EXY tokens.
Thus, revenue for the project will be exclusively from users paying in ETH/other, with a choice of crypto and fiat possibly in the future. By 2019 the number of users according to the forecasted budget will be 5000; in 2020 – 15,000, and by 2022 – 135,000.
Thus, the margin from each non-crypto knowledge provider is estimated at 3.33%.
Experty give their estimation of the operating costs and operation profit:
Immediately we must note note that in the traditional construction of financial statements it is wrong to refer the income from the tokensale as revenue and then as yearly profit.
Now to discuss the financial calculations provided: An operating profit will appear no earlier than 2022. The losses will be financed by the funds raised in the course of the ICO, which are enough with a reserve of about $1 million. Thus there is an economic risk which will be taken on by tokenholders, especially by early buyers - those who do not know how successful the placement will be eventually.
Also because as mentioned above, these predictions do not take into account the number of crypto-customers, it is not clear how the costs will change depending on the increase in their number. Yet for Experty a certain cost for each conversation will also arise, which should be covered by some income.
Given the worsening condition of the ICO market, there is a high probability that Experty will not collect its hard cap. If Experty does not collect the hard cap, then economic risk will be realized. And it is most likely not in the sense of a potential default on obligations or termination of the platform, but in the sense of a sharp reduction in the value of investment in development, in particular, the line marketing costs and external workers. This in turn will negatively affect the rate of growth in popularity and demand, as well as the quality of service.
Also the estimation of the competitive advantages of the project is quite ambiguous even for knowledge providers, who have the role of beneficiaries in the application. It is difficult to imagine that knowledge providers with years of acquiring experience and useful knowledge, will be willing to abandon the "sale" of this experience in large amounts for appropriate payment, in favor of minute consultancy in small volumes for a low fee. In other words among problems that could arise is a reluctance to sell “expensive” knowledge "cheaply" in absolute value; the second problem is the complexity, or impossibility to relay sufficient thought or useful information in a short conversation.
A risk for the future price dynamics of Experty tokens from our point of view is the transfer of 30% of tokens to the partners, which we pointed out in the chapter on marketing. This is a two-edged sword, as these tokens are highly likely to be exchanged in the future for fiat or another cryptocurrency, which will create an imbalance in supply and demand for the token. However, this will not happen soon – the team promises an 18-month lock up period.
Concerning the lock up, in this section we would like to point out the non-standard scheme for unfreezing the team's tokens. The team will receive 33% of the tokens; they will unfreeze every month. We always prefer that shares for the team are not directed to the maintenance of the team’s own activity, instead they ought to be something like additional optional rewards: unfreezing on achieving some KPIs, and bound to the execution of roadmap points. In general it is necessary to say that in fact the team has a very large share of the tokens: As well as the 33% given to the team directly there are 40% for development, 5% - administrative costs, 15% for long term research as well. Thus in fact, 60% of the crowdsale will also go to the team which if counted in tokens is the equivalent of ≈20% of total emission. Thus, the total team share will exceed half of the total token emission.
The final thing that could affect the balance of supply and demand for the tokens in this section: The team declares the seed investment in the project as $700,000. These investors will receive EXY tokens in the equivalent amount, and they will not be locked up.
Token investment attractiveness
In the course of the crowdsale, EXY tokens, which are a utility tool for internal payments on the platform are issued. As mentioned above, knowledge providers who are willing to receive payment in EXY tokens will not pay commission to the Experty platform. Given that the platform commission could reach 5%, even with conversion costs, accepting EXY tokens is likely to be more profitable for knowledge providers. At least, if the coin is liquid enough to carry out conversion operations.
In addition to the payment of platform fees, EXY will be required to gain access to premium features:
- Paid group calls (webinars)
- Conversation recording
For this, as far as we understand, it will be necessary to keep back a balance of EXY tokens.
Thus the sources of demand for coins are clear: For paying for knowledge providers and purchases to gain access to premium services. Now let us deal with the supply.
This will no doubt be created by knowledge providers. It is possible that the share of EXY tokens converted back by knowledge providers will be less than 100%, as they will be quite loyal to the Experty service and quite possibly will try themselves in the opposite role. Thus some of the money put into the emerging ecosystem will remain there, which is positive for the future dynamics of the token price.
It is also a good thing that the Experty team promises not to use EXY tokens received in the form of commissions to finance their operation. The financial model assumes that all costs will be covered by non-crypto customers. This will reduce free float of the tokens and also positively affect their value. This is quite an uncertain perspective however, because at present it is extremely difficult to estimate the distribution of demand for Experty’s services between crypto-and non-crypto customers.
Summing up, the token economy of the project is well thought through. Its implementation, given a steadily growing demand for the platform’s services, will allow the tokens to show smooth upward dynamics. Therefore, for those crypto investors who are ready to take on the risks listed in the previous section we can recommend participation in the Experty ICO.