Hamster Marketplace Rating Review

Stable+

Investment Rating

Expire date : 19.07.2018


We assign the Hamster Marketplace a “Stable+” rating.

Hamster Marketplace is a trading platform for niche electronics, unique gadgets and start-ups from beginners and local producers without the involvement of resellers. The chosen services planned for the platform look attractive both for vendors and potential investors.

Hamster Marketplace plans to operate in a fast-growing but highly competitive market, where the best solutions involve simplicity and convenience for use, security and have significant marketing budgets.

The Hamster Marketplace team has relevant experience in the crypto market. The core of the team is made up of personnel from the Playpad project, joined by a team of development engineers, blockchain engineers and marketers.

HMT utility tokens will be sold at the ICO. The team has developed the functionality of the token in detail; we think it will be in demand on the platform in proportion with its popularization. However, token demand will be stimulated primarily not by market factors but by margins on the marketplace. The obligation to use profit from the marketplace to stimulate the circulation of the payment instrument is a risk for the economic viability of the project’s concept.

Hamster Marketplace is a decentralized B2C trading platform focused on the sale of niche gadgets, products from start-ups and unique goods. In addition to traditional methods of payment, Hamster Marketplace will have its own internal currency.

Hamster Marketplace has a fairly narrow, but in another sense broad specialization in terms of its potential market. The team is aiming to create a business-to-customer platform aimed at a group of goods and products, and sometimes services in O2O format, with monetization of goods and services.

The team aims to significantly reduce the barriers to entering the retail market for niche start-ups, reduce costs for initial batches of goods, and provide a barrier against dumping low-quality imitations through a system for initial vendor access and an alternative platform for sales.

It is assumed that the authority to make strategic decisions about the management of Hamster Marketplace will be transferred to vendors at the final stage of the project.

Hamster Marketplace will be of interest to vendors for the following reasons:

  • Specialization. Vendors do not have to fight for the attention of buyers with big brands in electronics and low-quality Chinese goods.

  • Availability. The platform has low entry thresholds and commissions.

  • Buyers. A large share of funds from the ICO will be directed to marketing, i.e. activities to attract customers.

The legal framework for Hamster Marketplace will be finalized during the ICO in February 2018. Legally, Marketplace LLP (Corner Chambers, 590a, Ringsbury Road, UK) [Phil – incomplete address need either a town/city or postcode or both] is registered in a transparent and understandable manner for the investor, together with a logical jurisdiction. The company provides a transparent disclaimer in the white paper regarding the ICO; mandatory passing of KYC is necessary to participate in the ICO.

The Hamster Marketplace project is based on turnover of the HMT utility token, which will act as the platform currency at the initial stage; it will enable reducing the cost of transactions, create a discount system, accelerate turnover for vendors’ working capital and it will form the basis of the platform management system in the future (within 3 years), which will be based on the voting algorithm successfully implemented in the Emercoin project.

Website

Whitepaper

Token: HMT (ERC-20 standard)

Platform: Ethereum

Token Issue Volume: 10,000,000

Token distribution: Founders, advisers and early buyers – 27.5%, bounty campaign – 2.5%, for sale – 70%.

Round 1: Private pre-sale (closed Q4 2017)

Cap: N/A

 

Round 2: Public pre-sale

Start: 19/02/18

End: N/A 1Q2018

 

Round 3: Public sale

Start: N/A Q1 2018

End: N/A Q1 2018

Price: $2

Minimum Buying Transaction: $10

Soft Cap: $2m

Hard Cap: $14m

Accepted currencies: Bitcoin, BitcoinCash, Ethereum, Ethereum Classic, Litecoin, Ripple, Dash, Monero, Emercoin, Waves

Funding allocation:

  • Launch and development of the Hamster Marketplace IT platform in the form of a website and mobile applications;

  • Attracting vendors

  • Attracting buyers interested in purchasing unique goods

  • Introduction of a mechanism for decentralized platform management based on Emercoin technology

The white paper contains a detailed three-year plan for the use of funding raised during the ICO.

Additional:

  • AML/KYC procedure

  • 9 month allocation to founders, advisors & early buyers share

  • All unallocated tokens will be burned.

  • Additional emission of tokens is not allowed by the terms of the smart contract.

Hamster Marketplace is a trading platform for the sale of niche electronics, unique gadgets and products from start-ups from beginners and local producers without the involvement of resellers. In this section we present a description of the services offered on the project platform. There are four services available on the Hamster Marketplace:

  • Acceleration of settlements and release of working capital, saving on costs

  • Marketing platform

  • Business incubator

  • Platform self-management by vendors.

1. Release of working capital, saving on costs. Business mechanisms put in place by the largest US retail chains during their prime, and then adopted in all major global markets continue to operate in e-retail with all the specifics and costs inherent in large-scale retail - which oblige vendors to:

  • Freeze their cash in receivable goods with long repayment periods

  • Bear the costs of delivering products to warehouses

  • Go through a complex procedure for coordinating access to a vending platform

  • Include intermediary margins in the value of products sold

  • Offer a large range of options for working with intermediaries

  • Bear the marketing and promotion costs within the sales channel.

Hamster Marketplace proposes to solve these issues through a new sales mechanism, the ability to pay for goods in cryptocurrency, the use of an internal utility token as the project's domestic currency and a liberal approach to the selection of vendors. The team offers an analog accreditation mechanism for selecting vendors. This method will cut off producers and suppliers of substandard Chinese goods and substitute goods.

2. Marketing platform. Hamster Marketplace offers a product marketing service and protection from cheap low-quality competitors. The main costs for the development of Hamster Marketplace after the ICO will be in marketing and attracting vendors and buyers to the platform. According to the marketing team’s calculations, the cost in attracting one vendor to the platform will be $2,000 on average and $5.6-7 for one buyer as a "warm" lead. In our view, marketing estimates for the metrics presented by the team look plausible.

Marketing Plan:

  • $2 million - 600 vendors, 276,000 customers

  • $7 million - 900 vendors, 414,000 customers

  • $14 million - 1500 vendors, 619,000 customers.

The project’s documentation includes calculations assuming a marketing budget of $14 million for the first year.

The project founders are also planning semi-automatic two-level analysis and price correction on the platform:

  • Hamster Marketplace robot checks the websites of represented manufacturers and other platforms and levels prices to the lowest of those detected

  • If price deviation is more than 10%, manual moderation is used

3. Business incubator. Hamster Marketplace will be focused on manufacturers of indie electronics and gadgets. In the future, the platform may expand to include non-electronic goods. At the same time, a liberal approach to pricing will enable Hamster Marketplace to become a business incubator for such projects.

4. Platform self-management by vendors. Self-management for businesses using the platform is a long-term goal for the project. Management of the trading platform by producers of goods is quite an interesting idea; this will ensure that the platform will always develop and act in the interests of the sellers themselves. Hamster Marketplace is therefore truly a decentralized project based on the following principles:

  • It is a platform where vendors can reach customers globally, online and without intermediaries.

  • The transparency of decisions made by manufacturers and the reliability of control over their implementation will be ensured by the use of the Emercoin blockchain (a successfully implemented project) for voting, fixing decisions and expenditure accounting.

The use of cryptocurrency and blockchain technology will significantly improve the project’s competitive advantages. We will discuss this in the "Competitive analysis" sub-paragraph in more detail.

Thus the selection of services planned for the Hamster Marketplace platform looks attractive from both a vendor's and a potential investor’s point of view. The project is certainly a blockchain one, so the idea of staging an ​​ICO seems to us to be justified.

As for weaknesses, there is an insufficient attention to the technical side of the project in the white paper: the protocol, the platform and the current development of its software. However, Hamster Marketplace boasts a technically strong development team.

4.1. Market niche description

According to an evaluation presented in the Global e-commerce Report 2017, the total size of the global e-commerce market for online platforms reached $1.85 trillion, increasing from $1.58 trillion in 2016. Growth rate is 17%. According to forecasts by Bigcommerce, the global online market may reach $8 trillion by 2020.

Global e-commerce retail payments amounted to $1.92 trillion or 8.7% of total world trade, which amounted to $22.05 trillion in 2016. The retail e-commerce market will be able to reach $4.48 trillion or 15.9% of world trade by 2021.

The Asia-Pacific region accounts for 50% of turnover in e-commerce. The largest e-commerce market for B2C, with a turnover of more than $681 billion, is China, followed by the US ($438 billion) and the United Kingdom ($196 billion). Europe has the highest e-commerce share in GDP (e-GDP) - 4.91%. The Asia-Pacific region has 4.87% GDP.

One of the main problems for international e-commerce is trust. More than 42% of consumers cite trust as the main obstacle to shopping online. To succeed in the global e-commerce market, it is extremely important to create an atmosphere of trust for consumers, in particular those who make cross-border online purchases.

Another trend is for smart contracts built on blockchain technology. Solution of disagreements usually occurs through the opening of a dispute: A buyer pays for the goods and awaits delivery; if the goods do not arrive after a certain period, the buyer can open a dispute with the seller so that the third party - the marketplace - will solve the problem and return the money.

The problem with this model is that opening a dispute and waiting for a decision can take a long time. A potential buyer simply wants to receive the goods; if his expectation is disappointed, the buyer will not want to make purchases online. Smart contracts not only make sales more convenient and enable quick resolving disputes on blockchain but also ensure buyer and seller interaction worldwide: when paying in cryptocurrency, buyers are not tied to commission fees and they can buy goods from anywhere for a fixed price.

The largest online marketplaces are Amazon, eBay and Alibaba (including AliExpress).

If we assume the segmentation of the online sales market compiled by Square and Mercury Analytics in 2017, based on a survey of of 1,164 business owners, 22% of them sell goods via online marketplaces.

Despite the fact that the proportion of online sales is growing steadily, many sellers are having problems with building successful marketing and online sales economics and are unable to compete.

Segmentation of the online sales market:

  • 54% - sales of clothes, footwear and accessories on marketplaces

  • 43% - sales of electronics and gadgets on marketplaces

  • 3% - other sales

Source: Square and Mercury Analytics (2017).

According to forecasts made by Bigcommerce, the global online commerce market will reach $8 trillion by 2020. The potential turnover of Hamster Marketplace’s niche currently amounts to $175 billion.

If we examine the DIY market, sales amounted to $341.5 billion in 2017. It is assumed that the market for such goods will grow to $574.9 billion by 2022. 1/3 of DIY goods are on sale on electronics platforms. Thus, the potential market for Hamster Marketplace and similar platforms is currently estimated at $113.8 - $175 billion per year.

4.2. Competitive analysis

As of January 1st, 2017, about 20% of global online commerce is quantitatively accounted for Ebay, where 25 million sellers meet 160 million buyers. The largest marketplaces such as Amazon, AliExpress or Ebay do not need a detailed introduction; we will compare them with Hamster Marketplace in the niche market described above.

Marketplace

Amazon

AliExpress

Ebay

Hamster Marketplace

For manufacturers:

 

 

 

 

Summary commissions

up to 30% of sales

up to 8% of sales + annual subscription fee $3100 - $4600

up to 20% of sales

up to 20% of sales

Access to sellers’ contacts for buyers

-

+

+

+

Payment to sellers

Once every 2 weeks

Instantly

Instantly

Instantly

Ability to influence decisions made by platform management

-

-

-

+

For consumers:

 

 

 

 

Audience of early followers of products

Episodically

-

-

+

Possibility of selling DIY electronics

-

+

+

+

A wide range of goods

+

+

+

-

Access to the platform via the passing of a product quality verification procedure

-

-

-

+

Avoidance of low quality imitation goods

-

-

-

+

Transparent screening of defective goods

-

-

-

+

Small and novice Amazon vendors will face:

  • Huge competition and a huge quantity of goods

  • Orientation mainly on the US market

  • Dependence on number of positive reviews

  • The need to purchase advertising, otherwise goods will not be promoted

For AliExpress, the key drawback is the almost complete lack of quality control of vendors in which cheap low-quality substitute products or fakes easily fall into search parameters.

At the same time, hundreds of niche trading sites are operating in addition to large platforms. OfferUp, Tradesy, The RealReal, Etsy, 1stdibs and others have made their way into this market popularized by eBay in the late nineties. Aggregators like Wayfair, Houzz and One Kings Lane select and recommend products and services to their visitors in niche segments such as home furnishings and accessories and sell new, vintage or antique items that were previously available only on eBay or from traditional retailers. An interesting example of structuring the "previously uncontrolled creativity market" is the Etsy aggregator, where handmade products from bracelets to stained-glass windows and wicker furniture are sold.

When examining the market, we discovered more than 30 different marketplace start-ups using blockchain technology:

  • Propy – a blockchain marketplace for renting real estate

  • LockChain – a blockchain marketplace for hotels

  • INS Ecosystem – a blockchain system for the sale of everyday goods

  • Craftmade - the world's first workshop marketplace built on blockchain, designed to bring together creative people with people who seek quality items from games

  • Skychain – a blockchain data marketplace and trading platform based on artificial intelligence

  • DMarket – a blockchain platform for trading in-game items

  • "One+One" – an online platform that unites charitable stores, socially responsible retail and charitable foundations

  • Tradingene – a blockchain platform that sells trading algorithms

  • Storiqa – a marketplace with a completely self-sufficient ecosystem designed to create e-commerce stores

  • Shoptimizer - offers payment in cryptocurrency in any major online store using a smart contract

  • etc.

The presence of a huge number of marketplace projects using blockchain speaks of the immaturity of this segment and the absence of dominant players. The specification of the project and the orientation to a particular segment is the best strategy for successful market entry in this situation.

The main advantages that distinguish Hamster Marketplace from other marketplaces are the following:

  • the platform has the most innovative gadgets and DIY developments

  • high quality products at producer prices

  • objective information about defective goods recorded on blockchain

  • no user commission for manufacturers

  • a decentralized management system run by manufacturers (forthcoming)

Thus, Hamster Marketplace plans to operate in a fast-growing but highly competitive market where simplicity and convenience, security and marketing budgets are key factors. Only time will tell whether the project is able to take its niche.

The Hamster Marketplace team has relevant experience in the crypto market. The core is taken from Playpad project team, joined by a team of development engineers, blockchain engineers and marketers. Regarding the advisory board, we highlight experts from well-known marketplaces (Amazon, eBay, Yandex) which the company should compete with in the long term. Strong partner programs will also contribute to the successful implementation of the project.

Team

Denis Bulavin is CEO of the project. Founder of Playpad, a successful project for new technologies.

Egor Kotkin - COO. Responsible for the project's development on all levels and its ongoing improvement, IT blogger and participant in the successful project Polybuis. More than 10 years of experience in the sector.

Alexander Karelin - CMO. Headed marketing for the successful B2BX ICO (funding of more than 8 million Euros raised). More than 13 years of experience in marketing.

Alexey Sokolov - CTO. Key successes in the relevant sector: Management of project development for the FRI (development of information and analytical system), RZD, Alfa Insurance (mobile application development), T8 (development of neural network classifiers), etc.

Julia Petrosyan - Investor Relations director. More than 10 years of experience in transnational corporations, Goldman Sachs, Mitsui & Co, SAP CIS. Blockchain enthusiast, launched and managed www.blockchainforum.global  and other investor communication activities.

Chris Lovell - Community outreach partner. Networking expert with experience in the corporate sector of more than 10 years. An avid blockchain enthusiast who has been involved in this technology since early 2013.

Evgenia Savchenko - Project manager. Co-founder of WinWin Solutions and Digital Marketing Agency. This company served such projects as Polybius, DomRaider, KickIco, Utrust and others.

John Pavin -  Project manager. An entrepreneur with 8+ years of experience in business.

Valentin Savchenko - Director of Digital Marketing. Co-founder of WinWin Solutions and Digital Marketing, participated in the development of Polybius, DomRaider, KickIco and Utrust.

Johannes Kanter - Google marketing specialist; has worked with start-ups such as Click & Grow and Fleep. Co-founder of Digital Marketing agency WINK.

Yury Chaynikov - Product Owner. User behavior analytic – EDU.RU. Head of IT Ronikon. Digital Marketing - rvc.ru.

Sergey Chernoudov - Senior Developer (JAVA, PHP, JS, SQL). IIDF.ru - Design and development of information and analytical system. WEB, Team Lead JAVA. IIDF.ru - Development of monitoring system. WEB, Developer PHP TimePlayer - Designing and developing a forecasting system. Desktop/WEB, Team Lead JAVA.

Alexander Krylov - Senior Developer (PHP, JS, SQL). IIDF.ru - Development of monitoring system. WEB, Team Lead PHP. AlfaStrakhovanie Group - WEB, Team Lead PHP.

Ekaterina Leontieva - QA Engineer (Python, Selenium). IIDF.ru - Development of information and analytical system, QA engeener. AlfaStrakhovanie Group - application development, QA engineer. TimePlayer - forecasting system. QA engineer.

Nikita Buzanov - Android developer (Java, Python). AlfaStrakhovanie Group - application development. Android Developer.

Ivan Timofeev - DataScience developer (Python, JAVA). RZD - Development of a neural network system, Team Lead. ATOL - Development of a neural network system, Team Lead. T8 - Development of a neural network system, Team Lead.

Arthur Saakov - UX/UI Designer, 6 years experience in design, worked with VTB24, Tesla Karting, Vaenga Music.

Kirill Pyzhyanov - Investor Relations Officer. Tokenization, ICO flow and listing on exchanges. IT professional, private investor, trader.

Nikolai Zaitsev is ICO analyst. Vendor search and involvement. WRClab, EverythingTag, freelance web developer.

Sofia Romanovskaya - Community manager, bounty manager. Certified marketing and relations specialist with more than 5 years’ experience.

Nurlan Abdrasilov - Head of public relations. Interaction with advisors, listings in trackers. An expert with 15 years of experience in IT in the corporate sector, trader.

Advisory board

Kilian Kaminski (Amazon; has co-operated with the largest electronics manufacturers in Europe), Stanislav Polozov (IT director and founder of EmerCoin), Oleg Khovayko (technical director of EmerCoin), Dmitry Pavlyuchenkov (strategic development and marketing for IIDF), Christopher Coles (leading consultant and advisor of many start-ups, worked at Amazon, was a consultant to a number of Fortune 500 companies), Nodari Kolmakhidze (8 years in finance, trading and asset management, Investment Director at Cindicator ICO), Rinat Arslanov (entrepreneur with experience in business of 10+ years, a venture investor and a blockchain enthusiast, CEO in Revain ICO), Michael Inoma (extensive work at eBay Inc., Chief Operating Officer with more than 10 years of experience in e-commerce, operational excellence, data analysis and business, change management), Alexander Afanasyev (Yandex, CEO of the APPGRANULA project), Nikolai Turubar (media manager, journalist, blogger, project manager Nomobile.ru, Chezasite.com).

Partners:

  • Emercoin – a decentralized blockchain system focused on corporate service applications for a mechanism for the decentralized management of marketplaces, budget control and spending.

  • RunCPA – a marketing platform enabling payments for crypto-based vendors that assists projects to develop and find new customers.

  • Revain – a new generation blockchain platform for feedback that prevents changing or deleting published reviews (users receive rewards for writing reviews).

The team is strong and versatile; there is a strong background in the blockchain industry and e-commerce. Hamster Marketplace has all the relevant experience to implement its ideas. Financial and jurisprudence expertise are poorly represented in the team, but can be outsourced.

HMT is a utility token which has five functions on the Hamster platform:

  1. Payment of Hamster Marketplace commissions. Commissions are paid by manufacturers and may be levied either in payment currency (fiat or accepted cryptocurrencies) or in HMT tokens. When paying commissions in HMT tokens, manufacturers save on the difference between the real and nominal exchange rate of the token, since the token is accepted for payment at the internal rate: HMT ≥ $ 10, but not less than 125% of the market price.

  2. Payment of goods within the Hamster Marketplace. Goods can be paid for in fiat, cryptocurrencies or HMT tokens. If the buyer pays in HMT token, commission for the marketplace is not charged. In turn, a seller can spend HMT tokens received on other Hamster Marketplace services or sell them on exchanges.

  3. Payment for internal promotion: priority displays in search results, banner advertising, etc. By analogy with the first paragraph, promos can be paid for in tokens or fiat, but the internal rate is valid for HMT tokens: HMT ≥ $10.

  4. Guarantee via deposit of tokens instead of verification.

  5. Access to Hamster Marketplace statistics and the database.

Thus, the team is monetarily stimulating token demand to the detriment of the margin on the marketplace. It will ensure a high infrastructural demand for HMT tokens provided that the platform is popularized.

Finally, it should be emphasized that the Hamster Marketplace platform is supposed to be completely decentralized in the future. Its management will be implemented by vendors themselves using the mechanisms of Emercoin technology. Specifics for this are not presented in the documentation.

According to the roadmap for Hamster Marketplace, a beta version of the platform will be launched in Q3 2018, i.e. almost half a year after the ICO. As expected, the platform will register the first 400 vendors at the same time. By the end of 2020, according to forecasts by the team, more than 3,600 vendors will operate on the marketplace:

Most of the funding obtained will obviously go on attracting customers; to launch the Hamster Marketplace platform it is enough to collect a soft cap of $2 million. Thus if the team's calculations are correct and the marketing strategy is chosen correctly, the more funds the project raises during the crowdsale, the faster the growth rate for medium and long term utility token demand.

Most of the infrastructural demand will be compensated by infrastructural supply. The volume of tokens for sale which does not exceed the vendors’ margin, the volume of tokens for paying vendors and the volume of tokens for access to additional functions which do not exceed the Hamster Marketplace margin (29-68% according to the team's forecasts, depending on the amount of funding raised during the ICO) and the volume of tokens for verification deposits will be withdrawn from circulation.

The team plans to spend most of the funding raised during the ICO on attracting vendors. Moreover, token demand and the Hamster Marketplace margin are closely correlated with the number of vendors and with the success of the ICO. In this sense, the risk for a token holder is both the amount of funding raised at the ICO (in terms of reducing the risk it makes sense to invest in the project at a time when the results of the crowdsale are already clear) and the correctness of the chosen marketing strategy.

From an economic point of view, the risk is in the team's promise to subsidize infrastructural demand for tokens due to marketplace profits. This risk is difficult to control, since the future exchange price for tokens cannot be predicted and the team undertakes the obligations in the documentation.

Competitive risk must not be ignored either. This is partially offset by the fact that the team is planning to create a niche marketplace, for which competing with the market’s big players does not seem impossible.

 

 

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.