Opporty Rating Review
|Start ICO||11 Aug 2018|
|End ICO||15 Sep 2018|
We assign Opporty a “Stable+” rating.
Opporty is a three-tier business platform that combines the use of the Proof-of-Expertise protocol (PoE), a scoring mechanism and the B2B marketplace, to implement the verification and validation of service providers' expertise / quality by analyzing the metadata about transactions. The project is run by an experienced team, whose technical specialists have previously worked together in the Clever Solution project.
The economy of the token has been qualitatively worked out. It should be noted that the project is planning to implement the masternode mechanism and some infrastructure functions of the token, which will be immediately available after the ICO on the already launched MVP. All this can be seen as strong points of the token economy.
Opporty will operate in a highly competitive market. The project has certain advantages over its competitors and the market capacity is sufficient to ensure that several dozen large players can work in it simultaneously. The big advantage, which distinguishes the project from its competitors, is their use of the Proof-of-Expertise protocol and a scoring mechanism for assessing business expertise. However, Opporty may face problems related to its positioning and scaling: the project is aimed at the large markets of the US and China, planning to work in the fields of law, accounting and logistics. These are highly competitive areas where it will be very difficult to prove their advantage when compared to the traditional markets. In general, if the platform demonstrates a qualitative scoring analysis of a business in any industry, this problem will vanish.
Looking at the competitors, we also note the risk associated with the correlation between the success of the crowdsale and the success of the product. In our opinion, the achieved soft cap will not be enough for a full-fledged project implementation. In this regard, early ICO investors carry greater risks than later ones.
General Information about the Project and ICO
Opporty is a project that offers a B2B and B2C solution for both small businesses and large corporations, such as validating the level of expertise of individual suppliers for corporate and government supplies, for conducting safe, private transactions, etc. It is an ecosystem for the interaction between businesses and users, which consists of 3 layers: Proof-of-Expertise protocol, scoring mechanism and B2B marketplace.
Opporty is planning to ensure the transparency and security of business transactions, to standardize business procedures and create a productive, confidential environment which allows companies and consumers to interact. In addition, the company is planning to establish new rules for interaction between companies, service providers, and customers, by using a system of incentives. The marketplace will unite all of the users into one ecosystem and help them to share their knowledge and experience in order to strengthen their own professional reputation and create communities.
According to the information presented on the website, the project solves the problem of improving the competitive environment in the service sector, creating a transparent and honest ecosystem, where any business can present its services to other participants, and the users can count on quality service delivery in accordance with their expectations with help of blockchain, smart contracts and escrow. In turn, the validation and verification of vendor expertise is implemented by the Proof-of-Expertise protocol and scoring mechanism that collect and analyze the transaction metadata.
The project has demo version of the marketplace, where the users can evaluate its future functionality. The project is staging the ICO to complete the creation of a full-fledged product, as well as to issue its own token which plays one of the most important roles in the future operation of the platform. Tokens are planned to be used as a form of payment for additional services on the website, such as advertising, increasing the search level, etc., and as a reward for the users for sharing their knowledge and experience.
40% - among the first round participants
25% - reserve for the future development (frozen for 1 year)
30% - remuneration of the team (frozen for 1 year)
5% - community reward and Bounty
The funds raised are planned to be spent on development and promotion in the following proportions:
Total emission: 625,000,000 OPP
Unsold tokens will be burned
Round 1: Public pre-sale (05.02.18 - no data)
- Price: ETH 0.0002 (Bonus 5-35% in tokens)
- Raised: $ 1,200,000
- Minimum Buying Transaction: 0.5 ETH
- Maximum Buying Transaction: no data
Round 2: Public ICO (TBA)
- Price: $0.0002
- Soft Cap: $ 1,000,000
- Hard Cap: $ 15,000,000
- Minimum Buying Transaction: 0.1 ETH
- Maximum Buying Transaction: no data
Token Issue Date: no data
Lock-up: no data
Escrow: no data
According to the White Paper, the distributor of tokens is Opporty International Inc., registered in the USA, in Delaware (The Green Street, # 8 Office # 7763 Dover, Delaware). The domain of the website belongs to Sergey Grybniak, the founder of Opporty.
Description of the Services and Scope of the Project
Opporty is a three-tier blockchain business platform which consists of the Proof-of-Expertise protocol, a scoring mechanism and the B2B marketplace. Opporty provides you with a wide range of opportunities in the choice of any service in a convenient format, with a focus on the verification and confirmation of the expertise of suppliers through blockchain. The users (consumers) are protected from the poor-quality provision of services due to the blockchain, smart contracts, escrow procedure, scoring and the Proof-Of-Expertise protocol. They can conduct safe, private transactions and establish effective tracking in supply chains.
In addition, the project is distinguished by its own platform for sharing knowledge among its participants. This enables them to build a system of ratings, incentives, and create high-quality reviews for the services presented in the marketplace. It also involves the business community in creating a transparent and competitive platform for interaction with consumers.
Opporty is planning to attract both service providers, mainly companies (legal entities) and ordinary consumers, consisting either of ordinary users (individuals) or companies interested in B2B interaction. The platform is planning to use both desktop and mobile applications.
The main services of the company are given below:
For service provider companies:
The first and the most important function of the platform is that it gives the service providers the possibility of placing an offer for other service providers. The main advantage of the platform is that the founders see the opportunity for small and medium-sized businesses to place their services in the marketplace on an equal basis with large businesses which can often leave no opportunities for the development of competitors with a smaller scale.
The founders of the platform promise a "smart filter" when searching for services in the marketplace, as well as their own technology for issuing offers for a particular niche. This creates additional motivation for service providers and attracts the target audience.
The smart contracts and decentralization, as well as the Proof-of-Expertise protocol and the scoring mechanism allows the platform to solve the problem of "credibility" when interacting with young and small companies. Many users are afraid to buy services from companies whose names they do not know and may miss the opportunity to purchase a service better and cheaper than of the more popular competitors.
In fact, Opporty is the guarantor for the performance of obligations between the supplier and the consumer of the service due to blockchain technologies and escrow procedures.
Placement in the "slots" of the marketplace will occur in OPP tokens. Service providers will also be able to purchase additional platform services to increase the benefits in a competitive environment, such as platform advertising, etc.
The platform involves gamification and token rewards for the performance of tasks, writing content in one’s field of expertise and increasing the transparency of the company.
For the users:
The users are able to find and select the service they need in the marketplace without the fear of poor quality (by assigning the Opporty Rating to the suppliers).
It is possible to offer of services through blockchain. Such offers involve the use of smart contracts and they are protected by the escrow.
An important feature is the ability to pay in crypto and fiat.
The users can earn platform tokens by performing certain tasks and creating high-quality content within the knowledge-sharing platform.
One of the main advantages of the platform is the ability to accept payments both in cryptocurrency and fiat on the platform and off-platform with the help of special widgets that will be introduced into the websites of the participants and partners. They plan to use widgets and wallets to enable companies to accept payment for their services freely, not only by conventional means of payment but also in cryptocurrency, which is currently a serious problem, since it is difficult for companies to account for this in management accounting. Recently, Opporty successfully tested the reception of cryptocurrency in a legal entity in the US, which shows the promise of this direction . We are sure that many companies want to accept cryptocurrency, but they have difficulties with integrating, implementing and notifying the target audience. When the platform appears, we think that this will be a good channel for attracting additional customers.
The knowledge-sharing platform, as well as the gamification and the ability to earn tokens to pay them on the platform are a good decision. This will help start-ups and young companies that have more time resources than money to develop and promote their business on the platform, attract customers and earn a reputation. Young businesses always have the problem of "low base", when the first clients are very important, but businessmen do not know how to attract them. If the platform can solve this problem, it can turn out to be a really high-quality and popular portal for young companies.
However, it should be noted that there are a lot of service marketplaces worldwide. All of them solve the problems of the poor quality of services in different ways. Basically, it is ratings and reviews of services and products. There are also various freelance portals, where the reputation, reviews and other performance metrics (timing, price, etc.) are among the most important for the users’ choice. The retail internet giants, Amazon, Alibaba, etc. are of a different segment, but similar in essence and have a long practiced similar approach which lies in the possibility of providing its product in the marketplace, a rating system, arbitration disputes and refunds for cheating / defective products or misleading information. This system has successfully shown its scalability. With all this, young companies also have the opportunity to offer their products and compete with the price and rating system.
All this raises the question of how much the blockchain and escrow procedure are needed for this format, and, most importantly, how to scale it. We think that there are 2 important points in the escrow system: the complexity of scaling and the inevitability of manual moderation. The selected escrow system is complex in terms of procedure and it is described in general terms, although this is one of the key features mentioned by the developers. What kind of competencies should they have, what characteristics can be assessed and what issues could cause an argument possibly - these are all burdens of disputes they can bear - these are all issues that the developers have to solve. Whatever smart contracts have been written, whatever oracles have been used, it is impossible to provide all the subtleties if the marketplace is not a niche but a vast one and this means that manual or semi-automatic moderation is necessary.
We are not saying that blockchain is not applicable here. The problem of verification of reviews is urgent for many users of online stores. Many companies artificially overestimate the ratings with many reviews being bought and written to order, which creates a distorted picture for the consumer. A system where it will be impossible to forge a review, where the review can only be written by those with the status of consumer of this service. This is aimed at minimizing the probability of fake ratings and reviews, which will give the platform a reputation of transparency and solve the problem of asymmetry of information between the consumer and the supplier. However, the Opporty platform is strong precisely because of the PoE protocol and the scoring mechanism, which are used simultaneously and will minimize the problem of choosing a poor service in the future, provide verification and validation of providers and companies involved in domestic, cross-border and other transactions, supply chains, supplying corporate and government organizations.
Thus, there are two types of participants on the platform - service providers (companies) and users. All payments on the platform will be implemented both in its own cryptocurrency and in other cryptocurrencies or fiat. However, it will be possible to pay for some of the services only with its own cryptocurrency.
It is important that the founders demonstrated the MVP of the marketplace before the ICO, which is an important step to increase the credibility of the project.
It is extremely difficult to assess the potential market for the project, since the markets which the project enters are very broad: legal, accounting and logistics services in the US and China which are first priority. We think that an emphasis on any single sector will increase the trust of the community and demonstrate their expertise.
Currently, the platform mainly provides services in the following niches: legal services, accounting and logistics (for the US). Potentially, any other services that can be outsourced to both individuals and legal entities can be added to the platform.
4.1. Market analysis
Since the services of the small and medium-sized providers, as well as freelance services, are extensive, we single out a number of markets where the project could occupy a certain share:
- Legal and tax services, mainly for individuals.
- Freelancers, P2P services, home services, cleaning, etc.
- Internet marketing services, CEO-promotion.
We will evaluate the US market in our analysis as a market the platform focuses on. We believe it is correct, because the US share in the global service market is high. For example, the share of the US legal services in the world market is about 45%.
Legal and tax services
In 2018, the legal services market was estimated at $288 billion in the US . Nevertheless, if we subtract large firms, the segment of small and medium-sized businesses will be approximately $181 billion.
The market is extremely competitive, so we estimate that the project would take no more than 0.5% of the market. It should be understood that the market size is related to the monetary valuation of the services provided. Since the platform takes a commission from the intermediation + the additional sales of one’s own advertising and other services with a commission of 6% of transactions described in the project documentation. Revenue from this sector can be 0.5% * 181 * 6% = 54.3 million US dollars with an extremely successful product and marketing component.
The economy of free earnings consists of freelancers, traders, home service providers, providers of digital services and independent professionals. It grows very quickly, as more people prefer flexibility and control over their careers. It is projected that it will grow by about 40% of the current values over the next ten years and it will become a market with more than 200 million employees and a total volume of transactions of about $2 trillion.
The generation of millennials is already called the generation of freelancers with more and more people choose freelancing instead of wage labor.
According to the Freelancers Union and Upwork, the volume of the US freelance services market was estimated at $1.4 trillion in 2017. More than 57 million people are involved in this sector and it continues to grow.
Since the market of freelance services is not only P2P but also hiring by large companies, we estimate the maximum occupied market share can be 0.1%, which is $1.3 billion with a commission of 6%, the project can count on a revenue in the amount of $78 million.
Internet marketing services
According to PwC , revenues from Internet advertising in the US amounted to $40.1 billion for the first half of 2017. The growth is 22.6% compared to the first half of 2016 (the growth was about 20% in 2015). This is about $80 billion US per year.
The average market growth was 15.4% for the period 2008-2017, especially in the mobile Internet advertising market.
We consider this market to be extremely promising and we forecast an opportunity to occupy about 0.1% of this market which is $80 million. However, if the markets described above are able to generate enough transactional income, there is the opportunity to earn on domestic advertising. We expect that this sector will become very popular with the successful development of the service on the horizon.
Transport and logistics began to go digital in 2017. More and more automakers are completing the tests and preparing for the commercial launch of autonomous vehicles. This created the prerequisites for the autonomous auto industry to become one of the most competitive and technically attractive in the next couple of years. According to BI Intelligence, the acceleration of e-commerce growth and the growth in demand for freight opens up opportunities for the development of digital technologies in the global logistics industry, which is estimated at $4 trillion.
Most of the main providers of logistics services have not progressed beyond the research stage in the development of blockchain. For example, UPS and FedEx have recently joined the research and standardization group for blockchain. Next year, logistics providers will go beyond the research phase and move to the test phase of using blockchain. They will seek to use partners in both the financial and technical sphere that can help them move forward. The use of blockchain to register and track shipments and transactions will be beneficial to all players in the logistics ecosystem, including shippers, carriers, insurers and financial institutions, as it will increase transparency and reduce back-office costs. In addition, the introduction of blockchain to the logistics industry will lead to the emergence of new revenue opportunities for technology companies that can provide hosting and consulting services for the blockchain projects.
In general, the logistics sector not only needs to assess the quality of its services due to the large number of companies and the large size of the market but will also actively use blockchain in its development which will positively impact the project due to the synergistic effect.
4.2. Competitive analysis
As noted above, the competitors tend to focus on specific niches rather than trying to cover the maximum number of sectors. If we take the marketplace of all sectors, there will be a huge number of them. We tried to highlight the most vivid companies, in comparison with which we can identify the strengths and weaknesses of the Opporty project.
Avvo.com – A company based in Seattle, Washington. It is designed to facilitate the search for legal assistance and enable people to find a lawyer through a service marketplace with the help of an experienced lawyer, Mark Britton. Avvo declares that 97% of all lawyers in the US are evaluated by the platform and most lawyers have profiles and reviews. It should be noted that in the process of creating the product in the period of 2007-2015, the company raised about $132 million of venture and private capital. In 2018, it became known that Avvo will be acquired by Internet Brands, Inc. An approximate valuation of the transaction is $650+ million.
UpCounsel – An American company founded in 2012 in San Francisco. It is a marketplace of legal services that allows users, mostly legal entities, to find and hire lawyers using the website. The website connects both sides (supply and demand) in the market of legal services, identifying the needs of the client and finding a lawyer with the correct experience. UpCounsel provides services in various legal fields, including business foundation, trademarks, patents, employment, copyrights, immigration, real estate, etc. The company has raised about $14 million of venture and private capital.
Upwork – An American company with Greek roots, located in California. Upwork is a global marketplace for freelancing, where the legal entity and independent specialists cooperate with each other remotely. As of March 2017, the service reported about 14 million users in 180 countries, with $1 billion in annual transfers to freelancers.
Fiverr – An Israeli marketplace freelancing services. It is one of the world’s largest online freelancing services and one of the 100 most popular US websites. The total volume of attracted financing at different rounds was $110 million.
Canya – A blockchain P2P marketplace which gives users the freedom to hire experts and qualified professionals anywhere in the world. The project has attracted funding on the ICO. According to Coinmarketcap, the current capitalization is $24 million. Tokens are used for the platform ecosystem, payments and incentives to users.
Crystal-clear - Another blockchain-based service marketplace. The project wants to reduce the role of mediation in providing freelance services, create a decentralized model of interaction with honest and transparent reviews and ratings. Like Opporty, the project is planning to use escrow for arbitrage. However, judging by the capitalization schedule on Coinmarketcap and the activity of the founders, the probability of reaching the goal of the final implementation is not high.
Nuhelp – Is a service marketplace which uses EOS blockchain. The emphasis is on the market of home services and expert services. It will take crypto and fiat currencies, and developing their own wallet is also planned. Currently, the project has passed the pre-ICO stage and it is preparing for the ICO.
The existing competitive environment can be represented in two states: successful non-blockchain services and beginning blockchain services, located approximately in the same phase of development as Opporty. At this stage, Opporty has differences from both serious established players and decentralized projects that stage their ICOs. Using the word "blockchain" will attract a certain audience and it will allow the project to take a share of the traditional market. The development of the B2B segment on the marketplace favorably distinguishes Opporty from its blockchain competitors that specialize only in freelancing and home services.
However, looking at the competitors, it becomes difficult to understand how a product can be created when collecting less than 5-10 million dollars. We are sure that it will be impossible to create a minimal product with the reached Soft cap of 2 million dollars. It is also necessary to understand how the project will carry out marketing after the ICO, i.e. attract and motivate service providers. We see many difficulties in collecting a large number of companies, as well as high marketing costs for attracting users.
The makeup and structure of the team can certainly be considered as a strong point. The fact that the team already has a working prototype of the marketplace., is also another strong point.
It is worth noting the strong composition of the Advisory Board. There are world blockchain and ICO specialists, which allows us to assume that they have a wealth of experience to call upon in order to provide qualified advice. The legal aspect of the issue is important for the company's product, since the company is located in the USA.
The composition of the consultants and the team demonstrates the understanding of the development strategy and of future legal, technical and marketing complexities. Important legal and financial experts of the US, such as Wulf Kaal and Henry Ines are particularly noteworthy.
There are 25+ people in the team and 10 advisors.
Key team members are:
SERGEY GRYBNIAK – He is the Founder of the project, graduated from Odessa National University in the field of management. He has more than 12 years of experience in the field of business and creating online platforms. He is one of the co-founders of the clever-solution.com service which offers online solutions for business in the areas of marketing, development, promotion, design, etc. He has extensive experience in Internet marketing and web development and has worked on the project for more than a year allow us to talk about the competence of the project manager.
ALEX BILICHENKO - Co-Founder of Opporty. He has a Ph.D. and is a specialist in the field of artificial intelligence. He graduated from the Moscow Institute of Physics and Technology, one of the leading Russian universities. Has 12+ years of experience in development, quantitative analysis and investment banking. He worked in Goldman Sachs in trading, presumably in the field of HFT-trade. Has worked in trading and gained experience in companies with a worldwide reputation.
KATERINA SUKHENKO - Project Manager at Opporty, she graduated from Odessa National University. Responsible for the development of project prototypes and workflow planning, responsible for making strategic decisions and manages the performance of the team. Has 5+ years of experience in project management. Collaborated with Sergey, the CEO of Clever-Solution.com
YURIY IVANKOV - PPC Manager at Opporty, he graduated from Odessa State Ecological University with a degree in Physics. He worked as an SEO and PPC specialist in projects under the CEO's leadership, has over 8 years of work experience.
Other specialists in SMM, testing and content management also got experience in the Clever Solution project and in other affiliated companies.
It should be noted that the core team is well-established and well-trained. On the one hand, it is good, given the mutual understanding between each other, however, on the other hand, it is bad as new members "from the outside" could bring a fresh look and non-standard solutions.
In addition to the experienced advisors, we did not see any inhouse developers in the field of blockchain, or any experienced marketing specialists listed. It is important to understand that a highly competitive area such as service marketplaces requires the highest listed level of marketing, not only context but also targeting, SMM, etc. We also did not see any experienced UI / UX specialists in the team, which is extremely necessary for a successful product in the future.
No negative or discrediting information, including those concerning participation in other ICO projects, has been identified on the Internet.
OPP is the utility token sold during the ICO. OPP tokens will be applicable for almost all platform functions. The tokens can be used as follows:
- Payment for Opporty services.
- Payment for the services provided by registered users of Opporty.
- Payment for advertising and priority placement on the marketplace.
- To execute transactions between service providers and their clients within the system by their mutual agreement. Utilization of crypto-enabled tokens makes blockchain-enabled transactions possible between parties by their mutual agreement, in accordance with the current terms of the law.
To participate in various activities on the platform (such as contributing to the Knowledge sharing platform) and receive rewards for those activities.
Tokens will also be needed to use the smart contracts available on the platform and to use the functions associated with the Proof-of-Expertise protocol. Tokens can be bought on the exchange or received as a reward for the provided service or activity on the platform.
Proof-Of-Expertise is planned to be built on the Plasma protocol. OPP token holders will be able to act as a master node for verifying and confirming transactions.
The integration of the OPP token into the ecosystem can be considered successful. The token demand will increase as the platform becomes popular. Fiat will create competition for the token since there are no discounts in tokens with respect to the fiat price of services. However, the team is planning to stimulate the use of tokens by non-monetary methods through the provision of an additional priority on the platform in terms of placement, etc.
Analysis of Factors Affecting the Future Price of the Token
Opporty has launched an MVP even before the completion of the ICO. Although the MVP offers partial functionality, it will be possible to use the OPP token on it immediately after the ICO. The token can be used to pay for the main services of the marketplace - the ad slot, the priority listing, etc. Transactions between platform users are also possible. This should be highly appreciated, since it is very rare to use the infrastructure functionality of the token immediately after the ICO.
The Roadmap is scheduled for alpha version only - until August 2018. The greatest interest for the token holder in the roadmap is the launch date of the alpha version of Proof-of-Expertise - June 2018. We note that the team did not talk about the size of the stake needed for the obtaining the master node. Nevertheless, the introduction of this mechanism will potentially have a positive impact on the token economy.
Within the first phase of the Token Sale, only 40% of the total emission will be sold. 25% will be frozen for the second phase, the date of which is not yet announced; it will be held approximately in a year’s time. The team promises that there will not be a public Token Sale. However, even in the case of the private sale, the number of free tokens may increase, and this risk should be taken into account by the potential ICO participants.
The division of the ICO into phase 1 and phase 2 is attributed to project risks for a potential ICO participant.
Competitive risks cannot be ignored either, although the team's approach in this matter seems more than reasonable and the market capacity will allow competing projects to exist. At the same time, we repeat that we see a strong relationship between the amount of funds raised on the ICO and the potential success of the product. From our point of view, the achievement of the softcap is not enough for the full implementation of the product and carrying out its marketing, which means that the risks for the early ICO participants are higher than for those who invest after the project collects $5-10 million.