Ubex Rating Review

Positive

Investment Rating

Expire date : 13.11.2018


We assign Ubex a “Positive” rating.

The Ubex project creates a decentralized advertising platform that works with the use of blockchain and AI technologies.

We feel that this project is needed and that its ideas are justified and relevant. The growth prospects of the project are excellent due to the dynamically developing market. In our opinion, the Ubex team is experienced and has all the necessary skills for the successful implementation of their declared plans. The conditions of the ICO are transparent and fair, and we did not identify any particular risks that could have a significant negative impact on the project’s development.

The project also has a number of significant advantages over its competitors and plans to launch a working prototype on May 25th, which will be located at https://app.ubex.com. Due to a combination of these factors, we assign the project a “Positive” rating.

The Ubex platform provides effective interaction between advertisers and publishers who provide ad slots on their resources. The project operates in the field of programmatic advertisement, which selects the optimal advertisement for visitors and displays them in advertising slots. The Ubex founders hope to optimize the process of interaction with market participants by (1) replacing intermediaries with their selection algorithms which use artificial intelligence technology, (2) changing the principle of evaluating the success of advertising from a simple link click to a specified action on the advertiser's site and (3) writing the necessary information on blockchain to avoid fraud.

The project aims to solve the problem of inefficiency in the existing mechanisms of interaction between advertisers and publishers, without expensive intermediaries and interaction principles, such as the advertiser paying for somewhat unnecessary actions which are easy to simulate, like a banal link click, on behalf of the potential client.

The project operates on behalf of Ubex AI AG, a company registered in Zug, Switzerland, which is staging an ICO in order to raise funds for financing the development of its own solution based on AI technology and promotion.

UBEX tokens will serve as the currency for transactions between the platform participants and, therefore, will perform a utility function.

Website

Whitepaper

Token: UBEX on ERC20

Token distribution: Total emission – 4,000,000,000 tokens:

  • Community – 72%

  • Team & Advisors – 15% (with a 1 year freezing period)

  • Reserve – 10%

  • Bounty – 3% (with a 1 month freezing period)

All unsold tokens will be burned. There is no additional emission of tokens. In the event that all of the tokens intended for sale are not sold, the shares of the team, the reserve fund and the bounty will not be proportionally reduced.

 

Round 1: Public sale.

Start: 21.05.2018

End: 13.08.2018

Soft Cap: 4,000 ETH

Hard Cap: 24,000 ETH

Price: 0.00001 ETH

Bonuses: 20% in the first week, 18% in the second week, 16% in the third week and so on.

Minimum Buying Transaction: 0.01 ETH (or equivalent)

Maximum Buying Transaction: no limit

Accepted currencies: BTC, ETH, LTC

Preliminary rounds of sales were not conducted. If the Soft Cap is not reached, all funds raised will be returned to the participants.

Funds allocation: not disclosed

Token Issue Date: 14.07.2018

The token price after emission will be determined by the terms of the market. The company can act as a market maker to prevent strong price drops using funds that are planned to be replenished from the platform commissions.

To participate in the ICO, users must register and pass the KYC procedure by providing personal information in order to receive UBEX tokens in their wallets after the token emission.

Citizens and residents of the USA, Iran and North Korea are not allowed to take part in the ICO of the project.

One of the main ways many sites earn money is by providing special ad slots. At the same time, advertisers are interested in having their ads shown to people closest to their target audience. Thus, there are two main tasks: (1) the effective search for sites where these ads will be shown to particular visitors, and (2) the regulation of the relationship between the advertiser and the owner of the resource due to impossibility of doing this manually. Such tasks are implemented by a professional area called programmatic advertisement.

Simply, the process of advertising demonstration can be described as follows. The user comes to a site where there is an ad slot. Next, the user data available from their browser is analyzed in order to determine their interests. On the basis of this data, an optimal advertising offer is selected, which will be suitable for this particular visitor and it is loaded on the page.

Currently, this choice is made at the expense of third-party services and special agencies, which provide their algorithms in the form of a service so that advertisers and publishers can meet automatically. The problem is that the cost of these third-party services significantly increases the cost of the entire process. Another significant drawback is that the key method for evaluating the effectiveness of such ad slots is to count the number of clicks on the advertiser's link attached to the advertisement. At the same time, the payment for placing advertising essentially depends on this number of clicks, which generates the risk of cheating on the side of publishers. This leads to an increase in the profits of the owners of Internet resources, but it harms advertisers, as they waste their budget on nothing.

There is one other important problem. These intermediaries have an ample amount of opportunities for precise targeting (due to a large accumulated database of user data), but they do not use it as effectively as they could because they are reluctant to reduce advertising budgets. For example, large advertisers allocate $10 million to the annual advertising budget in systems such as Yandex, Google or Facebook. Since these intermediaries earn commissions from the amount spent, it is not profitable for them to spend $2 million instead of $10 million, despite having the same efficiency for the advertiser. At the same time, advertisers cannot influence these systems in any way, since they are centralized, i.e. closed.

The Ubex project offers several solutions to these problems. To begin with, the founders offer to create another model for analyzing the effectiveness and cost of the placement of advertisement. Link clicks do not give a true reflection of​​ whether an advert was useful for the user or not. What really matters is what the user did after clicking the link to the advertiser's site (and the project will also track other ways of getting to the advertiser's site after viewing the advertisement). It is suggested that monitoring user activity in relation to predefined scenarios, for example, registration, viewing specific events or sections on the site, etc. The reason is that the indicators for such actions show a real result from the advertising campaigns and to fake them is much more difficult than just simulating a link click. To eliminate the likelihood of dishonesty on the part of advertisers, a site with ad slots and the advertiser's site will be monitored using embedded applications and the necessary activity data will be recorded in an Ethereum blockchain smart contract.

The Ubex project offers to solve the problem of ineffective and expensive mediation in the selection of advertising offers for a particular visitor by using artificial intelligence technology. The screening will occur in 3 stages. First, one neural network will evaluate the preferences of the user who visited the site in different categories. Then, the second neural network will select suitable candidates for each ad, taking into account these categories. The third neural network will predict the success of the placement of the advert for this particular visitor and the choice of a suitable advertising banner will be made based on this forecast.

The platform will have two different interfaces for publishers and advertisers. They can correct key tags regarding the area of ​​interest of their resource and set up various restrictions by using these interfaces. Furthermore, all the necessary information is recorded in smart contracts based on Ethereum blockchain, except for large data, access to which is determined through the URL.

According to the team, the main task for the developers is to create a simple, yet intuitive interface without a large number of settings, which is designed to be able to be used by all kinds of users, from professionals to market newcomers. The application of artificial intelligence makes this possible.

The following sections and functions will be available in the released MVP:

  1. Authorization using MetaMask and other traditional methods of identification. Ethereum Wallet, as well as Trezor and Ledger are coming soon.

  2. Creation of an advertising campaign in 4 steps.

  • Step 1 - select the purpose of the advertising campaign.
  • Step 2 - enter the basic settings of the campaign (audience, geolocation, age restrictions, languages, targeting by category, interests).
  • Step 3 - create promotional materials (text, feed, article, widget designer).
  • Step 4 - select the advertising budget and launch the campaign.

3. Compilation of reports on advertising campaigns (filled with test data for demonstration purposes at this stage).

4. Billing system including the ability to view the history of remainders and balances.

5. Advertiser identification mechanism, form filling, and document uploading.

6. Sections with pages containing information about the Ubex advertising platform (FAQ, Whitepaper).

7. Lists of advertising campaigns created on blockchain (planned for the next major release). An API for connecting to the blockchain during the development process (the code is available here). The prototypes of smart contracts are ready (codes are already available on GitHub).

8. Addition of advertising campaigns to the blockchain via the API.

9. Preview pages with future functions (decentralized apps) and services for publishers.

The main functions of the platform, such as the configuration of the artificial intelligence construct, control of access to data, the review and editing of data using blockchain technology, a working rating system and much more will be implemented and available in the released version of the product.

In our opinion, the use of blockchain and artificial intelligence is suitable for solving the set tasks in order to select the optimal advertising offer. Smart contracts will make the relationship between advertisers and publishers transparent and fair, minimizing the risks for both parties and the proper application of neural network algorithms can significantly increase the effectiveness of targeting and use of advertising budgets as a result.

The project documentation provides a very detailed analysis of the Ubex target market, supported by links to the sources of data used. According to the text, the total volume of the advertising market as estimated at $500 billion in 2017, 39% of which belongs to the digital segment. The revenue of programmatic advertising was $24 billion, and it is projected to grow to $42 billion by 2020.

The data of Statista analytical portal slightly exceeds that of the above figures. They estimated that the digital advertising market was worth about $247 billion in 2017:

       

The key markets in this area are the US and China leading with a large margin:

       

At the same time, eMarketer predicts higher growth rates for the cost of digital advertising in China than in the US, as a result of which the gap between them will be reduced:

As can be seen from the figures presented here, the digital advertising market is developing dynamically and it provides strong growth prospects for the project. However, it cannot be said that no one else has claimed to this market. In addition to the huge number of existing players, several projects, which also use blockchain technology in one form or another, are currently being prepared for launch, which indicates a high demand in the market for a solution to this problem.

Amongst the direct competitors of Ubex, it is possible to single out projects such as MAD Network, Adshares, Exchain and so on. The first two have already completed their ICOs and the public stage of Exchain coincides with Ubex’s timings. No one has a finished product completely and Exchain promises to launch theirs faster than the rest, in November 2018. MAD Network and Adshares, along with Ubex, are planning to launch their platforms closer to the beginning of the 2019.

A comparative analysis of the characteristics of the main competitors of Ubex is presented in the following table:

Technologies

Ubex

MAD network

Papyrus

Adchain

Adex

Exchain

AdShares

Fully Decentralized System

Yes

yes

Yes

no

Yes

yes

yes

DAPP support

Yes

 

no

 

yes

-

no

Blockchain

Ethereum

Own

Ethereum Hybrid

Ethereum

Ethereum

n/a

Ethereum

DDMP, DSSP support

yes

yes

yes

no

no

no

no

Advanced verification

yes

-

-

yes

no

yes

yes

Token mining

yes

yes

yes

no

no

no

no

Antifraud protection

yes

-

-

yes

yes

yes

no

Programmatic Support

yes

yes

yes

-

yes

yes

yes

Widget Customization Support

yes

No

no

no

no

no

no

Fiat currency support

yes

No

no

yes

no

no

no

Cryptocurrency Support

yes

-

-

-

yes

yes

yes

24-hours API

yes

-

-

no

no

yes

no

Multiple Campaign Types Support (CPA, CPL, CPI, ...)

yes

No

no

no

no

no

no

Multi language Support

yes

-

-

-

-

-

no

Neural Networks Support

yes

no

no

no

no

no

no

Advanced Ranking System

yes

no

no

no

no

no

no

24-hours Statistics

yes

-

-

-

no

yes

yes

Real Time Learning

yes

no

no

no

no

no

no

Learn Model Tuning support

yes

no

no

no

no

no

no

Convenient DMP & DSP integration

yes

no

no

no

no

no

no

Crypto payout

yes

no

yes

no

no

no

no

 

As can be seen from the data above, Ubex is ahead of the other market players in terms of its number of characteristics. However, the key difference between Ubex and its competitors, is that Ubex is not just a place for algorithmic traffic purchase, but a system in which artificial intelligence plays a main role. Despite the fact that a number of the projects, such as, Exchain and MAD, declare the presence of AI in the system, AI does not play a main role in it. In Ubex, AI constantly improves the quality of advertising purchases, makes qualitative detection of fraud and causes the least rejection of the audience, as it shows the most relevant advertising.

In addition, some other important differences between Ubex and its competitors are its ability to create campaigns to solve the advertiser's tasks at various stages of the sales process, to work with CPS, CPA, CPL, campaigns aimed at brand recognition and attracting a new audience to the advertiser, market instruments in the form of DSP and DMP, and fiat payments.

In our opinion, it is unlikely that any of these projects will be able to capture a significant part of the market, taking advantage of the "low base", since the initial competition will still be based on existing centralized services. Setting up business processes and building mutually beneficial partnerships with new companies will also take considerable time and effort, so the one who can offer users the most convenient and profitable product will be able to win this competitive race.

The team of the Ubex project consists of more than 30 specialists whose key members have a wide range experience from marketing to information technology.

Artem Chestnov (LinkedIn) – Co-Founder and CEO of Ubex. He has worked in the marketing sector in several companies for more than 15 years, including Avery Dennison and Belgian Anheuser-Busch InBev, which is the largest brewing company in the world. Artem has held executive positions in both of the companies mentioned above. He is also an investor and a Member of the Board of Directors at Reborn, which creates and distributes innovative food products. From the middle to the end of 2017, Artem served as the Managing Director of the LAToken project where, apparently, he got acquainted with blockchain technology, the prospects of which inspired him to create his own product.

Daniel Biesuz (LinkedIn) – Co-Founder and Head of Legal at Ubex, he has extensive legal experience due to his specialization in M&A transactions in Switzerland. In addition, Daniel advises several other projects in the legal field, as well as being an investor and CEO in some of them.

Guy Weissman (LinkedIn) – CTO and Data Analysis Expert at Ubex, he has experience in several large companies, among which the most famous is Alphabet, the parent company of Google. In 2017, Guy founded his own project called DataFusion, specializing in the development of solutions based on artificial intelligence.

The rest of the team includes specialists in the fields of blockchain, development and sales. Separately it is worth highlighting that part of the team focused on the development of the community around Ubex, apparently, the target market of the project is primarily the Asian market.

The project advisors are Ismail Malik (LinkedIn), Arie Orlovsky (LinkedIn), Michael Gord (LinkedIn) and Cecilia Mueller Chen (LinkedIn), advising Ubex on issues such as marketing, technical problems and compliance. Most of the advisors have extensive experience in the field of blockchain and ICOs, as well as having quite an influential status in the community, which can provide substantial support to the project.

UBEX tokens are ERC20 tokens which will be used to carry out transactions between direct participants of the platform, publishers and advertisers. Therefore, making the project tokens a means of payment.

Publishers who place ads will be able to earn additional UBEX tokens by providing statistical data on advertising displays to the platform core which will help improve its algorithms. The project will allocate 5% of all revenue from token transactions on the platform for these purposes.

According to Ubex’s documentation, the creation of a proprietary token is due to the need to be able to write off funds from the advertiser's account for achieving targeted actions. Existing cryptocurrencies do not allow the transfer of funds from third-party wallets, even if they have the permission to do so. Using the UBEX token allows one to set quotas for specific addresses, which lets the owners use the funds available to them according to established rules.

Since the token is a means of payment, the total impact on its rate will be provided by the total number of participants on the platform and their activity. Furthermore, the success of the implemented tools based on AI technology will lead to a more optimal search for advertising offers for a particular user and, therefore, will increase demand due to the rapid flow of advertising campaigns.

In addition, once a quarter the company will use 20% of the proceeds from commissions for the buying back of tokens and subsequently burning them, which will result in the gradual decrease of the volume of UBEX tokens in circulation. Therefore, from our point of view, the main factors influencing the growth dynamics of the token price are the increase in the number of platform participants and the improvement of the mechanisms used in the project's neural networks, which will require time and data for fine-tuning.

In the short and medium-term, the key factors which will influence the value of the token, will be the marketing campaign of the project and the volume of tokens entering the secondary market. Currently, the project conducts an active marketing campaign, taking part in all key conferences and other events of the crypto sphere. We assess positively the proportion of issued tokens: the vast majority of coins will be sold to ICO members without high bonuses and discounts, and the team’s and advisors’ tokens will be frozen for 1 year, which means that the value of the UBEX token decreasing immediately after the end of ICO is unlikely. In the event that there is no sufficient demand for UBEX tokens in the secondary market, the price may be affected by the bounty tokens, which will be distributed among the participants one month after the end of the Token Sale. During this period some of the coins reserved for the reserve fund may also enter the market. However, this amount is unlikely to be significant, since the team will most likely spend it gradually.

The key moment after which we can expect a significant increase in token demand will be the launch of the main product scheduled for March 2019. In the case of a successful and timely start with established business processes and properly configured neural network algorithms, Ubex has excellent long-term prospects and looks quite scalable.

The founders identify several risks inherent in the project. The risk of a strong competitive environment is expected for almost every new project. AI technology is becoming more and more popular, therefore, if the idea of ​​Ubex justifies itself in a practical way, the emergence of competitors of varying degrees of power is very likely. The project offers using new principles to work in this field, so a successfully implemented technology that provides a large increase in efficiency will begin to change the market itself, just as it happened with the Cost per Click principle. But it is important to note that by the time when the superiority of the new principle becomes clear, the Ubex project will already have gained a lot of experience and the results will be very difficult to repeat. The solution is very difficult from a technical point of view, so the entry threshold is very high for the competitors.

Other risks identified by the founders are common in all blockchain projects. These include the possible tightening of the terms of regulation and the problems of liquidity and volatility of the token price. Both are difficult to predict and estimate, with only some precautions being able to be taken. The founders state that in order to keep up-to-date information on legal issues, they will cooperate with leading law firms specializing in the circulation of cryptocurrencies. There is a reserve fund of UBEX tokens at a rate of 10% of the original issue for leveling liquidity problems. Reserve funds are also planned to maintain using part of the platform fees.

We consider the risks of unfavorable market conditions in the advertising market and the failure to comply with the timing for the release of the beta version of the product as the least significant risks that the founders singled out. Market reviews and the high competence of the project team allow us to assess these risks as unimportant.

We could also mention the risks associated with the complexity of training neural networks. This can take some time but the project team has several strong specialists in this area, therefore we estimate these risks as insignificant.




 

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.