We assign the World Wi-Fi project a "Stable+" rating.
World Wi-Fi offers a decentralized free Wi-Fi network based on private routers. We consider the idea of the project interesting and relevant for actual and potential internet users, as many are faced with finding a Wi-Fi network.
The project’s advantages include a relevantly-experienced team. The founders already have existing projects operating in 80 cities ("RadiusWi-Fi" and "Adrenta"), which suggests the necessary experience.
The legal aspect of the project is well-developed, from the acceptance of fiat funds from legal entities to advertising policy in accordance with legislation in countries in which the advertising is broadcast.
Demand for the WT token may arise after the launch of the platform and its integration with RadiusWI-FI and Adrenta (Q2 2018). In the process of integration into different regions in accordance with the road map, the token could be also interesting in the medium and long term.
However, the project has risks that prevent us assigning it a higher rating. These include:
- Currency risk
- A risk of pressure to increase the value of the token associated with the additional supply of WT
- The risk of competition, not so much among projects providing free Wi-Fi, but among projects involved in digital advertising
General information about the project and ICO
The World Wi-Fi project is a decentralized, global and free Wi-Fi network. World Wi-Fi gives access to the global internet to all users. For this they need to watch a promotional video lasting about 15 seconds. World Wi-Fi provides advertisers with access to their audience by connecting to private routers.
The World Wi-Fi project stimulates owners of routers to attract other owners via a referral program, and also via a chance to earn cryptocurrency from network participants' ad views. However, advertisers are attracted to the project by information gathered about each user including gender, age, region, search keywords and many other parameters. An advertiser has the ability to direct their ad to a target group that is essential to them.
The total number of issued tokens will be 600,000,000; there will be no additional issue. 258,000,000 tokens are available for the token sale; unsold tokens will be burned.
Allocation of funding will be as follows:
Smart contract platform: Ethereum blockchain
Contract Type: ERC223
Token: WeToken (WT)
Start Date: December 1, 2017
End Date: March 16, 2018
Total number of tokens: 60,000,000 WT
Token Price: 1 WT = $0.1
The ETH/USD and BTC/USD rate will be fixed as of 17.03.18. Therefore, all investments in the cryptocurrency at the stage of the Pre-Sale will be recalculated on 17.03.18 at current exchange rates, and corresponding bonuses will be received.
The amount of investment is accounted as follows: the current rate on the Bitfinex exchange
Minimum amount for one transaction: none
Maximum amount for one transaction: $2,000,000
Accepted currencies: BTC, ETH
- $50,000 and above - 25% bonus
- Up to $50,000 - 15% bonus
All participants in the pre-sale investing $15,000 or more will receive unique root referral links with zero commission.
All tokens unsold during the pre-sale will be used for the ICO.
At the time of writing, about $1.2 mln had been raised at the pre-sale.
Start Date: March 18, 2018
ICO End Date: April 18, 2018
Total number of tokens: 198,000,000 WT
Soft cap: $3,500,000
Hard cap: $25,000,000
Token Price: 1 WT = $0.1
Minimum amount of one transaction: none
Maximum amount of one transaction: $2,000,000
Accepted currencies: BTC, ETH
All participants in the token sale investing $15,000 or more will receive unique root referral links with zero commission.
7% of all tokens given to the founders will be frozen for 1 year.
5% of all tokens are reserved for team motivation; they will be paid as the project is being developed.
40% of all tokens intended for future development will be frozen for 1 year; they will be used for the development of the project:
No more than 10% can be sold in the second year.
No more than 20% can be sold in the third year.
4th year - no more than 30%.
The restriction on sale is removed after 5 years.
Below is a chart showing the distribution of funding raised during the token sale.
ADVERTISING AND MARKETING
EXPENSES FOR AGENT NETWORK (Engaging and training agents(webinars, trainings), advertising/technical support)
R&D (Developing firmware for all existing models of Wifi router, upgrading existing firmware, the Deal protocol and other elements of the blockchain platform
EXPENSES FOR BUILDING B2B NETWORK (Engaging and training agents to work with legal entities, advertising/technical support)
EXPENSES ON SOFTWARE AND HARDWARE
Description of the services and scope of the project
World Wi-Fi is a system consisting of three key elements.
- The owner of a router provides access to the open network and earns from connecting other users.
- An advertiser transmits advertising to their target audience, and then pays the router owner for ad views.
- An end-user obtains a free internet connection.
The router owner is connected to the system using ‘root’ or ‘basic’ invite. Root invite is only available if participating in the token sale to the tune of $15,000 or more; basic invite is available to everyone. Then the router owner registers in the system, installs the software, creates an open network and is able to offer free internet to others.
A user wishing to use free internet connects to an open network and watches an ad; free internet becomes available after this.
For each ad view a router owner is rewarded with tokens. The router owner also can set individual criteria for checking advertising content and set appropriate network parameters such as speed, the maximum number of connections and ad views, etc.
An advertiser also registers on the system; in their personal account they configure their ad (format, target parameters) and pay for the advertising campaign. All promotional material is then checked; the advertising campaign can then be launched. Big Data technology for gathering and analyzing data on user activity on the network is used on the platform; this technology enables an advertiser to show their ads only to users interested in them. After the end of an advertising campaign, the advertiser will be given a detailed report containing all the statistical information.
The World Wi-Fi platform is using the Ethereum blockchain. This technology prevents the falsification of data, controls ad views and guarantees rewards for owners of routers. A virtual agreement called Deal is concluded between the advertiser and hotspots. Deal is necessary to guarantee that both parties (advertiser and hotspot) can be sure that the advertising budget reaches its target and converts to the planned number of views.
Using targeting information specified by the advertiser, Deal creates an advertising campaign and determines its cost per router selected by the advertiser. Each time a new Deal is registered on the blockchain, WT Tokens are transferred from the advertiser's account to escrow connected to the Deal and transferred to the router owner after the end of the advertising campaign. After the completed advertising campaign, Deal automatically updates and adds information on a specific router. Then, the advertiser may view information on the conversion rates of their advertising campaigns via their GUI.
Deal is stored on the blockchain and in an advertising statistics database. This database stores more current statistics which are regularly transferred to the blockchain.
Thus the blockchain stores all the following:
- Payment information
- Number of WeTokens held by a participant
- Information on existing Deals: goals, statistics, advanced data regarding Deals in the advertising statistics database
- Information about hot spots: links to statistics and router owner accounts.
We believe that during its developemnt the World Wi-Fi team has planned the operation of their system clearly and professionally and chosen an appropriate blockchain platform. However, with the growth of the system the team will consider a more suitable platform for scalability. We support the intentions of the team to move to a more advanced platform, for example Graphen or any other DROS-like platform.
4.1 Market analysis
Each year the world wide web covers more and more of our lives. In January 2018, the number of people with online access reached 4.021 bln (total world population is 7.6 bln). Growth for the year was 7%.
Internet usage is unevenly distributed:
The highest penetration is observed in Northern Europe (94%), Western Europe (90%) and North America (88%); the lowest levels of penetration are in Central Africa and South Asia, but these regions are also witnessing the fastest growth. The number of users in Africa grew by more than 20% in the last year.
Top 10 countries by the number of internet users: China - 772 mln, India - 350 mln, USA - 277 mln, Japan - 110 mln, Brazil - 110 mln, Russia - 87 mln, Germany - 72 mln, Indonesia - 71 mln, Nigeria - 70 mln, Mexico - 59 mln.
According to the results of ITU’s research, the next billion users by 2020 will mostly be from the Asia-Pacific Region or North and South America, living in regions that are already within the reach of wireless and wired infrastructure, and be relatively well-off.
One recent trend is that an increasing share of mobile traffic goes not through 2G/3G/4G but via Wi-Fi, according to JuniperResearch. By 2019, mobile operators will retain only 40% of mobile traffic, and everything else will go through Wi-Fi channels. In Europe and North America 75% of all mobile traffic will go through Wi-Fi. Wi-Fi networks are becoming increasingly popular and are rapidly spreading. At the moment there are 262,262,359 Wi-Fi hotspots worldwide, of which 82% are home networks and only 18% are public.
With the growth of internet, network users are experiencing the following difficulties and problems:
- In many places there is no way to connect to an open Wi-Fi network. In many places it is impossible to use the internet since mobile internet is either not available there or is restricted and expensive, and existing Wi-Fi networks are usually private.
- Users have to pay for internet usage. Both mobile and home internet are paid.
With the development of internet use, the market for digital advertising is also growing. Digital advertising volumes will grow by 13% to $237bln. At the current growth rate by 2021, the market for online advertising may exceed the forecast value of $332 bln.
For different countries, the amount of expenditure on online advertising is of course different; the leaders in this area with a significant lead on other countries are the United States, China, the United Kingdom and Japan:
The market for Wi-Fi networks is rapidly growing as is the market for digital advertising. User preferences are changing daily; millions of people are accessing the internet for the first time, and they are contributing not only to the development of digital advertising but also to the virtual world in general.
The idea of creating a global, freely available internet is not a new one, and many non-blockchain companies have been realizing this idea for years to some degree or other.
BoingoWireless, Inc. — a supplier of software and Wi-Fi services that enables easy, convenient and inexpensive Wi-Fi access for users on their notebooks or mobile devices with more than 325,000 hotspots worldwide. Boingo and its subsidiary company, Concourse Communications Group, manage wired and wireless networks in major venues worldwide such as airports, major sporting arenas, shopping malls and conference centers and fast food restaurants.
HotspotSystem provides hotspot management services and billing for companies or individuals who want to provide internet access to their customers. Their cloud-based management of access points enables customers to manage unlimited hotspots from a control center.
This is a public wifi service for business. Guest data traffic is sent securely to the internet via an air VPN server.
SOCIFI is a cloud-based platform for wireless providers, which can be scaled to a local hosting solution for the enterprise infrastructure.
However, we do not consider the above projects and those similar to them to be direct competitors for World Wi-Fi, mainly because they are not decentralized.
However, there is a direct competitor that uses blockchain technology:
IUNGO is a decentralized internet provider that unites private and corporate internet users worldwide. Anyone can become an internet service provider and grant others access to the global internet. Access can be free or paid; it is up to the user and the access provider. Users providing internet access receive rewards.
Comparing these projects, let's note the competitive advantages for the World Wi-Fi project:
- World Wi-Fi’s founders own existing businesses, "Adrenta" and "RadiusWi-Fi", whose hotspots will be integrated into the World Wi-Fi platform.
- An opportunity for advertisers to create targeted advertising.
- A referral program for owners of routers.
- Those possessing root invites do not pay commission.
- Free internet for users; one only needs to watch ads.
- World Wi-Fi combines two rapidly developing sectors of the market: The market for a global Wi-Fi network and the digital advertising market.
A very important role in this project is played by the advertiser, as they will pay router owners for ad views. Currently, there are many blockchain projects trying to occupy their share in the digital advertising segment. We are not going to review each of these projects separately; however, we would like to point out strong competition for attracting advertisers to platforms. To this end, World Wi-Fi has developed a solid marketing plan for the development of the project and attracting advertising on a global scale.
Team and stakeholders
The World Wi-Fi team consists of 2 founders and 12 employees with different specializations.
Ilya Yashin is a co-founder and CEO of World Wi-Fi. Also currently he is the co-founder and CEO of Adrenta, an aggregator of public Wi-Fi hotspots for selling advertising. He has previously worked as a senior specialist in the field of IT. He has also previously been responsible for IT configuration and support for AutoFrame.
Ian Sepiashvili is a co-founder of World Wi-Fi, Adrenta and RadiusWi-Fi. He is a Medical Sciences graduate and businessman. President of the “I-Entrepreneur” association and the owner of MazaltGroup.
Worked as CEO at “WorldTelecom” and at “National Payment System” and “Delta Telecom”. He has also worked for 3 years as business consultant at PriceWaterhouseCoopersRus (audit and consulting services).
Education: ACCA III Stage (Association of Chartered Certified Accountants).
Currently, Yury is CTO at World Wi-Fi, RadiusWi-Fi, Adrenta. Previously he worked as the senior system administrator at Jack-IT LLC in 2015–2016. He was leading IT specialist for the IT Decision company. He was involved in the creation and launch of a Wi-Fi service for the Moscow metro system. Senior specialist for 5 years at IT-Decision CJSC.
Eugene has experience in developing large data systems and creating APIs for web sites. He is currently the CTO of OOM.AG which is engaged in the development, production and consulting of big data projects. He is also the current CTO of and frontend developer for Dokkur, which is the first full-scale PaaS in Russia. Since 2014 and up to present he is independently working as a Front-End developer working with RubyonRails, AngularJS, ReactJS, and MongoDB.
Larry is the founder and CTO of the QuantusTechnicalSolutions company (2015). He is also the CISO (Chief Information Security Officer) at Jentu Technologies Inc. Larry has experience in DataCenters, system architecture, management, support, and cybersecurity.
Is the founder of the charity foundation “Podarok Angelu”. Previously worked as the Director of marketing and advertising at PoverniVentures LLC and KP-Properties. Anastasia was actively involved in start-up companies, developing and implementing PR strategies, branding, social media, PR and marketing analytics.
Alexander has extensive experience in sales management. From 2011 to 2016 he worked in various positions for the public joint stock company "Vimpel-Communications" starting as the head of the department of sales and service to existing SME clients, and ending as the head of department for development of products and convergent solutions. Previously worked in sales for the company EDN Sovintel, LLC.
Experienced mobile app developer, web developer, blockchain developer. Currently he is working for the ImperialInfosys company as a developer of mobile apps.
Thierry De Gorter. Currently blockchain manager for the Core.Tech.Chain company as well as Marketing Director for SwiftCoin.
Thierry De Gorter advises the following projects: ShiftCash, FUELDApp, TradePlayz, AlttexConsortium, Traxion.Tech.
Yagub Rahimov. CEO and Co-founder of 7marketzinc and NewsOgram.
He advises the following projects: Nousplatform, Hicky, PATRON, RepuX, SerenityFinacial, NAGA Coin, ChainTrade, Genesis Vision.
We would firstly like to highlight the experience of World Wi-Fi’s founders; they already have working projects (Adrenta and RadiusWi-Fi) which create public Wi-Fi with the purpose of selling advertising.
We also note the experienced technical specialists in different areas, of a level required for implementation of the project. The team includes a technical specialist responsible for cybersecurity and a blockchain developer.
The World Wi-Fi team has the necessary knowledge for the successful launch and development of the project.
WeToken is a cryptographic Token of the ERC-223 standard. The smart contract code can be seen on GitHub in public access.
Token name - WeToken
Symbol - WT
Decimals - 8
All available services and rewards on the platform are paid for with WT Tokens, which are infrastructural units:
1. A welcome bonus in WT Tokens is given to router owners when creating a public network.
2. For each ad view, a router owner will receive a reward in tokens.
3. Rewards for participating in the referral program are also deposited in WT tokens. A possessor of an invite receives 25% of 25% of the tokens of holder 1 who, in turn, receives 25% of 25% of Tokens of holder 2, etc.
If the holder has a basic invite, they also pay 25% of their income as commission. This does not apply to the owners of root invites, who do not pay income commission. In order to receive a root, invite it is necessary to participate in the pre-sale or the token sale with a purchase of $15,000 or more.
4. The owner of a root invite can sell it on the platform for WT Tokens.
5. Advertisers pay for advertising campaigns in WT Tokens. World Wi-Fi charges advertisers with a 5% commission for maintenance of platform functioning and development.
The integration of blockchain into World Wi-Fi is appropriate, since it enables provision of a large number of fast, inexpensive transactions worldwide, to guarantee advertisers' and router owners' fulfillment of their obligations using smart contracts and to provide advertisers with reliable statistical data on completed advertising campaigns.
Analysis of factors affecting the future value of the token
Since the WT Token is an infrastructural internal currency for the World Wi-Fi platform, and all transactions within the platform are carried out in WT Tokens, its price will largely depend on circulation on the platform and on World Wi-Fi entering the advertising market. This will occur through the following mechanisms:
- World Wi-Fi registered a separate legal entity in Singapore, a company that will accept fiat money from advertisers to be converted to Bitcoin and exchanged for WT tokens. This will enable attracting both speculators to exchanges and actual advertisers.
- World Wi-Fi has created a global marketing strategy to which it allocates almost 40% of raised funds. This is about $10mln, assuming maximum level of funding. In addition to funds raised during the token sale, the team will reinvest some of the platform profit in marketing. With proper marketing the number of platform users will increase and therefore the interest in WeToken.
- After the end of the ICO (April 2018), the developers will integrate the Radius Wi-Fi and Adrenta networks into the World Wi-Fi platform; this is more than 14,000 hotspots in 80 cities - and they will launch the referral program. From May 2018 the marketing campaign for attracting advertisers will begin. Thus a potential increase in token price can already be expected by the second quarter of 2018 due to increase in demand for WT tokens. Therefore, WeToken could be attractive in the short-term.
- The purchase of WT tokens could be of interest to long-term investors as well. The team is planning to deploy World Wi-Fi in different regions of the world, depending on the funding raised at the token sale. By 2020 it plans to connect at least 20 mln routers. With the development of the World Wi-Fi project more and more advertisers will appear on the platform, so the demand for tokens will increase as well as their price.
WT Tokens also have inherent negative factors that could limit price growth:
- 43% of all tokens are allocated to the token sale. 40% of all tokens will be frozen for a year; each subsequent year up to 10% of tokens will be sold. So each year the supply will increase.
- Tokens belonging to the team do not have a temporary lock-up period. Their release is tied to the implementation of project plans. But since achievement of the initial objectives such as placement on exchanges, the launch of the referral program, attracting advertisers, the completion of software development for all major models of private routers, are all planned for the near future following the token sale, we believe that the team will receive their first tokens in the second quarter of 2018. The appearance of the team's tokens on exchanges, even in small amounts, may adversely affect the value of the token.
We believe that given the dynamics of Wi-Fi network development, World Wi-Fi’s service and the experience of the team in launching similar businesses, there is a good potential for scaling of the project.
Investment risk analysis
There are some risks that are worth paying attention to when making a decision on participating in the token sale.
"The ETH/USD and BTC/USD rate will be fixed as of 17.03.18. Therefore, all investments in the cryptocurrency at the stage of Pre-Sale will be recalculated on 17.03.18 at the current exchange rate, and corresponding bonuses will be added to the resulting number of WeTokens." Due to the price volatility that could increase by the designated date, we highlight the currency risk.
We also note the legal risk. Since major advertising company are legal entities, purchase of tokens is currently very difficult for such entities, and in some states it is prohibited altogether. In order to avoid possible problems, the team has registered a separate legal entity that will accept fiat with subsequent conversion to Bitcoin and exchange for WT Tokens. However, this company will commence operation later; at the moment, contracts with banks are being concluded and accounts are being opened. As a result, legal entities are not yet able to participate in the token sale using fiat. This reduces the number of potential investors in the face of advertising companies.
We would also like to point out the risk of competition. Whilst World Wi-Fi feels more confident among companies providing free internet, when acting as a platform for advertiser’s competition for the project increases significantly. In recent years, many projects developing online advertising have appeared. World Wi-Fi will have to fight with them for advertising agencies’ revenue.
Risks also include factors adversely affecting increases in the price of the token, described in detail in the previous chapter.
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.