Giga Watt Rating Review
|Start ICO||31 May 2017|
|End ICO||29 Jul 2017|
Investors` interest in the blockchain technology and cryptocurrencies has been growing exponentially worldwide. Although in this industry the community more likely consists of crypto-enthusiasts and advanced users, it is quite obvious that it will demonstrate impressive growth in the coming years. This factor will influence cryptocurrencies` mass adoption level that gradually has been penetrating into the traditional economy. It will also drive up cryptocurrency mining industry that is supposed to be quite profitable in terms of mid-, long-term investments.
The Giga Watt project looks promising as mining cryptocurrency industry is now the main source of new supplies of major cryptocurrencies. In the current market conditions the investment in the real cryptocurrency mining is one of the most profitable investments in terms of ROI (return on investment) among blockchain industries. Key factors of sustainable and profitable cryptocurrency mining have an access to cheap electricity, professional technical maintenance and support of mining equipment, allocation of mining facilities in areas with the appropriate temperature regime. The Giga Watt project has all these competitive advantages and can offer cryptocurrency mining services at very low prices. Taking into account the rising demand for cryptocurrency mining equipment, the demand for WTT tokens is supposed to increase over the time, too. It makes purchasing of WTT tokens an excellent opportunity.
The Giga Watt project that provides cryptocurrency mining services has the following advantages and disadvantages.
- Tokens are supported by the cryptocurrency mining infrastructure,
- Tokens offer an access to the facilities of one of the largest crypto mining service providers in the USA,
- These facilities have a 50-year lifecycle (compared to 2.5 years for miners, due to constant increase in mining difficulty),
- Tokens can be used from the very first date of their issuance,
- Opportunity to earn income from renting tokens out to others rather than engaging in mining personally,
- Token holders own cryptocurrency mining equipment allocated at Giga Watt facilities, unlike competitors whose capacity is offered without being tied to equipment,
- Opportunity to purchase scarce cryptocurrency mining equipment provided directly from manufacturers by Giga Watt partner, and
- Highly qualified specialists will ensure the work and technical support of cryptocurrency mining equipment which provides quite low equipment's downtime (6.5%) and more efficient and profitable cryptocurrency mining.
- Attractiveness of Giga Watt project is far from obvious for people who are not versed in cryptocurrency equipment and mining,
- Holding WTT tokens cover only a part of mining expenses (facility rental fee), while electricity and maintenance costs paid separately, and
- At the present time only a few cryptocurrencies (Bitcoin, Ethereum and Litecoin) are available for mining on Giga Watt facilities. In the future, support of alternative cryptocurrencies` mining is planned.
ICOrating assigns the "Stable" rating to the Giga Watt project.
MARKET AND INDUSTRY OVERVIEW
Market review and comparison of the project with competitors
In WhitePaper you can find a table comparing the types of cryptocurrency mining, such as: Cloud mining, Home mining, 3rd party hosting, and Self-built farm. The figures described there look reasonable, while the acquiring of WTT tokens and subsequent placement of mining capacities in the Giga Watt facility look preferable.
As compared to cloud cryptocurrency mining, the Giga Watt project has a number of advantages, since many of these services are "ponzi schemes" that do not have real computing power, and payments are made at the expense of new users. As statistics shows, most of the services of cloud cryptocurrency mining cease to pay after a while. The list of such projects can be viewed on the websites collecting information. For example, on the bitmakler.net there is a section "scam" of projects that stopped paying. There you can see that some projects continued to make payments for a long time (more than a year) due to the influx of new users, and then ceased. At the same time, among them there were large cryptocurrency mining projects that were treated as reliable and were recommended in many publications on profile web-resources.
The Giga Watt project has already got existing data processing facilities that are open twice a month for everyone to look at. Moreover, when choosing cloud cryptocurrency mining, even if the project has a real capacity, the user overpays a large amount for the equipment installation. Besides, in case of a GPU cryptocurrency mining, a certain hash rate is paid, and when the software updates are released, the hash rate on the same hardware can increase several times. But this leverage is not available for users or is available much less than the increase in the hash rate. In this way the owners of cloud cryptocurrency mining leave the additional profits to themselves. For instance, contracts for cloud cryptocurrency mining of Zcash began to sell a month before the start of the project, and a month later after the start of the project, a new miner came out. It has 10x performance, and as a result, users who had bought contracts in advance suffered losses.
If to compare the Giga Watt project with home mining, the person who wants to install the equipment at home is limited by the available electricity (usually 10-15 kW). At the same time, it should be taken into account that in order to buy and adjust the equipment, you need to learn a lot of information, as well as the equipment you need to monitor, so that there is no easy operation. Add to all this high noise and the allocation of a large amount of heat that ultimately makes home mining time-consuming and uncomfortable in most cases. If you do not give enough time for maintenance, the hardware will fail much earlier or will be idle. To service this hardware, one will have to constantly be near it, and long trips will be fraught with loss of income.
For those who have several millions of dollars to build a self-build farm, you will have to think about finding a location for construction with cheap electricity, developing a farm project and hiring a team of professionals. All this will take time. That is why large buyers will also benefit from a proposal from the Giga Watt project if they do not have the necessary resources nearby, and they want to start producing cryptocurrency as soon as possible.
In case of home mining or the construction of a self-build farm if the equipment fails, the owner will lose profit while sending the miner for repairs. In case of the equipment placement at Giga Watt facilities, all repairs will be carried out by the company that will significantly reduce the downtime (sending a minor for repairs in China and back takes at least a month). It is also stated that the maximum downtime of equipment will be 6.5% of the time. In fact this number will be much lower, since it is too high for force majeure situations.
In comparison with competitors providing similar services, Giga Watt will also be advantageous to differ. Currently, Giga Watt customers pay a hosting fee that consists of the facility rent, maintenance, and electricity. Holders of tokens will be exempted from paying rent and will pay only for electricity and equipment maintenance.
As the above figure shows, regardless of the amount of equipment, WTT token holders will pay a fixed 0.5 cents for maintaining 1 kW of equipment per hour. This is the lowest possible price for this service that provides a 24/7 technical support of the client`s mining equipment. Thus, the Giga Watt project offers very favorable conditions for the allocation and support of the client`s mining equipment.
Comparison with other IaaS-providers
AXB-T project provides services that are similar to Giga Watt. The company is registered in the Russian Federation where electricity prices are also considered to be ones of the lowest in the world, and the north of the country has a rather cold climate, which is favorable for cryptocurrency mining.
The price for 1 kW per hour is 6.1 cents, as legal entities in Russia pay more than physical. In comparison with the Giga Watt`s price of 2.8 cents for 1 kW per hour this is more than 2 times more expensive. The cost of placing a rack at 15 kW per year is $526. If you calculate the cost of rent of the same capacity from Giga Watt, it will be $666. But at the same time, maintenance on the AXB-T facilities is paid separately. For a year, Giga Watt clients pay $3,650 for 15 kW, and AXB-T`s customers - $8,000. Hence, it can be concluded that the price of electricity will be a key factor in choosing a location. The Giga Watt`s years charge for electricity will be $4,316, while the competitors have $8,526 plus service costs.
In case of buying $15,000 equivalent of WTT tokens, you can see that they will pay off in 3 years, and the next 47 years mining equipment allocation will be 2 times more profitable.
Different scenarios of the project`s savings and rewards
The amount of reward received by the token holder from mining, which is greatly affected by savings from the use of the WTT tokens, depends mainly on the cryptocurrency exchange rates, and the complexity of the cryptocurrency network (depends on the computing powers involved in the calculations).
With the cryptocurrency exchange rates everything is pretty clear - the higher the rate the greater the reward, the greater the income of those holders of tokens who placed the equipment under their own capacities. The WTT token holders who rent it out to other users cryptocurrency exchange rates affect the next way - the larger the rates the greater the rental income, hence there will be more users willing to place their equipment renting WTT tokens. The complexity of the cryptocurrency network in most cases depends on the cryptocurrency exchange rates, the more the rates the more profitable becomes the purchase of the miner equipment. The faster the complexity of the cryptocurrency network grows the less the revenue per unit of capacity. That is, without growth of the cryptocurrency exchange rate, the income for one unit of equipment will fall, but to a certain extent. For instance, a new batch of LTC mining equipment cannot be bought now, and the next batch is expected in August, but it will be limited in size.
Optimistic scenario – subject to the same growth of the cryptocurrency exchange rates as in the last six months, the purchase of WTT tokens should pay off within a year if token holder rents tokens out. When buying tokens and mining equipment under the given capacity, the WTT tokens will be paid off in less than six months.
Subject to the stabilization of the cryptocurrency exchange rates, the use of WTT tokens will be more beneficial for those who mine cryptocurrencies themselves, but at the same time the pay off time will be quite fast (about 12 months). This is because the projected increase in cryptocurrency network complexity in the shortage of mining equipment will be not more than 500% per year. In such a pragmatic scenario the WTT token holders who rent it out to other users will recover the cost of WTT tokens in about 1.5 years. Most probably the stabilization of the cryptocurrency exchange rates will attract more large buyers. Even if the miner’s equipment pays off in 3 years, it will bring 133% per annum in rewards. This rate is much more than in the other industries.
Pessimistic scenario for WTT token holders who rent it out to other users - the fall of the cryptocurrency exchange rates should not have a big impact because the pay off period will increase up to 2 years but it will also slow down the increase in cryptocurrency mining complexity. In case it happens after all mining capacities have been rented out, those who have already bought mining equipment still need WTT tokens in order to pay off for this equipment.
Since the Giga Watt project provides a choice which cryptocurrency to mine, a couple of words can be said about this. Bitcoin looks a more stable investment although it does not give an ultra-fast payback like Litecoin or Ethereum. But Litecoin is essentially a Bitcoin fork with some changes in code and its price may significantly fall, Ethereum will be soon switched to another consensus algorithm (PoS) that does not require mining facilities. That is why when buying cryptocurrency mining equipment for its own capacity it will be necessary to decide for itself whether stability (in case of Bitcoin) or risk with a higher profit is more important (in case of altcoins). If you decide to invest in the crypto-industry and believe in the future of the whole ecosystem, the purchase of WTT tokens looks like one of the most efficient options.
THE TECHNICAL ASPECTS OF THE PLATFORM
The Giga Watt project is created as the most convenient and profitable way to become the owner of own mining capacities, regardless of the number of equipment one may afford.
Giga Watt cryptocurrency mining facilities are located at Wenatchee, Washington State, USA. Since the life cycle of the Giga Watt facilities have a 50-year lifecycle, it is crucial to have the access to power supply infrastructure. In the long-term perspective, this is not an issue: there is a hydroelectric power station next to Giga Watt facilities that supplies one of the cheapest energy in the world. A number of data centers of the largest companies such as Microsoft are being built nearby.
It's no secret that in the last few months it's very difficult to buy ASIC miners or GPU-based miners such as Pandaminer miners using 6 to 8 GPUs from AMD. Its compact sizes make their placement and service at the cryptocurrency mining facilities more convenient than placing standard ones GPU rigs. For instance, the last batch of ASIC miners for Litecoin mining was sold out in 30 minutes. In order to provide customers with contemporary mining equipment, Giga Watt has partnership with GigaWatt Pte. Ltd., a Singapore company that sells mining equipment to customers worldwide. As soon as a new batch of mining equipment appears on sale, it immediately buys required amount of this equipment for Giga Watt clients.
Moreover, all issues about the delivery of this mining equipment to the Giga Watt cryptocurrency mining facilities in US and custom clearance are also incurred by the Giga Watt. This a great advantage for those Giga Watt clients who plan to place their own mining equipment on its mining facilities.
Tokens and blockchain
WTT tokens will be released on Ethereum blockchain and will be the standard ERC20 token which has the next benefits: it can be transacted to any Ethereum address, it has convenient listing on cryptocurrency exchanges, and it has the ability to view information about all issued ERC20 tokens.
WTT token holders will get the right to allocate their mining equipment on the Giga Watt cryptocurrency mining facilities for a period of 50 years and get an access to cheap electricity and support services. A number of WTT tokens needed depends on equipment's power consumption plus 10% for technical support. For instance, for allocation of ASIC miner S9 with 1,323 kW power consumption on Giga Watt facilities user needs 1,455.3 WTT tokens.
In comparison to other ICO Giga Watt has a typical smart contract with some features, such as the additional issuance of WTT tokens and ability to delegate this authority to another address or contract, and the ability of all WTT tokens transactions to “freeze”. We got the following comments about these issues from the developers of the smart contract:
- "There is possibility of additional issuance of tokens. It is made just in case of further development of the project during 50 years”.
It can be assumed that in case of successful construction of all mining capacities backed by released WTT tokens, additional WTT tokens may be issued and sold to the public in the future as the facility capacity is increased through build outs.
- “The WTT smart contract includes the freeze feature, which allows the owner to (reversibly) stop all the token transfers at once. This is a last-resort option for force-majeure events such as massive token theft or Ethereum hard fork. In both cases Cryptonomos will develop a solution, resulting in migration to a new contract or later unfreeze, which would enable the token holders to continue receiving, and depositing the tokens to the Giga Watt site while preserving the token balances before or shortly after the critical event”.
Recently, the Humainiq project was criticized for the fact that similar feature was incorporated into its smart contract, but was not announced before crowdsale. In case of Giga Watt, everything is described in advance in the documentation and we obtained comments what these functions were introduced for. In case of WTT tokens backed by mining capacities, these features are not a problem, but rather allow increasing the reliability of the system.
The Giga Watt smart contract is developed by Cryptonomos Token Launch Team. They also develop infrastructure for managing WTT tokens. More details about their work experience can be found in the "Team" section of this review or in the Giga Watt Whitepaper.
Smart contract audit
Smart contracts audit was conducted by New Alchemy and found no vulnerabilities in the code of smart contracts.
All funds raised through the WTT Token Launch will be put in fiat escrow since funds obtained in cryptocurrencies are first converted into USD. Funds are released from escrow by the Perkins Coie company in batches only after the underlying capacities are built and relevant tokens are issued and distributed.
User`s personal account and rental system of WTT tokens
The first batch of WTT tokens will be issued to token holders after the completion of ICO (approximately on August 7, 2017). To start working, it should be transferred to the WTT token holder's account on Giga Watt’s website where it can be used to host miners or to be rented out. There will be an opportunity to order mining equipment under available WTT tokens, if they are not enough. Then it is possible to rent them from other users through the built-in system that will make it possible to pick up the most advantageous offer and the lease term.
Currently, retail customers can mine only BTC, ETH, and LTC. The following three cryptocurrency mining pools are predetermined by Giga Watt’s for its clients: Slush Pool to mine Bitcoin, NanoPool for Ethereum and LitecoinPool for Litecoin. There is no ability for the user to select the pool himself, but Giga Watt has chosen well-established pools. For example, NanoPool is great for large and small miners (unlike ethpool which is not suitable for small miners).
All mining rewards are credited to the user's personal account. Some may not like that there is no possibility to immediately set up these payments for user`s wallet, but on the other hand, it is easier to maintain hosting services (electricity, maintenance, rental fees) because it will be deducted from the mining rewards daily. WTT token holder can also pay for the purchase of ASIC or GPU miners and repairs if required, immediately from the personal account if the balance has funds. The cryptocurrency can be freely transferred from user's personal account on external cryptocurrency wallets. Users who rent their tokens out will be able to get payments in BTC, LTC and ETH.
In the future it is planned to expand the list of cryptocurrencies available for mining on Giga Watt facilities. It would be reasonable to add such cryptocurrencies as Dash, ZEC and XMR.
Clients who have their own mining equipment can host it at Giga Watt with the next setup fees: USD 20 per ASIC-based miner, USD 40 per GPU-based miner.
Prior to the launch of the ICO, a presale was held with a minimum $10,000 investment threshold. But unlike other ICOs where early investors often obtained twice as many tokens as ICO participants for the same amount, the presale participants obtained WTT tokens at the same cost as the ICO participants during the first two weeks of ICO. The only advantage for presale participants was that they will be the first to get their tokens, and capacities under 2.25 MW will be available to them after the first lot of issued WTT tokens.
WTT tokens will be available for purchase during the Token Launch from June 2, 2017 to July 31, 2017, unless a cap of 30,000,000 WTT tokens sold is reached earlier. For every 100 WTT tokens sold in this offering 15 additional tokens will be issued: 10 tokens to be distributed to team members, and 5 to be retained for distribution to partners and advisors at the issuer’s discretion.
As described above, the first batch of WTT tokens will be issued to token holders on August 7, 2017. If the cap is reached earlier, the first batch of WTT tokens may be issued ahead of the schedule to provide access to the facilities built by the time of the issue. New batches of tokens will be issued in step with the construction of new mining facilities. The funds will be released from escrow in step with the completion of facilities, too. Those who bought WTT tokens earlier will be the first to receive tokens. The first batch of tokens (5.4 million WTT) will be released first; the last batch of WTT tokens according to the plan should be released in November, 2017 with the completion of the construction of the last 9 Giga Pods facilities. Giga Watt team members’ tokens will be released last.
Purchase of WTT tokens will pass through the user's personal account on ICO website. BTC, ETH and Fiat will be accepted for payment.
For early ICO participants the next bonuses will be provided:
Proof of developer
The team is not anonymous and active on a few social networks.
All information provided is given according to the project’s official website, public sources, as well as team members’ LinkedIn profiles.
Dave Carlson (LinkedIn) - Founder; CEO, Giga Watt, Inc.
Software Engineer and Entrepreneur
- He has had many consultant-developer engagements with large enterprise companies. In particular, he worked at Microsoft’s digital token system Microsoft Points that provided the virtual currency for the XBOX Live network.
- He was a design engineer/project manager for Sparling Technology Consultants in Seattle, WA, participating in the design and construction of high-tech digital systems projects, including Experience Music Project (EMP), Microsoft Studios (MSNBC), Bill Gates Residence, and Paul Allen Estates.
- 5 years as CEO and founder of MegaBigPower, one of the largest single-operator mining facilities in the world.
He has extensive business startup experience (10+ years) and blockchain experience (7+ years).
Adam West - VP Business Development, Director, Operator-Partner Program, Giga Watt, Inc.
10 years' experience in business development, management and marketing. Over the past year focused on Blockchain technologies, with the emphasis on industrial mining projects.
He has extensive business experience and blockchain experience.
Kyle Sidles (LinkedIn) - CTO, Giga Watt, Inc.
Database design, programming, network infrastructure and application deployment. He successfully built and launched over 200 diverse software projects in the USA, India, and China. He has been building and running large-scale Blockchain data centers since 2013.
He has got business and blockchain experience.
Jeffrey Field - Lead Engineer, Giga Watt, Inc.
4 years' experience designing the physical infrastructure for mining facilities, network layouts, and cooling plans while managing technical crews for all aspects of installation and maintenance at the MegaBigPower facilities.
Brian Armstrong (LinkedIn) - Operations Supervisor, Giga Watt, Inc.
Service and maintenance of mining equipment, training new personnel, team supervision on assigned operational tasks, troubleshooting and repair of network systems.
8 years’ experience in the U. S. Air Force as a security expert.
Sinden Harum - Executive Manager, Giga Watt, Inc.
Day to day operational responsibility for staff, office administration, payroll, human resources, bookkeeping, accounting, core programs, and special programs.
Michael Savuskan - CЕO Giga Watt Pte. Ltd.
24 years' experience in product, technology, and business development, marketing, planning, and sales management. Sales and profit growth, new business launches, and domestic and international marketplace assessments.
Hayden Gill (LinkedIn) - VP of Sales, Giga Watt Pte. Ltd.
13 years' experience in investment, marketing, and alternative currencies. Since 2010 he has been focusing on bitcoin and blockchain technologies. He is the founder of successful projects in peer-to-peer payment services and alternative currencies.
Marketing & Token Launch
The project is provided by support of Cryptonomos, a platform for conducting crowdsales through token launches. Cryptonomos conducts its first token launches for Giga Watt but they pretend to bring experienced specialists together:
- Marketing support is provided by Transform.PR, one of the world's leading PR firm for blockchain industry companies (20+ successful ICOs).
- Dmitry Hovratovich, a well-known in the crypto industry security expert and founder of the ABDK agency is in charge for smart contract development.
- Legal support is provided by Perkins Coie, a world-renowned law firm with extensive experience in the blockchain industry.
- Cryptonomos team:
Nick Evdokimov - CEO
14 years' experience in developing high load online services. Founder of numerous Internet enterprises. 2 years in Blockchain development.
Dmitry Khovratovich - Smart Contract Development
12 years’ experience, with a focus on privacy and security of blockchain projects (Bitcoin, Ethereum), design and analysis of cryptographic schemes, and security software engineering. Security Researcher at the University of Luxembourg.
Andrew Kuzenny (LinkedIn) - Head of IR
18 years' experience in investor relations, seeking and engaging partners, asset management. A recent Blockchain technologies enthusiast.
Edward Khaptakhaev (LinkedIn) - Legal Counsel
12 years' experience in legal support of international and domestic companies engaged in energy generation, banking and IT/IP.
Leonid Markin - Financial Management
12 years’ experience in finances and asset management. 5 years in finances in the high-tech engineering segment of the energy field. Fintech entrepreneur.
Daria Generalova, Communications and PR
10 years in public communications. Diverse experience in marketing, from event management to marketing strategy development, with a focus on infrastructure companies. Joined blockchain industry last year.
Anar Babaev (LinkedIn) - Digital Marketing
14 years in digital marketing. Internet entrepreneur focused on mastering and implementation of new technologies. Co-author of several books on digital advertising.
The team of the Giga Watt project consists of employees of both Giga Watt, Inc. a U.S. company that offers mining hosting services at its Wenatchee, and Giga Watt Pte. Ltd that sells mining equipment to customers worldwide. In the past, Giga Watt, Inc. operated under the brand name MegaBigPower that was founded by Dave Carlson in 2012. The same experienced team came out with a new project Giga Watt with new improved technology. They have a vast business and blockchain experience in cryptocurrency mining services from equipment sales, maintenance and repair to private blockchain servicing. The project is provided by support of Cryptonomos, a platform for conducting crowdsales through token launches. Although Cryptonomos conducts its first token launches for Giga Watt but they pretend to bring experienced specialists together in such areas as development of a smart contract, legal support, conducting a marketing campaign, and supporting a smart contract after the tokensale.
The team is active on Facebook, Bitcointalk, Telegram, Whatsapp, Instagram and via e-mail, answering most users’ questions. We were able to talk to Cryptonomos team over e-mail and Skype and they answered all our questions. Most of Giga Watt clients' questions are accumulated here.
Giga Watt has also recently arranged a roundtable discussion “Bitcoin for under $500. Reality for a Personal Miner and a Major Investor” at Consensus 2017. You can watch a video here.
Giga Watt has launched ANN thread on Bitcointalk recently: on May 12, 2017. The project has received considerable attention, getting more than 200 replies throughout 17 days. They are almost exclusively positive. Users asked questions about general issues, Giga Watt services pricing and token economics, token issuance and distribution, and bounty and referral programs.
There are only a few negative unproved replies.
Giga Watt is a real life project which offers the right to use the actual existing data processing facilities. In order to prove that, twice a month Giga Watt holds an Open House anyone can attend and see that Giga Watt is a legitimate business.
The project has a non-typical for blockchain community referral program rewarding users by 5% of the number of tokens purchased by his or her friends (referrals). It also has a bounty program for translations to any of the 25 languages. Total Bounty program rewards fund is 56,000 WTT.
The project has a common for cryptoworld media and feedback kit:
The community has met the project extremely positively.
The project has a massive presence in crypto-media outlets. You can find WTT`s press releases here: Coindesk, Nasdaq, Steemit, Bitcoinchaser, Mostly Bitcoin, Draftmba, Wenatchee World, Finance Magnates, Zentrade, Inside bitcoins, BTCoin, Bitmakler, Bits Media, Crypto Insider.
- Account - Jr. Member
- Founder`s account - VIP
- Non Self-Moderated Announcement Thread
- It has a detailed and professionally designed website available in English.
- The information on it is clearly structured and convenient for searching
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.
Giga Watt is a crypto mining facility located in Washington State, USA that has an access to cheap, hydroelectric power: 2.25 megawatts are now available for running mining hardware and additional 50 megawatts of power are being developed.
WTT token is an Ethereum token representing the right to use the Giga Watt's facility's capacity to accommodate 1 Watt worth of mining equipment power consumption. It allows an extraordinarily low entrance threshold for professional cryptocurrency mining. In the next 50 years token holders will be free to choose what works best for them – to mine cryptocurrencies personally or to rent out tokens and earn rental income.