Analysis of ICO Bailsman
Bailsman is a cloud-based security deposit platform powered by Ethereum and KSI blockchain technologies. It is aimed to users who don’t have ability/don’t want to make a large initial payment and to lock up their finances. Baisman secures a third-party guarantee to the merchant for a small fee paid by a consumer. Main features of the platform are:
- Simple flame process
- Easy access
- Option to add co-applications
- Global usability (no geo boundaries)
- ID as a guarantee (no need to register).
The team started development of the platform for the residential real estate rental market. An ecosystem brings together tenants, landlords, financial institutions or telecom companies (which are guarantees of payments) in one place for direct communication.
The WP presents business model and project monetization by using an example of real estate rental market. The monthly fee for using system’s guarantee service is 1% of the provided security rental deposit amount. Fees are charged only from tenants. Bailsman revenue source comes from pooling sureties together and reselling them to financial institutions which back payments to landlords. Bailsman also offers to tenants an opportunity to spread broker’s fee over longer periods of time. Bailsman charges 2-3% commission from creditors for each signed installment agreement.
BAILS utility tokens can be used within an ecosystem as:
- Means of payment to secure holding fees with a 5% discount off the service fee
- Means of payment for guarantee collateral with a 50% discount off the service fee
- Means of payment for all other Bailsman services.
Budget and spending plan have three scenarios depending on funds raised.
The project is currently in pre-sale stage.
There is no marketing plan in the WP. Social media profiles were launched just recently. 15-20% of funds raised will be allocated to marketing and sales campaigns, depending on summ collected during ICO.
Team members have extensive experience in FinTech startups, legal and regulations, investment management, IT and marketing. Advisors provide expertise in banking, investment banking, telecom sector, marketing, cryptocurrency, risk and credit management, smart contracts, blockchain development and startups, ICO consulting.
The Vision of the Market
The project will operate in security deposit market. The initial plan is to set the platform in the following business sectors: residential and commercial real estate rental, accommodation, car rental. The WP provides very detailed overview of each business sector, including: market size, market problems, issues faced by market participants and market growth trends. It is obvious that the team has very clear vision of targeted markets and industries.
Understanding of the Target Audience
A thorough market research resulted in detailed identification of real-life issues faced by target audiences. The first - broad - segmentation brings out three groups: clients, merchants and financial institutions/telecom companies. Further segmentation is based on business sectors targeted by the project. The WP provides an explanation of problems in each sector and offers solutions from Bailsman.
The WP states that there are no direct competitors at the moment. Indirect solutions like credit cards, loans, security deposit insurance and cash are analyzed. As blockchain is spreading over varied business sectors, solutions based on newest technology start to emerge. The team should review competitors who develop blockchain/smart contract-based projects for one of targeted market.
Strengths: signed partnerships with companies like Telenor, PWC, Telia. Escrow procedure is held by Bailsman and PwC Legal. Well-structured, detailed and thorough WP. Well-balanced team: project founders have an extensive experience in relevant sectors, while advisors provide expertise in blockchain/cryptocurrency and ICO advising.
Weaknesses: no financial and marketing plans. The team should intensify marketing activities, including social media, according to analysts from Expert-Coin Rating. The necessity of an internal token is not 100% clear.