Analysis of ICO Cryptics
CRYPTICS platform combines 4 modules: forecasting engine, auto-trading engine, fund infrastructure, integration with research and academic community.
Forecast. CRYPTICS algorithm is focused on predicting changes in the valuation of crypto-assets (including the ITO tokens). The algorithm is based on AI and its accuracy is about 70%.
Auto-trading module. CRYPTICS auto-trading module offers immediate execution of the forecasts on the crypto-asset exchanges of customers’ choice.
Funds. A trader can create his own private fund and act as a fund and portfolio manager for those who supported him with their capital. Traders can use any kinds of trading strategies: their profitability and risk profiles (sharp ratio, draw-down, tail risk etc.) will be outlined for the customers to choose from.
Research. It could be training programs for students, joint activities for experience exchange, partnership programs of a non-commercial nature and competitions. In particular, the team plans to organize contests dedicated to tackle practical AI and Data challenges. Frankly nothing new. The product is absolutely banal in this market niche.
The project roadmap contains no details. But the plus is that MVP appeared in 2017. Further development of the product is planned to 2020 inclusive. The founders of the project note that the faster the funds will be collected during tokensale the faster the the project will go. Therefore, the project doesn't aim at the soft cap. Budget allocation is as follows:
- Product development – 50%
- Marketing, sales, partnership – 25%
- Management, employee salaries – 20%;
- Legal expenses – 5%.
CRYPTICS token is an utility token. CRYPTICS utility token will be used to pay for services of the platform, such as access to analytical data, creation of funds, etc. CRYPTICS platform revenue will be generated from the following sources:
- In the beginning the revenue is going to be mostly coming from the CRYPTICS forecast engine. The forecasts will be provided as a subscription service, priced on their accuracy, time horizon, number of currencies.
- At a later stage, with attraction of fund managers and traders to the CRYPTICS platform, a new revenue stream will come from fund managers, as a small percentage over their profits and/or turnover.
CRYPTICS also plans additional revenue from non-core activities, e.g. wallet services for customers of the fund managers, advertisement of tested and reliable products from cooperation partners etc.
CRYPTICS is expecting to reach the amount of 88.000 users by the year 2021 with average revenue per user (ARPU) of 1.084 $.
Business plan looks quite detailed and appropriate for this kind of project.
Unfortunately, the marketing strategy is not described in the White Paper. It is only mentioned that 25% of the funds will be spent on marketing, sales and partnership. 3% of tokens are intended for bounty program.
Accounts in social networks are as follows:
- 8842 members in Telegram
- 8330 readers in Twitter but very little likes (0-50)
- 5568 followers on Facebook, posts gain 0-15 likes
- No followers on Medium.
Despite the bloated groups, social networks of the project don't attract the attention of real users.
The project team consists of 10 people: developers, analysts, experts, managers. In general the experience of the team is described in detail and is relevant to the project. But the team clearly lacks marketers. In addition, the team has no previous experience working together.
The Vision of the Market
The white paper project contains the analysis of 8 competitors. But this analytics does not contain details about the market share of each competitor, their quantitative characteristics (for example, the number of users, the size of commissions, etc.). Of course, it is very good that the team is aware of the competition in this market. But we believe that the analysis of competitive environment should be more detailed using objective criteria. And the analysis of competitive environment should be preceded by market analysis, which we don't see in the description of the project.
Understanding of the Target Audience
The target audience of the project is primarily traders and investors. The platform may also be of interest to cryptocurrency market researchers. There is no particular description of the target audience. But nevertheless we can say that the project team understands who and why need their product.
The project team considers the following characteristics of the platform as competitive advantages:
The forecasts of other platforms are often short-term, and hence are used to manage private funds, rather than to provide information to a wider range of users.
Other platforms mostly take into account only quantitative market data, while the CRYPTICS platform takes into account data from several important sources including social networks, macroeconomic indicators, opinions of leading analysts, etc.
CRYPTICS will not only have a leading team of data scientists with strong AI skills, but will also provide a platform for contests, where academics can try tackling practical problems in ML and DL within the fast developing and challenging area of crypto-assets.
CRYPTICS will provide its trader customers with the infrastructure for decentralized creation of private funds.
But in fact, other similar platforms offer about the same services, there is no radical difference between CRYPTIC and existing projects.
We can note the following among the advantages of the project:
- Detailed business plan and product description;
- Ready MVP.
Next, we should mention the shortcomings of the project:
- Banal idea of the product;
- High competition in the market;
- Lack of marketing strategy.