Expert Coin

Analysis of ICO StarFlow

27.04.2018

Product

Founders of this project believe in influencer economy or the economy of social media influencers. In a few words – it is monetization of internet users’ talents via, for example, making advertisements via popular blog or Instagram webpage.

StarFlow is the product for simplifying monetization of each internet user’s talents. Now only 3% of all users receiving monetized value from content creation. According the founders’ opinion, all users will be possible to use their inner strengths for making money. There are these participants of StarFlow ecosystem:

  • Users who can create a content
  • Companies who pays creators for their content
  • Value and service providers. Companies which are supporting the creators for services, products and contributions
  • Internet users who consume the content and make the creator famous and interesting for brands

But in real world there are no ‘influencer economy’. There is existing only influencing marketing – one of many channels of brands advertising.  And, according the opinion of NY Times, or some advertising professionals, this channel cannot became a mainstream in marketing industry.

So, we have a product made for very specific purpose with very doubtful basis.

MVP is available in AppStore. Also, there were StarflowTalent agency launched on teens’ video-streaming social network Musical.ly, but there are no significant steps in internet of it.

Business Plan

Founders are planning to generate 400 million tokens, and sell 50% of issued tokens. Soft cap is USD 3 million, hard cap is USD 38 million. 25% of tokens issued will be used for rewards program, other for team and advisors’ bonuses.

Founders are planning to make additional tokens emission after ICO in a value of 600 million tokens during 5 years after ICO for User Growth Fund, i.e. for scaling ecosystem. A quantity of newly issued tokens will mathematically depend from speed of growing ecosystem; unused tokens will return to growth fund for preventing a token inflation.

Funds received from ICO will be used mostly for development (45-65%) and marketing (20-30%).

No information about operating costs paid from revenues, their ratios to revenues, calculation of profit/loss etc. was provided by founders.

Marketing Strategy

Marketing strategy completely no described in WP, which is very strange for project oriented on development of king a marketing strategy.

Team

Team looks professional and well-balanced on management, marketing, finance and IT axis. But at first, looks like there is no specific blockchain team member or advisor(s). All team members have real profiles in social networks.

Team founder David Gabor introduced his project on different blockchain events. Make note that he is marked as founder of TeamPics project, steps of it can be found in internet, but looks like now this project is closed.

The Vision of the Market

Marketing research in WP is based just on Google Trends graph of ‘Influencing Marketing’. No market estimation was performed, i.e. no sales plans estimated. It’s very strange for person developed in 2017 talent agency in social network for making impactors from its users.

Understanding of the Target Audience

According the WP, target audience is all internet users. But we think that is not so wide – it is just persons who wants to become an Internet star like users of Kwai, Musical.ly or Instagram social network.

Competitive Advantage

There is no competitive advantage in WP, despite of experience of founders’ partnership with one of them – Musical.ly. But, according opinion of expert-coin team, main competitors of this project are all video-streaming or advanced photo/painting social networks like Kwai, Musical.ly, Instagram or DeviantArt.

Summary

Project strong sides: looks like there are no strong sides.

Project weak sides: no innovative idea, no business plan, market analysis or market research presented.

So our position is negative.