Analysis of ICO ZeroState
ZeroState is a mobile app that allows users to review and describe a product in one word. The platform is based on emotional intelligence (EQ). It’s a tool which enables advertisers to analyze emotional involvement of their customers. Users (customers) are stimulated to share their emotions about a product by earning money for this. ZeroState platform plans to evolve into independent database of EQ opinions about products and services. The DApp was launched in 2017; it was downloaded more than 70,000 times since the beginning of 2018, there are 40,000 active users to date.
The next step after development of platform and app is “tokenizing” users reviews. To do this, the company will implement blockchain technology and issue tokens (ZSC) to be distributed among both advertisers and customers. Advertisers need tokens to launch a campaign via the app. Customers are rewarded in tokens for writing reviews on products and services. ZSC can be exchanged or sold in the secondary market. The value of tokens will increase due to allocation of 20% of profits for redeeming tokens.
ZeroState charges 20% of each advertising budget for launching and supporting the campaign. The average CPM on ZeroState platform is $2 compared to the market average of $4; the average CTR is 0.14%. This is clearly beneficial for advertisers to launch their campaigns via ZeroState.
The price of ZSC is linked to the number of active users and promotions. The quantity of tokens issued is limited, therefore it price will grow with the number of users. The WP states that the company will achieve stable profitability by mid-2019 regardless of the amount of funds raised.
Marketing strategy is briefly outlined in the WP. The company plans active marketing campaign in July 2018 to attract 1M users and to enter US and European markets. The plan is to roll the app in:
- Western Europe, USA - 2018
- China, India, Eastern Europe, Western Asia, Africa - 2019
- Other countries - 2020.
At the moment, the team is very active on all social media platforms and numbers of followers are high. Aside from chat on Telegram, there a dedicated bot answering questions and providing all types of feedback/assistance. The team is also very responsive on Bitcointalk.
The team is very solid, some members worked at companies like Intel and Deutsche Bank. Team members have experiences in management, IT and software development, business strategy, marketing, design, blockchain. There are three advisors and their expertise is in investment management, ICO consulting, fintech and accounting, marketing and PR.
The Vision of the Market
The project is aimed at mobile advertising market and its segments with highest potential: social networks, video platforms and search engines. The WP presents a capture of this market with stats and graphs showing growth trends. The project captured a niche which is vacant at the moment - EQ in mobile marketing.
Understanding of the Target Audience
The target audience is defined in broad terms: users (customers) and advertising agencies. Customers could be narrowed down to advanced mobile phones users (Millennials and generation Z, mostly), according to analysts from expert-coin rating. Aside from rewarding incentives, users get “personal growth” benefits from interacting with the app: inspiration, new creation ideas, like-minded followers etc. Benefits for advertisers include instant user feedback, ratings, access to EQ database.
There are no direct competitors yet, but mobile advertising market is highly saturated. Tech giants like Google, Facebook (including Instagram), Yelp and Eventbrite are avid players in the industry. The WP offers a comparison analysis between these companies and ZeroState. The main competitive advantage of ZeroState is in the application of EQ theory to mobile advertising platform.
Strengths: the app was released in 2017 (iOS and Android). The WP offers financial projections, based on three scenarios of fundraising outcome. 5M tokens with 50% bonus were sold out during a pre-sale in March 2018, $2M were raised (target was reached). One of the advisors - Nathan Christian - is well-known blockchain evangelist, he is a Top 5 ranked member of the “People In Blockchain”.
Weaknesses: the success of ICO and blockchain developments will greatly depend on promotion, therefore detailed marketing plan should be in the WP according to analysts from expert-coin rating. More advisors needed.