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AppCoins

AppCoins is an open and distributed protocol for app stores based on the Ethereum blockchain and smart contracts. It redesigns app advertising, IAP and app approval flows through a circular model. As a higher share of the advertising and IAP revenue is kept within the app ecosystem, more value is rooted back to the app economy.

Rating: 3.4

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Details Description Risks Full analysis Team

Detailed review

Stage of product development
First version of the open source reference implementation of the protocol will be released in Q2 2018


Token description
ICO date
13.12.2017 - 15.01.2018
Token price
N/A
Platform
Ethereum
Blockchain
Ethereum
Token distribution date
31.12.2017
Consensus method
N/A
Escrow
N/A
ICO currencies
Bounty camping
Bounty campaign will be managed by Sylon. Stakes you will get from the campaign will allow you to get APPC tokens at the end of the campaign. You will receive 1% of sold APPC tokens, based on your number of stakes. You can find the Bounty campaign information here: https://medium.com/@appcoins/appcoins-bounty-program-5ea386bcc302
Markets
N/A
Token functions
AppCoins is a cryptocurrency for app stores that gives users app purchasing power, unleashes monetization potential for developers and increases app safety. It has been built to create an app economy with a new universal language that ensures trust, transparency, and openness by moving to the blockchain three of the most critical flows of app stores. The AppCoins are not securities or units in a collective investment scheme or business trust, each as defined under Singapore’s Securities and Futures Act (Cap. 289) (“SFA”). AppCoins are intended for use within applications available on the Aptoide App Store for purposes including purchasing in-application items and serving as a medium of in-application advertising revenue, and Aptoide warrants that the AppCoins are fit for these purposes. However, Aptoide is not responsible for compelling any person to accept AppCoins and disclaims, to the fullest extent permitted by law, all liability for any adverse consequences arising out of or in relation to such rejections of AppCoins
Tokens distribution
pre-sales (20.0%)
token sales (20.0%)
the App Store Foundation (15.0%)
the key players in the apps economy (20.0%)
Aptoide (15.0%)
the key contributors to AppCoins idea (10.0%)
Risks
MARKET

The companies strategy completion requires engaging 4 to 6 app stores like Aptoid. However, there is no information about the willingness of such app stores to implement AppCoins If there is a significant economic effect from the implementation of the token, other app stores will go along the path of Aptoid.

PRODUCT
The project can be characterized as the part of Aptoid's roadmap. The main benificaries of ICO are Aptoid's shareholders. A minimum viable product (MVP) is not presented.
BUSINESS MODEL
The business model of the project is trivial and quite typical for its sector - it does not provide the company any competitive advantages, it is easily replicable.
FINANCES
Regarding the AppCoins ICO (chapter 7), 40% of all tokens generated will be offered in pre-sales with significant (30%) discount. Hard cap ICO makes up 15.3 million USD. However within two rounds of financing parent Aptoide raised to date $5 mln. The financial forecasts provided by the project are unrealistic (the breakeven point occurs within 6 months).
TEAM
AppCoins supported by Aptoide Team so team remenurations is include in previous Aptoid's investments.
Full analysis
Market

For now, the AppCoins project will focus on the Android market, which has the majority app market share. The adoption of AppCoins in this market will benefit from Aptoide’s support. Aptoide is one of the largest Android App Stores, with over 4 billion downloads, 200 million users and direct engagement with over 12,000 developers including Gameloft and Zeptolab. Aptoide has a network of over 70 corporate partners, including OEMs and Telecom companies such as Xiaomi, Oppo, Meizu and Vivo. The company predicts 95 million MAU by the 24th month, based on Aptoide's MAU, the bootstrap strategy completion and on the efforts of the App Store for engaging 4 to 6 app stores. That amount of users can be provided only by interacting with big 3-4 players like Aptoid.

Product

AppCoins is an open and distributed protocol for app stores based on the Ethereum blockchain and smart contracts. Through AppCoins we can integrate app stores, users, developers, advertisers and OEMs. This system is app store agnostic, existing across different mobile platforms (Android & iOS). In this system, the different app stores act as oracles of the smart contracts which are associated with each of the platform’s core transactions (see whitepaper for details). This system creates a trust layer for the economy, rendering many middlemen obsolete. AppCoins can become the universal language of the app economy. Release of the first beta version of Aptoide with AppCoins support scheduled in Q2 2018.

Business model

The app economy has three main problems: 1. Advertising is inefficient. It relies on many adtech middlemen, increasing the cost of user acquisition for app developers, reducing transparency and generating fraud in transactions. 2. App monetization and in-app purchases (IAP) are still not massified and are costly. IAPs rely on payment methods and flows that are not accessible to many users, especially in emerging markets where the transactions costs are high, with significant margins being taken by payment processors and other fintech middlemen. 3. The app approval process is not transparent. App approval is a complex process that is currently being handled by centralized stores with complex quality assurance flows and relying on non-transparent app distribution policies. AppCoins is the solution. It is an open and distributed protocol for app stores based on the Ethereum blockchain, using the ERC20 standard. It proposes to move the following three critical flows to the blockchain: advertising, in-app billing and app approvals. By redesigning the transactions inside app stores, it creates efficiencies by disintermediation and redistributes the value released in a way that creates incentives for AppCoins supported stores.

Finances

The token value at the crowdsale will be of US$0.10, the soft cap US$2.5M and the hard cap will be US$15.3M. The funds received from the AppCoins crowdsale will be applied in: (a) development of the solution - 58%; (b) marketing towards its dissemination and adoption - 15%; (c) strategy and operation - 23%; and (d) legal costs - 4%. The AppCoin token price fluctuates considering its estimated market cap (achieved using Metcalfe’s law and the forecast of adoption) and the token supply in circulation. It is projected that after two years, it will have a market valuation almost 19 times bigger than the price of crowdsale after two years, and 2 784 times bigger after 5 years . According to the financial model provided in the WP, project is going to reach break-even within 6 months. Notably, that the calculated financial forecast don’t depend on the amount of funds raised. As for parent Aptoide, the company raised $5 million since inception. The deal led by e.ventures on January 5, 2016. Malaysia Venture Capital Management, Gobi Ventures, Golden Gate Ventures and Portugal Capital Ventures also participated in the transaction.

Team

AppCoins supported by Aptoide Team. The team consists of 85 people who work in three company offices - Lisbon, Singapore and Shenzhen - and have experience working in international projects.

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