The monopoly of traditional market players do not give BitClave any chances to scale its solution in the right way. BitClave has not proven market acceptance, so talking about scaling the platform and taking any significant market share prematurely.
The company provides the convincing platform appeal analysis for one consumer group – organizations. However, the solution success will depend on the growth of such critical amount of users in the ecosystem in order to be beneficial for the companies to cooperate with BitClave. There is no MVP at the moment ( minimally viable product) Not any personal information is monetized but only the one which is relevant for concrete consolidated companies in the ecosystem.
At the initial stages of the project development the company is going to provide subsidies to partner companies to maintain interest in the project until it eventually becomes interesting in itself. The main risk is that, firstly, it is not clear how long the fund of collected money/ collected funds are going to be burned through in this way. Secondly, a lack of a clear monetization project scheme does not allow to shift part of the load from the fund to revenues from basic operations. As a result, the funds can trivially ran out ( you should remember about the possible depreciation of the long-term budget nominated in the tokens) and with this business model partners have nothing to offer. BitClave does not clearly formulate the sin directions of project monetization. The point at issue is mainly about “additional services” however it is not clear how relevant this will all be to organizations. Obviously, taking into account the availability of subsidies it is meant that initially before confirming the platform’s robustness for marketing purposes, the partnership with organizations will not be monetized but, on the contrary, subsidized. The planned remuneration system based on CAT-tokens, contains significant risks of unfair behavior on the part of users. The users will be provided with tokens as an encouragement for the ad view In this case there is a high probability of forming an entire layer or even the whole community of users, monetizing passive ad. Bots should also be remembered. However, it is not yet clear how to deal with fake personal information ( the user is anonymous and cannot be verified) and cheating activity. At the same time, too serious set of conditions for obtaining tokens can lead to loss of interest of users to the project.
The company does not provide the mechanism of return on investment The mechanism of returning funds to the investors is not provided. BitClave does not provide any financial forecasts of its future activities. There is only one way of project development – scenario approach is not available evidently arising from possible mismatch of the team plans. The significant part of the tokens (30%) is reserved by the team for the long-term project development budget. BitClave risks losing this source if the token becomes devalued. Hard cap ICO makes up 50 million USD. However, within two rounds of preliminary sales the company collected more than 16 million USD. that has already covered the volume of median rounds in comparable venture transactions with the participation of an average of more mature and developed businesses in 10-16 times. As part of the presale, the tokens were sold at a 75% discount regarding the main ICO round. Such a layout stimulates the early exit from investment of the presale participants on the formation of the secondary market and the collapse of the token exchange value.
The founders either lack the experience of developing entrepreneurial projects in the block chain environment or in principle the experience in projects related to block chain and crypto- currencies.
It is possible to talk about the huge amount of potential market size for BitClave.Firstly, the size and the revenue dynamics in the internet ad segment indicates it. According to PWC and OAB report, CAGR from 2003 to 2016 made up 19,3%. The revenue size for the first half of 2016 also increased by 19,1% in comparison with H1. From 2015 till 2016 its size should have made up 50i+ billion USD. Taking into account the fact that the companies beyond Top 25 industry acccording to the statistics account for 16% of the cumulative earnings from the internet advertising. In 2026 BitClave could potentially claim 8+ billion USD. Secondly, the cumulative world expanses on digital marketing till 2017 are forecast on the level of approximately 230 billion USD. К 2020 году, по прогнозам Statista, обещают возрасти до 335,48 млрд. USD, продемонстрировав за данный период 13,5%-й CAGR. According to Statista, the cumulative world expenses are promised to increase by 335,48 billion USD till 2020, demonstrating 13,5% of CAGR for this period. The part of the expenses on digital-marketing from 2015 till 2020 will raised from 42,6% to 53,2%. According to BitClave team opinion this indicates the promising outlook of the chosen company line with the constantly low effectiveness of digital-marketing tools (Bitclave offering potentially more conversion marketing business solution due to more appropriate and informed targeting). According to Net Market Share data there is a popularity growth of mobile search queries in comparison with stationary ones. From 2016 the amount of mobile search queries has been exceeding the amount of the last ones and this gap will increase in the future. Paying attention to this fact the BitClave solution to develop mobile format of the platform in the first place has naturally blended in market trends. Thus, the project could at least count on carving its own niche on the market.
BitClave offers to its users the service giving the opportunity to earn due to revealing the personal information ( the place of living, income, gender, sex, preferences) for the companies based on the platform and also behavioral information which is made up not only of the activity inside the decentralized ecosystem BitClave (BASE – BitClave Active Search Ecosystem) but also beyond its boundaries as well: within another search services, browsers, while you buy something at the supermarket or go to the café or restaurant etc. It is necessary to understand that BitClave is not a browser or a search system but an aggregator of retail supplies/ offers from consolidated companies which designed either in the form of individual applications or in the form of catalogs of goods etc., The whole amount of behavioral, geographical and personal information which had been used without any knowledge of the users from this moment will be kept under their control. Even in case of data monetization the depersonalization of the owner information assets will be guaranteed. The monetization is held in the CAT-token format ( customer activity tokens); Thus, BitClave provides to its customers a kind of discount internet-shop with advanced cash-back system spreading to activities such as advertising click or advertising link following. The assortment of cash-back is limited only by the number partners. The partners in their tern will get an advanced to several levels of analog of advertising network selling targeting advertising to producers on certain indicators and user actions. In fact this analog gives the opportunity to transfer from the indirect/ collateral and low conversion expensive internet marketing to the direct and cheaper marketing solution. What is more, not only the analytical tools embedded into API BitClave will be available but the ability to use personal settings as well.
The company business model is based on two principles. Firstly, this is an anonymous action registry which is the basis of BitClave infrastructure. It provides decentralized opportunities for crowdsourcing ( we talk about voluntary information provision in return for money) and about the exchange of anonymous data about customers and sellers activities.The register allows you to analyze the customer activities through the various sources: mobile apps, internet websites. The activity on third-party websites is revealed by the user manually through the authorization mechanism in case it is supported by the website. This activity implies a fee for both the user and the website and users can dispose of this information. You can also enter information about yourself through personal data. An additional source of data is the search history in BASE as well as the history of customer’s interaction with the seller. Any member of the ecosystem can dispose the value of this data if it was not encrypted or hidden by the user in a different way. The value of this information asset is extracted in the form of CAT-tokens in the manner specified in the smart-contract. The second element of business model is the token exchange algorithm which has been partially described above created to stimulate and reward platform stakeholders. Thus, partner enterprises receive tokens for data entry into the anonymous registry. It means entering in the ecosystem something like ad content or retail trade proposal. They also receive tokens for the execution of smart contracts with other ecosystem participants that’s is for the transaction conclusions or/ and intersection with users through marketing channels: following the link, etc. The users, in their turn, are rewarded for any activities related to the disclosure of personal data and/ or response to the organization promotional offers which does not necessarily entail consequences in the form of sale-purchase transaction.
The hard cap of the funds attracted during the ICO set by BitClave is made up 50 million of USD. In case of the fund-raising campaign failure the minimum needed soft cap is not revealed to the investors as well as the repayment mechanism. BitClave is already safe from this perspective because of the warming up interest to the project in the criptosociety in the right way which has resulted in / run to- привело к 16,5 million of USD so the soft cap was reached during the presale round in July. The token supply is fixed at the level of 2 billion taken with overloaded white-list of ICO participation bid and hard token integration to the reward scheme of personal data and user activity within the platform (like the relevant review of the ad messege of the company you are interested in). This creates short and long-term factors of the stable supply growth of the developing token community project and as a result its currency value which is going to provides its investment appeal. The company policy to artificially reduce the token reward with the growth of the community will also work for it. BitClave also reveals the expense structure of given funds, allocating 38% for the design/development, 37% - for the community ( which means the subsidies for future partners who will form this community), 8% - for the unforeseen circumstances, 7% -for the administration, 5% - for the consultants and 5% - for the legal charges.
The BitClave team consists of twenty software engineers as well as a council of consultants which includes experts in information security, payment and block chain technology. There are also specialists in the field of content marketing and product management. A significant number of company employees, including representatives of the management core (Alex Bessonov, Patrick Tague, Emmanuel Owusu) have a serious expertise in the field of information security which is closely related to the project essence and its objectives. The specialists in block chain technology are presented both at the level of team members and external project consultants. There are only thirteen people on the consultants side of the company. Among them are specialists from such areas as strategic planning and management, data confidentiality, risk management, blockchain, etc. Many of the consultants are holders of MBA and/ or PHD degrees in their professional fields. Both of them – Dough Park and Reza Dibadj are legal advisors which can potentially level out legal risks, one of the most serious risks which blockchain start-ups are faced with due to the instability of the legal field surrounding crypto-currencies and blockchain. It is noteworthy that the experience of a significant number of employees does not just correspond to the position held and has the required number of years. Many of them used to work in top international or national companies in their sectors like IBM, Microsoft, Mail.ru, Intel, Adobe, etc. CEO BitClave – Alex Bessonov has significant experience in both management (LG, Microsoft) and public activities which guarantees the company a certain level of contacts and partnerships. It is both about entrepreneurial mentoring and mentoring start-ups in the US accelerator. However, none of the management core members was engaged in the development of similar scale project not only in the field of block chain technology but in principle something similar in terms of pretentiousness. In general no serious risks were identified during the analysis The main team embers and consultants are presented in LinkedIn BitClave is listed as the current workplace everywhere Any third-party projects in management which pulling on a blanket were not found.