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DeepCloud AI

DeepCloud AI is building an AI-driven decentralized cloud computing platform for running decentralized applications - IoT and Web 3.0 dApps. DeepCloud AI aims to provide a spot market for computing and storage resources for companies and individuals to share their excess capacity on the decentralized cloud, and with the AI Matching engine pair these resources for application developers.

Rating: 3.2

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Product source tracking: https://github.com/DeepCloud-AI
Details Description Risks Full analysis Team

Detailed review

Stage of product development
DeeCloud AI development started in November 2017. Private MVP was developed in May 2018, the first live test of MVP is planned for August 2018, DeepCloud AI web application launch is planned for Q4 2018.


Token description
ICO date
TBA
Token price
Private Sale: Bonus up to 25%
Pre Sale: Bonus is unclear
Public Sale: No bonus
Platform
Initially Ethereum, then switch to a more scalable blockchain (NEO or ICON, TBC)
Hard cap
15000000
Soft cap
8000000
Capitalization of token pool
37500000
Blockchain
Initially Ethereum, then switch to a more scalable blockchain (NEO or ICON, TBC)
Token distribution date
N/A
Consensus method
Initially Proof-of-Work, then switch
Escrow
N/A
ICO currencies
ETH
Bounty camping
N/A
Markets
N/A
Token functions
DEEP Token are used for all transaction payments. Four main use-cases of DEEP tokens on the platform: 1. Access to the DeepCloud AI’s network system 2. Utilize premium features for High-End Users 3. Payment means by Network Users and Application Developers 4. Payment method to Network Resource Providers and Application Marketplace Providers
Tokens distribution
Crowdsale (40.0%)
Development Team (20.0%)
Partner Onboarding (15.0%)
Reserve (12.0%)
Marketing & Adoption (8.0%)
Advisors (5.0%)
Risks
MARKET

The The competing projects - SONM, Golem, and iExec have been on the market for a while now and had "first-mover" advantage.

PRODUCT

The GitHub page of the project has only one repository which is empty. GitHub was only created in late April. The domain was only bought at the end of April, the twitter was created around the same time. MVP is not available.

BUSINESS MODEL

Unit economics is poorly described.

FINANCES

There is no information about the team and advisors tokens lockup schemes. The competing projects - SONM, Golem, and iExec have been on the market for a while now and had "first-mover" advantage. The team aims to open two offices: one in Singapore and one in San Francisco. The reasoning for this strategy is unclear. There is no information about lockup schemes for early investors' bonus tokens.

TEAM

The CEO does not have a strong track record in cloud computing, AI, or blockchain. The CTO did not work at AWS, as claimed on the company's website. The experience of 2 out of 6 software developers prior to joining DeepCloud cannot be validated. The Blockchain developer is not employed at DeepCloud on full-time and additionally works on a freelance platform (Toptal) and at XSN-Core. The team is scattered across the world and different time zones. The team members are located in Singapore, San Francisco, Egypt, Ukraine, Netherlands, Florida, and Mexico. The team does not have full-time blockchain experts. There are no strong blockchain advisors and partners. The Core team members do not have strong entrepreneurial experience prior to joining DeepCloud AI.

Full analysis
Market

Cloud platforms are enabling complex business models and orchestration of larger globally integrated networks surpassing all prior predictions by analysts. Leading market research organizations are revising their estimates for cloud usage/growth as they see more utility for new applications, along with higher than expected adoption by mid-tier and small and medium enterprises (SME). Cloud computing expenditure is growing at 4.5 times the rate of IT spending since 2009 and is expected to grow at more than 6 times the rate of IT spending from 2015 through 2020. Gartner's prediction for Cloud Computing Market expects an increase from USD 67 billion in 2015 to USD 162 billion in 2020 attaining a CAGR of 19%. DeepCloud AI has several competitors in crypto sphere which include iExec, SONM, and Golem. iExec raised $12M, Golem raised $8M, SONM - $42M. Now, the market cap of iExec is $126M, Golem has a cap of ~$483M, SONM ~$67M.

Product

The DeepCloud AI Platform is a decentralized IaaS Cloud provider with IaaS, Application Marketplace, and Developer Community. DeepCloud AI relies on the Network Resource Providers and Application Marketplace providers for the services that it offers on the cloud. DeepCloud AI’s Core Platform controller manages the resources and has the AI Matching engine for matching the Network Resource Providers and the Application developers. DeepCloud AI will allow using the computing power of the nodes for running decentralized applications — IoT and Web 3.0 DApps. DeeCloud AI development started in November 2017, according to the company's website. Private MVP was developed in May 2018, the first live test of MVP is planned for August 2018, DeepCloud AI web application launch is planned for Q4 2018. However, the domain was only bought at the end of April, the twitter was created around the same time. The GitHub page of the project has only one repository which is empty. GitHub was only created in late April.

Business model

Desktop Grid Computing technology (utilization of nodes) will be implemented on the platform. Data will be managed and processed through the nodes that are running on the network, in return node holders will earn DEEP tokens. DeepCloud AI core service will be free for users. The revenue will be generated from the intrinsic value of the DEEP tokens, with the expansion of the user base. Additional revenue will be generated by the network resources provided by DeepCloud AI itself for the infrastructure. In future, the team also plans to have tiered service model for Enterprise customers requiring higher levels of SLAs and Security. DEEP Tokens are used for all transaction payments. Four main use-cases of DEEP tokens on the platform: 1. Access to the DeepCloud AI’s network system 2. Utilize premium features for High-End Users 3. Payment means by Network Users and Application Developers 4. Payment method to Network Resource Providers and Application Marketplace Providers

Finances

DeepCloud AI soft cap will be $8M, Hard Cap - $15M. Selling 40% of the tokens, we get company valuation in the range between $20M and $37.5M. For comparison, iExec raised $12M, Golem raised $8M, SONM - $42M. Now, the market cap of iExec is $126M, Golem ~$483M, SONM ~$67M. Therefore, DeepCloud AI valuation looks reasonable. However, one must admit that the competing projects have been on the market for a while now and had "first-mover" advantage. The team will issue 200M DEEP Tokens and all unsold tokens will be burned after the ICO. The project will reserve 20% of tokens for the team and 5% for advisors. There is no information about lockup schemes for these tokens. The use of proceeds will be as follows: 55% for reserarch & product development, 12% for marketing communications, 10% for offices exploitation in Singapore and San Francisco, 10% for overhead & administrative expenses, 10% for contingency, and 3% for contractors.

Team

There are 8 people working in the team according to DeepCloud AI website. The CEO previously worked as IT specialist at various companies across different industries, including HYATT, IRS, Mahler Enterprises. He focused on network security and infrastructure development. The CEO does not have a strong track record in cloud computing, AI, or blockchain. The CTO previously worked at Nokia's subsidiary (Alcatel-Lucent) as CTO. She has experience with implementing AWS, Microsoft Azure solutions. However, she did not work at AWS as claimed on the company's website. The community managers previously worked at Pchain which recently raised $28M via ICO. Other team members previously worked in marketing at eBay, Enterprise Architecture (Cloud & Cybersecurity) at Hewlett Packard Enterprise, VmWare The Blockchain developer is not employed at DeepCloud on full-time and additionally works on a freelance platform (Toptal) and at XSN-Core.

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