Strong potential competition from similar blockchain projects
No prototype or MVP available The roadmap is not detailed enough so that it would possible to judge project’s plan
Tokens will be available on exchanges only in 2019
Lock up period of 1 year is very risky with the project with no MVP and unpredictable government ICO regulations Low share of tokens for crowdsale raising the uncertainty about the token price volatility in the future High maximum cap of token pool of 300M USD raising the risk of overestimation No financial estimations and model provided
No legal specialist in the team was found
Ocean Protocol is to be a part of fast growing market of Database-as-a-Service and cloud storage. According to MarketsandMarkets its CAGR 2019 will reach 67% with total market revenue 14B USD. Competition here is strong especially among blockchain projects, such as Apex, Pikciochain, Storj, Bluzelle, Boxdrive, Sia, Tresorit, Filecoin, AWS. Potential revenue coming from financial database trading is about 300B USD, PwC says. It must be noted that potential database for storage is so massive that competition on this market is hardly to be aggressive. Moreover every company stated above has a different strategy, for instance Ocean Protocol aims to build up database trading for AI technology development that sounds unusual and demanded. Also some strong partnerships must be highlighted here such as Singapore government together with some tech companies.
Only 1% of global database collected by major companies is processed. Ocean Protocol aims to build up trading platform where database can be purchased for tokens. But now only technical papers are available with no prototype. On the other hand the project is on presale stage and its looks logic and potentially effective. The project promoted follows market trends. The risk is a lack of detailed roadmap that promises to launch the network in Q1 2019.
Token in the Ocean Protocol model is a sufficient part being an exchange medium between users. In addition users founding nodes for database storage are also rewarded so that the model turns decentralized. Nodes getting reward increase the total tokens in circulation. Considering token features above it is hardly to be considered as a security. According to the roadmap token will be available for trading on exchanges in 2019.
The current stage of tokensale aims to raise 18M EUR. Whitelist started 15 February. Min individual cap is 250 EUR that makes tokensale accessible enough. But the major risk is lock ip period for 1 year for tokens purchased so that investors will not be able to trade them. It must be noted that ICO is not the only method of fundraising – Ocean Protocol has raised 4M EUR via venture capital. Investor’s share in total token pool is 25% and current tokensale covers only 6.5%. Maximum token cap is about 300M USD that is considered over estimated enough. But one must borne in mind that similar projects are traditionally well judged by crypto community and Filecoin success story of raising 250M USD is a relevant example.
Project’s team is experienced enough. Most of the team members are specialists of BigchainDB and DEX pte with experienced technical specialists. The company has 6 founders with vast experience in technical and business analytics since the beginning of the century. Marketing director works has been working marketing since 2015 with previous 10 years’ experience in accounting. In addition team has a marketing specialist with 10 years of relevant experience.