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ICO Analysis: Friendz

Friendz connects manufacturers with their group of customers to advertise “phrase of mouth” advertising and marketing. Not like a majority of ICOs, the corporate has already been in enterprise since 2016. They’re utilizing the ICO as a possibility to include blockchain know-how into their platform to automate image validation and reward distribution (extra on this later).

The crew needs Friendz Cash (FDZ), the platform’s native token, to be the foreign money of alternative for firms to make use of in engagement with their target market. The principle thought is to reward content material creators for selling manufacturers that they love and are engaged with.

The Friendz platform contains three forms of actors: model purchasers, customers, and approvers.

Model Shoppers

Model Shoppers, like Nestle and Uber, create and buy campaigns on the platform. They set the funds vary, goal customers, and social community distribution, amongst different necessary standards. These campaigns are then offered to the Friendz customers who can select to take part for FDZ rewards.

Friendz makes it simple for model purchasers to trace key efficiency indicators (KPIs) of their campaigns in real-time by means of their particular dashboard.

Customers

As a person, you take part in Friendz by creating content material for the model purchasers.

From the cell app, you scroll by means of a listing of campaigns and select one that you simply like. You then snap an image following the marketing campaign’s pointers, add a hashtag or two, and add it. Every one among your footage is rated from 1-5 stars by group members primarily based on its high quality.

Taking high-quality pictures has a number of benefits. The upper the score your photograph receives, the higher your FDZ reward. Persistently taking highly-rated images additionally brings you higher marketing campaign alternatives and precedence entry to campaigns over customers with a decrease score. The quantity of your pictures’ attain and total interplay can also be used to find out your score as a person.

Approvers

Approvers are extremely certified customers that display screen every photograph to make sure that they comply with the rules of the marketing campaign. As soon as a minimal variety of approvers accepts the photograph, it’s mechanically posted to the person’s social media accounts.

Any Person can develop into an approver after taking part in a sure variety of campaigns with a excessive approval score. Like regular customers, approvers even have rankings however are as an alternative decided by the accuracy of their approvals. That is just like the popularity system that Augur makes use of. If their approval score drops under a sure threshold, they’ll now not be an approver.

Approvers obtain FDZ rewards for precisely approving person pictures. Though this course of is at the moment working on the Friendz platform, the crew will probably be integrating it with the blockchain to make it extra correct and environment friendly.

Token

FDZ is an ERC20 token and the first foreign money on the Friendz platform. The crew will create a most of 1.5 billion FDZ tokens in the course of the ICO with no further creations after it’s over.

You should use the token for a large number of issues in-app together with:

  • Service and marketing campaign reductions
  • Visibility and publicity promotions
  • Blockchain-based video games
  • Merchandise retailer
  • Coupons and present playing cards
  • Model partnership purchases

Friendz is allocating 15%-30% of their income to purchase again tokens from the market as a way to switch them to customers. This provides a constant demand to the market and demonstrates that the corporate believes within the worth of the token.

Staff

Friendz started in 2016 and has grown their crew to over 30 members. Exhibiting some success already, the corporate has beforehand raised €500 thousand and made over €1.2 million in income.

Alessandro Cadoni, Cecilia Nostro, and Daniele Scaglia lead the crew as co-founders.  Though they don’t have a lot blockchain expertise, they’ve stable advisors to assist. The Friendz advisor board can also be concerned with different notable blockchain tasks like Eidoo and Gnosis.

The corporate has labored with over 200 purchasers – Disney, Reebok, Mattel, Warner Bros, and Greatest Western, to call a number of.

Tokens and Distribution

The FDZ token sale begins on March 1st at 10 AM (UTC+1) and can proceed for three weeks or till the 750,000,000 FDZ ($50,250,000) exhausting cap is reached.

The ICO additionally has a minimal aim of 50,000,000 FDZ ($three,350,000). If the crew doesn’t elevate this quantity in three weeks, they’ll refund all ICO contributors.

You should buy 10 FDZ for $zero.67 in the course of the ICO. However, in the event you take part early, you’ll obtain a reduction primarily based on a sliding scale:

  • First Hour: 40% low cost
  • First Day: 20% low cost
  • First Week: 10% low cost

50% of the overall token provide will probably be distributed to ICO contributors whereas the crew solely receives 5%. Nevertheless, there’s a 20% reserve fund that’s slotted for “future financing and crew reward. So, the crew might find yourself with greater than the unique 5%.

The tokens bought in the course of the First Hour in addition to those allotted to the crew, advisors, and reserve fund vest over a twelve-month interval. Every month, 1/12 of these tokens will probably be launched to the suitable individuals.

One-year is a reasonably brief vesting interval; nevertheless, as a result of the corporate has been working for a pair years now, this shouldn’t be an enormous concern.

The crew plans on utilizing the proceeds from the ICO as follows:

  • 50.zero% – Enterprise advertising and marketing and improvement
  • 20.zero% – Personnel and professionals
  • 15.zero% – Improvement
  • 10.zero% – Basic and administrative bills
  • 5.zero% – Different

With an already established product and person base, it is sensible that the crew will spend the vast majority of funds on advertising and marketing and enterprise improvement.

Verdict

Friendz is a longtime advertising and marketing and promoting firm with a confirmed monitor report. Just like Rentberry, the crew is simply incorporating blockchain know-how into their platform – not ranging from scratch.

It’s spectacular that the corporate has already handed its breakeven level and is profitably working. This could offer you confidence that the social, “word-of-mouth” mannequin that the FDZ token is constructed on is a stable basis.

Regardless that the crew isn’t comprised of blockchain consultants, they’ve introduced on some advisors with important expertise within the house.

Dangers

  • Crowded market. There are a bunch of firms, each conventional and blockchain-related, within the digital advertising and marketing trade. It could be robust for Friendz to proceed rising at their present tempo in such a saturated house. (-2)
  • Nothing revolutionary. There’s no “wow” issue to what Friendz is doing. With ICOs having such a excessive inherent danger, it could make extra sense to take a look at one thing tackling a much bigger drawback. (-2)
  • The mercy of third-parties. Fb’s latest promoting guideline modifications and the ever-evolving digital media panorama might hinder Friendz in the long term. (-1)

Progress Potential

  • Confirmed thought. Most significantly, Friendz is already profitable. Investing in an organization that’s already worthwhile eliminates a variety of danger. (+6)
  • Virality. The platform is constructed round social sharing and virality. As extra individuals use the app and share content material, the corporate ought to ideally see exponential development. (+four)
  • Token phrases. The small share of tokens allotted to the crew and buy-back program give me much less suspicion that there’s any humorous enterprise occurring. (+2)

Disposition

Friendz receives a complete rating of +7 out of 10. The crew, product, and token are stable and look to have minimal draw back danger in comparison with different ICO investments. The corporate isn’t attempting to drastically change the world by means of a decentralized web or monetary establishment overthrow. As an alternative, they’re tackling a reasonably large trade that in all probability received’t be going wherever anytime quickly.

Though this in all probability received’t be a home-run 50x return, it might simply by a stable single or double.

Funding Particulars

  • Sort: Utility
  • Image: FDZ
  • Platform: Ethereum
  • Crowdsale: Mar. 1, 2018
  • Minimal Funding: zero.1 ETH
  • Worth: 1 FDX = zero.zero67 U.S.
  • Arduous Cap: 750 million FDZ
  • Funds Accepted: ETH
  • Restrictions Barred from Taking part: United States

The Friendz token sale begins on March 1st, 2018 and runs for 3 weeks. You’ll find extra details about it here.

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Written by Ravi Gupat

Ravi grew up in India and graduated in Economics. He is a serial entrepreneur who has founded and exited several companies in tech and media over the past 15 years. He is also an early stage investor and advisor in various blockchain-based companies.

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