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July 27 2017

ICO Alert Report: Adshares

ICO Alert Report: Adshares

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CROWDSALE PERIOD

July 7, 2017, 8:45 a.m. (UTC) through December 31, 2017 at 11:59 p.m. (UTC).

Crowdsale is currently in progress.

TOKEN DISTRIBUTION INFORMATION

ERC-20 token that will be convertible into a new Adshares blockchain token once the new blockchain is completed. This is currently scheduled for the end of 2017.

Token amount is unlimited, but after the minimum goal is reached, the price increases relative to the overall Adshares token supply.

The token price increases at a rate of $0.01 for every 1,000,000 ($100,000) tokens issued above 10,000,000 ($1,000,000) tokens. For example, if you purchased the twelve millionth Adshare token, that token would cost you $0.12 instead of $0.10.

Minimum funding goal of $1,000,000. Until this minimum funding goal is met, the founders/team do not have access to the funds contributed.

At any time the contributors can sell their ERC-20 Adshares tokens back to the issuing smart contract at a price proportional to the tokens in circulation (see above example regarding price). As of July 18, 2017 roughly 21% of the minimum funding goal had been reached.(1)

The smart contract is designed to hold all funds and all ERC-20 Adshares tokens at the start of the crowdsale. When a contributor participates in the ICO, the tokens are distributed to them immediately, but the Adshares team does not receive the funds immediately. Instead, the Adshares team receives 1% of the outstanding balance of funds in the contract every week, but only after the minimum goal of $1,000,000 (10,000,000 tokens) is reached. This 1% may fluctuate in value as more funds are contributed and/or sold back to the smart contract.

There is no cap on the amount of tokens available for purchase, nor the amount of money that can be contributed.

At the end of the crowdsale, the Adshares token holders can either exchange their tokens for new custom adshares blockchain tokens or sell them back to the Adshares token contract at the price purchased. There will be a one month period for token holders to decide.

ERC-20 Adshares tokens are exchanged for the new custom Adshares blockchain tokens at a 50% proportional rate. This meaning, that 50% of the total number of new custom blockchain tokens will be proportionally allocated to those who wish to exchange their ERC-20 Adshares tokens into the new Adshares blockchain tokens. The other 50% of tokens will be issued to the team for incentive purposes.

ALLOCATION

100% of the ERC-20 Adshares tokens that are issued during the crowdsale will go to the contributors.

50% of the new Adshares blockchain tokens that can be exchanged for ERC-20 Adshares tokens will be available to crowdsale contributors.

USE OF CROWDSALE PROCEEDS(5)

Funds will primarily be used for product development, marketing and in establishing partnerships in the advertising industry.(2)

TOKEN PRICE & LOCKOUT PERIOD

Each ERC-20 Adshares token is $0.10 until $1,000,000 is raised, at which point the token price increases in value relative to the amount raised. This is done to incentivize early contributors.

The Adshares team has access to an additional 1% of the funds raised every week, but only after the minimum goal of $1,000,000 is raised.

The crowdsale is for ERC-20 tokens that are later converted into new Adshares tokens.

TEAM

Jacek Zemlo — Founder

Jacek has 12 years experience in blockchain and advertising, is the founder of mfo3.pl (MMORPG) and was the Chief Investment Officer at InvestOn Ltd.

Dr. Leszek Rychlewski — Founder

Dr. Rychlewski has 20 years experience in software development, is CEO of the BioInfoBank Institute (non-profit R&D organization) and advisor to the Polish Bitcoin Society

Maciej Kazmierczyk — Business Development

Maciej has 10 years of experience in software development, is a board member for BIB Seed Capital and “has been in the blockchain space since $5 bitcoin.”

SOCIAL MEDIA

Bitcointalk — https://bitcointalk.org/index.php?topic=1994545.0

Telegram — https://t.me/adshares

Github — https://github.com/adshares

Facebook — https://www.facebook.com/adshares/

Twitter — https://twitter.com/adsharesNet

Medium — https://medium.com/adshares

The majority of the above Adshares information can be found on their website(4) and in their whitepaper(3).

What is Adshares?

Adshares network is a decentralized, peer-to-peer market for programmatic advertising that aims to lessen the number of intermediaries in the current advertising industry model. Programmatic advertising is the use of software to buy and sell advertising, rather than individuals having to find and negotiate for advertising. Currently, programmatic advertising is complex and full of intermediaries that take a cut from the publisher. Under the current process both advertisers and publishers must deal with ad exchanges that facilitate the buying and selling of advertising. Adshares aims to make it possible for the industry to function without having to use an ad exchange, thus reducing costs, lowering barriers to entry and more.(3)

Further Context(3)

The current advertising model can involve as many as 6 different steps between the marketer and the consumer. In the current model you have buyers (advertisers) trying to connect with sellers (publishers) in order to market to consumers. A buyer will generally work with an advertising agency, but from there, agency trading desks, ad exchanges, ad networks, consumer data aggregators and more are built into the process, taking a percentage of the publisher’s profit. Adshares estimates that as much as 70% of a publishers profit could go to intermediaries carrying out one part of the process.

How does the Adshares Network work?(3)

Unlike the above model, Adshares is aiming to reduce the barriers to entry, improve prices and increase transparency for publishers and advertisers. Adshares uses the ESC (Enterprise Service Chain) blockchain in order to scale to 10,000 transactions per second and 100,000 transfers per second all while reducing the cost of the transactions. The ESC blockchain is designed to allow for high volumes of simple transactions, like sending tokens between two different accounts. Without this speed, the network would not function efficiently.

The first thing an advertiser must do to use the Adshares network is create an account on the ESC blockchain and associate that account with their domain. Using an API provided by Adshares, the advertiser will describe the inventory they have available, the audience they are looking to target, and the price of doing business. At the same time, publishers use the ESC blockchain to find these advertisers. For example, as users visit a publisher’s website, the database full of advertiser inventories is analyzed in order to find a banner ad with the highest expected payout. Before displaying the banner to the user, a software script will check to make sure the banner is the same as the one promised from the inventory database.

As this process continues, advertisers will collect information about the ads published and decide which ones they should be using and at what price. Both the advertiser and the publisher will analyze more and more information and evaluate each other’s reputation.

This will help to weed out any bad actors in the network. There is now incentive for advertisers to offer fair prices to publishers and incentive for publishers to display the ads that are the closest tied to their audience in order to maximize their profits. It’s important to note when reviewing the whitepaper that this entire process is done on what is called the “Adshares Adserver”.

Additional benefits to the ecosystem (“In-network services”) are as follows:

  1. Reduced Fraud and Increased Transparency: The Adshares network could use cryptographic keys to authenticate events generated during the requesting and delivering of ads, thus reducing fraud. As a decentralized market the level of transparency between publishers and advertisers will be orders of magnitude greater than the current model.
  2. “Display First, Pay Later”: In the current programmatic advertising space advertisers must pay for ads ahead of time, and often blindly. Adshares aims to give advertisers time to analyze ads instead of having to blindly bid on ad space.
  3. Advertisement Classification: Some publishers will look to restrict the type of advertising that can be seen on their site based on the type of site, age of audience, etc.
  4. Lack of Pricing Power: Ad exchanges within the current advertising model have pricing power over the smallest users. By ridding the model of large advertising exchanges, Adshares is lowering the barrier to entry for the smallest players.
  5. Ad Blockers: Adshares aims to create a distributed network that gives everyone the ability to serve advertising from their own server/domain. This makes it difficult for the ad blocker software to keep up.
  6. AdShares Tokens: By using one currency, publishers and advertisers can quickly submit and receive payment without having to bother with cumbersome processes when using fiat currency.

Roadmap and Future Plans(3)

The Adshares Network is currently under development. According to the whitepaper, the token and “Adshares Adserver” are working prototypes. Depending on funding levels, the Adshares team expects the release of the blockchain token and the Adserver to each take 3–12 months. The team plans to coordinate strategic partnerships in the advertising market in order to run gateways to existing ad exchanges. If successful, this will help overcome the network effect problem that is such a hurdle for marketplace projects like Adshares. Finally, the team plans on incorporating machine learning and more to help improve the efficiency of the Adshares network.

Roadmap:

ASAP — Launch token trading on cryptocurrency exchanges.

Q4 2017 — Finish custom blockchain and Adserver software.

1st Half 2018 — Gateways to existing ad exchanges being acquired; Bootstrap in network services.

2nd Half of 2018 — Growth hacking.

Q4 2018 — The team estimates the network effect will start to kick-in.

2019 and Beyond — Organic growth.

View the Adshares website: https://adshares.net/

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Disclaimer: This report is intended to provide market intelligence. This is not investment advice and does not constitute any solicitation or endorsement of any investment. Any investment you make is done at your own risk and at your full and absolute discretion. The contents of this report are the property of ICO Alert. All rights reserved.

References

(1) Adshares Telegram application, @Adcript, Telegram (2017)

(2) Adshares Telegram application, @Adshares, Telegram (2017)

(3) Adshares Whitepaper, Adshares, (2017) https://adshares.net/assets/docs/Adshares.Network.whitepaper.pdf

(4) Adshares Website, Adshares (2017)
 https://adshares.net/esc

Topics: Blockchain, Advertising, Marketplaces, Programmatic Advertising, Ethereum