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ICOrating
HOQU Rating Review (https://www.HOQU.io/)
ICO dates (27.11.2017 — 26.02.2018)
Web: icorating.com
Email: [email protected]
Twitter: @IcoRating
1. Ratings 3
2. General information about the Project and ICO 5
3. Description of the services and scope of the project 9
4. Engineering features of the project 14
5. Market Review 17
6. Competitors and competitive advantages of the Project 19
7. Risks 21
8. Team 22
9. Project development strategy and Roadmap 25
10. Marketing strategy 27
11. Economy of the Project 29
12. Token investment attractiveness 33
1. Ratings
We assign the HOQU project a "Positive" rating. We recommend HQX tokens for purchase. HQX tokens will be of interest primarily to future platform users, as well as to investors willing to buy them for medium and long term portfolios.
The HOQU team has been in the internet advertising market for several years now; it has already successfully launched several projects and is now reaching a new level, setting ambitious goals. The client base for the already functioning Marketcall project will be transferred to the HOQU platform, which is a big plus, and would create the initial fundamental demand from users for HQX tokens in the future, which also increases the likelihood of project success as a whole. For those users who for various reasons do not want to use HQX tokens for payments, a web application with a simple and clear interface will be created, and the opportunity to work with a convenient client currency on the platform.
It is worth noting the availability of a financial model that reflects market realities. Also, being professionals in the field of internet advertising, the founders have taken care of marketing HOQU, making this one of the strengths of the project.
Separately we would like to note that the project team have made the difficult decision to change key parameters of the ICO: "Against the backdrop of the sharp growth of the ETH rate, the HOQU team made the following decisions:
1. Fix the amount of hardcap in USD at the rate of ETH/USD on the start day of the HOQU Token Sale (27.11.2017);
2. Cancel Sale Round 2, scheduled for Q2-Q3 2018 and, consequently reduce the issue of tokens from 888,888,000 to 300,854,400 HQX. The remaining 588,033,600 tokens were burnt on December 19, 2017".
These innovations have significantly changed the size of the project's hardcap and the ICO plan, demonstrating the team's determination and their desire to launch the product, and have removed some of the risks that could negatively affect the future token price. We positively assess the measures taken by HOQU.
For investors working on short time intervals, we advise more caution when buying tokens due to the fact that the full launch of the platform is expected near the end of 2018, and accordingly the fundamental demand for tokens will not appear before this event. Based on what we have learned about the project and the past experience of the developers, we can draw a conclusion about its potential success. Obviously, this company is well oriented in all the nuances and specifics of the market for CPA networks. Thanks to this, it can produce a really interesting and successful product, and modern advertisers would want to use it.
2. General information about the Project and ICO
The HOQU company is positioning itself as the world's first decentralized marketing platform, allowing advertisers and partners to work directly, without intermediaries, by guaranteeing fair deals on the CPA model using a smart contract. The platform will provide the following benefits to both advertisers and partners:
● Financial; ● Free use; ● Easy entry and fair competition; ● Module independence.
Website
Whitepaper
Slack: No Information
Twitter (+4559)
Telegram (+3301)
Telegram RUS (+1522)
Facebook (+3919)
Bitcointalk (+10 083)
Bitcointalk RUS (+4641)
GitHub
Medium
YouTube (+1920)
Instagram (+1777)
Youku
Steemit
Smart contract platform: Blockchain Ethereum
Contract Type: ERC20
Token: HQX
Accepted currencies: ETH, BTC, LTC
Total issuance: 300,854,400 HQX
Maximum number of tokens for sale: 195,555,360 HQX or 65%
Private-Sale:
Maximum number of tokens for sale: 23,111,088 HQX
Hard cap: 2311 ETH (with the bonus)
Soft Cap: no information
Token Price: no information
In the course of the Private-Sale 23,111,088 HQX were sold.
Pre-Sale:
Start: 13.11.2017
End: 20.11.2017
Token Price: 1 ETH = 7000 HQX (including the bonuses)
Minimum Purchase Amount: 0,1 ETH
Maximum Purchase Amount: Unlimited
Maximum number of tokens for sale: 34,666,632 HQX
Hard cap: 4952 ETH (including the bonus)
Soft Cap: no information
Pre-Sale provides a 40% bonus to the Main-sale price for participants.
In the course of Pre-Sale 34,666,632 HQX were sold.
Main Sale:
Start: 27.11.2017
End: 26.02.2018
Token Price: 1 HQX = 0.0002 ETH or 1 ETH = 5000 HQX
Hard cap: $14,791,000
Soft cap: no information
Minimum Purchase Amount: 0.1 ETH
Maximum Purchase Amount: Unlimited
Maximum number of tokens for sale: 137,777,640 HQX
Bonus system for the Main Sale period:
To participate in the token sale it is necessary to get whitelisted. The number of places in the whitelist is limited, and registration will be closed after completion. Each
participant will have a personal account in which they will find step-by-step HQX token purchase instructions.
2-3 days after the token sale ends, HQX tokens will be distributed to Ethereum wallets.
If the hard cap is not reached by the time the sale ends, all unsold tokens will be burnt.
Token distribution after ICO:
● 65% (195,555,360 HQX) will be transferred to participants. ● 30% (90,256,320 HQX) tokens intended for the founders will be frozen for 6
months. ● 4% (12,034,176 HQX) will be transferred to advisors who contributed to the
project development, bounty program (2%) and marketing. ● 1% (3,008,544 HQX) will be transferred to support the ecosystem.
The allocation of funds from the sale of tokens will be carried out as follows:
3. Description of the services and scope of the project
The HOQU decentralized platform is designed for advertisers and their partners to be able to work together without intermediaries. The smart contract will guarantee both parties' honesty and the transparency of transactions.
The main users of the HOQU ecosystem are in the following categories:
● Merchant (advertiser) ● Affiliate (partner) ● Affiliate Network (Partner network) ● Customer (client)
Interaction of the ecosystem members is as follows:
1. The advertiser places offers on the platform (offers), aimed at a certain kind of data (Lida), for which he is willing to pay up to a specified cost.
2. The affiliate who wants to promote the offer of the advertiser, independently deploys and supports the marketing network via attraction of clients. Through marketing resources (websites, call centers, outdoor advertising, etc.), the affiliate generates a stream of leads, collected and processed by tracking services of a particular offer. Through the API or by calling the smart contract method directly, the tracking service generates leads data and adds key information about it to the platform.
3. The advertiser can approve the added lead by calling the appropriate API method or smart contract method directly. At the same time the cost of the lead (minus the platform ommission) is deducted from the advertiser's account, and the advertiser then gains access to key information on the lead, and can obtain full data of the lead with the help of the tracking service or unpacking the data on the lead using the key.
An affiliate network on the HOQU platform can place all their offers and leads, and any of the partners already working with the platform will see all offers from the partner network and will be able to start working with them without additional settings.
Registration on the platform is implemented in the following way:
● A user is registered on the website HOQU.com, and verifies their phone number and e-mail.
● The user is verified with the help of the Civic service. In the future it may be possible to implement your own user verification service.
● A hot Ethereum wallet is created, providing the user with a personal address in the Ethereum network and a private key to the wallet, necessary for access to the user's personal account on other devices.
● The user chooses her role in the system – advertiser or the affiliate, after which she is given access to a corresponding personal account.
The following decentralized Web applications can be used to access the HOQU.com website:
● Application for Advertisers ● Affiliate's Application ● Affiliate Network Administrator Application ● Application for the Appeal/Audit Service Operator
In addition to ready-made Web applications, an SDK for native solutions developers will be created. Each web application will have a public API to gain information about its user. To provide partners with Affiliate Program data, the advertiser and partner network applications will have an additional private API. Real-time data from the blockchain will be collected, processed, and stored in a relational database, which will be accessible through the public API to any user registered on the platform. Because the platform uses the Ethereum blockchain, this feature is required so that the user does not have to pay gas fees when receiving data directly. This architecture will allow new users to save time and receive all the benefits of decentralized solutions, and will integrate with the platform by installing nodes. Using the SDK, all existing affiliate networks will be able to add the benefits of the decentralized HOQU platform to their solutions. The platform provides the following capabilities to members of the HOQU ecosystem: For advertisers:
● The ability to work with any affiliate network on the platform by means of a web-client or mobile application (for IOS and Android), if it is not prohibited by the privacy settings of the partner network.
● The possibility of selecting the defining activity in the transaction (CPA, CPL, CPI, CPC, CPS).
● Payment is made only for the selected transaction type that is included in the smart contract.
● Easy development of your own affiliate network with all the tools and the affiliate database of the platform.
● The possibility of working with affiliates directly for the 0.5% commission. ● Confidence in the integrity of the affiliates (affiliate network).
● Guaranteed availability of the required number of transactions for any field of activity.
● Possibility to challenge transactions through appeal centers.
For Affiliates:
● Ability to work with any affiliate network on the platform by means of a web-client or mobile application (for IOS and Android), if it is not prohibited by the privacy settings of the partner network.
● Any individual or organization matching the criteria of the platform or the specific offer can work with the platform.
● The right to complain about unconscientious affiliate networks or advertisers. ● Selection of an affiliate program and offer according to the best reward model
(CPA, CPL, CPC, CPS, CPI). ● Both seasoned professionals and reliable affiliates and novices in the field of
affiliate networks can work with the platform. ● In the event of collaboration with an affiliate network, one can make their own
payments in the convenient form. For Affiliate Networks:
● The possibility of working with any affiliate or advertiser through the web client or mobile app (IOS/Android), if this is not limited by the privacy settings.
● The possibility of creating services for cash input and withdrawal on the platform.
● Adding their promotional offers to the platform. If an offer is added by an affiliate network, it is considered to be the actual owner of the offer, but the advertiser is its nominal owner.
● Only the owner of the offer can perform different actions with it (change the cost and terms of the deal, activate and deactivate offers, and so on).
● A 24/7 Support Service. ● Development of promo materials and help with setting up tracking services. ● Estimation of the offer's cost.
The platform includes appeal/audit centers, which are divisions which conduct the regulation and audit of mechanisms in the operation of the service. The appeal centers have their own rating system that is dependent on the adoption of equitable and prompt decisions on arising appeals. If fraudulent activities are detected, these centers have the right to downgrade the reputation of members of the platform and to prohibit them to work with the materials and objects that they own.
Any member of HOQU may appeal against the action of another participant by submitting an application to the appeal center. When a complaint is received, the Center conducts a semi-automatic review of the parties to the conflict and makes its decision. The appeal centre performs the following functions:
● Performing independent investigations into the appeals of advertisers and making decisions about them.
● Monitors the reputation of the platform participants. ● Verifying affiliates' reputation feedback from advertisers.
4. Engineering features of the project
Development on Github is in open source mode, and a smart contract repository is available.
At the time of writing, the HOQU platform MVP for private testing was launched. YouTube hosts a video describing its functionality.
The Hoqu platform will have a set of decentralized applications that allow you to add offers and leads, as well as create your own affiliate network from scratch which has all the benefits of the platform. HOQU will have a large selection of pre-installed modules (plugins), as well as allowing you to create your own plugins.
The structure of the advertiser's application is as follows:
The structure of the affiliate application looks somewhat different:
Using the advertiser application you can create your own affiliate program, with the help of which the advertiser can register an offer in the system, setting the rules and the amount of remuneration of the partner not only in HQX tokens, but also in fiat currency (in this case, the cost of a lead at the time of its creation is calculated in HQX at the internal rate of HOQU.com). The amount can be fixed or calculated as a percentage of the value of an attracted lead.
The partner can receive rewards for different types of calls:
● Leads ● Actions ● Installs ● Calls ● Clicks, etc.
and may use two evaluation criteria:
● Objective (automatic scoring) ● Subjective (scoring after the evaluation of the body of lead by the operator)
The creation of the affiliate program is available to both the advertiser and the affiliate network on its behalf, provided that it is a member of this network. In this case, all rights to edit and publish belong to the affiliate network, the data is stored on its database, and the advertiser is its nominal owner.
After the partnership program is created, it writes its header data to the blockchain, and the full data to the relational database of the advertiser or partner network (depending on who created the affiliate program). Access to the database is made through the API, the details of access to which together with the data of the affiliate program are stored in blockchain. In the event of work with the affiliate network or when the affiliate program has a private status, the API key which is given to the participants of the affiliate network is required for access to the data, or the partner receives it on request from the advertiser. In addition to the information above, the affiliate program has the API credentials of the supporting services — the lead tracker and the authorized Appeal Center.
5. Market Review
Nowadays, when internet access is almost universal, television, radio and press cease to be the main sources of information and advertising, gradually giving place to the web.
According to Statista.com, in recent years the market for internet advertising is showing intensive growth. According to their forecasts, its volume in 2017 will be more than $227 bln. At current growth rate, by 2021 it may exceed the forecast value of $332 bln:
Gradually replacing printed editions, outdoor advertising and radio, the growth of the share
of internet advertising in the world market is also confirmed by research conducted by
Magna:
A somewhat more optimistic forecast is provided by the research company eMarketer, predicting that by 2020 the volume of this market segment will exceed $335 bln, which is 46% of the total market volume on a global scale. For different countries, the amount of expenditure on internet advertising is different, the leaders in this area with a significant gap from other countries are the United States, China, the United Kingdom and Japan:
As we can see, the HOQU project plans to enter a very promising and dynamically developing market. Of course, this increases the chances of successful project launch and subsequent expansion of the business.
6. Competitors and competitive advantages of the Project
The market for internet advertising is huge and every year it continues to grow. The structure of the advertising market is not standing still either; performance-marketing is gaining in popularity as well. This type of marketing is the basis of the HOQU project. Not surprisingly, because of the growing popularity and recognition of the benefits of blockchain technology, many companies in the marketing industry intend to translate their existing businesses into blockchain. We will consider them as competitors of the HOQU project.
AdEx is aimed at the entertainment industry and video streaming services. ADEX intends to replace traditional digital advertising models by providing a transparent solution that allows advertisers to communicate directly with advertising distributors, bypassing intermediaries, all commissions and difficulties traditionally with them are. The platform also allows one to ensure that the end user receives and controls the ads he displays through a personalized AdEx profile page.
Qchain is a blockchain platform for marketing and advertising, whose creators plan to launch an application that focuses on connecting advertisers and content publishers through the direct sales market. In the ecosystem of this advertising application three agents will interact: Advertisers, publishers and hosts. Qchain plans to collect 1% of transaction amounts.
Adchain also aims to make the field of digital marketing and advertising more secure and effective for advertisers, users and publishers. The Adchain project aims to streamline publication so that advertising on the internet looks more legitimate and can act as a real marketing tool to attract customers to a landing page, not to impose on consumers. The project allows advertisers to buy legitimate advertising sites where they can provide adverts on websites that are legitimate and free from fraud.
Papyrus is a project for a highly scalable decentralized ecosystem for online advertising that creates mutually beneficial conditions for developers, publishers, advertisers and users. Papyrus creates a transparent purchase chain of advertising and properly motivates the players in the internet advertising market. Users will be given the ability to control viewing of advertising and the provision of data to advertisers.
The list of such projects does not end there. All of them are united by the fight against fraud, inflated commissions and the presence of intermediaries in different structures of the advertising industry. But none of the companies affect the solution of these problems in the field of performance-marketing, namely the segment of affiliate marketing, against which classical models are increasingly inferior. This factor makes it possible to judge that the HOQU project has no direct competitors in its segment.
An additional competitive advantage of the project is the team's understanding of the lack of technical knowledge and resources for the use of smart contracts and Ethereum wallets by system participants (future platform customers). To solve this problem, the developers aim to create a web application with a simple and clear interface (both desktop and mobile versions will be available). All operations will still pass through blockchain, however, through the HOQU API. Platform participants will then be able to simply acquire an account on the HOQU system, enter the necessary budget in any convenient currency, and start work in the system.
Thus, the developers are providing a unique product in both concept and infrastructure.
7. Risks
Despite the success of already launched projects, the long-term joint experience of the team, an existing idea of the project that is necessary for the current market in internet advertising, HOQU still has the risks inherent in projects that are emerging via ICO.
A good sign is the fact that the project developers understand these risks and take them into account when implementing their product. All of them are listed in the white paper. Also, the project team made changes to some parameters of the ICO being staged. We positively evaluate these changes, they have removed the risks we were going to highlight.
The reduction of the hard cap of the project to $15 mln, almost 2 times lower than previously planned, reduces the risk that the project may not reach hardcap. According to the project’s comments, this value will be more than enough for a full-fledged launch of the project.
The second point is the cancellation of the previously scheduled sale round 2 scheduled for Q2-Q3 2018, the parameters of which were not known at the moment. This removed the risks that investors could wait for a later round of investment to make a decision and accordingly not take part in earlier rounds, so as not to freeze money in the project for 2-3 extra quarters and wait to see how the project will develop during this period. Now there is no such possibility, which is positive for those who have already invested in this ICO.
We have not identified any other specific project risks that deserve special attention.
8. Team
The HOQU project consists of specialists in different fields; at the time of writing it includes more than 50 people. Among them are experienced marketers, analysts, programmers, experts and developers in the field of blockchain. Team: Alexey Shmonov - HOQU CEO and Co-founder (LinkedIn) Internet advertising specialist, entrepreneur.
● Co-Owner of Move.ru (May 2008 – present) ● Co-Founder of Novostroyki.org (January 2014 – present) ● CEO and Co-founder of Marketcall (September 2015 – present)
In 2011-2013 he worked as operational director of TurkPay and introduced the PayPass technology in the payment system. Education: Don State Technical University (2002-2003) Moscow State Technological University "Stankin" (2003-2008) Maxim Anikeev - HOQU CMO and Co-founder (LinkedIn)
● CEO MaxStyle (2005-2006) ● CEO and Founder of Promopage (April 2006 – present)
Currently manages 55 projects with an aggregate annual turnover exceeding $25 mln. In 2017 he became a co-founder of the HOQU platform, in 2018 it is planned to unite all previously launched IT projects on its base. Education: Moscow State Technological University "Stankin" (2004-2008) Alexander Duzhnikov HOQU COO and Co-founder (LinkedIn)
● Co-Founder of Novostroyki.org (January 2014 – present) ● Co-Founder Move.ru (May 2008 – present) ● CMO and Co-founder of Marketcall (October 2015 – present)
Education: Moscow State Technological University "Stankin" (2002-2008) Roman Kaufman HOQU CVO (LinkedIn) Expert in the field of digital economy and blockchain, co-founder of the largest blockchain community in Russia and Eastern Europe, IBCG, which has more than 15,000 people.
● KAE Philip Morris International (2014-2015) ● KAM Hygiene Kinetics (2015-2017) ● Co-Founder of IBCG (January 2017 – present)
Education: Pacific National University (2003-2008) Khabarovsk State Academy of Economics and Law (2008-2012) Advisors: Ralph Liu (LinkedIn) Investment banker, Venture investor in the field of blockchain technologies. Founder and CEO of InvestorsAlly Inc; Founder and President of WeCoOwn. Dr. Moe Levin (LinkedIn) CEO of Keynote; investor in high-tech startup projects, as well as advisor to governments, regulatory bodies, banks and venture companies. Co-founder of the first accredited Blockchain academy, early investor in RSK Labs, Labfresh, Dropbox, etc. Kenneth A. Goodwin Jr. (LinkedIn) Executive Director with over 20 years of experience in the banking sector and capital markets. Former member of the American Business Council at the White House, a college professor and lecturer in international trade methodology, forensics and executive director of C-suite for FDI in the United States, Asia (China, Japan) and Africa. Alex Shifrin (LinkedIn) A professional in the field of advertising with a solid history of successful entrepreneurship and international experience. Currently working as Managing Partner at LP/AD, a boutique agency in Toronto. Previously held the position of Regional Director of Saatchi & Saatchi in Russia. Mike Coppola (https://www.linkedin.com/in/mikecoppola/)
CBO of Omnivore. Former Vice President of TouchTunes, professional advanced technologies developer, advertising business data expert. In the successful conduct of the token sale and the further development of the project, one of the main roles is played by the team, its versatile experience, cohesion and ability to cope with difficulties. The HOQU team possesses such qualities, having long-term successful cooperation and successfully having launched projects in addition.
9. Project development strategy and Roadmap
The HOQU team has been involved in internet marketing since 2000. “Gradually expanding our competence, in 2006 we were among the first in Russia to establish our own agency for SEO promotion — PromoPage, and in 2008 we created the real estate aggregator Move.ru and a number of other projects. So in 2015, we set up an affiliate network for calling — Marketcall that works using the performance-marketing model, where the advertiser pays only for results.”
Today the HOQU team aims to create a new service so that internet marketing becomes convenient for its participants. This service, due to the use of blockchain, will allow advertisers, affiliates and affiliate networks to make the distribution of rewards more transparent.
At the moment the HOQU project has two representative offices, in two countries (Russia and USA). The development of the project is described by the founders as follows:
As key points, we note the release of the affiliate/advertiser decentralized application in March next year, as well as the launch of the world's first decentralized partner network on the HOQU platform in September 2018.
Although the platform is not yet running, the MVP is now available. HQX tokens will circulate on platform-independent exchanges. Market entry will be held, according to the developers, as soon as possible after the completion of the token sale. At the moment negotiations are underway with such exchanges as HitBTC, Coinone, Kraken, Cointime, Coinnest, Gopax and Bithumb.
10. Marketing strategy
The project team, being experts in the field of advertising, has provided the project with quality marketing.
First of all, its main trump card is the Marketcall project launched by the HOQU team. The Marketcall project has become a leader among CPA networks in CIS countries on calls. Marketcall already has more than 1000 advertisers and more than 50,000 affiliates: From professional marketers with large teams to affiliates-owners of small themed sites. The entire business of the Marketcall project will be transferred to the HOQU platform. Marketcall customers will be the first customers of HOQU.
The next step for HOQU will be to open new horizons and direct its forces to countries where performance marketing is rapidly gaining popularity among advertisers:
● North America: United States, Canada. ● South America: Brazil, Argentina, Chile. ● Europe: Germany, Great Britain, France, Netherlands. ● Asia: China, India, Japan.
The project sees in its potential markets such industries as e-commerce (the volume of sales in 2016 was $1.86 trln), Travel and Tourism ($564 bln), mobile applications ($5.7 bln), financial services (according to forecasts for 2017 volume of the market will be $10.1 bln), cars (in 2016 about 88 mln cars were sold) and real estate.
21% of attracted funds will be allocated to the development of the HOQU platform and increase of its popularity in the number of users. The team is also planning a global expansion (opening of additional offices) in the above-mentioned countries, to which 17% will be allocated.
The project's team is giving a lot of importance to promotion. There are many references to the project online. The site presents publications about the HOQU project; the number of such blockchain publications is more than 30, among which there are major international editions.
The developers are very active with their blog, publishing everything relevant to the community: News, useful articles, plans for the future and many other interesting and necessary publications. The project is also popular on social media. Each official
page of the project has many subscribers. There is an active discussion on Bitcointalk, and the number of views on the YouTube channel of some of their numerous videos has reached more than 40,000.
In addition, the team has prepared:
● A bounty campaign, to which 2% of total emissions will be distributed as follows:
● An affiliate program, to which 0.5% of the total issue is allocated. Tokens will be distributed among partners proportionally to attracted investments. The affiliate program will be launched from the beginning of the pre-sale and will run until the end of the main sale.
We can definitely say that the marketing strategy of the HOQU project is one of its strengths. This once again shows that the team knows their strengths and feels confident in creating cutting-edge marketing.
11. Economy of the Project
In building their financial model, the project team took into account the following statistical indicators and forecast data:
● The market volume of internet advertising for the last 7 years increased by 15-22% annually and made almost $228 bln in 2017. According to the financial model, the growth of the internet advertising market for the next five years (from 2018) will be 15% annually.
● The market for performance marketing in different countries is 10-35%, and in the financial model this figure is 20%.
● Performance marketing is growing faster than the internet advertising market. According to some estimations, the share of performance marketing will be increasing to the internet market share of advertising by 4% annually in the next five years.
According to the estimations, the market size for performance marketing by the end of 2023 will grow from a current $46 bln to $232 bln, and the share of HOQU in this market could reach almost 4%. In 6 years, HOQU will be able to take a 2% market share of internet advertising. We would like to point out that the figures and
assumptions look realistic on the basis of which they are calculated, both to the rate of growth of the market and to the size of the market.
When the market share reaches 2% by the end of 2023, quarterly turnover on the HOQU platform will exceed $2.32 bln, and commissions will grow to $11.60 mln. According to the developers’ calculations, revenues from commissions to the platform for the 6 coming years will amount to $87.13 mln. Recall that the platform will receive revenue from commissions for transactions, the size of which is only 0.5%.
It is also worth noting that this financial model covers only the market for internet advertising, but that does not mean that HOQU will have no other sources of income. It is possible to use any other sources for advertising, such as television, outdoor advertising, printing, radio, advertising in transport and others. Thus, HOQU is an affiliate platform in a broader sense. Potential revenue from these areas will be present in the actual operation of the platform. The distribution model of the funds raised during the token sale is as follows:
The developers of the project expect that the funds attracted during the Token Sale will suffice for the full development and maintenance of platform functioning for at least 3 years. During this time the project has to break even on operating profit at moderate development. With a more optimistic scenario this will take less time, about 1.5-2 years.
Summing up this chapter, it is worth noting once again:
● All calculations and assumptions are realistic. ● The client base for the Marketcall project would form the basis of the current
project, speeding up its development. ● The project will have 3 years to break even.
12. Token investment attractiveness
The HQX token is a ERC20-compliant utility token. This token will be used on the platform as an internal currency, which can serve as payment between platform members. The rewards for affiliate networks and affiliates will have a fixed price in US dollars and a floating price in tokens.
The following types of services can be paid for using tokens:
● payment for affiliate network services by advertisers ● payments from affiliate networks ● payments from advertisers to affiliates
The value of tokens will increase both due to investors (token holders for speculative purposes) and due to consumers of the platform services buying HQX to pay for services within the platform. According to calculations from the project team, the growth of the token price is exponential and looks as follows:
According to the developers, over 5 years the token price with a current value of 0.0002 ETH will grow almost 1000 times. By the beginning of 2023 it will achieve
0.1993 ETH. The projected turnover of assets by 2023 is expected to reach $7.979 bln. In our opinion it will not be easy to achieve such a dynamic for the token price. It is clear from this model that the token price is tied to the predicted turnover values on the platform. Since the full launch of the platform will take place near the end of 2018, the main growth of the token will be for the period after the launch. The conversion of the Marketcall project into the Hoqu platform will also be an additional factor for token price growth. More than 50,000 partners and 1000 advertisers will be the first members of the platform. Before launching the platform and its subsequent operation a certain time, the price of the token should have a much more modest dynamic than that presented in the model of the project. The second point is the complexity of forecasting the rate of ETH to USD over such a long period of time. It is impossible to say what it will be in 2023, so it is impossible to predict the value of the tokens in cryptocurrency. It is better to try to estimate it in USD depending on project revenue and turnover on the platform. We fully support the idea of the project and we recommend participation in the token sale to investors, aimed at the medium and long term perspective of 1-3 years, so that the project can be realized during this period. For investors working at short time intervals, we advise caution when buying tokens due to the fact that the full launch of the platform is not expected until near the end of 2018; accordingly the main demand for tokens will not appear before this event. The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication. Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud. We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.