This article is a summary of Token Metrics Fundamental Review of Blockstack, the Decentralized computing network, and app ecosystem.
Blockstack scored 80% for its fundamentals and 94.5% for its technology. We are excited about the 170 dApps built on top of the platform, the fact it is the first SEC qualified token sale in history and the potential this project has to become a decentralized internet that can be used by anyone.
We will highlight some crucial fundamental data points we look at in our fundamental review beginning with the initial screening.
Were tokens sold at an 80% discount in a prior round?
Does the community own more than 50% of the tokens?
Are the team, advisors, and seed round investors tokens locked more than six months past when tokens are liquid?
Moving on to some additional critical fundamental data points that we believe showcase the project's fundamental strengths and weaknesses.
Do they have a first-mover advantage?
- Blockstack does have a first-mover advantage in the fact that they are the first SEC qualified token sale in history.
Do they have customers and users?
- They already have 170 dApps built on top of the platform. This is due to the most innovative aspect of Blockstack the developer incentive program that rewards early developers for adding value with cash prizes.
How many all-star team members are on the team?
- They have a large team of around 30 members with six all-star team members.
We also took a look at some additional data points.
How are they structuring the token sale and the fundraises?
- The hard cap is $85,500,000 and they are selling 57.14% of 1,320,000,000 tokens at $0.12 for voucher holders and $.30 for the general public.
- They raised $5.1M in a Series A convertible preferred stock from venture capitalists in late 2016, and $47.5M in the 2017 Reg D token offering at $0.12 a token.
- They are currently raising another $28M in the Reg A+ and $10M in a Reg S offering that they are selling overseas to large institutions in Asia.
What are some concerns about the project?
- An article we found stated Blockstack in its offering said that they had gathered 115,000 user accounts, but only 9,550 were verified with a working social proof.
- Of the 172 dApps, less than 10 have over 1,000 downloads, and they have not spent much effort gaining active users who will drive the token usage.
- Some of the previous seeds were conditional and based on meeting milestones like 1,000,000 verified users by 2020.
- The CEO is a student without real-world experience.
- There was a low token price given to equity investors.
- The company will have the ability to dilute future investors by raising funds through future token sales.
We believe that Blockstack is a good project. It scored 80% for our fundamental analysis. It is the first SEC qualified token sale in history and Blockstack has a very innovative program to get developers to build on top of the platform.
We do have some concerns about the fact that they are not spending enough effort gaining active users and there was a very low token price given to equity investors so they may dump their tokens.
Website - https://blockstack.org/
Roadmap - https://blockstack.org/roadmap
GitHub - https://github.com/blockstack
Telegram Group- https://t.me/BlockstackChat