Back to the analysis section

Blockchain Report CW28: Some dapps, no ICOs, many wars

Author: CoinLive News Team Jul 24, 2018 at 06:51

The article has been authored by Leopold Bosankic

This report covers ICO fundings, dapps (based on dappradar), and news sentiment for CW 28.

Summary

  • Dapps
    • Newly launched Fomo3D had by far the most users
    • Augur, which recently went online, was most popular based on users in category “other”
  • Only two ICOs
  • News sentiment
    • No ICO talk but much around Prices and Markets
    • Several new products and announcements (especially regarding custody, exchanges, and wallets)
    • A lot of talk around regulations
    • Four investments (WEG Bank, Founders Bank, Oasis Labs, DIRT)

Dappradar

Dappradar tracks dapps across seven categories:

  1. Games
  2. Exchanges
  3. Collectibles
  4. Marketplaces
  5. Gambling
  6. High Risk (‘…that mostly means that dapp is some kind of financial speculation. Often the dapps call themselves “financial game”, “investment game” or just openly stating that it’s a pyramid/ponzi.’ – according to DappRadar)
  7. Other

There were a total of 650 dapps, most of them in Games (301), followed by Gambling (70), High-Risk (79), and Other (157; although I would re-categorize some into other categories). Based on transaction volume, exchanges were unsurprisingly the most active.

 

Games

Based on users the top five were:

  1. Cryptokitties
  2. Etheremon
  3. HyperDragons
  4. Fair City
  5. Gods Unchained TCG

Based on balance the top five were:

  1. ETH.TOWN
  2. ETHERBOTS
  3. Gods Unchained TCG
  4. Etheremon
  5. CSC – Crypto Space Commander

Something I am still looking for is some AR-related game.
With Pokemon Go, it helped push AR into the mainstream and in this case as Nick Tomaino writes it “gives social context for NFTs”. Besides that, I believe that AR could push other crypto areas such as Crypto Donations although it probably wouldn’t work without geospatial data on blockchains.

Collectibles

In combination with Marketplaces, Collectibles had the lowest liquidity (measured by the number of users) although liquidity is highly important here. Moreover, one of the promises behind tokenization actually is higher liquidity.

More generally, we can see a combination of purely virtual assets (e.g. Cryptokitties) and virtual representations of real-world assets such as CryptoArts. Those, however, do not equal tokenized investment into the real artwork like with Macenas.

Also, the lines between Collectibles and Games are blurring. With CryptoSoccr, for instance, gamers can collect football players but also participate in bets.

It also turns out that democratization leads to the virtual duplicates. For instance, with trading cards such as cryptosoccr or fantasyfootballfund different cards of the same football players can be traded. This means that there a two version of one player.

 

In the long run, I am curious what dynamic we will see here; Will we see one brand (e.g. Panini in the non-virtual world) for football players or will multiple brands co-exist?

Also, applications will get really exciting when liquidity increases and companies start tokenizing real-world assets but in regards to the issuances of purely virtual assets (e.g. Cryptokitties), I am actually unsure how their advantage to normal “non-unique” virtual assets will translate into the mainstream.

To 5 based on balance

To 5 based on balance

Marketplaces

For marketplaces liquidity (measured by the number of users) is the most important metric. Currently, it is not given; from the 11 marketplaces only three have users; Decentraland Marketplaces (12 users), EMoon (2 users), and OpenSea (2 users).
All marketplaces are for trading non-fungible assets and three categories exist:

  • Universal marketplaces: like OpenSea or EMoon where all kinds of virtual items from all providers can be traded
  • Internal marketplaces: Marketplaces such as Decentraland’s marketplace which are used within their respective dapps
  • Stand-alone marketplaces: Marketplaces run by one company for trading only their assets such as BitPaintiing

Gambling

Here Fomo3D had by far the most users and based on balance Etheroll scored first, followed by vDice and Fomo3D.

Fomo3D is a lottery with a counter where gamers buy into a pool and the last person that bought a ticket receives the whole pot when the counter expires.

 

Fomo3D is especially noteworthy because they started only a couple of days ago, while Etheroll and vDice have been around for quite some time. (Etheroll raised $300 in their ICO in February 2017 and vDice $1,8 Mio. in their ICO in 2016).

High Risk

Based on user numbers and balance PoWH 3D was the most successful one. PoWH 3D (previously named PoWH) has been around for half a year and it is the biggest pyramid scheme on Ethereum so far. Others in this category such as Proof of Stable CoinProof Of Only HODLing, or Proof of Trevon James are variations of PoWH3D.

Category Other

 

Based on balance Augur, which launched this week, is the #1.
The others here I would categorize as games (ETHPhoenicEtherKingdoms, P4ARTY) and DEX (Poexer).

Besides that, I want to highlight latium. latium is a task platform, conceptually similar to earnwhere people pay others for (mostly crypto-related) tasks (e.g. follow somebody on Twitter).

 

Generally, task platforms are well suited for direct, intermediary-free interactions because platforms cannot do much more than provide liquidity. The most important part of task platforms – ensuring task quality – lies outside their control. Blockchains provide several concepts to manage such intermediary-less task platforms (e.g. token-curated registries for reputation management) but the biggest issue – verifying task completion – remains. Although oracles could be a solution here I am unsure whether this would justify the overhead.

Most popular Based on users

  1. Augur
  2. Ethereum Name Service
  3. 0x Protocol
  4. Ethen
  5. Latium

ICO report

There was almost no ICO activity last week. In total two companies, Verasity and Sparkster, “finished” their ICO.

Verasity is a video sharing platform and Sparkster a Drag and Drop Software Development platform to “Build Software with NO CODE”.

Verasity actually did not finish their ICO but paused it because

the price of Ethereum has dropped over 40% and market sentiment is down. This has slowed the Verasity sale, as well as many other top tier ICO’s we have been following. Investors wanting to back Verasity are out of the market until conditions improve.

Sparkster has raised $30,000,000. A lot of buzzwords, no working product and I am in general suspicious of Drag and Drop software tools, especially when writing blockchain-based apps with code is still in its early days.

This limited ICO activity collides nicely with the output of Researchly’s industry sentiment tool.

News sentiment

Although ICO-related news were present, they were by far the most underrepresented category

What ranked high, however, were Regulations, Use cases/products/product launches, Prices and Markets, and Funding and Investments.

Use cases/products/product launches

There were a few launches and announcements last week.

Most notably Augur’s go-live (see also the dapp-section). Besides that:

Crypto custody wars?

  • BitGo (institutional custody service) added 57 Ethereum Tokens. Especially interesting when considering that Coinbase’s Custody Services added 10 institutional customers since their start around two weeks ago.
  • Coindesk reported that Ledger plans to add 100 tokens to their custody service by 2020.
  • In the retail investor section, Robinhood has added Litecoin and Bitcoin Cash to their app. Although this sounds as yet another product announcement I believe it to be an important part of the ongoing exchange wars, especially as Robinhood has zero trading fees.

Wallet wars: Opera announced to add a wallet to their browser. Although it is a statement against the Brave browser (as part of the Basic Attention Token), I would not call it a browser war as Autonomous does but rather another puzzle in the ongoing crypto wallets war.

HTC’s new “blockchain smartphone” to be released this year will apparently come with Cryptokitties out of the box.
As the smartphone is not marketed for the mainstream market, I doubt that it will push the overall crypto space. Nevertheless, the fact that two smartphone manufacturers are working on blockchain smartphones (besides HTC also Sirin Labs) is noteworthy. First, this pushes blockchains more into the mainstream especially because it happens through such socially visible objects like smartphones. Secondly, it shows that innovation in the smartphone space is still possible although “blockchain-enabled” probably won’t become a long-lasting USP that would affect current market shares. So, no wars here.

Crypto collectibles
Major League Baseball’s announcement to issue baseball collectibles is worth a mention because it reiterates the growing interest in tokenizing assets such as trading cards.

Regulations

  • Donald Trump ordered an Executive Order “Regarding the Establishment of the Task Force on Market Integrity and Consumer Fraud” with “particular attention to fraud affecting the general public; digital currency fraud […]”
  • The discussion that sparked around allegations that the Russians interfering in the US-election used bitcoins.
  • The SEC charged Jesky and DeStefano for illegally selling stocks of their alleged blockchain firm and sentenced LocalBitcoins Trader Bitcoin Maven for “unlicensed money transmitting and money laundering”.

Prices and Markets

Although ICOs are apparently becoming less interesting, trading is not (the news around crypto custodians is a good indicator). Most talks centered around the bear market and potential upswings. Notable price movements (as being rooted in news) were seen in Cardano, Basic Attention Token, Stellar Lumens, Zcash, and 0x due to Coinbase considering adding them. Some upside movement was also visible in Litecoin upon their announcementto acquire a stake in German bank WEG Bank.

Funding and Investments

Litecoin’s investment in WEG Bank has already been mentioned. Others are

  • Oasis Labs’ $45 Mio. round from a16zcrypto, Polychain, Binance Labs, and others
  • Binance investing in decentralized bank Founders Bank
  • Coinbase co-founder Fred Ersham (and others) invested in DIRT