Datawallet ICO Review and DXT Token Analysis
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Datawallet ICO Overview
The Datawallet ICO proposes a more transparent and fair means of exchanging online data whereby control is placed back in the hands of the user. It represents a new way to access the value of your personal online interactions, through the Datawallet App and DXT Token.
As engagement with internet services like social media platforms, search engines and e-commerce only deepens, an incredible amount of data is being generated and collected. Data brokerage companies monetize this personal data – more often than not without the informed knowledge of those who are creating the content.
What’s more, the revenues generated by collecting and selling user data are not shared with users themselves. With the advent of blockchain technology, the prospect of a fairer, more secure and transparent data ecosystem now exists.
Datawallet ICO Value Proposition
The Datawallet ICO offers a secure data exchange platform that rewards users for sharing their personal data from each web service that they use. The Datawallet App, already available for download, provides users with a digital wallet to interact with the Datawallet ecosystem. Upon registration, Datawallet users can link multiple data sources to this digital wallet, including social media accounts, online shopping purchases and even offline transactions through a receipt scanning function. At any time, users can opt-in to share their data with companies.
At the center of the ecosystem is the Datawallet Data Exchange- a transparent personal data marketplace. The Data Exchange allows users to share their data anonymously and profit in return. The Exchange provides full transparency into who wants to access their data and for what purpose. All data that is exchanged between “providers” and “requesters” occurs via encrypted data pipelines.
Users manage which data is made available via the Data-Profile Manager, which constructs and maintains the provider’s Data Profile. The Data-Profile Manager enables the provider to engage with contracts on the Data Exchange Manager in return for a reward. Requesters cannot utilize the data without the consent of the user. Granting user consent is accomplished via smart encrypted data contracts that require users to decrypt the data points they agree to sell, holding the resultant data in escrow until the reward is received.
On the other side of this exchange, parties interested in accessing user data interact via the Request Manager. The Request Manager primarily facilitates two actions- it allows for the creation of a new data request, and second, it supports querying the status of existing requests and accessing the resulting data collected from the exchange.
The Datawallet ecosystem also includes the Datawallet App Store, an AI services platform. Users will have the ability to link their data to the marketplace of algorithms built on the Datawallet API for purchasing services such as personalized media concierges (they use the example of a music streaming service that might offer better algorithmically-based music discovery based on the user’s interests across media platforms). Through the App Store and API, the Datawallet ICO aims to create an emerging ecosystem of sophisticated AI-based applications built upon personal data.
Of course, Datawallet’s clients will likely be most interested in this pair of sentences, from the website:
That’s a trillion-dollar play. Many have tried, and none have succeeded – so far. But eventually, someone will…
The underlying ERC-20 token of the Datawallet ecosystem is Data Exchange Token (DXT). DXT serves as the primary medium of exchange between requesters and providers. Users earn DXT for sharing their data with requesters via the Data Exchange. Companies who wish to access user data must purchase DXT and reward users for the data they make available in accordance with each request. As users accumulate DXT, they can use it to purchase AI services from the Datawallet App Store.
Datawallet ICO Team
The Datawallet team comprises 13 individuals from the fields of business, data science and blockchain development. A complete list of the team can be found here. Below are some of the key players:
CEO Serafin Lion Engel has a BSc in Business Administration from the Rotterdam School of Management and is a graduate of Draper University’s entrepreneurship program. Serafin has been at the helm of Datawallet for the past three years, though his previous experience with startups is rather limited according to his Linkedin.
Co-founder and CTO Daniel Hawthorne has led the Datawallet tech team for the past two years. He holds a PhD in Cognitive Science from Stanford University and joined Datawallet after obtaining his PhD.
CMO Wiley Matthews has a long track record in both marketing and business leadership. Though listed on the Datawallet website, at the time of publishing his Linkedin does not reflect his affiliation with the project.
Greg Ellis is the CSO of Datawallet. Greg has a strong background in data analytics, most recently serving as EVP of Data Integration and Data Analytics at Research Now, a top market research firms in the US. His insider knowledge of the industry will be essential in devising a successful strategy for the project.
Kyle Kemper is serving as an advisor for Datawallet. He is an influencer in the crypto space and currently serves as Executive Director of the Blockchain Association of Canada.
Datawallet ICO Strengths and Opportunities
The marketplace framework deployed by Datawallet offers several potential advantages for data consumers over offchain alternatives. Firstly, better quality data is compiled through overcoming the “silo problem”- the Datawallet combines the datasets from each website (i.e. a data silo) permitted by the user to construct a single Data Profile.
Second, requesters can directly source custom datasets based on whichever combination of data points are required, offering a more dynamic means of data collation.
Finally, Datawallet affords requesters and providers a way to transact directly with one another via the exchange, eliminating the costs associated with third-party data brokers.
By creating a more dynamic, cost-reducing platform for consumers to access user information, the Datawallet ICO offers a potentially disruptive alternative to the data brokerage market.
In terms of product progress, Datawallet have already released an alpha version of their mobile app. The app currently offers credit toward DXT for users who link their accounts to the platform or participate in the referral program. From a progress standpoint, releasing the offchain app before the ICO adds more credence to the project, while also incentivizing early adoption and therefore, a larger user base.
Datawallet ICO Weaknesses and Threats
Datawallet will be competing with numerous data marketplace services both on- and offchain. Data brokerage players like Acxiom maintain a dominant position in the industry, providing full scale analysis, curation and monetization of user information sourced from their partnerships with leading tech companies. Without a well-calculated strategy for bringing data consumers into the ecosystem, the status-quo is likely to persist.
There is also ample competition facing the Datawallet ICO in the crypto space itself, with projects like Datum and Pikciochain launching similar platforms. For data marketplaces, a crucial distinguishing factor relates to the different incentive systems offered to users for participation. For example, APEX includes the option of redeeming tokens for consumer products, which could provide greater incentive for adoption by users outside the crypto space.
On the Datawallet platform, DXT’s redeemability is limited to AI services. The extent to which users adopt Datawallet for the AI services will depend largely on the quality and utility of the services on offer, which at this stage remains uncertain. Still, this aspect holds potential and is a step up from data marketplaces with no function for redeeming tokens at all.
The Verdict on Datawallet ICO
The Datawallet ICO offers a way for users to access the value of their personal data combined with the promise of AI-based services. With an alpha app released, the team have demonstrated they are progressing on development. Still, with a number of onchain competitors and no large-scale partnerships to date, disrupting the data brokerage industry will present quite a challenge. All things considered, we’ll be placing a small bet on the Datawallet ICO.
Learn more about the Datawallet ICO from our Telegram Community by clicking here.
Today’s Date: 1/30/2018
Project Name: Datawallet
Token Symbol: DXT
White Paper: Datawallet Whitepaper
Crowdsale Hard Cap: $40 million
Total Supply: 1,000,000,000
Token Distribution: 33.33% to crowdsale, 16.66% to developer pool, 16.66% for user growth, 33.33% to Datawallet
Price per Token: 1 DXT = $0.18
Maximum Market Cap (at crowdsale price): $180 million
Accepted Payments: ETH, BTC, NEO
Bonus Structure: Presale-
$50K – $100K — 11.11%
$100K – $500K — 16.67%
$500K – $1MM — 22.22%
$1MM – $1.5MM — 27.78%
$1.5MM plus — 33.33%
Presale Terms: Presale Over
Important Dates: Whitelist opens January 31st and Crowdsale begins February 5th
Expected Token Release: TBA
ICO Review Disclaimer
The team at Crypto Briefing analyzes an initial coin offering (ICO) against ten criteria, as shown above. These criteria are not, however, weighted evenly – our proprietary rating system attributes different degrees of importance to each of the criteria, based on our experience of how directly they can lead to the success of the ICO in question, and its investors.
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This category accounts for the leaders, developers, and advisors.
Poor quality, weak, or inexperienced leadership can doom a project from the outset. Advisors who serve only to pad their own resumes and who have ill-defined roles can be concerning. But great leadership, with relevant industry experience and contacts, can make the difference between a successful and profitable ICO, and a flub.
If you don’t have a team willing and able to build the thing, it won’t matter who is at the helm. Good talent is hard to find. Developer profiles should be scrutinized to ensure that they have a proven history of working in a field where they should be able to succeed.
What is the technology behind this ICO, what product are they creating, and is it new, innovative, different – and needed?
The IOTA project is a spectacular example of engineers run amok. The technology described or in use must be maintainable, achievable, and realistic, otherwise the risk of it never coming into existence is incredibly high.
Tokens which have no actual use case are probably the worst off, although speculation can still make them have some form of value.
The best tokens we review are the ones that have a forced use case – you must have this token to play in some game that you will probably desire to play in. The very best utility tokens are the ones which put the token holder in the position of supplying tokens to businesses who would be able to effectively make use of the platforms in question.
There doesn’t have to be a market in order for an ICO to score well in this category – but if it intends to create one, the argument has to be extremely compelling.
If there is an existing market, questions here involve whether it is ripe for disruption, whether the technology enables something better, cheaper, or faster (for example) than existing solutions, and whether the market is historically amenable to new ideas.
Most ideas have several implementations. If there are others in the same field, the analyst needs to ensure that the others don’t have obvious advantages over the company in question.
Moreover, this is the place where the analyst should identify any potential weaknesses in the company’s position moving forward. For instance, a fundamental weakness in the STORJ system is that the token is not required for purchasing storage.
With many ICO ideas, the timing may be too late or too early. It’s important for the analyst to consider how much demand there is for the product in question. While the IPO boom funded a lot of great ideas that eventually did come to fruition, a good analyst would recognize when an idea is too early, too late, or just right.
Progress To Date
Some of the least compelling ICO propositions are those that claim their founders will achieve some far-off goal, sometime in the future, just so long as they have your cash with which to do it.
More interesting (usually) is the ICO that seeks to further some progress along the path to success, and which has a clearly-identified roadmap with achievable and reasonable milestones along the way. Founders who are already partially-invested in their products are generally more invested in their futures.
Community Support & Hype
Having a strong community is one of the fundamental building blocks of any strong blockchain project. It is important that the project demonstrates early on that it is able to generate and build a strong and empowered support base.
The ICO marketplace is becoming more crowded and more competitive. While in the past it was enough to merely announce an offering, today’s successful ICO’s work hard to build awareness and excitement around their offering.
Price & Token Distribution
One of the biggest factors weighing any analysis is price. The lower the price the more there is to gain. But too low of a price may result in an under capitalized project. It is therefore important to evaluate price relative to the individual project, its maturity and the market it is going after.
The total supply of tokens should also be justified by the needs of the project. Issuing a billion tokens for no reason will do nobody any good.
Communication is key. The success of a project is strongly tied to the project leaders’ ability to communicate their goals and achievements.
Things don’t always go as planned but addressing issues and keeping the community and investors in the loop can make or break a project.