LoMoCoin Investment Analysis
My Research Criteria
To determine whether or not you should invest in a new coin you should look at the fundamentals first. Please note this is not investment advice. Make sure to do your own research.
· Coin Basics: Basic coin information and details.
· Unique Selling Proposition (USP): What makes the coin unique?
· Team: Determine the size and quality of the team.
· Transparency and Communication: Do they keep investors in the loop?
· Community: Determine if there is an active community around the coin.
· Competitor Comparison: How does the coin compare to its competitors?
· Investment Potential: How big could this coin be in the future?
Thanks to Jsho Crypto for a great investment template!
Coin Basics
- The project started off at the end of 2015
- Ticker Symbol: LMC (LoMoCoin)
- Current Market Cap: 9.7 million (October 14th 2017)
- Based off of bitcoin, then later integrated proof of stake based off of Peercoin
- The goal is to build a new ecosystem around geographic location and blockchain technology
- 60 second block time (transaction time)
- Proof of stake: The interest rate is based on how many LMC you hold. The breakdown is as follows:
What makes this coin Unique?
It actually has a working product and not just a whitepaper… AYE bang bang shots fired… No, but seriously this is good. I feel like the days of raising quick ICO money are coming to an end.
Their product is called LoMoCoin; it is an app that has had over 300,000 users in China. They have had millions of downloads in China. The Chinese app name when translated to English is called Neoprene, which is what you will see below.
Tencent App Gem(Image Above)
Baidu App Store (Image Above)
Huawei App Store (Image Above)
Wandoujia (Image Above)
They were also in the official Apple App store in China (Image Above)
All of these images refer to the 1.0 version of their app, but it is important to use this information to see that the team was able to actually follow through on both Android development, IOS development, blockchain development, marketing the product, and successfully obtaining users.
To my knowledge, I am unaware of any coin or token that has actually had this much real world usage. What other coin has had over 300k users? I suppose bitcoin itself is probably the only other crypto to truly accomplish this. Now what is exciting is that the app was able to pull these numbers just in the Chinese market. LoMoCoin has been working on launching their global version of the app for some time now. The developers have referred to this app as their 2.0 release. I was fortunate enough to test the beta for their global 2.0 release. You can check it out below.
https://www.youtube.com/watch?v=z_fuDwNqF-U&t=1s
So what does the App actually do?
“LoMoCoin marks the first mobile app attempting to bring together offline shops’ demand for human traffic directing, player participation in entertaining games, and block-chain digital currency.”
This will allow for users “foot traffic” to be monetized. I like to use the analogy of Facebook ads. Facebook was able to gain users on their platform and monetize their online behaviors with Facebook Ads. LoMoCoin wants to do a similar thing with the foot traffic of its users.
The free coins the user collects act as the advertisement for the business. The business will have to buy LoMoCoin and drop them around their business if they would like to see an increase in foot traffic. The user would then get exposed to a new business and they would be able to collect the red envelopes and receive LoMoCoin.
So both parties have benefited at this point. The user is able to check out a new business, maybe a restaurant, and the restaurant is able gain more real exposure and a potential customer. The user gets compensated within the app receiving the LoMoCoins and gets to see any promotions the business has.
This could be much more powerful than any type of online advertising for brick and mortar businesses. The money that the business spends on LoMoCoin will guarantee that real people have seen their business, while a Google or Facebook ad will only guarantees online clicks. This all assumes that LoMoCoin will be able to amass a user base like they were able to do in China.
Upcoming Announcements
Some exciting announcements are coming to this project….
**Update as I was writing this the android app was released. Public beta now available on Android**
https://play.google.com/store/apps/details?id=com.lomocoin.lomocoin&hl=en
In October 2017, the new LoMoCoin website will be released. They will be rebranding to LoMoStar.
In October 2017, the official version of LoMoCoin v2.0 will be released.
This should include both the Android and IOS version of the App. I know from experience that publishing apps on IOS have a longer review time.
In October 2017, the F5 lab program will be officially released, which will announce their progress and future plans of their laboratory projects. They will also be recruiting developers and partners around the world.
This news is also quite exciting because LoMoCoin is eventually trying to develop, “ a social economy based on the location of users and mini Asset Backed Securities (ABS)”
The LoMoCoin team will also be releasing their own exchange soon(Xstar.io). Xstar.io and LoMoCoin will be treated as separate projects, but this brings more legitimacy to the LoMoCoin project and makes me bullish on the future.
The reason I believe that the team is making this new exchange is to provide the ability to buy/sell LoMoCoins within the app. This would make it very easy for the business owner to deposit bitcoin and get the LoMoCoin(LMC) instantly without having to deal with signing up to bittrex or any other exchange. This move gives me a lot of confidence in the LoMoCoin team. It shows that they are serious about the long term by taking the time to build the exchange infrastructure to improve LoMoCoin’s App user experience.
I believe that this exchange could have a similar effect to that of Binance. Binance is a new exchange that has been very popular lately and has been adding many of the newer coins faster than bittrex or poloniex. I’m quite sure Xstar will do the same. This would be incredible exposure for LMC. Xstar will be a great tool for more investors to become aware of LoMoCoin since I’m sure LMC will be one of their featured coins.
The LoMoCoin team has also been working with an American PR firm. I was lucky enough to see this on their slack. I’m sure the PR team will be helping them with the website rebranding and will be setting up LoMoCoin for a successful 2.0 App launch. This is really great news.
All of the features listed so far scream to me that LoMoCoin is undervalued. I believe that with all undervalued assets, once the attention comes, the market will be able to correctly evaluate the true price. Exciting times!
The Team
This is an area that LoMoCoin has suffered a bit when compared to some of the western coins. As many of you know, many of the cryptocurrencies that are coming out of China may have some issues with effectively communicating with the west. Antshares, now NEO, had issues with communication and so did other coins like Walton, etc. It’s not a deal breaker for me, it’s understandable given the language barrier.
This is Xiong Lijian, the CEO of LoMoCoin.
“Hello, global LoMoCoin fans. My name is Xiong Lijian, but you can call me Feixiong. I myself started off as a programmer in my early years and later on, I became a management and strategy consultant. In 2010, I became more involved with internet advertisement, which resulted in me starting a business. In 2013, I started another business in the Bitcoin industry and participated in the research and development (R&D) of the world’s first Gridseed Litecoin miner, which sold more than 100,000 miners around the world.”
“I also created WiiBox and launched its open source software, which became the most used mining control software for Litecoin miners. After that, I worked with Li Xiaolai (and many others) to establish SFARDS, which has researched, developed and manufactured the world’s first 28nm Bitcoin and Litecoin dual algorithm chip SF3301 and the world’s first SF100 double miner. Today I am the CEO of LoMoCoin and our vision is to build a social economy around the geographic location and information of people and integrating it with blockchain technology.”
The team has has been working together since 2013. They have experience in technical research, business operations, and blockchain tech. They are one of the first teams in China that did blockchain research and development.
From their bitcointalk thread it says that there are over 30 people on the LoMoCoin team. I have seen figures upwards of over 50 plus people on the team. The amount of members on the team has not been consistent in my research, but what I do know is that they have been continuously expanding the team. One addition to the team that has helped tremendously is Milan Shoukri. Since he joined the LoMoCoin team, he has helped keep investors in the loop with excellent communication. He helps bridge the communication gap between the Chinese developers and the western investors.
CEO’s Twitter: https://twitter.com/xlijian
Right Hand Man: https://twitter.com/liuji_daoma
Community Manager: https://twitter.com/M1lanooo
It should be noted that the CEO is not very good at taking selfies or pictures.
This screenshot is taken from their team section on the current site. This could cause concern for some investors as the developers real identities are not shown here, but I do believe that the new site will have the team bios.
Transparency and Communication
This is their primary weakness. I’m not going to sit here and sugar coat their lack of communication. They can do better, but personally I’m ok with more development and minimal communication. When I bought this coin, I realized that they wanted to finish their product and then focus on marketing. Luckily @M1lanooo stepped in and helped out a lot. After their rebranding I do believe that their communication will continue to increase. Hopefully the American PR company that they hired will be giving them some good pointers.
Github: https://github.com/lomocoin
The Github will only show the LoMoCoin blockchain development. The github is active, but most of the development has been focused on the App. It wouldn’t make sense to open source the apps code. That is the secret sauce.
Community
No matter how good the product, there needs to be a community around it to propel growth.
Social Media Stats
Twitter Followers: 4,400
Reddit Subscribers: 412
Slack Members: 877
Telegram Members: 876
QQ chat: 1714
Weibo: 393
They had multiple QQ chats; I believe they were all full, so the total should be much higher. All of the social media was in Chinese till a few months ago when they added slack, telegram, reddit, and twitter. The numbers have been steadily increasing overall. I’ve mostly used slack to stay up to date.
Competitor Comparison
There is no true competition in this space. I do remember seeing some ICO trying to do something similar, but LoMoCoin was clearly ahead in development. I believe the ICO just had a white paper and was going to do a crowdsale. There is another project that uses geolocation. That project is GeoCoin. It sits at just under a 4 million dollar market cap. I don’t consider them direct competition because the GeoCoin project does not have the small business monetization vision. The project did get a nice quick rise in price from the help of a tweet from @SecretsOfCrypto.
Investment Potential
LoMoCoin actually had a bump in price since when I started writing this article a few days ago. The current market cap is sitting at 10.6 million. I wouldn’t be surprised seeing this coin’s market cap hitting over 100 million. There are projects that don’t even have their own blockchain or desktop wallet that are sitting at 150 million market cap *cough* Walton. No hate to the Walton investors, we actually did a review on Walton on our youtube channel, CryptoKrunch. I just think that it’s a good example of how much hype Chinese coins have been getting, which makes LoMoCoin’s price even more peculiar since they are Chinese based, have a real product with a real use case, and have had hundreds of thousands of users.
There is so much upcoming news that I can’t see the price staying this low. From the full releases of the IOS app and the Android app to the new Xstar exchange. The website is also being redone and rebranded. The attention to LoMoCoin is the biggest missing factor to seeing a higher price. The American PR team should help LoMoCoin become more attractive to western users and investors. Please note, this is not investment advice, I’m not a professional investor, and this is just my humble opinion.
Conclusion
I invested in LoMoCoin a while back and have bought anywhere from 3 to 6 cents. I really just liked the long term project potential. Everyone should be rooting for LoMoCoin’s success. It will help with the growth of bitcoin and other cryptos by placing it in the hands of many with their polished apps. We actually did an app beta demo on our youtube channel.
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