Token Analytics: Biconomy

INTRODUCTION

Biconomy’s multi-chain relayer infrastructure processes almost 50K daily transactions for 70+ web3.0, DeFi and NFT dApps to ensure all the benefits of web3.0 come with the intuitiveness of web2.0.

Through Biconomy’s powerful and easy to use SDK/APIs, you can enable a simple and customized transaction journey so that your end users don’t get intimidated by blockchain complexities. This enables seamless interactions between your application and your end-users. The simplified web3 experience will ensure that drop-off rates decrease, thereby increasing user adoption.

Aim is to make web3 products as intuitive and easy to use as legacy web2 products. Simplifying this transaction experience will be key for decentralized projects to achieve any sort of adoption. Thus, by solving key pain points at the crypto transactional layer, Biconomy is on a mission to simplify Web 3 experiences that will drive mass adoption.

Webpage:

https://www.biconomy.io/

Twitter:

https://twitter.com/biconomy

MARKET OVERVIEW

As we know, today’s applications are eminently decentralized and occasionally (but more often frequently) connected to the web, the cloud and other application services.

In its rawest form, a decentralized application is any app that runs on a connected network of computer resources, but our modern notion of decentralized applications (or DApps) is one where apps run on a peer-to-peer (P2P) network of computers, often now under the purview of a blockchain rather than any single organization or authority.

Some of the challenges that throw themselves up in the decentralized application world gravitate around how the backend code is managed, as it needs to run on a decentralized peer-to-peer network rather than any single more centralized server, or server estate.

But the core hosting, management, maintenance and augmentation of backend code may not be the toughest part of the DApp equation. What can present more of a challenge is engineering the threading paths between applications so that data can be shared, exchanged and interconnected to make these more ephemeral applications work properly.

We can observe developments in different areas such as finance, gaming, marketplaces etc. Here a collection of dapps I deemed worth checking out:

Financial Services: Staking, borrowing, lending, etc. summarized as decentralized finance (#DeFi): Compount, makerDAO, Zerion, Set Protocol, InstaDapp, DefiSaver,

DEX (decentralized exchange): Airswap, Kyber, Joyso, IDEX, 0xPortal,

Gaming: GodsUnchained, Etheremon, Axie Infinity, Ox Universe, Cryptokitties, decentraland, MyCryptoHeroes, Exo Planets,

Collecting: Superrare (Art), KnownOrigin (Art), Stryking (sport), Mintable- mint own tokens, Crypto Goods Gallery

Marketplaces: Open bazaar, Opskins, Origin, Open Sea (NFT Trading), Name Bazaar, RareBits, Ethereum name system (ENS)

Predictions: Augur, Helena

Social: Cent, Bounty0X, Gitcoin, Peepeth, Indorse, Aragon, 3Box, Dlive (streaming), Steemit, Pepo, Minds, Ethlance(work)

PROBLEMS

Decentralized apps (dApps) are not accessible to anyone regardless of their crypto knowledge and experience. The mainstream user doesn’t want to deal with blockchain headaches. They just want a simple multi-chain experience where they connect their wallet to any dApp, instantly access their funds on any chain or L2/rollup, and enjoy a completely gasless experience. They expect the dApp to deal with gas, transaction management, and bridges under the hood.

Web3 applications today face major roadblocks to user adoption in the form of terrible user onboarding & transaction experience. Almost every interaction with your Dapp is a complex transaction for your users. In comparison to intuitive web2 products that people are used to, Dapp’s can be extremely frustrating.

There are various bottlenecks in the transaction experience:

· Necessity to pay a gas fee every time the user uses your application.

· Users can only pay in ETH, which they may not have at that moment. Or the user may not want to spend their ETH investment.

· New Users have a long complicated onboarding process. Non-crypto savvy new users will have to pass KYC, purchase ETH from an exchange, download a wallet, then connect their wallet before they can go any further, which can take days! No one waits for days to try out an application.

· Proficiency in complex blockchain technicalities is required such as using MetaMask, signing transactions, understanding gas etc. If the project is on layer 2, they need to know what that really means and be able to change RPC manually.

· Volatile and high gas fees further dampen the user experience on your Dapp.

· Pending and stuck transactions can force your users to wait for minutes and even hours before they can carry on interacting with your application. And sometimes the transaction fails altogether.

SOLUTIONS

Biconomy provides plug & play APIs that allow decentralized apps (dApps) to become accessible to anyone regardless of their crypto knowledge and experience. Biconomy’s multi-chain relayer infrastructure processes almost 50K daily transactions for 70+ web3.0, DeFi and NFT dApps to ensure all the benefits of web3.0 come with the intuitiveness of web2.0.

The mainstream user doesn’t want to deal with blockchain headaches. They just want a simple multi-chain experience where they connect their wallet to any dApp, instantly access their funds on any chain or L2/rollup, and enjoy a completely gasless experience. They expect the dApp to deal with gas, transaction management, and bridges under the hood.

4.1 Usable

Biconomy envisions a gasless future where users don’t need to bother about blockchain nitty-gritty such as paying gas, choosing the right network or chain, or performing some sort of alchemy to ensure a quick successful transaction. Everything should just work seamlessly.

4.2 Interoperable

Biconomy believes in a multi-chain future, but one where users don’t need to know it’s multi-chain. Everything is quick, affordable, and scalable but they don’t deal with added frustrations such as painfully slow cross-chain transfers & onboarding. Biconomy handles these under the hood so that the user has a smooth interoperable experience!

4.3 Composable

Biconomy makes adding a better & simpler user experience to any dApp as simple as adding a lego piece. Biconomy APIs & SDKs can be integrated onto any dApp, on all major chains, and for a huge variety of use cases.

Token utility

BICO is the native work & governance token of the Biconomy multi-chain relayer infrastructure. It plays a key role in decentralizing the network by acting as the network fees, incentivizing all stakeholders to secure and maintain the network, and participating in the network’s governance.

There are currently three core uses for BICO:

5.1 Fees

BICO is the native token of the Biconomy blockchain. The Biconomy blockchain will act as a settlement and verification layer for all the activity on the Biconomy Network across all supported chains. The node operators pay a transaction fee in BICO to add any information on the chain and they earn BICO proportional to the work they perform on the network.

5.2 Staking

Validators and Executors stake BICO to start contributing to the network. They earn BICO proportional to their contribution and their BICO stake. The network can also slash their stake in the case of bad behaviour. The Validator listens to relevant transactions on other chains and records them to the Biconomy chain. The Executors see these transactions and takes an action (be it a hyphen transaction or a gasless one). BICO token holders stake their tokens to secure the network further. They earn BICO proportional to their BICO stake.

5.3 Decentralized Governance

BICO holders can propose and vote upon decisions affecting Biconomy’s protocol and overall Network. Such decisions can include changes to the Network’s code, adding additional services, or decisions regarding the disbursement of its treasury funds. Any BICO holder can submit a proposal for consideration by the wider Biconomy community. This is a large part of Biconomy’s plans for progressive decentralization as they move towards community-led growth and self-sustainability.

TOKEN SUPPLY

Token supply distribution
Token release schedule

INVESTORS

Biconomy raised 1.5 million $ (Strategic round) in 2020 and 9 million $ (Private round) in 2021 from investors including:

TEAM

Team is working in crypto industry since 2018 as investors. They received a grant from Polygon in 2019 and participated in Accelerators program.

Now team consists of 15+ team members with various backgrounds in blockchain, fintech and crypto. COO and founder of Polygon is an Advisor and Angel investor.

SALES OPTIONS

TOKEN EVALUATION

Solution

7

There are few successful projects in the field of multi-chain layer infrastructure. Biconomy is a steady growing project and has few advantages: usable, interoperable and composable

Token Utility

8

Token utility is clear and token will be used by people for staking, fees, governance and a store of value.

Token Distribution

7

Lockup period is 3 months linear starting from November 23 and 10% unlock in November 23, followed by 6-month cliff and 6 month relief. Option 1 is 3 months earlier than a lockup agreed with early investors. It is a great opportunity to sell tokens earlier that seed investors.

Token Metrix

7

Token Metrix are not publicly available. According to rumors early investors bought tokens (0,10$) just 2 or 3 times cheaper than tokens will be sold in public rounds.

Investors and Ecosystem

10

Binance, Coinbase and Huobi are the biggest exchanges in the world. I suppose that all of them will list BICO in the nearest future (1–3 years).

Team

7

Team is working with in this area since 2018. Now team consists of 15+ team members with various backgrounds in blockchain, fintech and crypto. COO and founder of Polygon is an Advisor and Angel investor.

Overall Score

7.7

I strongly recommend to participate in both sales options.

INVESTMENT STRATEGY

Expected price of BICO token depends on initial circulation supply (20%) ~ (200 000 000 BICO), overall planned supply (1 000 000 000 BICO), market conditions, competition and listings on exchanges.

Overall capitalization of the token can be counted as 0,20$*200 000 000 BICO = 40 000 000 $

Option 1 (0.25$ with 3 months linear starting from November 23)

Expected price: ~ 2–5 $ — depends on market conditions

Option 2 (0.15$ with 10% unlock in November 23, followed by 6-month cliff and 6-month relief)

Expected price: ~ 2–5 $ — depends on market conditions

Note: Expected price is not possible to identify accurately.

Speculative/Investment Strategy (depends on Staking offer):

Option 1 (0.25$ with 3 months linear starting from November 23)

We will receive allocation in 3 parts 33.3% each.

Every 33.3% we will sell in 4 parts (when received) with 15% price difference:

25% — 3$

25% — 3.45$

25% — 3.95$

25% — 4.55$

Expected profit from 1000$ investment~ 14950$–1000$=13950$ (1395%)

Option 2 (0.15$ with 10% unlock in November 23, followed by 6-month cliff and 6-month relief)

First 10% we will sell in 4 parts (when received):

25% — 3$

25% — 3.45$

25% — 3.95$

25% — 4.55$

Next 6 parts after 6-month cliff we will sell in 4 parts (when received):

25% — 3$

25% — 3.45$

25% — 3.95$

25% — 4.55$

Expected profit from 1000$ investment~ 24900$–1000$=23900$ (2390%)

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Ivan Maltsev

Ivan Maltsev

Partner at 3xcapital.fund. Managing portfolios in crypto since 2017.