Game Distribution Platform Based on Blockchain — First Rating of Ultra

Main Advantage

Ultra tries to build a game distribution platform based on blockchain to realize more reasonable profit distribution through the token economy. The game industry has huge market space, and Ultra may be an effective solution to the trigger point of the game distribution industry.

This is a strong team whose members are mostly from Google and other well-known Internet companies. The project proponent has profound accumulation in key technologies such as game release technology, coverage technology and advertising technology, etc. The combination with blockchain mainly relies on EOS, which is not that difficult.

Principal Risk

Ultra’s community is not that popular compared to other products of the same kind. Tokens are highly centralized and code is not open source yet.

BICS Blockchain Industry Classfication: Entertainment (BICS 223)

Tags: Blockchain Game, Distribution Platform, Token Economy


1 Project Outlook.

1.1 There is a great market space in game industry and the combination with blockchain may be a solution to the trigger point in the market

1.2 There are overall development plans but the industry is still in a relatively early stage.

2 Technical Analysis.

2.1 There is a certain degree of innovation so that it has a certain degree of integration with blockchain

2.2 Technical difficulty is average and code is not open source yet.

3 Project Team.

3.1 Team and consultant overall strength is strong.

3.2 The team structure is reasonable — a formed organizational structure.

4 Ecological Construction.

4.1 Tokens are highly centralized and community’s popularity has poor performance.

4.2 Partners cover many fields and attach importance to compliance building.

List of Graphs

Graph 1: Global game market scale increases year by year

Graph 2: Ultra Roadmap.

Graph 3: Background of core team and consultant.

Graph 4: Distribution ratio of UOS.

Graph 5: The popularity comparation of Ultra and competing social media platforms.

Graph 6: Ultra’s Partners.

1. Project Outlook

1.1 There is a great market space in game industry and the combination with blockchain may be a solution to the trigger point in the market

According to the Global Game Market Report released by Newzoo, the global game market reached $137.9 billion in 2018, and the compound annual growth rate is expected to be 11% from 2012 to 2021.

One of the main distribution channels for game industry currently is Steam, where revenue split is reaching up to 30%. Centralized platform monopolizes game distribution business by only relying on its own traffic, which will not only discourage game developers’ enthusiasm, but also lead to fraud and other black-box operations.

Combined with the openness and transparency of blockchain and token economy, it can effectively protect the benefits of game developers and make them focus on developing high-quality games. By encouraging the players who make contributions to the community through token, it is helpful to realize a more reasonable profit distribution pattern and make the game industry get rid of the excessive dependence on the centralized platform.

1.2 There are overall development plans but the industry is still in a relatively early stage

Ultra project was launched in Q1 2017, and completed the technical design in Q2, identified the main cooperation relationship in Q1 2018, and developed the simplest feasible product (MVP) in Q1 2019. It plans to release the main network in Q3 2019, the core version of Q4, the third-party service kit in Q1 2020, and the Ultra core version specially designed for China.

There are various projects combining the game industry and blockchain technology, including blockchain game development infrastructure, game prop trading, game distribution platform, blockchain game, peripheral tools and so on. Ultra belongs to the game distribution space and its competitors currently include Refereum and Abyss, both launched in 2017 and already on the stock exchange. The current market value ranking of these two are not in the top 400 and they are not well-known either. Blockchainbased game distribution has yet to form an industry barrier, and is still at a relatively early stage.

2. Technical Analysis

2.1 There is a certain degree of innovation so that it has a certain degree of integration with blockchain

Ultra is trying to build a game publishing platform based on blockchain to realize more reasonable profit distribution through the certification economy.

For game developers, it’s easy to port games from Steam, Xbox, and PlayStation to Ultra with the Ultra SDK and get a bigger revenue share. Without the limitation of “60-day window”, developers can transfer their revenues quickly and get additional revenue from in-game advertising and other projects as well.

For players, it’s possible to enjoy a new game before the download is complete and continue to download missing data while playing. Players can independently choose whether to allow pop-up ads in the game and watching the ads can get rewards of token. Inviting friends, participating in the test and planning the game can also get rewards of token. As a result, players can play exclusive games in real time and earn rewards through various ways.

Ultra is based on EOS, capable of operating 4,000 transactions per second. There is no fees and it supports the freezing of smart contracts in default.

2.2 Technical difficulty is average and code is not open source yet

Ultra has profound technical accumulation in game release technology, coverage technology and advertising technology, and its combination with block chain mainly relies on EOS, which is of general difficulty. The key points and difficulties of the project are operation.

More than 8 years’ research and development of game publishing technology, including real-time error handling, network traffic path optimization, dynamic CPU utilization control, etc., has been authorized to well-known game companies such as Bethesda, Riot, Bandai Namco and 343 Industries, and has completed hundreds of millions of game downloads.

The coverage technology, which has been in development for more than six years, can insert any kind of user interface (UI) into a game and is compatible with more than 5,000 games, DirectX 8, 9, 10, 11, 12 games, OpenGL and Vulkan.

It has been developing advertising technology for more than four years, and currently serves 33 billion ads per day. It can provide audience targeting, advertiser application programming interface and more than 20 advertising formats.

The code is not open source yet.

3. Project Team

3.1 Team and consultant overall strength is strong

The website lists seven executives, 24 operational developers and three consultants with clear resumes and extensive industry experience. Members come from Google, YouTube, apple, dell, Ubisoft, Microsoft, Uber, TechStars and other well-known Internet companies or investment companies, which makes the overall strength is relatively strong.

Executives Team:

David Hanson: Co-CEO. 18 years of experience founding companies and operating in CEO positions including Xiaobawang, a $100+ million USD game console project in partnership with AMD and a video game studio later acquired by Kingsoft (founded by Xiaomi’s CEO).

Nicolas Gilot: Co-CEO. Serial entrepreneur and Strategist led $100+ million USD game console project as Xiaobawang’s CSO, 1.5x — 3x revenue of multiple game/app projects through his monetization strategy firm (Plants VS Zombie, Highnoon, The Economist, …).

Mike Dunn: CTO. Former CTO of Dell and Time Warner, accomplished technology executive, building the WWW as a member of the W3C and Techstars Mentor. Mike draws from his strong experience and built multiple startups to publicly listed companies

Edward Moalem: CSO. Game industry legend, Edward has held positions as Senior Director & Manager at both Apple and Google, SVP PR of IGA Worldwide and Double Fusion, he has brokered deals with most of the leading game companies and founded SKYY Vodka!

Lee O’Donovan: CMO. Former SVP Marketing and Strategy at Google, launched YouTube across 18 countries. Lee holds a First in Business & Economics from Oxford with proven skills in Marketing, Biz Dev, Partnerships and strategy that he applied in his various executive roles in companies such as Vodafone or BBC.

Julien Marron: CFO. Hands-on Gaming & Entertainment Finance expert with 20+ years of experience in high caliber finance positions including CFO for Wargaming America & Europe, International Cost Controller, Headquarter Cost Controlling Manager for Ubisoft and Royalties Manager at EMI.

Cristian Rizea: Project Manager. Used to managing large projects, Cristian is a seasoned game producer with 25+ games produced at Ubisoft, Microsoft and Bandai Namco including Age of Empires 3, The Settlers Online and the Blazing Angels series. He’s also the former CTO of Smartree.

Advisory Board:

Ritche Corpus: Lead Content Advisor. AMD’s Head of Worldwide Content & Senior Director of SW Alliances, Industry veteran and executive currently managing a worldwide cross-functional team responsible for evangelizing technology, content acquisition, business development, alliance management.

Allen Foo: China Market Advisor. Founder of 2 Chinese Tech funds (UCCVR), former Country Manager China of Unity3D and Director at Microsoft, Allen drove consistent growth through development of Chinese specific Go To Market strategies for substantial sales turnover businesses.

Alexandre Mironesco: Investment Banking & IPO Advisor. Seasoned investment banker, Alexandre was among other executive position the Managing Director of Santander, he has a deep experience in market optimisation and currently manages a 300m€ institutional fund to help mid-cap companies grow to IPO.

The website does not list investment institutions.

3.2 The team structure is reasonable — a formed organizational structure

Ultra’s team members are mostly from well-known Internet companies or game companies. Besides the executive team mentioned above, there are also specialized blockchain technology developers and operators. The team structure is relatively reasonable.

The project was launched in Q1 2017, and now it has formed an organizational structure with 42 full-time staff (including 7 senior executives) and 3 industry consultants.

4. Ecological Construction

4.1 Tokens are highly centralized and community’s popularity has poor performance

Token UOS is issued based on ETH network, with a total amount of 1 billion pieces. There will be 100 million UOS issued through Ethfinex 1E0 (Ethfinex is Bitfinex’s full-featured hybrid exchange for ERC20 standard securities launched in September 2018), with a plan to raise $5 million worth of BTC, unlocked.

A further 10% of token is raised through private placements (the price of the round is not disclosed), which will be linearly released within three months of the completion of 1E0. There are corresponding token distribution and corresponding linear release rule for partners/consultants, exchanges and marketing. It is worth noting that the ratio of token that directly controlled by the team in core team, company reserve, development and content acquisition — 4 fields is 62%, which means tokens are highly centralized. Officials did not disclose details of the rules.

Ultra community is performing poorly compared to its peers (as of July 10, 2019)

4.2 Partners cover many fields and attach importance to compliance building

Ultra’s current published partners include exchanges, cryptographic securities investment funds, VR game providers, digital asset management companies and other companies in various fields.

Ultra focuses on compliance. Its partner, BRIGHT LAW FIRM, has 15 years of experience in the fields of investment, finance, cryptography, contract and tax.

BiQuan Choice Rating System

BiQuan Choice’s rating model distinguish value and risk of the blockchain project. Respect basic common sense to develop an independent evaluation respectively. The value score measures the probability of value growth and the risk score measures the probability of principal loss. So investors must pay attention to the blockchain project risk under the premise, then look at the potential of value growth.

The essence of BiQuan Choice Rating System:

1.Separate the value and risk evaluation of the project rating, and objectively evaluate the value growth potential and risk size of the project.

2.The results of professional rating can be directly reflected by digital scores and star rating which can reduce the difficulty of investors’ cognition.

3.Rank projects within their categories to reveal relative values and risks on a comparable basis.

4. Quantitative method is used to test the quality of rating model and promote model iteration.

The target system of BiQuan Choice Rating System:

The BiQuan Choice Rating System evaluated the project from two dimensions of value and risk, namely, 5 first-class indicators and 20 second-class indicators. Each second-class indicator has a score of 15 points, and the total score of each dimension is 150 points respectively. The higher the value score and risk score, the better.

1. Prospect of the project

In the value dimension, the market space of the project is calculated, and the market pain points and application scenarios corresponding to the project are investigated.

In the risk dimension, the development plan of the project is evaluated, the rationality and possibility of the development plan are judged, and the competitive pattern faced by the project is evaluated.

2. Technological analysis

In the value dimension, consider the correlation between blockchain and projects, and explore whether blockchain is closely related to projects in all aspects to evaluate the structural form and innovation degree of the project and identify the applicability of the platform structure.

In the risk dimension, measure the technical development difficulty and progress of the project, track the frequency and quality of code update. If the project product is already online, then evaluate the existing product experience.

3. Team evaluation

Most blockchain projects are still at a very early stage, so the assessment of the blockchain project team is particularly important.

In the value dimension, to evaluate the technical and operational strength of the team. The project team also includes external resources of the project side, such as project consultants and external investment institutions, etc., and we will make a reasonable assessment of the external resources.

In the risk dimension, the team foundation of the project should be basically evaluated to see whether the organization the team is in is mature, whether it has any fund-raising experience, whether the team structure is reasonable, whether the personnel are complete, and further to see how relevant the team members’ experience is to the project.

4. Ecological construction

In the value dimension, judge the intrinsic use value of token on whether the project has a good token mechanism, including the incentive mechanism of token, repurchase mechanism, additional issuance, lifting of prohibition, etc. And check the quantity and quality of the project community, including the activity of each social media such as twitter, Facebook, telegram, etc.

In the risk dimension, evaluate the importance of the project to regulation and compliance based on project cooperation with existing commercial institutions and public sectors to evaluate business and market progress. The greater the emphasis on regulation and compliance, the greater the vision of normalized operation of the project.

5. Project performance

In the value dimension, the market’s acceptance of the project is reflected by the citations, searches and page views of the project in major media. As the judgment standard of market popularity, project liquidity can be measured through second-class market indicators such as transaction volume (turnover rate) of project general securities and exchange support quantity.

In the risk dimension, the market value scale of common securities of projects and similar projects is compared to judge the valuation level of common securities of projects. By comparing the price fluctuation range of the project with similar projects, we can directly judge the risk level of the project.

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