ICO Review — LydianCoin — The First A.I. Big Data Marketing Cloud for Blockchain

Problem

Today’s Crypto currency community is plagued by inefficiencies caused by ad fraud, rent-charging intermediaries that provide dubious value, defensive user/customer behaviors created by abusive legacy marketing practices, malware, and insufficient campaign efficacy reporting, user experience is increasingly frustrating for consumers and yields insufficient and uncertain results for advertisers.

Issues raised In Current Token Sale Practices

Based on the whitepaper:

Start-up companies generally market by creating web sites, drafting white papers, time consuming moderation of Slack channels, Reddit and bitcointalk.org threads, circulation of press releases, and self promotion via Reddit AMA’s and in-person appearances at trade industry conferences.
Lydian evaluated several large token sale and crypto-related corporate marketing strategies, and found that many companies raising funds lack knowledge and/or experience in effectively advertising to broad consumer audiences. Among the strategies observed: — Physical advertising — Online ad networks — “Dot Com” bubble techniques — Self-promotion within Reddit/Slack — Industry Event Appearances These antiquated methods of advertising may allow companies to reach investors in crypto currencies who are already interested in purchasing tokens, but otherwise are ineffective strategies to connect with, educate, and broaden the audience for crypto-related ventures.

While this highlights the key issues in the current ICO space but it ignores the key Crypto publications like CoinDesk, CoinTelegraph, CryptocoinNews and various other established publications which for years have been providing valuable information and insights to not only Crypto community but also to the ICO founders to pitch their product and reach the right audience. By not understanding this key nuance Gravity4 is missing a very important aspect of the Crypto currency community that they are targeting.

Solution

Gravity4, Inc., will issue the Lydian token (LDN), a utility-token that allows crypto currency-enabled purchasing of targeted, A.I.-driven digital marketing and advertising services already offered by the Gravity4 Corporate Family and used by Fortune 1000 companies and luxury brands worldwide. Lydian tokens will allow crypto currency-centric businesses to expand their marketing practices to reach, engage, and educate a target customer audience beyond initial investors, and create future consumers of their products and services.

Lydian token users also will have exclusive access to products currently under development including MonaChain, a blockchain driven anti fraud system that will leverage Blockchain technology to track data aggregated and collected by the Gravity4 Corporate Family to eliminate various common forms of expensive ad fraud, and MonaBrowse, which will allow Lydian users to negotiate Lydian tokens to receive ad-free internet surfing without changing browsers or surfing behavior.

Platform

Gravity4, through its Lydian token will offer features of G4 Marketing Cloud and its data-driven marketing services to provide effective and efficient solutions to the crypto currency startups to effectively target new customers who may consume next generation products and services, with verifiable metrics supporting campaign efficacy.

  • The Gravity4 Corporate Family has already-created, specific audience clusters in the Gravity4 Marketing Cloud for Lydian customers specially tailored for the crypto-community
  • Peer Review: The peer review phase is essential to identify “target audiences” of an initial blockchain product. This target audience can vary based on the objective, whether to target the proposed purchaser of a proposed digital token sale or help identify “peer communities” for feedback on the proposed digital token and/or product review.
  • Token Planning: A digital token planning cycle may require up to two months to build brand messaging and market awareness. Initiating a token sale marketing campaign through Lydian enables aggregation of initial seed audience from peer reviews, investors, and consumers, and allows for context mapping of the product launch and aggregating timely feedback from the stakeholders.
  • Token Execution: During the chosen sale period of for the token, advertisements will be targeted & served at high frequencies across multiple platforms (potentially including display and mobile modalities) to reinforce the advertising message and build awareness quickly of the token sale. Target audience members would include only those likely to be potential purchasers or who have already shown interest in the proposed digital token sale.

The Good

The good part is that if Cryptocurrency advertisers are able to leverage Gravity4’s marketing to reach a larger audience than they cloud have done via Crypto currency specific publications or portals and given that Gravity4 is one of the leading partners of Facebook, provides even a much better opportunity for targeted campaigns.

The Bad

The current scope of this advertising is not clear, will it be only to the users of Mona browser or few mainstream publications is also unclear, which means such ad targeting may help only for targeting new or noob investors as most of the seasoned crypto currency investors do a lot of due diligence and are good at doing their due diligence than waiting for Advertisements and interacting with the founders to get more understanding about the value proposition. Finally such a model of advertising takes away the current personal interaction and community engagement which is the highlight of any crypto currency investment. Hence it remains to be seen how can Lydian token can be of any use here.

TokenSale

There is a minimum purchase amount of 4,001 Lydian tokens per purchase.

2,000,000 tokens will be distributed to certain purchasers who are advisers to LydianCoin Pte. and will receive a 25% discount on purchases of tokens prior to sale to other purchasers.

LydianCoin Pte. will retain 20,000,000 tokens for issuance in the future.

Key Data Token Issuer: LydianCoin Pte. Ltd., a Singaporean entity

Total Tokens: 40,000,000 Tokens to be sold via token sale: 20,000,000 Discounted Tokens (25% discount as detailed herein 2,000,000)

Short Name: LDN

Currency accepted Bitcoin (BTC) and Ethereum (ETH)

Price per LDN: $5 USD per

LDN Type: Ethereum ERC20-based

Inflation: None

Token Sale Start: To be decided

Sale Length 4 weeks, or until all tokens subject to sale and not reserved as noted herein are sold

Fundraising Goal: $100,000,000.00 USD

Implied overall value of all Lydian tokens: $200,000,000.00 USD

The Lydian Token

The Lydian token is an ERC20-compatible token, The Lydian token is intended to serve as a payment marker for access to services to be provided by LydianCoin Pte. and the Gravity4 Corporate Family at the expected rates and amounts otherwise set forth in the binding and enforceable contract such purchaser enters with LydianCoin Pte. upon transacting and negotiating its Lydian tokens.

From the wording of Lydian token it is more of a utility token and has no other value e.g. shares or equity in Lydian Pte Ltd. Also 100% of the proceeds raised by the sale of Lydian tokens will be held by LydianCoin Pte. No product development costs for any product to be developed by LydianCoin Pte., Gravity4, Inc., or any other company in the Gravity4 Corporate Family, such as Mona Chain and Mona Browse will come from the sale of Lydian tokens. Which raises question as to what the funds raised from the ICO will be used for and may be a bloat on the balance sheet of Lydian Coin Pvt Ltd. Also I have issues with why has Gravity4 has chosen a Token sale model in Ethereum which is still unproven model for any kind of transactions except in Crypto currency exchanges. Also why use Lydian tokens as a mode of payment for its marketing services when such services can also used via Fiat. Also there is no mention if their final platform will be a Dapp or a centralized platform. Hence it raises lot of questions on the whole intent and aim of this ICO.

About Gravity 4

Gravity4 is an online advertising technology company based in Florida. It also holds one of eight direct seats on Facebook’s Ad Exchange. Gravity4’s technology facilitates the purchase of online advertising.

Gravity4 marketing software enables advertisers to handle programmatic and real-time bid advertising as well as analyze data.The company uses data management software and programmatic ad buying technologies as tools to create an ad buying stack.Advertising purchases include selling, reporting, measurement, inventory management and billing.

The company’s headquarters are in Miami, but it has offices in Sydney, Stockholm, Oslo, Auckland, Madrid, Singapore, Copenhagen, London, Dublin, Amsterdam, Helsinki, Hong Kong, Shanghai, Kuala Lumpur, Christchurch, and Taipei.

Issues

  • LydianCoin is from a company called Gravity4, whose chairman and chief executive, Gurbaksh Chahal, pleaded guilty in 2014 to misdemeanour battery charges of domestic violence. Chahal returned as CEO of Gravity4 in September last year after he was forced to relinquish control when his probation was revoked in the domestic violence case where he beat a second woman.
  • Though LydianCoin claims to be “the world’s first A.I. big data marketing cloud” and is raising $100m through the sale of Lydian “tokens” whose usability is still unknown which puts this ICO in the category of Vapourware.
  • The PROMO video of LydianCoin according to a reddit user was steaming pile of trash. People in winged jetpacks flying to a long list of inspirational cliches and said supporting this coin is supporting the kind of braindead clickbait capitalism that will be the demise of crypto.
  • While the Promo looked more of movie trailer for immortalizing Gurbaksh Chahal than give any utilitarian aspect of LydianCoin.
  • The idea seems that people will pay for Lydian tokens and use them to buy advertising campaigns from LydianCoin, which in turn licences its technology, products and services from Gravity4. The money won’t be used for anything. It will just sit there, covering the enormous balance sheet liability this ICO will create for LydianCoin which raises question over the development road map for Lydian tokens.
  • On the aspect of value proposition to investors Lydian tokens is to get “exclusive access for a limited time” to stuff Gravity4 is developing for the future, “crypto-specific audience targeting”.
  • While their white paper says that they want to iteratively enhance the value of the Lydian tokens to consumers who want to focus their advertising and marketing messaging to those within the crypto currency space, and others who may be target consumers for crypto-industry services and products but the key advertising platforms that Gravity4 will focus is mainstream publications like Forbes and ignore key Crypto publications like CoinDesk, CoinTelegraph etc hence not sure how will their platform really help any business reach Cryptocurrency community
  • The risk factors tell, LydianCoin may have to be wound down altogether if it’s unable to “establish the Lydian tokens’ utility”, which is inconsistent seeing as the explicit point of the tokens is to purchase services that already exist.
  • From the below link some grave question have been raised on the Governance and business practices at Gravity 4 & Gurbaksh Chahal. In May 2015, a female employee who was a former senior vice president at Gravity4 sued the company, claiming that she was harassed and discriminated against because of her age and gender, and secretly and illegally spied on during her time with the company.
  • Even the team page page is empty even when various shows and events are being conducted world wide to promote the ICO.
  • It seems despite Lydian trying to be the leading Ad platform for the Crypto currency community, does not has any direct community engagement model like Reddit or Slack.
  • The white paper seemed like a mixture between BAT & AdEx whitepaper with the limitations of Gravity4 market cloud platform and devoid of any serious value proposition.
  • And finally the low point comes from the below tweet by Dogecoin founder Jackson Palmer https://twitter.com/ummjackson/status/904583198524317697 where he says “I blocked him (Chahal) after he weirdly threatened my job. Here’s hoping he doesn’t pull the wool over the rest of the crypto spaces eyes.”. This tweet was in response to some of the earlier tweets that Jackson had posted on LydianCoin.

Finally

While going through one of the tweets where Paris Hilton I came across this ICO and doing a littile bit of digging I found some very fascinating and also disturbing facts about this ICO. With a Promo video which seemed a self promotion of Gurbaksh Chahal, with all the allegations of Governance and business practices in Gravity4 and also many commenting about it being one the new entrants in the on-going ICO Bubble, it surely remains to be seen how this ICO may fair.The white paper seems to be written by a Law firm which did all its best to make Lydian token look like a utility token and prevent itself from any legal issues voiding the token and the complete ICO of any true value proposition.

But as we know, despite the negative sentiment around ICOs, still there is lot of euphoria around the speculative value around showmanship and connections in crypto world. Hence even this ICO may bring in new money and may be a sucker for noob investors or high net worth investors who want to make some quick profit and are ready to invest their extra cash into the next bubble. This ICO has all the above qualities mentioned above and may even succeed as an ICO despite lacking any significant substance. To speculate further it is possible that this ICO is a front raise capital which Right now Mr Gurbaksh Chahal may not be able to do via an IPO because of his past criminal record.

Form me the Whitepaper seemed more of an excercize to solicit free money from Crypto community and provide no value as a tradable token as it remains to be seen if it even will be traded in any exchange hence serious invetsors should keep away from this ICO because of its possible red flags and lack of any short term speculative value or any long term benefits.

Reference