Crypto.tickets — ICO Review
Token: TKT
ICO Date: October 5th
Hardcap: $23m
“ A unique blockchain ecosystem which will forever change ticket sales for the mass event industry”
TOTAL 15.5 / 25
1 Business opportunity: 4/5
Description:
This is a platform simplifying interaction between all ticketing market players and ensuring complete transparency of industry.
3 products:
- Ticket Chain: the smart contract (payment processing, issue and return of tickets, resale for secondary market)
- Tickets Cloud: web-interface to operate all event ticket distribution. Already live for 4 years. It allows organizers to set all the conditions they want (price, quotas, etc.) + tools for promotion & analytics are available
- Tickets Wallets: online wallet to store TKT tokens and crypto-tickets. Beta version already available on Android and iPhone
Competition: 1 main competitor:
- Aventus (UK — raised $18M during ICO instead of expected $30M): similar platform. It also features loyalty programs for ticket buyers, i.e. the most active users receive rewards to promote gigs and participate in spotting fraudsters. But no Analytics tools or API for other ticketing systems to plug to the Aventus platform.
While Aventus is a centralized platform, Crypto.tickets makes the blockchain available for all the players within the industry. Every ticket system can use all advantages of the blockchain technology for itself and for its customers. The technology is meant to be used by existing and future players.
On Aventus, organizers are forced to abandon their current ticketing solutions and abide by the rules of the centralized platform.
Market:
- Revenue of the primary ticketing market (tickets sold for the first time): $30B in 2016 (led by theatre tickets).
- Revenue of the secondary market: $8.9B in 2016 (led by sports tickets).
- Main traditional actors are: Live Nation Entertainement, Evenbrite, Ticketfly, Stubhub, Viagogo.
The trend is clearly towards the online sale (easier to buy, no queue) but the issues are:
- fake and fraud
- scalpers (automatic bots buy the tickets and then sell at a super high price on a secondary market)
- incomplete sale for some events (organizers need to implement quotas that could lead to empty seats)
- distributors dictate the conditions: high entry barriers for distributors
2 Technology: 2.5/5
Whitepaper: https://crypto.tickets/crypto.tickets%20whitepaper%20ENG.pdf
Crypto.tickets wants to create a blockchain that ensures the creation of a smart-contract for an event with settings (including category and price of a ticket, rules for return/exchange, resale rules, algorithm of dynamic pricing, profit beneficiaries, ticket cancellation time), the issue of tickets that are tokens (cannot be fake), automatic billing.
The distributors will plug to Crypto.tickets via an API.
Using the Tickets Wallet interface, you will be able to purchase your tickets using either TKT tokens or fiat currency (with an automatic use of the exchange gateway), store them and show them (via QR code) at the event entrance.
The technology seems very straight-forward but terribly efficient. Moreover, the platform upon which smart-contract would be created is already live.
A POC (Proof-of-concept) of the Tickets Wallet is already available, which is a sign that project is making progress. The actual products (Ticket Chain and Tickets Wallet) are expected for Q3-Q4 2018.
3 Team: 3.5/5
26 people in total (including 2 founders and 10 developers), which is already the size of an advanced project. Indeed, the project started beg. of 2014 and many people have joined since then.
The team is said to have a long experience in the ticketing industry already which is a great advantage (they know the market and might have many potential partners already).
- CEO: Egor Egerev: 12 years experience in the ticketing industry and founder of the industry’s largest conference in Russia, Moscow Ticketing Forum
The developers seem very solid with a lot of experience in the blockchain industry. I am not sure it is key here to get super skills in the blockchain. But having solid background in the ticketing industry is key and I am sure this is one their best competitive advantages.
They have already raised around $3M from VCs.
4 ICO details: 3/5
TKT is an ERC20 token.
ICO on October 5th.
Hardcap of $23M. As a comparison, Blocktix raised $7M in July (failing at reaching the $7.7M hardcap) and Aventus raised $18M (failed at reaching $30M).
- 20% bonus in the first two days
- 10% bonus for the third day
No individual cap which is both positive if you want to invest a lot and negative (this will be a “shotgun” process).
Tokens available 7 days after the ICO is closed.
Airdrop (3%) is expected (for the first users using Tickets Wallet and for the first people using the platform and for the distributors).
5 Community & Communication: 2.5/5
Not many people so far. As of end of September, 400 people on Telegram. But 7000 followers on Twitter!
They have opened a blog with some articles.
6 Verdict
- You might want to wait until it reaches exchanges and buy at that moment
Summary:
The project seems solid (started a long time ago and gathering now more than 25 people).
The market is huge ($40B) and the blockchain technology is very disruptive. This is the best way to fight against fraud and black market. Contrary to Aventus, they have an ambitious approach: letting all the players using their system.
They want to raise a reasonable amount ($23M). However, companies in the past struggled to attract enthusiasm around their projects (both Blocktix and Aventus failed at reached their hardcap during ICO)…
In its current version, the project is very well planned but might lack a bit of technological competitive advantage as what they want to achieve is not that complicated — but they have the advantage of knowing the industry already + being numerous (26!).
=> NEUTRAL SHORT-TERM BUT HODL
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