ContentsDeal analysis and the IEO concept
Introduction
In today's article, we will talk about the Initial Exchange offering and ContentsDeal, an interesting investment opportunity even in today's market. The company is making use of the IEO (Initial Exchange Offering) concept which has several advantages over the ICO. ContentsDeal’s IEO’s first 3 phases were sold out even in the current market sentiment while mainly focusing on the Korean market. They had to close the first token sale in 10 minutes and in addition, they had to close the second DEAL token sale earlier than expected as corporate participants joined the sale. Many people don’t know this, but South Korea is one of the leading countries where cryptocurrencies are getting more and more mainstream.
The Asian country emerged as one of the top markets for cryptocurrencies last year as South Koreans were responsible for a third of all bitcoin trades occurring in cryptocurrencies by the end of last year. Customers for cryptocurrencies spanned a broad age range and profile. South Korean investors paid “kimchi premiums”, a reference to inflated prices in the country, to invest in cryptocurrencies. Their influence in crypto markets was such that, at one point in time, they accounted for as much as 17 % of all ETH trades occurring in cryptocurrency markets last December. The price of Ripple, another virtual currency popular there, crashed at the beginning of this year after a popular site that aggregates crypto exchange listings did not include trading data from South Korea. This is one of the reasons we feel investing in South Korean projects ( or projects also focused on the South Korean market ) have a bigger chance for a return of investment as the faith and acceptance in cryptocurrency is much higher than other regions of the world, thus creating a bigger chance for the cryptocurrency on having a big local user base which is something most crypto-projects lack.
The Initial Exchange Offering
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Because of the decreasing speculator interest in ICO’s, cryptocurrency projects like ContentsDeal are looking for new ways to raise funds increasing the chance of success, direct liquidity of their tokens, and taking away security issues that took place with some ICO’s in the past.
An IEO is similar to an ICO in the base concept. The crypto startup is selling tokens to investors in order to finance the project’s goals. With ICO’s the project's development team (the token issuers) are selling tokens directly to investors, but startups that conduct an IEO will rely on an exchange or multiple exchanges to complete the crowdfunding campaign.
Developers mint the project’s tokens and send them to the exchange, which will then sell the tokens to individual contributors for other currencies. In ContentsDeal’s case, for example, their native token DEAL will be exchangeable for BTC, ETH, KST and COZ on Coinzest after successfully closing 2 previous crowdfunding phases on CLET.
Some advantages of the IEO
- Price dumping: If you’ve participated in ICO’s, you’re probably familiar with the following problem. Once the token gets listed on an exchange, the whales that bought tokens in the private pre-sale immediately dump their tokens for quick profits. These actions start an immediate downtrend, making the value of the token drop. An IEO drastically reduces the risk of this scenario happening.
- Exchange listings: Listing a project on an exchange is one of the hardest steps towards making a healthy token economy. Some exchanges have very tight listing procedures that could take months. This can make investors lose faith in a project starting a downtrend spiral with loss of faith in the project. With an IEO, the token gets listed on the exchange immediately after the sale.
- Credibility and scams: IEO exchanges provide higher credibility with token buyers as they perform their own due diligence because the exchanges name is connected with the project. this way, you can be somewhat sure that the exchange will not allow any scam activities, low security or phishing attempts. They have more experience and budget allocated to security than a new startup planning to raise funds and providing their own security measures which are most of the times to low, as we have seen in the past with ICO’s.
- User base: Projects are immediately getting the user base of the exchange, cutting down marketing costs for the project and making them reach more potential investors than the classic ICO.
ContentsDeal general details
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General concept
ContentsDeal is a blockchain content-deal exchange platform. They are implementing blockchain technology and cryptocurrency in the Contents-space primarily focusing on the music, webtoon and video industry. In the following paragraphs, we will explain their plans, partnerships and developments in each of the targeted industries and explain a bit more about the token economy and utility of the DEAL token. The general goal of the project is to protect the creator's rights, contributing to the development of the content production environment and in the same time giving the public better quality content by giving the creator real motivation to create quality content without all the industry struggles.
The team
The ContentsDeal team is split up in the different branches they are targeting. The music content team exists out of the Iconic Sounds group. They are a well-known global music publishing & production company. Their team is composed of talented and successful producers, writers, and entrepreneurs. By applying innovation and technology, they hope to simplify and make it easier for great music from the minds of writers to find their way to the ears of the world. The different management members have produced and managed many big KPOP and Asian artists. The team also includes The Stereotypes, Rodney Jerkins and Underdogs. The Stereotypes won 2 Grammy awards in 2018 and are known for producing albums for Bruno Mars, Justin Bieber, Iggy Azalea, Chris Brown and many more international artists. Rodney Jerkins won 4 Grammy awards and has produced have sold over 160 million records worldwide including Michaels Jackson, Beyonce and Lady Gaga while Underdogs produced titles for Beyonce, Justin Timberlake, Britney Spears, and many others.
There is also a team named COMICA which will provide and take the lead over webtoon contents. Webtoons are a type of digital comic that originated in South Korea. While webtoons were mostly unknown outside of the country during their inception, there has been a surge in popularity internationally thanks in part to most comics being read on smartphones and computers now due to the popularity increase. As digital comics have emerged as a popular medium, the print publication of manhwa in South Korea has decreased. The amount of material published in webtoon form has now reached an equal amount as that published offline.
The technical support in terms of exchange technology will be managed by Sunjesoft ( https://www.sunjesoft.co.kr/) and HOA Soft teams.
The ContentsDeal platform explained
The music dAPP
In modern times, we can enjoy and share the music we love everywhere and anywhere we want by using platforms like Youtube and Spotify. In contrast to the fast growth of the music streaming industry, there was almost no growth in the technology to secure copyrights and make sure that creators of our loved content get compensated accordingly. From an artist’s point of view, especially for young and upcoming artists, platforms like Youtube are a big loss in compensation for their work. On top of this, platforms do work with paid memberships that for example stop the annoying commercials in the middle of the content you listen to while giving nothing back from their revenue to the actual creator of the content…
ContentsDeal is fixing this real-world industry problem by implementing the PoC (Proof of Copyright) protocol and providing convenience for an international artist by using digital assets in the music decentralized application. We will explain this ecosystem later on in the article.
To attract International and KPOP artists ContentsDeal has officially partnered with successful Korean companies like the Korean Management Federation that manages big names like John Legend, Justin Bieber and Ariane Grande, but on top of that also has connections with the immensely popular K-pop music industry.
K-pop is characterized by a wide variety of audiovisual elements. The term is often used to describe a modern form of South Korean pop that is influenced by styles and genres from around the world on top of its traditional Korean music roots. The more modern form of the genre emerged with the formation of one of the earliest K-pop groups, Seo Taiji and Boys, in 1992. Their experimentation with different styles and genres of music and integration of foreign musical elements helped reshape and modernize South Korea's contemporary music scene. With the advent of online social networking services and Korean TV shows, the current global spread of K-pop and Korean entertainment, known as the Korean Wave, is seen not only in East and Southeast Asia but also Latin America, India, North Africa, the Middle East and the Western world, gaining a widespread global audience.
The Korean Kstar group (https://www.starcoin.tv/?locale=en) is a second crypto-partner that is popular in the region giving additional power to the platform. People who participate in the ContentsDeal ecosystem will experience safer and enhanced transparency in their content trade because of the KSTARpay platform, get more top-tier music content through KSTARmusic and receive top-tier comprehensive content through STARent. StarKST & ContentsDeal first SHOWCASE in Seoul was held on November 25th with guests like Robin Thicke from ‘blurred lines’ and the ContentsDeal team members the stereotypes.
The Webtoon dAPP
As previously explained Webtoons are starting to attract more and more international fans. Unfortunately, the same evolution is occurring as in the steaming platform development. Webtoon platform development is staying behind while the Webtoon itself is gaining momentum. This instability of the Webtoon industry structure is counterproductive in regards of growth and fresh content, thus the need for a fair copyright policy is crucial for the survival of the industry. The Decentralized application and Proof of Copyright are a great solution to this problem.
The Technology
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Proof of Copyright
The algorithm for consensus on the ContentsDeal platform is based on the well-known PoW concept by sharing profits by inscribing proof of ownership into a block.
In general, it means that the more tokens you have, the more likely you will receive compensation as you can better contribute to the formation of blocks, which leads to better security of the whole system. DEAL stores the confidential information such as every transaction record and Face ID’s into a block in a distributed manner.
In easy words, Face ID converts participants facial images in authentication data, fragmenting and storing it in DEAL for a bigger security. It’s an advanced biometric authentication service using the blockchain to securely authenticate a user.
DEAL Core
The DEAL Core is the master node-based blockchain program. On the platform, Proof of ownership is put into a block and stored in DEAL when the exchange of content takes place. If there is a match in the smart contract you acquire the right to use the content.
The compensation model
As the compensation model, scenarios and structure of the ecosystem are explained in detail on the Whitepaper, we will share some of the clear diagrams about the different scenarios concerning the model.
- Scenario 1
- Scenario 2
Buying DEAL
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From Dec. 5th, the DEAL token that can be used inside the ContentsDeal platform has been listed by using the IEO concept on CoinZest (https://www.coinzest.co.kr/app/cxweb/cb/CB1001.jsp ), a popular digital asset exchange in Korea. After contacting the ContentsDeal team, the team promised to release a guide on their Medium profile on using the CoinZest exchange for participating in the IEO.
Useful links
Website:http://contentsdeal.net/#/condeal
Telegram:https://t.me/contentsdeal
Medium:https://medium.com/@contentsdeal
Twitter: https://twitter.com/contentsdeal
Facebook:https://www.facebook.com/contentsdeal
**DISCLAIMER**
This is not a sponsored article. Krypt.ly was not paid to write this article but we did purchase DEAL tokens in the past. This article is a general summary of the project as we believe DEAL to be an interesting investment opportunity. This article is in no way financial advice and merely a complement to your own research and evaluation about ContentsDeal.
