Analysis of Omise GO Token - Crush Crypto

Analysis of Omise GO Token

Summary

  • Project Name: Omise Go
  • Token ticker: OMG
  • Websitehttps://omg.omise.co/
  • Crowdsale document: https://cdn.omise.co/omg/crowdsaledoc.pdf (the crowdsale document discusses Omise GO’s product as well as the business opportunities)
  • Whitepaper: https://cdn.omise.co/omg/whitepaper.pdf (the whitepaper discusses the technology behind Omise GO)
  • Hard cap: US$24 million (token holders own 65.1% of total token supply)
  • Soft Cap: US$8 million
  • Conversion rate: 1,000 OMG per 1 ETH
  • Maximum market cap at ICO: US$37 million
  • Bonus structure: None
  • ERC20 token: Yes
  • Timeline: June 27, 2017 at 11am GMT (EDIT: Omise Go decided to raise the money from pre-sale so there will be no ICO)

Project Overview

What does the company/project do?

Omise is based in Thailand and provides Stripe-like payment features in Japan and Southeast Asia. In short, Omise GO wants to the Venmo and Stripe of Asia.

Omise GO is a public Ethereum-based financial technology for use in mainstream digital wallets, that enables real-time, peer-to-peer value exchange and payment services across jurisdictions and organizational silos, and across both fiat money and decentralized currencies.

By enabling decentralized exchange at high volume and low cost, Omise GO provides a next-generation value transfer service operating across currencies and asset types, and across national borders and corporate ledgers.

Any user of Omise GO will be able to conduct financial transactions such as payments, remittances, payroll deposit, B2B commerce, supply-chain finance, loyalty programs, asset management and trading, and other services, in a decentralized and inexpensive way.

Access to its products will be made available to everyone via the Omise GO network and digital wallet framework, starting in Q4 2017.

Here is a video of the founders talking about their vision in Omise GO (video is 4:13 long):

Sample use cases:

  • Payment and Remittances

The key benefit of using the Omise GO digital wallet for payments and remittances is the ease-of-access for consumers. There is no bank account required. Payments and remittances are available 24/7/365 in real-time.

End-users of the wallet may tap into a rapidly growing number of Omise merchant sign-ups and network of clients (more than 6,000+ touch-points). The goal is to make it as convenient as possible to manage funds in and out of the platform.

  • Loyalty and Rewards

The Omise GO network offers a solution for instant redemption and exchange of multiple loyalty point currencies on a single platform. With all their points stored in only one “wallet”, consumers no longer have to hunt for each program’s options, limitations, and redemption rules.

From the perspective of a company, the Omise GO platform would enable companies to rapidly add and maintain loyalty partnerships without adding complexity or costs to their programs.

  • Messaging and Communication

The Omise GO team has already been in communication with one large global messaging service to support realization of their platform expansion. On the messaging platform, users can perform things such as micro-transactions and cash-in/out.

How advanced is the project?

Omise was founded in 2013 and has been operational for 4 years. In a short period of time, Omise has helped over 6,000 merchants move towards digital money and card processing. In November 2016, Omise was featured in Forbes as ‘Fintech Rockstars’.

How can token holders make money?

Owning OMG tokens buys the right to validate this blockchain, within its consensus rules. Transaction fees on the network including (but not limited to) payment, interchange, trading, and clearinghouse use, are given to non-faulty validators who enforce bonded contract states.

This is similar to owning the currency of a blockchain – token holders can earn the “gas” or transaction fees. Therefore, the more transactions there are on the Omise GO blockchain, the more valuable OMG is.

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Team

The cofounders, Jun and Don, have been working with each other on various ventures for over 15 years.

Jun Hasegawa, CEO – Prior to founding Omise, Jun was involved in founding a series of tech companies in Japan, primarily in the fields of e-commerce, life-logging, mobile payment, and payment infrastructure.

Ezra Don Harinsut, COO – Don has a professional record in leadership positions as an International Trade Manager and International Trade Coordinator. His industry experience includes more than 12 years in telecommunications and the financial technology industry.

Vansa Chatikavanij, Managing Director – In her former role at the World Bank Group, she led teams to roll-out international development programs worth over US $1 billion across finance inclusion, infrastructure investments, and environmental and social development areas.

Omise GO also has a strong team of advisor, some of whom are listed below:

  • Joseph Poon, best-known as the creator of Lightning Network, is the principal author of the Omise GO whitepaper, and will guide the team in the architectural specification of his most recent work.
  • Vitalik Buterin, Founder of Ethereum.
  • Vlad Zamfir, Casper (Ethereum Foundation) Research Lead.
  • Dr. Gavin Wood, Co-Founder of Ethereum, Founder of Parity & Polkadot.
  • Julian Zawistowski, Founder of Golem, Economist.

Post-ICO Developments


Opportunities

  • There is a genuine need for a decentralized platform in the payment space, especially in Southeast Asia where 73% of the population are unbanked (do not currently or have access to formal financial services).
  • Omise has already raised over $25 million from VCs and banks, so it passed the scrutiny of professional investors.
  • There is a strong network effect in play here. The more merchants and users Omise GO can bring onto the ecosystem, the more valuable the network is. Omise GO has demonstrated success on the merchant side – it is already helping 6,000 merchants in Asia Pacific.
  • The company has shown good traction - the business development team is already engaged with major global and regional banks such as SBI Holdings, Mizuho Bank Ltd. and Bank of Ayudhya, as well as mobile and e-money service providers such as TrueMoney, to design and provide Omise GO services.
  • It has a very clear and detailed development roadmap in the whitepaper – this company is not raising money for the sake of raising money.
  • A very strong advisor team – this is one of the two ICO projects that Vitalik officially admits to have an advisor role in.

Concerns

  • Their development roadmap is pretty ambitious, including carrying out research on proof-of-stake and develop core consensus mechanisms for scaling Ethereum smart contracts for cross-blockchain use. If there are any setbacks in the R&D, the full potential for the project cannot be realized.
  • The project is targeting the poorer part of the population, so the transaction fees generated by the tokens may not be as high as expected, as least in the beginning.
  • Omise GO’s platform is a two-sided market– it needs to sign up both merchants and users in order to be successful. If they are unsuccessful at bringing on board either side of the market, the network effect would diminish substantially.

Conclusion

Overall, I like this ICO. It solves a real problem and has a better than average chance to succeed because of the backing it has from the business and tech community.

Our thoughts of the tokens for short term and long term are as follows:

For short-term holding

Good because it has a strong team of advisors including Vitalik. This alone should guarantee the ICO would have a strong reception and be oversubscribed. People who could not get in during the ICO would want to invest after OMG is tradeable on exchanges.

For long-term holding

As I mentioned above, I believe it has a fairly good chance of success. If this project can scale, the potential for this project is practically unlimited as the payments industry is huge. I believe OMG offers great potential on a risk/reward basis.


For more information about the ICO, please visit the following links:

Company website: https://omg.omise.co/

Whitepaper: https://cdn.omise.co/omg/whitepaper.pdf (the whitepaper discusses the technology behind Omise GO)

Crowdsale document: https://cdn.omise.co/omg/crowdsaledoc.pdf (the crowdsale document discusses Omise GO’s product as well as the business opportunities)

Omise GO blog: https://www.omise.co/blog​

TechCrunch article on Omise GO and the ICO trend: https://techcrunch.com/2017/05/30/omise-to-raise-19m-in-first-cryptocurrency-sale-from-a-major-vc-backed-startup/

Reddit page: https://www.reddit.com/r/omise_go/

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