Analysis of PROPS – Decentralized Ecosystem of Video Applications

Summary

  • Project name: PROPS
  • Token symbol: PROPS
  • Website: https://propsproject.com/
  • White paper: https://propsproject.com/static/PROPS%20Whitepaper.pdf
  • Hard cap: $25 million (public crowdsale ICO contributors own 20% of total token supply)
  • Conversion rate: To be announced
  • Maximum market cap at ICO on a fully diluted basis: US$125 million if hard cap is reached
  • Bonus structure: 20% discount during presale
  • Presale or white list: Whitelist registration ongoing / Presale is ongoing on Coinlist for accredited investors / A separate pre-sale will begin on Republic Crypto on December 11, 2017
  • ERC-20 Token: Yes
  • Countries excluded: Iran, North Korea, Sudan, and Syria
  • Timeline: Presale ongoing at Coinlist for accredited investors, December 11, 2017 on Republic Crypto / public crowdsale in Q1 2018 (please refer to Props’ website for the most up-to-date information)
  • Token distribution date: To be announced
Video summary (video is 7:43 long):

Project Overview

What does the company/project do?

YouNow, the company behind Props, is a live streaming video company founded in 2011. They were the first app to create a two-sided virtual currency market where users paid to buy virtual currency and content creators earned revenue from engagement.

YouNow is developing the PROPS ecosystem. This new ecosystem will enable users to access features and content across a variety of media apps while benefiting from the PROPS rewards pool. This new platform will be seeded with YouNow’s existing user base.

Rize, a new many-to-many live video platform, will be the first app to be launched on the PROPS ecosystem. Some use cases of the app include: singing karaoke to a live audience, watching streaming media with others in a virtual living room, voting on a talent show, playing virtual games with friends, and participating in auctions. The app will be available on iTunes and Google Play after the token sale ends.

This diagram shows how the PROPS ecosystem is structured:

PROPS Diagram

Here are the benefits of using PROPS ecosystem:

Publishers and content creators

  • Produce content and get higher earnings from the content and communities they create instead of being cannibalized by large media companies.

Developers

  • Can create new media apps within PROPS or customize use cases within Rize. 
  • Developers get access to video technology and the shared user base in the PROPs ecosystem. A Partner Rewards Program also serves as an incentive for them to build on PROPS.

 Digital media users

  • Can access features and content across different apps in the PROPS ecosystem and earn rewards.
  • The PROPS wallet is a user friendly interface that does not require technical knowledge of cryptocurrency.

Presentation by Props CEO and a demo of Rize (video is 14:53 long):

How advanced is the project?

YouNow is an established company founded in 2011. In the last three years, YouNow has generated over $50 million in virtual goods sales. According to the whitepaper, the network has more than 40 million users and over 120 million user sessions per month.

Below is the development roadmap of the project:

Q4 2017

  • Launch Rize mobile app after token distribution
  • Transition from C Corp to B Corp

Q1 2018

  • Expand use cases

2018

  • Add additional partners who will be granted reward tokens and governance privileges
  • Open source code for Rize app provided to developers to add functionality and customize use cases
What are the tokens used for and how can token value appreciate?

PROPS tokens will be used by apps in the PROPS ecosystem to reward creators and other digital media contributors, and give users access to advanced functionality and features.

Depending on the app, the use cases for the token may differ. For the Rize app, some initial use cases include: 

  • Premium access: Get access to premium experiences and features. 
  • Status signaling: Users with more tokens may have an elevated status.
  • Influence and curation: Token holders can promote use cases or content they like, or vote on things impacting the platform.
  • Compensation: Platform contributors such as content contributors, curators and developers will be rewarded with the token.
  • Content promotion: Anyone can use tokens to promote their own content.

The more user activity in Rize and other apps within the PROPS ecosystem, the greater the demand for the PROPS token and the more valuable the token should be.

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Team

PROPS currently has a team of 40 people with experience in video technology and digital media.

Adi Sideman, Founder and CEO – Co-founded KSolo (an online karaoke service that was acquired by Fox/MySpace) and TargetSpot (an audio ad network and joint venture with CBS). He founded YouNow In 2011.

Yonatan Sela, SVP Business Development & Product Strategy – Previously founding member and VP Marketing and Product Strategy of Tvinci (a video platform).

Eran Kalmanson, CTO – Previously founding employee of SundaySky (a company that generates dynamic video) and software development Team Lead in the Israeli intelligence corps’ technological unit.

Ben Perper, Director of Product and Business Intelligence – Over 10 years of experience in consumer tech product management and was previously Senior PM at Zynga.

Investors of PROPS including Union Square Ventures, Venrock, Comcast Ventures, Chris Dixon, CoinFund, BlockTower Capital, Oren Zeev, Notation Capital, Kryptonite1, Phil Defranco and Mind Fund.

Advisors of the project include Jake Brukhman (Founder & Managing Partner, CoinFund), Marco Santori (Partner, Cooley), Nick Tomaino (Founder, 1confirmation; previously Runa Capital, Token Summit, Coinbase), Doug Petkanics (Founder, Livepeer), Manuel Araoz (CTO Open Zeppelin, Decentraland) and Jim Louderback (CEO, Vidcon).


Opportunities

  • There is a solid team with relevant experience in place. They were able to build YouNow to a large platform, so it shows their execution capability.
  • The project is able to leverage off YouNow’s existing community, which can drive adoption of the ecosystem right off the bat.
  • Props ecosystem allows third party apps to integrate with it. It could have new/different use cases as more apps are added to the platform.
  • The Whitepaper is pretty detailed and reviewed by a number of veterans in the crypto space. This shows the effort that was put into it and that the project is well-thought-out.

Concerns

  • There is a high inflation of circulating tokens which would dilute the proportion owned by ICO participants. By year 4, there will be more tokens minted from partner rewards and grants than from the ICO.
  • Rize is going to face stiff competition as video streaming is a competitive space with many established and deep-pocket companies including Youtube, Facebook, Snapchat, as well as other many-to-many video streaming companies such as Blue Jeans
  • All the team members also work for YouNow and have to allocate time between YouNow and PROPS/Rize.

Conclusion

Overall, we like the flipping potential for this ICO but are neutral about its long-term potential. Our thoughts on buying the tokens for flipping and investing for the long term are as follows:

For flipping

Good. The project is backed by strong advisors and investors and has a strong market awareness. It should have no problem reaching the $25 million hard cap with unmet demand.

For long-term holding

Neutral. There will be a lot of tokens entering into circulation each year, meaning that the market cap of the project needs to keep growing for token price to just break even.

A major factor determining the success of PROPS hinges on whether Rize can become a successful app. With the stiff competition from the big tech players who can copy what Rize is doing, we are unsure whether Rize can beat the competition.


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

Website: https://propsproject.com/ 

Whitepaper: https://propsproject.com/static/PROPS%20Whitepaper.pdf 

Blog: https://blog.propsproject.com/ 

Telegram: https://t.me/propsproject

* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.

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