Analysis of Request Network – Decentralized Network for Payment Requests - Crush Crypto

Analysis of Request Network – Decentralized Network for Payment Requests

Summary

  • Project name: Request Network
  • Token symbol: REQ
  • Website: https://request.network
  • Whitepaper: https://request.network/assets/pdf/request_whitepaper.pdf
  • Hard cap: 100,000 ETH (public crowdsale ICO contributors own 50% of total token supply if hard cap is reached)
  • Conversion rate: 1 ETH = 5,000 REQ
  • Maximum market cap at ICO on a fully diluted basis: US$59 million if hard cap is reached assuming current Ether price of $295
  • Bonus structure: None
  • Presale or white list: Whitelist was closed early on September 25 as their Slack channel hit 21,000 users. To participate, please sign up on the wait list on their website.
  • ERC20 token: Yes
  • Crowdsale date: October 13, 2017 (please refer to Request Network’s website for the most up-to-date information)
  • Token distribution date: Distributed instantly after contribution and transferable 1 week after the beginning of the token sale
Video summary (video is 9:22 long):

Project Overview

What does the company/project do?

Request Network is a decentralized platform that allows anyone to request peer-to-peer payments. Its goal is to replace payment systems such as PayPal and make the most advanced payment terms available to everyone.

There are many use cases for Request Network:

Online payment

  • Online shopping currently requires payment by credit/debit card, thereby exposing sensitive information.
  • With Request, the user’s data remain protected. 
  • There are no third parties involved, so the merchant fees can be lowered.

B2B invoicing

  • Many invoices between companies are still being sent in paper and email format and have to be manually copied.
  • With Request, companies can share these bills directly via the ledger; there will be no more duplication, as accounting systems will be immediately plugged in and updated.

Automation of jobs

  • Accounting – the ledgers of Request automates the accounting process as things such as payments and VAT refunds are done and recorded automatically.
  • Audit – the use of blockchain for accounting is an opportunity to simplify compliance.

Simplification of commercial tools

  • Request will allow easy access to tools like escrow or factoring for businesses and individuals.
  • Users can choose to pay only upon delivery of a product or service, for example, or to secure the deposit of an apartment on escrow, rather than crediting the account of the landlord.

Below is a mockup of the mobile app for the request functionality:

Request Network app mockup

How advanced is the project?

Request was accepted in the Winter 2017 batch of the YCombinator incubator program. The company hasn’t released any proof-of-concept for their products. 

Below is the roadmap for the project:

Q4 2017

  • First version of Request working with Ethereum on Test Net.
  • Proof of concept: Request Core working with a Bitcoin Oracle.
  • Release of the API to create, read and update Requests.

Q1 2018

  • The first iteration of Request working with Ethereum on Main Net.
  • Deploy the web site to create, visualize and interact with Requests.
  • Add Request management of accounting concepts such as refund, credit note and purchase orders.

Q2 2018

  • Proof of concept of Scaling Request through a Plasma chain with PoS.
  • Proof of concept of Privacy using ZkSnarks.
  • Add management of fiat-currencies to Request.

Q3 2018

  • Deploy more extensions such as Escrow, Tax, Down Payment, and Late Fees.

Q4 2018 and beyond

  • Deploy a governance system.
  • Deploy inter-currency settlement through REQ token to facilitate international payments.

What are the tokens used for and how can token value appreciate?

REQ tokens are required for the operation of Request contracts and especially the extension layers for advanced features such as Escrow, Tax, Down Payment, and Late Fees.

The fees are distributed between REQ token holders (70%) and the extension developer (30%).

The costs are expected to be 0.1% to 0.5% of transaction value per extension and several extensions can be accumulated for each request.

As all transactions that use extensions require REQ tokens, the more usage the Request platform has, the more valuable REQ tokens should be.

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Team

The team consists of 6 members, all of whom are working together in another project called Moneytis. According to Crunchbase, Moneytis has received $454,220 funding in 6 rounds.

Below are the bios of the key team members:

Christophe Lassuyt, co-founder & CFO – Serial entrepreneur. Co-founder of Moneytis, Neomy. Former CFO of Virtua S.A., Euranka.

Etienne Tatur, co-founder & CTO – Co-founder & CTO of Moneytis, former lead developer of QOBUZ, CTO of Amaris.

Julien Devoir, CMO – Head of Growth of Moneytis, former growth marketer of Molotov TV and Virtua S.A.


Opportunities

  • Request is the first ICO project incubated by YCombinator. YCombinator has funded over 1,400 startups and those companies have a combined valuation of over $80 billion.
  • The problem that Request is trying to solve is huge so the upside is substantial if Request can deliver on its vision.
  • The other company that the team is running, Moneytis, has received 6 rounds of funding from 2015 to 2017. This could be an indicator that the company is growing throughout the years, which speaks to the execution skills of the team.
  • Network effect is present. The more people use Request Network, the more valuable the platform becomes.

Concerns

  • Request has not released any proof of concepts for their product, so this is a white paper project. The only two milestones prior to the ICO are “release final draft of white paper” and “launch the Request Network website”.
  • All the team members are working on Moneytis and Request at the same time. It is unclear how the team allocates their time between the two projects.
  • Since peer to peer payment is the backbone of cryptocurrency, the project faces competition from many blockchain projects in one way or another: Status, Metal, Monetha, OmiseGO, Everex, TenX, Monaco, Centra, Token Card, Pillar, and many others.
  • 20,000 Ether was sold to early investors and strategic partners with 20% bonus (this is not part of the 100,000 ETH hard cap). This may create selling pressure once tokens are listed, as those participants are willing to sell at a lower price than people who contribute in the public crowdsale.

Conclusion

Overall, we like this ICO for its flipping potential 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, being the first YCombinator-backed company going through an ICO, created a lot of market awareness. It is expected that the company needs to close the whitelist early to avoid too many participants so there should be unmet demand.

For long-term holding

Neutral. The project is at a very early stage, essentially a white paper idea. The white paper is attractive with many use cases, but it is unclear if the team can deliver on their promises.


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

Website: https://request.network 

Whitepaper: https://request.network/assets/pdf/request_whitepaper.pdf 

Smart-audits yellowpaper: https://request.network/assets/pdf/request_yellowpaper_smart_audits.pdf 

Blog: https://blog.request.network/

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