Analysis of Santiment Token – Bloomberg of Crypto Investing - Crush Crypto

Analysis of Santiment Token – Bloomberg of Crypto Investing

Summary

  • Project Name: Santiment
  • Token ticker: SAN
  • Websitehttp://www.santiment.net/
  • Whitepaper: https://docs.google.com/document/d/1hHmJQWrPrObSgCA8kTbk-4LgqGbYzukQAjtg5b8jwc0
  • Hard cap: 45,000 ETH (ICO contributors own 54% of total token supply)
  • Soft Cap: 15,000 ETH
  • Conversion rate: 1,000 SAN per 1 ETH
  • Maximum market cap at ICO: US$27 million at current ETH price of $320
  • Bonus structure: No bonus
  • ERC20 token: Yes
  • Timeline: July 4th 16:00 GMT+1 with the Community allotment, followed by the Cofound.it Priority Pass allotment on July 5th (24 hours later) and finally with the Public Token Sale beginning on July 6th (48 hours after the community).
  • Token distribution date: 7 days after the token sale

Note: There will be 3 caps for the ICO: 1 for community members of Santiment, 1 for the Cofound.it Priority Pass members, and 1 for the public. Cap size is determined by the amount the first cap (community) contributes. Please refer to Santiment's Slack channel for more updated information.


Project Overview

What does the company/project do?

Santiment helps crypto investors to make more informed decisions by providing (1) clear financial information, and (2) insights on sentiment data. Basically, it wants to be the Bloomberg / Thomson Reuters of the cryptocurrency investing space.

It offers datafeeds and content streams (including newswires) alongside a regularly updated database of cryptocurrency projects. Its long term goal is to be the market data infrastructure for cryptocurrency and the blockchain economy.

Sample use cases:

  1. SAN tokens can be locked and staked to give holders access to a limited but ‘free’ stream of content and datafeeds. Exchanges and asset platforms will receive special staking arrangements that allow them to share this stream with their entire customer base, along with some extra information.
  2. SAN tokens are required for use in Santiment auctions. These auctions involve selling highly valuable raw datasets, crowd sentiment datafeeds, and exclusive content to the Santiment community. Auctions will be used where the information edge drops as more people gain access, to restrict distribution.

Santiment is one of the projects partnered with Cofound.it, a consultancy / project management company catering to ICO projects. Santiment also received investment from Iconomi, an asset manager focusing on cryptocurrency.

How advanced is the project?

The company has built an MVP, which is in alpha mobile app. Here is a screenshot of what the app looks like:

Here is the future roadmap for Santiment:

Q2 - Q4 2017 - The Santiment Debut​

  • Price History Datafeed
  • ICO Analysis Stream
  • Slack Sentiment Datafeeds

Q1 - Q2 2018 - Toward Blockchain Datafeeds

  • Blockchain Analytics Datafeeds
  • Santiment Database Alpha Release-
  • Crowdsourced Rumors Feed
  • Due Diligence Stream

Q3 - Q4 2018 - Crowd Sentiment at Scale

  • Meta-Sentiment Datafeed Prototype
  • Team & Exchange Address Tracker
  • Regulatory Content Stream

Q3 - Q4 2018 - Crowd Sentiment at Scale

  • Project Developments Stream
  • Content Platform R&D Release
  • Crowd Datafeed Voting & Governance Layer
  • 200+ Datafeeds

On June 20, Santiment announced that it has partnered with universities with the aim to produce pioneering insight and research into the factors and variables that can influence cryptocurrency prices.

How can token holders make money?

SAN works as a currency in the Santiment platform. The tokens can be earned by providing information and insights, or spent to access those information.

Here is the Santiment economic system in short:

  1. Traders use Santiment trading tools, and are rewarded for actions that produce valuable crypto-market intelligence in SNT.
  2. This intelligence (such as Sentiment data, and other forms) will be available for purchase in SNTs.
  3. If the data is valuable, the demand for SNTs will increase, as the only way to access it will be via SNTs.
  4. The increase in value creates desire to get more SNTs, for which traders will have to produce increasingly valuable crypto-market intelligence.

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Team

The company went through a presale round of 12,000 ETH back in February 2017. On Santiment’s website, it has a team of 8 and is currently hiring for 1 position.

Maksim Balashevich, Founder – Serial product creator and entrepreneur, from early work at IBM to co-founding a successful hosting company. He is a co-founder of GreenYvest, an investment platform for environmentalist communities. He also worked at a quality assurance manager.

The rest of the team include blockchain developer, software developers, mathematician, and others. Most of the team members have years of relevant experience.


Opportunities

  • Cryptocurrency investment is gaining recognition rapidly. Demand for financial analytics in the crypto space is surging – especially when institutional money start coming in. Most of the paying customers of Bloomberg / Thomson Reuters are hedge funds, mutual funds, and investment banks.
  • Currently, there is not much competition for Santiment. Mainstream financial companies don’t really follow cryptocurrencies. Therefore, Santiment has a first mover advantage.
  • Santiment is partnered with Cofound.it and Iconomi (which invested 2,000 ETH in February), meaning that it went through the due diligence process by an experienced team in the crypto space.
  • Reasonable valuation - $27 million market cap is on the low side of recent ICOs. It also shows that the team is not doing this ICO to raise as much money as possible.

Concerns

  • CEO of Santiment, Maksim Balashevich, is still listed as the CEO of GreenYvest, another investment platform built on Ethereum. It is unclear how Maksim manages his time between two startups.
  • The success of this investment hinges on whether cryptocurrency investment will become mainstream. If crypto investing turns out to be just a fad, there will be very little demand for Santiment’s products.

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Conclusion

Overall, I like this ICO, both for short- and long-term potential. Cryptocurrency is a new asset class for many, but there isn’t a lot of places where you can find quality resources for investment research. This is actually part of the reason why Crush Crypto was created – to produce quality information for crypto investors.

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

For short-term holding

Good because of its relatively small market cap. Santiment is raising 45,000 ETH (around $14 million at current ETH price) and has a market cap of $20 million.

For long-term holding

I also like SAN for long-term investment. Bloomberg, the leader in financial information, generated revenue of $9 billion in 2014 and has 192 offices worldwide. Should cryptocurrency investing becomes mainstream and Santiment is able to execute correctly, sky is the limit for Santiment.


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

Company website: http://www.santiment.net/

Whitepaper: https://goo.gl/dZp2nJ

TenX blog: https://medium.com/santiment

Reddit page: https://bitcointalk.org/index.php?topic=1783230.0

Token sale information page: https://medium.com/santiment/santiments-token-sale-everything-you-need-to-know-in-one-place-bf8899ec6152​

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