Fantom ICO Review – The First DAG Smart Contract Platform - Crush Crypto

Fantom ICO Review – The First DAG Smart Contract Platform

Summary

  • Project name: Fantom Foundation
  • Token symbol: FTM
  • Website: https://www.fantom.foundation
  • White paper: https://www.fantom.foundation/data/FANTOM%20Whitepaper%20English%20v1.1.pdf
  • Hard cap: $39.8 Million (ICO contributors own 40% of total token supply)
  • Conversion rate: 1 FTM = $0.04
  • Maximum market cap at ICO on a fully diluted basis: $99 million
  • Bonus structure: 30% for private sale and 15% for presale, with 3 month lockup
  • Private sale / white list: There was a private sale restricted to strategic investors that was oversubscribed
  • ERC20 token: Yes (will be swapped to native tokens after the mainnet launches)
  • Countries excluded: Citizens from the US, Mainland China and Korea cannot participate
  • Timeline: Whitelist and KYC for the public presale will open on May 28, 2018. Public presale will then begin on June 1, 2018. Whitelist and KYC for the public main sale will open on June 8, 2018. Public main sale will begin on June 15, 2018. (Please refer to FANTOM’s website for the most up-to-date information)
  • Token distribution date: Tokens will be generated on June 29, 2018
Video summary (video is 7:45 long):

Project Overview

What does the company/project do?

Fantom aims to be the world’s first Directed Acrylic Graph (DAG) based smart contract platform that solves the issue of scalability and confirmation time of the existing blockchain technology. The goal is to provide secure and fast transactions (300,000 transactions per second) via an open-source and permissionless platform.

The project aims to improve on newer blockchain platforms that are also DAG-based such as IOTA, Nano, Byteball, and Hedero Hashgraph. These platforms improve on current blockchain scalability as nodes are designed to process transactions asynchronously.

Because each transaction is linked to another and there are no miners in the system, as more nodes participate in the network, the number of transactions processed per second increases.

Fantom differentiates itself by incorporating smart contract dApp infrastructure into a DAG-based platform so that it offers instant payment, near zero cost (transaction fees will be under $0.01 from one wallet to another), and infinite processing scalability.

Key features of the platform:

  • The OPERA Chain: Instead of blocks, the OPERA Chain processes events asynchronously without being approved by miners. Apps built on top of the OPERA Chain benefit from instant transactions and minimal transaction costs.
  • The Lachesis Protocol: A new protocol that maintains consensus within the network.
  • Story Data: Historical information is independently managed through Story Data. Every transaction and smart contract function can store data for tracking and supply chain management.

This diagram illustrates FANTOM’s structure:

Fantom structure

This diagram illustrates the different use cases of the FANTOM OPERA Chain across various industries:

Fantom use cases
How advanced is the project?

FANTOM is still in working process. The Fantom Virtual Machine is on GitHub and middleware beta is scheduled to be released in June 2018. The mainnet is currently scheduled to be released in 3Q 2019.

FANTOM’s blockchain partners include: Oracle, SBCK (Korean subsidiary of Softbank Group), Coinsilium (a blockchain fintech company), South Korea Food Tech Association, Yonsei University, SL Blockchain Partners, Quantum Equity Partners, Coinhills (a crypto and stock market index platform), King & Wood Mallesons (a Hong Kong-based law firm), Korea Blockchain Industry Promotion Association (KBIPA) and Tokenomia. However, it is unclear the extent of the partnership with these organizations.

The project’s current development roadmap is as follows:

Stage 1 - Intermezzo (approx. June 15, 2018)

  • Design Lachesis protocol and FANTOM architecture
  • FANTOM Wallet development and distribution
  • Middleware beta launch

Stage 2 - Seria (3Q18)

  • Open main Middleware and public API disclosure
  • Begin OPERA Ware Mainnet
  • Open OPERA Core Layer beta
  • Launch restaurant service Application

Stage 3 - Buffa (1Q19)

  • Begin main OPERA Core Layer
  • Open Function language and Virtual Machine beta
  • Open Smart Contract production tool
  • Launch delivery service Application

Stage 4 - Operetta (3Q19)

  • OPERA chain Mainnet launch
  • Complete consensus and fee model
  • Complete composition of decentralized network
  • Open main Virtual Machine, and POS/commerce application services

Stage 5 - Grand OPERA (2Q20)

  • Global platform expansion 
  • Establish FANTOM technology development council and research support agency
  • Open logistics and financial service application services
What are the tokens used for and how can token value appreciate?

The ERC20 token released from the token sale will be a placeholder for the FTM token, to be swapped upon mainnet launch.

FTM tokens will be used in various ways:

  • To enable low-cost transactions to proceed and to pay for transaction fees.
  • Enable access to the platform across various FANTOM applications and smart contract variations.
  • Incentivize network participants. The platform will initially have a 5% annual inflation rate that decreases as more users join the network. 20% of the total inflation will be used to reward nodes and the rest will be used to incentivize platform users (e.g. near zero fees), and to reward users for contributing to the ecosystem.

The demand for FTM tokens should increase as more users join the network and more transactions being made on the network.

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Team

The team is currently comprised of at least 27 people, including 11 in the FANTOM Foundation and 16 in the platform development team. The key team members include:

Ahn Byung Ik, CEO – Holds a Ph.D. in computer science from Yonsei University and is a contributing writer at Fortune Magazine. He previously established a food tech platform called SikSin, which has accumulated over 3.5 million downloads and 22 million monthly page views. He is also the president of the South Korea Food Tech Association, one of FANTOM’s partner companies.

Bob Tucker, COO – Over 25 years of experience managing businesses for Barclays Capital, Bank Austria Creditanstalt, Man Investments and ANZ Bank. He was most recently the Head of Business Management for the Global Markets and Institutional Loans division of ANZ Bank. He has also been involved in a number of early stage ventures, from the start-up phase through to the IPO.

Yunsung, CFO – Previously an auditor for various companies and was a manager in fintech business development at the Industrial Bank of Korea for three years. Holds an MBA in Finance from the Korea Advanced Institute of Science & Technology (KAIST).

Issac Lee, CIO – Currently a General Partner at BlockWater Capital, a digital asset investment form. He is also an advisor to other projects include LiveEdu, a live and video tutorial learning platform, and Bitindia, a blockchain exchange and wallet.

Joseph Jang, CSO – Over 10 years of experience in law, finance, media and blockchain. He is currently the VP of SL Blockchain Partners and the CFO for Global IP. He obtained his law degree from the Seattle University in Washington.

Jake Choi, CMO – Jake is currently the CIO for Digital Currency Holdings and is an advisor to blockchain project, Enosi Foundation. He has a Bachelor degree in Quantitative Business Analysis and Finance from the University of Sydney.

Lee Chung Hee, Head DAG Architect – Over 13 years of experience in systems development. He was previously the Chief Development Officer at Bobcat and the Development Manager at WebZeit Corporation.

The project also has a number of advisors including: Ran Neu Ner, the host of CNBC's Cryptotrader show, Eddy Travia, the CEO and Co-founder of Coinsilium, Matthew Hur, the VP of SL Blockchain Partners, Kim Hak Kyoon, the CEO of Quantum Equity Partners Korea, Jo Min Sik, Non-executive Director of Kakao, Ashton Hettiarachi, the CEO of Blockchain Partners, Kim Hyeong Joo, the President of Korea Blockchain Association, among others.

Investors of the project include Blockwater Capital, TCM, HyperChain Capital, Signum Capital, Kosmos Capital and Block VC.


Opportunities

  • The closest competitor of Fantom is Hedera Hashgraph but Hashgraph is raising $300 million for 5% of total tokens. If Fantom is able to execute on its vision (smart contract on a scalable DAG platform), the potential is huge.
  • The team is business-minded and has built companies with large user bases before. We believe that one of the main metrics to determine the success of a blockchain is usage. The team has a strong background in food tech and has already partnered with South Korea Food Tech Association, but this is just one of the use cases that Fantom has planned.

Concerns

  • The competition among next-generation blockchains is fierce. Fantom is relatively early in its development progress compared to some of its competitors.
  • The mainnet launch is currently scheduled for 2019 Q3, which is over a year away from the ICO. By that time, there will be a lot more competition in place, many with the goal of solving the issue of blockchain scalability.
  • The team is mostly based out of South Korea. South Korea is going to be the initial target market for Fantom and we are unsure if the team would be able to expand beyond the country.

Conclusion

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

For short-term holding: A

The market awareness for the project is very high. While the hard cap is higher than we would like, we believe there would still be plenty of unmet demand after the crowdsale.

For long-term holding: B

There is a lot of competition for next-generation blockchains. Fantom’s team is promising and the idea is good, but we are still uncertain whether they can deliver on what they have stated in their white paper because the project is still in an early stage of development. If the team can deliver on their promises, the potential could be substantial.


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

* 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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