Friendz ICO Review – Decentralized Digital Marketing - Crush Crypto

Friendz ICO Review – Decentralized Digital Marketing

Summary

  • Project name: Friendz
  • Token symbol: FDZ
  • Website: https://friendz.io/
  • White paper: https://friendz.io/file/whitepaper_icofriendz.pdf
  • Hard cap: $50.25 million (ICO Participants receive 50% of total token supply)
  • Conversion rate: 1 FDZ = $0.067
  • Maximum market cap at ICO on a fully diluted basis: $101 million
  • Bonus structure: 40% bonus first hour of ICO (subject to partial lockup up to 12 months), 20% first day, 10% rest of first week
  • Presale or white list: Whitelist closes February 28, 2018, register here: https://steward.friendz.io/login
  • ERC-20 Token: Yes
  • Countries excluded: U.S.A.
  • Timeline: ICO runs from March 1 to 21, 2018 (Please refer to Friendz’s website for the most up to date information)
  • Token distribution date: Tokens are immediately distributed except for those purchased within the first hour of ICO
Video summary (video is 7:09 long):

Project Overview

What does the company/project do?

Friendz is a mobile application that lets its users to participate in digital marketing campaigns of major brands by posting on social media, and are rewarded FDZ tokens if their content is approved.

The company believes word of mouth is the most powerful marketing tool, thus its goal is to connect brands with their target audience using the power of individual users.

Friendz allows anybody to promote brands like a celebrity social media influencer, and allows brands to expand their advertising reach in a new and intimate way.

Friendz App

Here is an introductory video of Friendz (video is 2:18 long):

How advanced is the project?

Friendz currently has a working product, with an app for iOS, Android, and desktop. They claim to have over 200,000 organic users already, and made $1.2 million in revenue in 2017.

The app has been active since February 2016. The company has 3 offices across Europe in Milan, Rome, and Madrid.

Here is a summary of their roadmap:

Q2 2018 – Launch Friendz in Central Europe

Q4 2018 – Expand Friendz services to B2B Clients

Q1 2019 – Launch Friendz in the Nordic Region

Q2 2019 – Widget payment system for commercial partners

Q4 2019 – Launch Friendz in Eastern Europe

Q1 2020 – Launch Friendz in North America

Q2 2020 – Launch Friendz in South America

Q3 2020 – Launch Friendz in Asia and Australia

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

Friendz currently rewards its users with Credits, which have a pegged euro exchange rate. Users are able to convert their Credits to FDZ after amassing a sufficient amount. Before the introduction of FDZ tokens, Credits would be used to exchange for gift cards and vouchers on the Friendz online store.

The introduction of FDZ allows Friendz to skip the middle man in rewarding their users, as they will be able to convert the Credits they earn into a token that can be exchanged for fiat money.

FDZ token is also used by companies that want to purchase marketing services on the Friendz Platform. Companies can pay in fiat, but will receive a discount if they pay using FDZ tokens instead.

Friendz plans for premium features and games to be available on the platform in exchange for staking FDZ, as well as offering special features that increase their engagement using Friendz tokens.

As Friendz acquires more users, the value of the Friendz advertising network as well as the FDZ token should increase. Every user that publishes content on the Friendz platform will also expose their social network to the Friendz platform, which will allow for steady and natural growth.

More users means more people reached, so advertisers will eventually be willing to pay more as well as pay in FDZ in order to participate in campaigns on the Friendz platform.

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Team

The Friendz team is comprised of 35 employees. The bios of key team members are listed below:

Daniele Scaglia, Head of Operations and Co-Founder – M.S. in Industrial Process Engineering. Previously Cost/Production Controller at INCA S.p.A.

Cecila Nostro, Head of Marketing and Sales and Co-Founder – M.B.A. from University of Lugano, studied Economics in undergrad.

Alessando Cadoni, Head of Community and Co-Founder – M.S. in Management Engineering from LIUC University.

Girogio Pallocca, CTO and Co-Founder – Head of development at Ohmygoodness Inc., Founder of Netlex and served as CEO for both NetLex and Dexma. Netlex was acquired by TeamSystem, a European software company.

Friendz’s advisors include: Simon Cocking, Advisor to MediChain, David Drake, Chairman of LDJ Cayman Fund, Advisor at Credits, BlockV, WePower, and many more, Paolo Rebuffo, Co-Founder of Noku.io and Advisor to Monetha and Edgeless, as well as many more.


Opportunities

  • Unlike a lot of other declining startups that have raised funds through ICO, Friendz is actually a growing company. The company was founded in 2016 and already has 35 employees, and has worked with a number of Fortune 500 companies. This shows the credential of the company and the team.
  • Influencer marketing is a new and rapidly-growing industry, especially for influencers with a smaller audience. Friendz is well positioned to benefit from this trend.
  • The integration with FDZ token requires minimal change to the business model so it likely won’t deter the app’s growth.

Concerns

  • Brands and advertising agencies can use Friendz’s services with fiat, potentially reducing the demand for FDZ tokens.
  • The only social media platform that integrates with Friendz is Facebook for now. The lack of additional platform integration is considered slow in development progress as the app was launched two years ago. 
  • Also founded in 2016, Indahash has a very similar business model as Friendz and is more advanced, having worked with 400 clients in over 70 markets and 8 of the top 10 largest media agencies in the world.

Conclusion

Overall, we are neutral about both the short- and long-term potential of this ICO. Our thoughts of the tokens for short term and long term are as follows:

For ​short-term holding

Neutral. The hard cap is way too large for a mobile application, especially in the current market condition. If the hard cap is not filled in the first week, it would have a difficult time raising additional funds as there will be no more bonus.

For long-term holding

Neutral. Applications generally have a lower valuation than infrastructure/protocol projects. Indahash, a very similar project with a more advanced development, has a current market cap of $50 million.


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.

This article is contributed by Victor Lai with the help of our intern Richard Wang.

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