Initial Coin Offering (ICO) is a fund-raising mechanism by issuing digital tokens or coins (called coins if they have their own blockchain, called tokens when "riding" in blockchain ethereum or ERC-20 tokens) to fund projects / companies.
In this paper, the author wants to assess whether ICO Scorum is a promising investment when viewed from the originality, business model prospects, and capacity of the developer team. This assessment is done by means of document studies and simple analysis based on information obtained from the official website of Scorum.
Disclaimer: The authors neither advise nor are responsible for the profits or losses of this investment in ICO. This paper is limited to information that can be followed or ignored without any coercion.
What is Scorum?
Scorum is an online sports media project powered by blockchain. The sports media encompasses a blogging platform that rewards active users, statistical data centers, betting platforms and fantasy sports platforms. Then what's the difference with other sports media? Well, here Scorum wants to create an ecosystem where some of the profits will be returned to active users. These benefits are derived from internal advertising, partnership programs, and photo databases. [1]
Based on the above reviews, there must be a mechanism to ensure that rewards can be distributed equitably and transparently.
This is where blockchain technology is used. In the absence of blockchain technology, it is conceivable that services and features can not be streamlined. For example, to subscribe to statistics centers, betting, or fantasy sports the user has to pay with fiat money. Then rewards from blogs are also distributed with fiat money, of course this will slow down and make the transaction process bother when compared to using digital coins.
These coins can be likened to poker chips or coins at the arcade game center.
Scorum Coin (SCR)
ICO will issue SCR coins which can be purchased for 1 USD (with 25% discount) when this article is written. The holder of this coin will have an advantage:
- This token is valuable because SCR will only be obtained from ICO, so users who want to use Scorum app must buy coins from users who follow ICO.
- Use of commission-free bet and fantasy sports app.
- Gain a share of the profits from Scorum's earnings.
So based on the above reviews, according to the author the use of blockchain technology (digital coins) can be justified in the Scorum business model. Note that Scorum will use its own blockchain with Graphene technology, so the SCR coins will be accessible by the end of March 2018 after the blockchain and wallet are ready for use. There is no soft stamp on this ICO, and even though the sale does not reach the hard stamp, the work will continue!
Assess Scorum (SCR) from its Web Site
Developers who promise to make fantastic platforms such as betting and fantasy sport should be able to create a perfectly functioning website. Visible from the https://scorumcoins.com/en-us/ website view, the site describes the value proposals well, is designed very well, and has a well-functioning backend. The author will try to buy this coin at the time of ICO later so the writing in this section will be updated after the author get the user experience. Another part of this site is the beta section of the site, the statistics center and the draft fantasy sport section.
At the bottom is also shown many photos of the members of the Scorum team linked with their linkedin id. This is very important because their identities are publicly available so there is little chance of scam. The Scorum team also has all the skills necessary to realize their ideas. [2] Telegram group Scorum has 1.5k members with admins who are responsive enough to respond to questions about ICO. Therefore the conclusion of this website analysis, SCR is a fairly valid investment.
Assessing Scorum (SCR) from "Expert" Opinion
The authors are the author of the blogger, vlogger, youtuber, and the like who have long struggled in the content about digital currency. They are certainly familiar with ICO and Scorum similar startup so it can provide input as a consideration. When browsing forums and sites that review Scorum, rating sites generally provide a high ranking on this ICO, for example:
- ICOrating: stable
- ICObench: 4.0 / 5.0
- WiserICO: 4.5 / 5.0
- ICOmarks: 7.2 / 10.0
However, this project does not seem to be as ICO-ICO-compatible as it is simple and less bombastic. Moreover, according to the ICO rating, there are four risk factors of this project related to: platform features, opportunities in sports betting, competitor's ability to create similar products, and hard cap too high. First there are two coins, namely SCR and SP (Scorum Power) which is an internal coin. This separation is hard to understand for someone who does not study white paper that makes people hesitant to invest. Second, online betting is banned in some countries and special licenses are required. Third, established sports media can imitate the good features of Scorum. Fourth, hard cap is high for this kind of project.
Nevertheless, the writer considers this project a serious project and is done by a team that seriously wants to create a better sports platform. Implementation of this project is also already in the practical realm that touches the final consumer, not the abstract ideas that tend to be bombastic without seeing the ability of ordinary users in using a platform.
A Simple Coins Valuation of SCR
If we assume hardcap USD 17 million can be fulfilled with maximum amount of coins 30 million (20 million SCR and 10 million SP), then after entering exchange the minimum value of SCR is USD 0.567 with market cap USD 17 million. This value is 0.567x smaller than the selling price of ICO coins SCR of USD 1. However, if we look at similar coin market cap then SCR coins are actually very cheap, for example: [3]
- FirstBlood (1ST) with market cap of USD 144 million or 8.47x market capSCR.
- Enjin Coin (ENJ) with a market cap of USD 282 million or 16.6x market cap SCR.
- FunFair (FUN) with market cap USD 610 million or 35,88x market cap SCR.
Let's say after trading the market cap SCR will be equivalent to 1ST market cap, then the value of one SCR will be at least 0.567 * 8.47 = USD 4.8 or 480% return from the price of ICO USD 1. This token is still very freely moves in terms of market cap so it is still likely to rise when it enters the market. You can imagine when the market will play this token market FUN cap. In addition to the potential of the game market, if SCR can deliver on its promise by delivering products that work on time, we will see that this token will probably arrive at the top-100 market cap.
Conclusion Coin Investment SCR
Investing in ICO is a risky gambling option. Startup Scorum is not necessarily will be able to launch products that function on time and can be accepted by the target market. However, if they are able to keep their promises then the return of thousands of percent you can receive. What is clear the author plans to buy this coin later, because:
- This is a project whose business model is realistic and easy to understand
- This project solves the problem of sports platform that until now has not been integrated and can be accessed by all parties
- This project builds ecosystems and communities
- Coin prices are not too expensive
Team commitment
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