GoNetwork ICO Review

Gonetwork ICO Review

GoNetwork is a low cost and highly scalable first mobile network infrastructure for Ethereum.

BASIC INFO

Name: GoNetwork
Symbol: GOT
Hard Cap: $30,000,000
Presale Date: December 2017 (details to be announced)
Presale Price:
tba
Presale Bonus: 40% bonus
ICO Date: tba
ICO Price:
tba

Whitelist: Registration opened.
Token distribution date: Most likely immediate.

Social Interest (3-Dec-2017):
Twitter: 6685
Telegram: 13501
Reddit: n/a
Bitcointalk: 12

IDEA

• Build a highly scalable, low-cost, low-latency first mobile network infrastructure for Ethereum. The team plan to achieve this by creating a network for off-chain transactions using state channels, the scalability concept similar to Raiden Network for Ethereum and Lightning Network for Bitcoin.

• GoNetwork Master Plan:
1) Build the infrastructure that can scale Ethereum to massive transactions per seconds on mobile.
2) Use GoNetwork to deliver a strong use case; GoExchange, a virtual goods commerce platform, that will show the capacity of the GoNetwork infrastructure.
3) Develop the pocket product to penetrate the commerce market.

• GoTokens are ERC20 utility tokens used to complete all transactions. Users convert FIAT into GoToken via the low cost Integrated Payment Platform backed by Stripe, or purchase GoToken directly with their Ethereum wallet. All forms of cryptocurrency will be accepted in the future. Opening or closing a state channel requires a small transaction fee that is paid in GoTokens. State channels amortize the cost of transactions based on the number of off-chain transactions completed off-chain.

• The team plans on launching gotoken debit card, which will let users spend GoTokens anywhere like fiat currency. This should also create demand for the coin. This use is expected to be heavy especially among the teen audience which is known to spend heavily on mobile games and apps. Team also plans on sponsoring developers who integrate GoTokens within their apps and making strategic deals with top app developers who have millions of active users.

• First use case for GoNetwork will be GoExchange; a scalable decentralized e-commerce platform for the virtual goods marketplace. GoExchange provides a platform that unifies app economies across Mobile platforms, allowing users seamless trade and purchase of virtual goods across game ecosystems and between users. GoExhange will leverage the 15m downloads from GoNetworks hit mobile gaming platform Infinidy Corp. including titles such as : Happy Park, 2012 Zombies vs Aliens, Happy Monsters, Flappy Zoo, and Dubsquad to name a few.

• Ethereum remains focused on delivering a stable and scalable blockchain technology on desktop computing platforms. Full Etherum nodes for mobile platforms apply the same network, storage and computing requirements as desktop platforms. Hence, the new development is not suited for mobile computing and battery preserving computation i.e. running proof of work mining on mobile devices will rapidly deplete battery life. GoNetwork seeks to adopt technologies and incentives to alleviate the limitations of mobile computing platforms, and hence making cryptocurrencies accessible to the masses.

• GoNetwork was a winner of ETHWaterloo which is a largest global Ethereum hackathon in the world, with the participants coming from 32 countries. Judges included names like Vitalik Buterin and Joe Lubin, co-founders of Ethereum. Obviously, the project for which they were awarded is in no way connected to GoNetwork, but it does give some credibility to the team and the developers.

MY THOUGHTS

• GoNetwork prime objective is to build a fast, cheap and scalable mobile first off-chain transaction network for Ethereum. Given the fact that the mobile web browsing has overtaken desktop, if team manage to succeed in this, it would be a huge accomplishment. I do agree that the Ethereum, ERC20 tokens and cryptocurrencies in general require mobile accessibility and interoperability to gain mass adoption, as written in GoNetwork’s whitepaper.

• First use case for GoNetwork will be GoExchange, virtual goods marketplace. Virtual goods is a huge market with mobile gaming revenues of $46.1 billion in 2017. Even Deutsche Boerse is tapping into this market through partnership with NAGA Group and their Switex platform, which is another project of virtual goods marketplace yet to be launched. GoNetwork blockchain competitors include names like Dmarket and WAX (Worldwide Asset eXchange). Dmarket recently raised around $20M through an ICO, and WAX, which is backed by Mike Novogratz, and which recently raised $80M. GoNetwork hopes to achieve the critical mass through their existing 15M user base. For comparison the WAX is being developed by a team from OPSkins, the world’s largest centralized marketplace for trading video game virtual assets. The WAX is also known as having the largest Telegram channel in the blockchain project space with more than 30,000 members. The competition is no joke in this industry.

• The team mentioned in one of their blog posts that they are talking to multiple exchanges as they are preparing for Token Distribution Event. This is good, as it gives me the confidence the team is planning on listing the tokens on the exchanges as soon as possible after the ICO ends. Also having Ian Balina as an advisor in their team makes me confident they won’t neglect the importance of exchange listings.

Concerns

• There are concerns about Cofounder and COO, Xun Cai, who allegedly was chatting with potential investor and saying how it’s all just money game, and how once they raise money for this ICO they move on to the next one. Xun Cai responded on accusations by saying it wasn’t him and that he was hacked. You can see the screenshots of the chat and read more about these concerns here: https://github.com/ico-check/ico-check/issues/12. The whole story is quite unsettling for a potential investor and I’m inclined to believe that the Cofounder himself did actually have that chat, as the “explanations” don’t sum up.

• They have no updates on their Github page since the beginning of October. They also already postponed ICO once, which was planned for 20 November. And it now seems it they are taking a lot of time to announce the details of the ICO. This casts a bit of a shadow on a team’s ability to run the ICO properly.

• GoNetwork ICO campaign first appeared on the KickICO website under the link https://www.kickico.com/campaigns/6314/dubsuqad-video-social-network-2-0, indicating they are doing the ICO under the name “Dubsuqad Video Social Network 2.0”, which is one of their latest centralized apps for social video sharing. They have obviously changed the text in the article, but the link remained the same (for now). It seems to be quite a substantial pivot between the switch of an existing centralized video social network app to the decentralized network and the project they are trying to build now. They also mentioned staking rewards for the token holders and bonus rewards on the KickICO website, but there is no mention of staking rewards, bonuses or how the 1.5% fee for the in-app purchases will be distributed in the whitepaper.
“Each transaction that happens in the network will incur a transaction fee. Part of it will go to GoNetwork for maintenance and proliferation work, part of it will go to the node operators and the rest will be awarded to everyone who is holding GoTokens in their GoToken wallet. ” – excerpt from the GoNetwork campaign on the KickICO website.

CONCLUSION

• I went carefully through the whitepaper and it is a well written document. My research indicates that this is a good project, but more so for short term investing:
1) Team already developed couple of very successful mobile games and apps.
2) They are raising $30M which is good market cap. There are rumors that they will reduce market cap to $12M, maybe due to credibility hit they took because of cofounder Xun Cai chat transcript. If this is true then it will create a lot of FOMO and it will most likely prove to be a very good investment, regardless on the Xun Cai incident. I don’t take lightly that chat transcript or Xun Cai immature behaviour and explanations afterwards, but most other things do check out.
3) There is also a good amount of hype around the project. Ian Balina is an ICO investor and the GoNetwork advisor. He rated this ICO with a very high 98% rating (he could be biased of course), but the fact that he has a substantial following and that in fact is a good project gives me hints that this will perform well once listed.
4) They will most likely be listed on the exchanges very soon after the ICO.

• For flipping: POSITIVE

• For long term holding: NEUTRAL
Given the chat transcript incident, idea pivoting, aggressive roadmap given the complexity of the problem they are trying to solve and relative blockchain inexperience, it’s unsure whether the team will be able to deliver and respect the roadmap.

 

Additional resources:
• GoNetwork Whitepaper:
https://gonetwork.co/GoNetwork_WhitePaper.pdf
• Other reviews:
https://cryptobriefing.com/gonetwork-ico-review-got-token-analysis

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