ICO Review: Wono decentralized platform for P2P exchange and share
Wono intends to build a decentralized sharing economy ecosystem. The company’s aim is to eliminate the intermediaries between user interactions on the network. Throughout this approach, exchange of goods and services will be more transparent, robust and at a lower price.
Project name: Wono
Token symbol: W
White paper: WONO Whitepaper
Hard cap: Around $20 million for 60% of the tokens
Conversion rates: 1 WONO = $0.5
Maximum market cap at ICO on a fully diluted basis: around $33 million
Wono targets the sharing economy market, which is constantly expanding. According to Statista, by 2025 the approximate transactions for only the 5 biggest sectors of the industry will worth around $705 billion. Moreover, by 2021 the customer base, only in the US is estimated to grow to around 86.5 million users.
The company is trying to tackle some major problems facing the industry. When using P2P services, users fear of the monopolistic nature of the market and also lack conviction in the quality of the end result. In addition, most of the sectors within the sharing economy (for example the renting one, in which the famous Airbnb is the king) there is only one real choice when it comes to selecting the service provider. In turn, this creates higher fees for both participants in the exchange. Often times sharing economy providers are accused of non-transparent reviews and rating system because some of the vendors are treated differently than other. Another drawback of the current structure is the fragmentation of the sharing economy, which means that users need to register in different providers for every different service.
Wono solution is to automate the intermediary process of the sharing economy using blockchain solutions. By doing this, every transaction on the platform will be traceable on the Ethereum blockchain and automatically executed in seconds. This will lower the associated cost and eliminate the transparency issues. Furthermore, they plan to integrate four of the main segments of the P2P economy:
• Space sharing – think of Airbnb.
• Transportation sharing – people will be able to share transportation means like bikes, cars etc.
• Miscellaneous assets sharing – users can rent out their belongings such as instruments, gadgets etc.
• Services sharing – people will be able to hire others for a specific job.
This wide product differentiation is unique for the industry and will directly resolve the aforementioned fragmentation issues. By combining all the users’ needs on one platform, WONO will simplify people’ interaction and ultimately increase their time spent within the ecosystem. For example, a person can find a specific job and then use its salary to rent a house, without having to move the earnings at all.
Furthermore, Wono sharing economy will be based on a variety of types of deals. For example, vendors can use future earnings to rent from someone else, even before they are paid. The back-to-back deals give users the opportunity to directly exchange assets.
In addition, Wono strives to make its platform community-driven. One of the unique features of their product is the decentralized Arbitrage. In case of a dispute or a cancelation from one of the involved parties, an arbitrage will be open on the Ethereum network, which will be visible by everyone. After that, a community vote will determine which of the involved parties is guilty and in 24H it will be penalized. Further technical details can be found in the Wono’s comprehensive Whitepaper while an actual prototype of the Wono solution can be found here.
All in all, the Wono product proposition is innovative and ambitious and if implemented successfully will completely transform the sharing economy industry.
Token Metrix and Utility
Wono is an ERC-20 utility token, based on the Ethereum blockchain. The token supply is limited to a maximum of 79,166,667 tokens, while all unsold tokens will be burnt. The token is the driver of the whole platform, users will use Wono in every transaction made on the platform. This means that the price of the token is directly linked with the platform usage. The more people are using Wono the more the price of the token will increase. In addition, Wono passed the Howey test, hence it cannot be classified as an investment asset. This is crucial for the future of the token because everyone on the crypto market is expecting legislation and massive hits on tokens that are securities and don’t have the needed licenses. Another vital characteristic of Wono which guarantees that the team will work hard on the project is that the team tokens will have a three year vesting period with a one year cliff. Having in mind that Wono plans global expansion – the $20 million hard cap of the project is reasonable. Most of the costs will be focused on marketing activities, which is crucial for expanding the user base. Within the whitepaper of the project, the team forecasted different scenarios in which they calculate how to proceed if the hard cap is not reached.
Team and Advisors
Wono have a well-rounded team of specialists and developers. The CEO of Wono Alexander Esaulov looks like a very innovative young entrepreneur, who already has two successful business behind his back. A marketing specialist who managed to raise over $1 million in private investments before starting the project is a really positive sign. This means that he is trusted by investment companies and that he has a strong ability to sell. In addition, the project managed to attract a robust mix of capable advisors, who can push the project successfully. The most important names that stand out are the managers of Airbnb Ignacio Ibaibarriaga from Chile and Alexander Zhidkov from Germany, as well as the marketing manager from Turo (P2P carsharing giant) Adil Khan.
More comprehensive information about their team and advisors can be seen on their website.
Wono presented a very thoughtful and ambitious roadmap. It is evident they carefully planned how to accelerate their product development and implementation. In addition, in their Whitepaper, the company thoroughly explained their expansion plans, with clear points of actions. This is always a good sign for ICOs, because it gives confidence to the investors that the team behind the project actually contemplated the whole project. Although Wono has a really impressive organizational roadmap, the actual official release of the platform is planned for Q2 2019, which in crypto time is a long wait and might be seen as a potentially bad sign for investors.
Conclusion and evaluation
The Wono project looks really interesting and well-thought. They are entering a fast-growing innovative market, which is a potential gold mine. On the positive note, I really like their decision to target different segments of the sharing economy at once. Throughout this approach, their user base should be more engaged, which will guarantee more transactions and interactions within the platform and ultimately increase the price of the token. In addition, their innovative proposals for Arbitrage and insurance mechanisms will strengthen the trust in the project, by making it more transparent and fair. As already mentioned, the sharing economy industry is really big and is expected to grow even bigger. If the company succeed in capturing even a small percentage of the market, their token will generate enormous ROI. Although there are other blockchain projects trying to enter the same industry, Wono is definitely proposing some new and differentiated concepts.
On the negative side, we should point out that the Wono project lacks the first-mover advantage because the sharing economy industry is a target for other blockchain projects. Moreover, their ambitious intention to focus on four different segments simultaneously, which differentiates them from the rest of the projects, can easily backfire. The time and costs associated with the development and implementation of four different segments might not be as smooth as initially planned, which in turn can lead to delays in their milestones
All in all, Wono platform is a very appealing concept, which we think will be valuable for the sharing economy market.
This is NOT an investment advice, do your own research before investing!