SWOT analysis of ICO (ITO) project

Assessment of strengths and weaknesses, opportunities and threats to the external environment

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Project concept
5.8
Business model
4.7
The tech
4.3
Team
5.0
Tokens
6.0
Project support
5.7
Media Environment
6.0
Jurisprudence
4.0

Average score

5.0 / 7.0
Soft cap
5,000,000 USD
Hard cap
30,000,000 USD
The DAOstack project is an operational environment for the development and management of decentralized autonomous organizations (DAOs).

DAOstack plans to provide a solution for creating and maintaining DAO like WordPress made the process of creating a website simple and intuitive. The DAOstack platform will allow effective management of decentralized organizations, will facilitate the joint solution of tasks for the development of IT products, and collective decision-making by voting.

The project already has the full architecture of the DAOstack system, the Arc structure for managing the blockchain, various management protocols, the javascript API for easy application integration (Arc.js), and the alpha version of Alchemy (the DApp interface). All products are available for testing on GitHub. The team promises to release the finished Alchemy product in May 2018. The team has launched a test network (TestNet) to date, and developers are planning to launch a private main network (MainNet) right after the end of the ICO.

There is one direct competitor - Aragon - in the niche market. This is a successful project, which ICO was held in June 2017, the token price has increased almost three-fold (from $ 1.44 to $ 4.28). Aragon, like DAOStack, provides tools for transferring companies into a decentralized environment, and one decentralized application (DApp) is created on its basis, while it is possible to create a lot of DApps within the DAOStack platform. In addition, DAOStack developers plan to make the platform easy to use for users without programming skills. Another competing project – SuperDAO (DAO control system) – is being prepared for the ICO, but the prototype of the platform has not been developed, and there is no information about the project (except for the official blog of several posts).

The project team members have extensive experience in IT-products and blockchain technologies. Both founders of the project, Matan Field and Adam Levy, are engaged in the development of blockchain projects since 2014 and have PhDs in Physics. However, two projects (Lazooz, Backfeed), created by Matan Field, ceased to exist for unclear reasons.

The existing TestNet, partnership with blockchain projects (Endor, Gnosis, Sapiens, Menlo) and long-term tech experience of the team ensure a high trust level of potential investors and contribute to the popularity of the project in social networks. The DAOstack platform will be able to bring together thousands of developers to create decentralized applications and organizations jointly. With the help of the collective intelligence and convenient platform functionality they will be able to compete with such large companies as YouTube, Yelp and TripAdvisor.

However, there is a difference between the value of DAOstack for decentralized organizations and the value for potential investors. DAO is a new form of organization that has not yet proved its effectiveness. The problem of inefficient decentralization was explored in the framework of studying the processes of the third world countries modernization back in the 60-70s of the 20th century. The efficiency of a centralized structure in an aggressive environment was proven when there was a need for a rapid response to external influences and a rapid resources mobilization. Thus, the success of DAOstack and the turnover of the token will directly depend on the efficiency of the DAO and the organizations' desire to shift to a decentralized form of management. Potential investors should be aware of the high investment risk and the fact that they are betting on the success of the emerging organization form.

Strengths

Blockchain technology is necessary for the project
The team described in detail the business model of the project
There is a clear roadmap
The issuance of tokens is limited
The legal structure of the company is transparent
The project is popular on social networks and in thematic communities
The project is widely discussed on blockchain news resources
The founders and leaders of the project are recognized professionals in their fields and in the blockchain industry
The project team has extensive experience and a strong track record
The project has a strong advisory board
The project’s partners are large and well-known
The team has a working product

Weaknesses

The competitive landscape and the project's competitive advantages are not sufficiently defined
There is no detailed financial plan
The project founders do not have experience implementing a successful business in the project field
The working code of the project (for example: smart contract, platform protocol) is not published on GitHub

Opportunities

Expansion of the market / Creating a new market niche
Increasing demand for the company's product
The growth of the token exchange rate in the medium and long term
Increased demand for tokens from ecosystem participants
Increased trust in the project and growth in investment
High level of the company's influence on the market

Threats

There is a risk of anauthorized withdrawal of funds through a vulnerability in the code
Violation of legislation in the field of entrepreneurship and tax payments

Recommendations for the project

High-priority tasks

  • Describe the competitive landscape and the project's competitive advantages in detail
  • Develop a detailed financial plan
  • Attract experts with experience implementing a successful business in the project field as partners
  • Publish the project code (for example: smart contract, platform protocol) on GitHub
  • Carry out a safety audit of the smart contract and publish the results
  • Organize professional legal support for the project

More information is required

  • about the regulation of fund dispersal and usage of tools (for example, the use of an escrow) that would guarantee the return of investments if the stated usage of funds is not followed
  • about compliance with the legislation requirements of the securities market and on the taking preventive measures
  • about the conditions of the token sale
  • about compliance with the legislative requirements for personal data protection and about the development of a Privacy Policy
  • about compliance with AML/ CFT) legislative requirements and on the identification of token purchasers (Know Your Client)

Medium-priority tasks

  • Establish additional partnerships with large and well-known companies
  • Improve the mechanism for protecting tokens against devaluation
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