SWOT analysis of ICO (ITO) project

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

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Project concept
5.5
Business model
4.7
The tech
5.8
Team
5.7
Tokens
5.0
Project support
5.0
Media Environment
4.5
Jurisprudence
3.6

Average score

4.8 / 7.0
The GoChain project is aimed at creating a cryptocurrency, that would approximate classical payment systems, but at the same time had the advantages of a decentralized network.

One of the advantages of the GoChain project is the team with ten years of experience in developing high-performance distributed applications and cloud infrastructure. The team also includes an expert on cyber security, and the CEO of the project, Jason Dekker, is an experienced entrepreneur, investor and hedge fund manager. All the team members are confirmed.

8 out of 10 projects with the highest return on investment (ROI) are infrastructure projects, according to icodrops statistics, and GoChain also belongs to this category. TOP10 includes the main GoChain competitor - POA Network, which has similar goals and is also based on the Ethereum protocol using the Proof of Authority consensus. The price of the POA token shows a nine-fold increase from the ICO end date to the current date.

However, unlike the competitor, GoChain provides a greater level of decentralization. The nodes will be managed by a limited number of companies in different countries, and the possible risk of power concentration can be prevented by the DAICO model if implemented.

In addition, the main competitive advantage of GoChain is the increase in transactions volume - 100 times more than in Ethereum, while reducing the power consumption of the network by 1000 times. Launch and testing of the network (TestNet) in March 2018 demonstrated that the developers have managed to achieve transaction rates between 1100–1500 transactions per second. The GoChain project team opened access to the test operating environment on April 12.

The functioning of TestNet, the team’s extensive tech experience and the transparent legal structure increase potential investors’ trust significantly. More than 9,000 members have already registered in the WhiteList within PreSale, that means a high probability of reaching HardCap, as the minimum possible purchase of GOC tokens is 5 ETH. At the same time, if the team launches the main GoChain network, introduces the DAICO model and pays attention to the professional legal support to reduce the litigation risk after the ICO, GoChain can partially solve the problem of scaling distributed networks, take a niche of the decentralized applications service market and be very influential company in this environment.

Strengths

The team has studied the competitive landscape and described the project's competitive advantages
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 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
The project founders have experience of implementing a successful business in the project field
The source code of the project is published on GitHub.

Weaknesses

There are no tools (for example, the use of an escrow) that would guarantee the return of investments, if the stated usage of funds is not followed

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
AML Activities
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 violation of legislation of the securities market
There is a risk of lawsuits and decisions does not favor the project
Violation of legislation on processing and protection of personal data
Violation of legislation in the field of entrepreneurship and tax payments

Recommendations for the project

High-priority tasks

  • Implement tools (for example, the use of an escrow) that would guarantee the return of investments if the stated usage of funds is not followed
  • Pass the Howey test and comply with securities market legislation
  • Develop a detailed token sale contract
  • Meet the legislative requirements for personal data protection. Develop a detailed Privacy Policy
  • Organize professional legal support for the project

More information is required

  • about the financial plan
  • about marketing activities on blockchain news resources
  • about the safety audit of the smart contract

Medium-priority tasks

  • Detail the description of the business model
  • Finalize the roadmap
  • Finalize the model for limiting the token issuance
  • Make the legal structure of the company more transparent
  • Increase activity on social networks and in thematic communities
  • Attract more consultants with extensive experience and competencies to the advisory board, that are not present among other advisory board members
  • Establish additional partnerships with large and well-known companies
  • Cooperate with additional experts with experience in implementing a successful business in the project field
  • Identify additional opportunities to increase demand for the product
  • Improve the mechanism for protecting tokens against devaluation
  • Introduce additional tools of motivation for owning the tokens in the ecosystem
  • Eliminate minor violations of the legislation in financial regulation and AML
  • Attract additional large VC investors to the project
  • Improve the competitive advantages of the product and project
The results of SWOT analysis express the views of DigRate and does not constitute a statement of fact or recommendation to buy, hold, or sell these or any other assets, or make investment decisions. This information may be distributed without the prior consent of DigRate, but must contain links to www.digrate.com