V-ID Blockfyre Report

Transcript

1. SENTIVATE REPORT BY BLOCKFYRE | PAGE ‹#›
2. Executive Summary • V-ID aims to solve the problem of document fraud in regards to digital files through blockchain technology. • The team developed an extensive validation process and a user-friendly interface to conduct the verification process of a wide variety of digital files. • The concept of maintaining document Id on blockchain is relatively simple, but it targets a huge need in our increasingly digital world. • V-ID has already established a working product, that is used in various industries, such as legal, education, medical, research, and tech, serving customers like Airbus Space & Defence, Krohne and JWC Superyachts, among others. Highlights Risk & Concerns • Due to the potential size of the market for blockchain based verification services, there are already a growing number of existing players in the field. (Civic, Adobe, Docu-Sign and Factom) • There are some concerns about the acceptance of V-ID validation in court, especially on a global level. Only time will tell, but the team is confident, as an increasing number of blockchain transactions are used in Asian courts as proof of money laundering. This might not represent a precedent at the moment but is still a positive sign. Ticker VIDT Price $0,0568 USD Pre-Sale Price $0.20 USD Market Cap $1.57 Million Circulating Supply 27.6 Million VIDT Total Supply 63.1 Million VIDT Token Type ERC20 Mainnet Yes Website about.v-id.org The V-ID validation service uses blockchain technology to tackle the problem of document fraud. V-ID utilizes general and trusted principles to enable validation and verification for any digital file. Overview Source: Blockfyre Research | V-ID website
3. What problem does it solve? Fundamental Problem: Manipulation of digital files x • Due to their nature, digital files are prone to be manipulated and tampered with. As files are passed around on the internet, through emails, messaging apps, and cloud storage, malicious actors can take advantage of their easy-to-copy nature. Since the emergence of digital files, this problem has not been appropriately solved til this day. • The risks that emerge from this unsolved problem are extensive, as they range from personal documents, such as agreements, deeds, birth certificates, diplomas, and other legal documents, to corporate documents, such as invoices and contracts. Basically, every file and format that exists in digital form and is shared through the internet is vulnerable to manipulation. • Invoice fraud alone is costing companies worldwide billions of dollars each year. Current ways to solve this issue, involve expensive and time-consuming processes and the deployment of manual labor. • But not only in the business world does document fraud cause high costs and decreasing trust between parties, but also valuable personal documents, scientific data or video material lack validation. • As society continues its digitalization process, new types of digital crime emerge. The media report on incidents such as data leaks, identity fraud, document forgery and fake news on a daily basis. 
 Source: Blockfyre Research | V-ID website Digital files that can undergo unauthorized changes: • Diplomas and certificates • Reports • Inspection certificates • Due diligence trails • Legal documents • Audit trails • Tracking data • Goods documentation • Logistic documents • Video footage • Photo material
4. V-ID’s solution Solution • V-ID developed a straightforward approach to tackle the problem of document fraud. V-ID solves this by verifying and confirming the authenticity of the initial file via a KYC process. This process involves the screening and verification of the document and leads to the extraction of a digital fingerprint. This unique fingerprint will then be uploaded and to the Blockchain (e.g. Ethereum), therefore recording the authenticity of the document on the Blockchain. An unlawfully modified file will always have a different digital fingerprint, which will reveal it as un-authentic upon verification. • In order to make files verifiable, they must be validated. V-ID offers its clients three different validation methods: x Validation Service Trained V-ID staff members will do the validation on-site Self-Validation The issuing organization can validate files at any time, through an appointed and certified employee. Bridge Validation Server-to-server process involving the V-ID API. Verification of digital files can then be made through n user- friendly interface on V-ID’s website. Source: Blockfyre Research | V-ID website
5. V-ID’s solution Usability and need for Blockchain • The V-ID Platform is designed to take out any inconvenience and uncertainty out of the document verification process, it utilizes a user-friendly process, which only takes seconds to carry out for all parties involved. • The verification side of this process doesn’t require a fee. • V-ID meets Data Protection (GDPR) standards, as no copies of examined files are being stored. • Blockchain technology ensures that the validated documents cannot be changed unnoticed. This offers a significant advantage over traditional validation methods such as manually checking files. • An OIC (Origin Information Certificate) is offered in PDF format. This certificate contains all the details about the issuing party, the file itself and all blockchain data such as timestamp and proof of existence. x Source: Blockfyre Research | V-ID website
6. Product & Vision Validation • The recipient of the file can verify the authenticity and content of the file by entering it into the verification terminal at https://www.v-id.org. Once the file is verified, V-ID generates a report of the verification. • An OIC (Origin Information Certificate) is offered in PDF format. This certificate contains all the details about the issuing party, the file itself and all blockchain data such as timestamp and proof of existence. • A transaction with V-ID tokens takes place for each validation. Due to the data connected to these transactions in the blockchain, both the validating party and the validated file are fully transparent. x Verification Source: Blockfyre Research | V-ID whitepaper
7. V-ID’s Blockchain Integration As of now, V-ID offers 5 different blockchains to save the digital fingerprint to Ethereum About 100k nodes, ensuring continuity and safetiy in numbers LTO Network A hybrid blockchain, built for business, fast and GDPR compliant Hyperledger From IBM, a more closed blockchain with less nodes, but more control over the network DigiByte Well known blockchain with great community, high node count and highly decentralized Bitcoin Most well known blockchain, over 200k nodes x Source: Blockfyre Research | V-ID website
8. Market Situation Market and Clients x Clients • In terms of use-cases, there are virtually no limitations for V-ID at this point. Digital files are being created in every part of everyday business operations across all industries. • Because of the broadness of this use case, it wouldn’t make sense to put the potential market volume in quantitative terms. • There are several competitors in this field, but we believe, V-ID could gain a competitive advantage, due to the fact, that V-ID is already established and revenue positive with a growing number of real-world use cases and customers • Furthermore, we believe that a first mover advantage, as well as networks effects, will play a significant role. Clients Partnerships (potential customers) Customers Source: Blockfyre Research | V-ID website
9. Tokenomics - VIDT Token Information Symbol VIDT Decimals 18 Contract Address 0x445f51299ef3307dbd75036dd896565f5b4bf7a5 Type ERC20 Network Ethereum Utility Fee for validating documents on the blockchain Comments Velocity Short-term tokenomics • At the current price, there are enough tokens in the main wallet to supply customers with VIDT to make file validations. Price action that is driven by utility can only be expected once the transaction value in the V-ID economy gets closer to the market capitalization of the main wallet. This obviously depends on the success and speed of V-ID to onboard more customers to increase the transaction value. Until this critical threshold is hit, price action will primarily driven by speculation about the future size of the transaction value within the V-ID economy as well as the speed of V-ID to onboard new customers and increase and thus increase transaction value Long-term tokenomics • Once V-ID reaches a transaction value that is close to the value of its current market cap, investors can expect a quarterly price appreciation of 10% on average, since the main wallet shrinks by about 10% if all tokens are used for validations (20% are burned but 10% are bought back from the circulating supply). • At this point where a critical transaction threshold is exceeded, price appreciation of VIDT is primarily driven by utility and not speculation. The price would be tied to the negative growth of the main wallet and the growth of the transaction value of the validations. • VIDT’s current velocity of the token is a maximum of 4. This implies that a single token can only be used 4 times per year. As a consequence, a maximum of around 250million VIDT (total supply * 4) can transfer value in the V-ID economy. • For illustration, if one file validation costs $1 and V-ID customers need to make 1 billion file validations per year, the price of VIDT would need to rise to $4 (1 billion transactions * $1 / 250 million VIDT) in order to clear the market. x Source: Blockfyre Research | V-ID website
10. Tokenomics - VIDT • Customers buy V-ID token bundles from V-ID. V-ID initially reserves 25 million V-ID tokens in the Main Wallet for these transactions. • A transaction with V-ID tokens takes place for each validation. The tokens spent for validation are transferred to V-ID’s Validation Wallet. • 80% of tokens spent, will be returned from the Validation Wallet to the Main Wallet. • 80% of the tokens will flow from the Validation Wallet back into the Main Wallet. • 20% of the tokens will be burned. • V-ID will buy an amount of tokens equal to 10% of VIDT spent on validations. V-ID will buy this amount of tokens in unequal parts at random moments, preferably at several exchanges, to prevent sudden movements in the exchange rate, and to eliminate any predictability in exchange rate developments. The Utility Loop 1 2 3 1 2 3 Quarterly Actions 1 2 3 1 2 3 x Source: Blockfyre Research | V-ID website
11. Tokenomics - Wallet Analysis VIDT ownership Circulating supply • Around 63 million VIDT are distributed over ~3600 addresses • Due to the bear market, V-ID could not sell 35million token that were eventually burnt • Almost half of the tokens are controlled by V-ID • Team & Advisors are subject to a 5 year lock-up with 20% of their VIDT being released each year • The circulating supply is around ~27 million VIDT • Given that VIDT is a low cap token, the ownership of VIDT is not that concentrated with the Top 100 addresses holding 46% the circulating supply • Liquidity is rather low, since about 13% are hold on exchanges • Currently one investor holds as much VIDT as team & advisors together. Lock-up will end in December 19 x Source: Blockfyre Research | V-ID website, Etherscan
12. Exchange listings x Type CEX Trading against BTC Fees -Withdrawal 0.001 BTC -Trade (maker) 0% -Trade (taker) 0.25% Website hotbit.io HOTBIT Type CEX Trading against ETH, BTC, USD Fees -Withdrawal 0.0091 ETH -Trade (maker) 0.1% -Trade (taker) 0.1% Website latoken.com LATOKEN Type DEX Trading against ETH Fees -Withdrawal - -Trade (maker) 0.1% -Trade (taker) 0.2% Website idex.market IDEX Overview • VIDT is listed on 3 exchanges • Most popular trading against ETH • Most liquidity can be found on IDEX • Highly recommended to trade VIDT on IDEX • Bid-ask spread may vary between 3-7% Estimated Exchange Volume ~ 100 ETH (31 May) Comments Reported Trading Volume on coinmarketcap.com states that most trading volume can be found on Hotbit. Most likely this trading volume is highly inflated through wash trading. Our estimated trading volume assumes IDEX volume as correct. Hotbit trading volume is adjusted according to ratio of wallet sizes of IDEX and Hotbit on etherscan. Reported Trading Volume Source: Blockfyre Research | V-ID website, Coingecko
13. Price analysis • No significant price action has occured in the last two monts • VIDT exhibited normal fluctuations for a low-cap token • VIDT‘s daily correlation with ETH is almost 0.4 • Average daily volatility (measured over the last month) has declined from about 18% to 12%. Comments 30-day rolling daily volatility USD ETH x Source: Blockfyre Research | V-ID website, Coingecko
14. Roadmap May June/ July August/ Sept. Q3 Q4 2020 • API V2 'compatibility 100%' deployed • Launch of the usage dashboard, tracking live data concerning the usage of VIDT by V-ID's clients. • Buy back of 2M VIDT from an equity investor. 1M Token burn. • Launch of Webapp V3 • Start of the monthly buybacks and burns (20% of all VIDT spent on validations will be burnt) • API V3, will be able to both validate and verify files in real-time. • VIDT listing on top exchange • Rollout V-ID powered KYC process • V-ID will offer a Real- time GDPR compliant API toolset x • B2C closed beta launch • Start of the Learn and earn program • Rollout IoE data flow secured with V-ID • Rollout of V-ID powered B2C applications • Launch of security token VIDS. Source: Blockfyre Research | V-ID website
15. Team Comments • V-ID’s core team consists of 8 members. • They also have 6 Advisors listed on their Website. • The founders have a long history of working together on previous projects. Which is a big plus for us, as it shows, that they are capable of building successful businesses in this constellation. • Considering that V-ID is operating in a highly competitive market, we expected to see a bigger focus on marketing and sales. However, it seems that the team is well connected and therefore was able to attract their first customers through these connections. • The advisory board looks solid as well, it complements the team's skills and know- how in areas such as legal and blockchain development. Wico van Helden Pim Voets • Co-founder & Lead Concept Design • Over 15 years experience in product development and UX design (Wididi, Tvndra Games) Marnix van den Berg • Co-founder & CEO • Nearly 30 years of management experience (Wididi and Seagull Software • Co-founder & Lead Developer • Over 15 years experience in project coordination, product development, interaction design and user experience (Wididi, Tvndra Games) x Ceciel van Helden • Co-founder & Lead Programming • Over 15 years experience in coding and platform design (Wididi, Tvndra Games) Source: Blockfyre Research | V-ID website,
16. V-ID Rating Product 14/15 Community 9/12 Traction 8/9 Trading 10/12 Network 7/15 Whitepaper Competition Speed Value Roadmap Website Communication Advisors Influencers Development Status Number of txs Partnerships Profit (1 month) Profit (1 year) Exchanges Token distribution Google Trends News Mentions Twitter Follower Telegram Follower Reddit Follower Total score: 48 / 63 = very good investment opportunity long-term x
17. Conclusion Unique selling point High upside potential Long-term investment Risk & Concerns V-ID provides a holistic approach to document verification and does not focus on single sector / or specific document type. Furthermore they provide ease of use of for individuals or small businesses with an intuitive user interface. Larger companies can use the services efficiently via an API. Document verification is done in about 5 seconds, saving individuals and business lots of time and nerves. Furthermore, V-ID is properly regulated business in one of the most advanced countries in Europe. V-ID has one of the most transparent and advanced tokenomics we have seen in crypto space so far. Velocity of the token can only reach a maximum of 4 due to the quarterly releases of the spent VIDTs. Furthermore, the quarterly buybacks provide a minimum of liquidity on exchanges and the quarterly token burns keep make VIDT a deflationary token model, which is very investor friendly. Tokenomics is structured in such a away that the appreciation of VIDT is directly tied to the long-term economic success of V-ID, which is a rare observation in crypto. VIDT is a medium to long-term investment. Short-term price action can only occur due to speculators that try to get a return on the potential longer-term value of the token. Once V-ID hits a certain number of transactions that deplete the current number of VIDT in the main wallet (or get close to depleting the main wallet each quarter) we can expect price action that grows by at least 10% per quarter due to VIDT‘s tokenomics. On top of that transaction growth (revenue growth) by V-ID would directly translate into VIDT‘s value. So far primarily Dutch companies have embraced V-IDs services. The question is whether V-ID can diversify its customer base across Europe and ultimately be accepted as a standard for document verification and validation. It is possible that US or Asian teams develop their own solutions. We expect that more significant price action on VIDT will occur once they onboard customers that demand 10x more validations than the current customer base. Given the current tokenomics we would say that holding VIDT rather rewards long-term holders (or even holders that join at a later point in time). Short-term holders can not expect 1:1 price appreciation that is driven by organic growth (demand for utility) but rather price appreciation that is driven by speculators that want to make a play on the potential utility in the medium-term. x
18. Blockfyre Jonathan Habicht Simon Dedic Alexander Schätz Disclaimer !We are currently holding VIDT "We have been in contact with the team # If you like this review, dont forget to share it! Follow Blockfyre x