AirToken ICO Review – AIR Investment Analysis

https://www.airtoken.com

ICO Details

Symbol – AIR

WhitepaperLink

When – Tuesday, September 19th, 2017 at 10 AM EST

How to Participate – ETH will be accepted in the sale.

Soft Cap – 15 Million USD

Hard Cap – 21 Million USD

Total Max Market Cap At ICO – 42 Million USD

Exchange Rate: Variable:

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Total Tokens in Circulation At ICO – 2.1 Billion


Overview

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AIR Token is a blockchain project aimed at the unbanked and underprivileged populations of the world, using their platform to empower users with free Internet data and in time, digital retail and other services.

The way the AIR token works is that you use the Air Browser on your mobile device and view advertisements from publishers who have also bought into the system. Similar to rewards web sites, viewing ads, watching videos, and filling out questionnaires will give AIR as rewards (as opposed to money) which can then be spent by the user on things like Internet Data.

Internet Data is a very expensive commodity of sorts in developing countries, and, while most people are starting to adopt cellular devices, they still lack such things as Internet. This is due to the high relative price of Internet/Data plans when compared to even basic things such as food and healthcare. With the Air software, users in these developing countries will be able to connect themselves to the wider world of the Internet, thereby enabling upwards mobility and allowing publishers and carriers to tap into an otherwise unreachable dark market.

AirFox’s solution harnesses the decentralized power of the Ethereum blockchain and advertising to give users “AirTokens”, a new crypto-currency redeemable for mobile data, and eventually physical and digital goods. Users can then establish credit history through their opted-in device data and advertising behavior, enabling AirFox to fund micro-loans via the AirTokens to any person with a smart phone.

As a secondary usecase for the Air token, they intend to roll out the purchase of digital goods and enabling microloans to people on the network. Air will aggregate user data from their cell phone information to construct a user profile – whereby they can then generate a credit score of sorts that can be used to determine things as loan rates, amounts, and user trust and reliability. Similar projects that create digital credit scores serve as good examples that currently exist in regions such as Southeast Asia and other underbanked countries. Examples include the (more closely related) PawnHero, Tala, and Lenddo.


Team

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Victor Santos

Victor Santos is an entrepreneur who focuses primarily in technology and digital fields. He has done work for companies such as Google, where he served as a Product Marketing Manager and has co-founded an MVNO with Ciao Telecom.

 

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Sara Choi

Another Ex-Google employee, Sara Choi has an illustrious history in the technology sector and has plenty of experience to offer the Air team as it’s co-founder. Despite her Google experience, Sara has worked as a Legal Assistant for the United Nations as well as an Operations Associate for YouTube. She also worked for Ciao Telecom along with Victor Santos.

 

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Christine To

Christine To will serve as the Director of Business Operations for the AirFox team, and she is likely one of the strongest members on the board. Her work experience includes firms such as Microsoft, Ericsson, Gold Hill Capital, and Coldwell Banker.

 


Positives

 

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AirFox has an extremely balanced and professional team guiding the projects – one of the best that we’ve seen in the blockchain space yet. As the crypto space grows, we will see more and more heavy hitters in their fields transitioning over to blockchain, and standards will raise over time on what is qualified as a good team. AirFox is well ahead of the curve in this respect, with a superstar team of collaborators who are sure to have the knowledge, experience, and connections to properly deliver on the promise of the project.

As a second bonus, the project space that AirFox is looking to enter is a rather niche one, and there are not that many blockchains or cryptos that have yet looked towards areas such as Southeast Asia and Africa for their userbase. This is exactly where AirFox is starting however, taking a bottom up approach and first focusing on exactly who their concept helps and what kind of value they can deliver to the users of their product. Naturally, you can expect heavy usage from the target audience of AirFox based on pre-existing app/technology usage today.

The ICO itself is relatively modest, with the AirFox team looking to raise around 20 million USD at cap. While not the most cheap project we have seen thus far, it is a relatively low amount that they are looking to raise, and that means more investor confidence in the product as well as likely higher performing returns. Expect this one to sell out very quickly.


Negatives

 

Taking surveys and watching ads isn’t necessarily the most hypeable idea, or the most sellable one. This is a point I use a lot when discussing ICO’s and projects, but it is a very important one – it doesn’t matter how good your project is, if you can’t sell it, it’s simply not going to be worth much. Examples of these kind of projects include coins such as Monero (which technologically should be worth much more) which seem to be hampered by the lack of “crowd hype” of their project.

A second negative that occurs to me is the advantage for advertisers- while it makes perfect sense for a carrier to sell bulk data to a company (in this case AirFox would purchase the data as an intermediary and then give it to Air users) as they would normally not be able to sell those extra services, it’s a much harder ask for advertisers.

The main point of any business to buy in to advertising is to get a return on their investment, increase brand awareness, or otherwise release information about their product or make statements. While the last two of these are certainly feasible on the Air platform (even for things such as data collection this can be useful), it’s hard to imagine any advertiser expecting a serious return on their investment from a population that “bought” their data with free methods.

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Conclusion

AirFox is in an interesting spot – they have a great team, a decent idea, and a fair ICO; however a few flaws occur to me in this project that make me question a buy. They don’t have a clear incentive for advertisers, and simply state “higher ROI” for them despite being vague on specifics. They also, to my knowledge, do not have a functioning MVP, which also docks away from some of the lustre of this project. Finally, the marketing will have to be very aggressive, and it’s difficult to bank on a team doing the proper marketing for their project as many often ignore this aspect entirely. For these reasons, I believe Air will be a pass on the ICO, however don’t count it out entirely – it may prove to be a good buy later on in exchanges should they resolve some of these concerns.

 

Investment Grade: 70%

One thought on “AirToken ICO Review – AIR Investment Analysis

  1. Ciao Telecom, Santos’s former company, defrauded thousands of investors and representatives until it became a penny stock. You can Google “Ciao Colorado Rapids” for evidence of its shady business practices.

    Frauds follow frauds. My bet is that the technology is vaporware and that this junior team is using this experiment as a project to get into b-school. Sara Choi has already left the team to get her MBA.

    Strong ‘no’ against this stock.

    Liked by 1 person

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