Storm Token ICO Review – STORM Investment Analysis

https://stormtoken.com

ICO Details

Symbol – STORM

WhitepaperLink

When – October 20th, 2017

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

Soft Cap – None

Hard Cap – 206’950 ETH

Total Max Market Cap At ICO – ~122 Million USD (~80 Million Circulating)

Exchange Rate: 1 ETH = 26’950 STORM (with a 15% bonus for the first 945 Million Tokens Sold)

Total Tokens in Circulation At ICO – 10 Billion STORM (750 Million Circulating)


Overview

 

STORM token is the future currency that will serve as the backbone of the Storm Play project. StormX is the rebranding of pre-existing company BitMaker – BitMaker is a mobile app company who developed and maintain the BitMaker app. The BitMaker app is primarily used as a Bitcoin faucet of sorts, whereby users download the app and watch videos, ads, or other forms of content and receive free Bitcoin and Ether in return. BitMaker has over 1 million downloads and 50’000 reviews on the Google Play Store, with a proven track record of user adoption and success.

StormX will be the apps transition into the blockchain space, along with a massive scope increase of their usecase and adding many more features. To best describe what the Storm Play app (and associated Storm Markets) will do, is to think of them as Freelancer or Upwork on the blockchain. Users can create “Storm Tasks” to be handled through Smart Contracts and Storm Players (other users) can fulfill those tasks and be paid in STORM for their rewards.

The interesting thing here is that STORM will be an ERC-20 token, and thus, be primarily a Smart Contract based software. This will create more permanency in accepted tasks, however their whitepaper does not exactly define how these Smart Contracts will be enforced.

The introduction of blockchain to the Storm Play app marks the first step in an evolution
toward what StormX envisions as an entire decentralized marketplace for tasks – the “Storm Market.” The Storm Market will operate similar to the Apple App Store or the Google Play Store in that it will serve as a platform where Storm Makers and Storm Players can create and accept tasks using smart contracts powered by STORM tokens.

StormX aims to make the Storm Market a platform that operates via a combination of StormX APIs and other proprietary software tools and applications, along with Ethereum-based smart contracts for various types of tasks which will execute using STORM tokens.

People worldwide can benefit by adopting the Storm Market model as a mechanism for commerce, as it makes it easy for Storm Makers and Storm Players to connect and interactwith significantly reduced transaction costs imposed by third parties


Team

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Bill Shihara

The founder and CEO of Bittrex, the leading cryptocurrency exchange. Bill has been one of the earliest advisors and investors at CakeCodes. Bill has extensive knowledge in cybersecurity from working at companies like Amazon, Blackberry, and Microsoft..

rui.jpg

Rui Maximo

Rui has over 25+ years of experience working in software development and engineering where he has commercialized over 20 products. Rui has written several books and whitepapers about programming and server administration. Background in cryptography, mathematics and security.
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Arry Yu

With over 20 years of experience working at companies such as Google, Microsoft, KPMG, and Expedia, Arry has demonstrated a unique ability in growing and scaling businesses, growing one firm from 3 to 85 employees while simultaneously increasing annual revenue from $4 million to $12 million.

Positives

As BitMaker is a pre-existing company, this means the STORM tokens will have an already established userbase for their assets which will drive some perceived value. Pre-established markets are becoming a bigger commonality in blockchain projects and ICO’s as of late, and STORM is the next in line of these to tick that box.

The concept for Storm Markets is both an interesting one and a necessary one, in a niche that has yet to be filled by a project on the blockchain space. This could be a very successful sale and token if the market picks up on the advantages of having a Smart Contract enforced service. Storm Markets replaces services like Freelancer, and with the removal of overhead costs, means that the overall price clients will pay (and freelancers will receive) should overall be better for each party involved.

Finally, the team for STORM token is an all-star roster, with such names as Bill Shihara on the advisory board this project is bound to contain a few surprises for investors. As an example of one of these is that STORM could be one of the new tokens added to Bittrex – something that has not happened in a long time, thus causing a mass buying spree for these rare tokens and a great return on investment for ICO purchasers.

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Negatives

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STORM is a decent project, but the terms of its token sale are mediocre at best. As they have received over seven times the amount of sign ups for their sale than they expected, it’s very likely their token sale will hit the hard cap. That being said, the total market cap of all coins including company shares if hard cap is hit will be around 122 million dollars – this is one of the larger projects we’ve seen in recent ICO’s, and it makes this author question whether the novelty of their idea is truly worth this large valuation.

Secondly, are the problems with their presale – some larger investors managed to purchase 15% of the supply as part of a private investment round. While the bonus tokens (around 7% of supply) will be locked before being transferable, this lock does not exist on the initial 15% of supply bought during the presale round. It’s certainly possible that big investors sell their initial investment (15%) on the markets once the ICO releases for ICO price while being able to get those extra 7% of tokens at 0 additional risk 90 days later. This means that crowdsale purchasers will face significant selling pressure (similar to projects such as SALT) and will inhibit the chance for the coin to appreciate in value.

The last negative are the vagueness of the important elements of their project that aren’t mentioned in their whitepaper. It’s difficult for blockchain alone to be able to enforce aspects of Smart Contracts that are outside of the control of the blockchain. For example, let’s say I create a Task for someone to create a logo for me –  I receive the logo, and then I simply choose to run away with the money + logo instead of actually paying for the work provided. There are ways, such as a double deposit escrow system, where both parties have to agree that the Task was complete, however even that has it’s own issues. Continuing with the previous example, I can simply choose not to verify the logo was received and make it so the other party doesn’t get any funds.


Conclusion

There are a lot of unanswered questions about STORM, doubts about how they will actually manage to enforce a lot of their rules, and dubious concerns over the way they have handled their token sale thus far as well as crowdsale targets. For these reasons, I expect a large sell off in the market when STORM is released, which makes this a non-buy for flippers. For long term holders, it simply makes more sense to wait on this kind of investment until more questions are answered about the viability of their product, and gain more knowledge with which to make a decision. STORM is ultimately then, a pass on their ICO.

Investment Grade: 75%

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