BMJ Score: 3.6
Market
Transparency
Team
Token
Adoption
Quick Summary
69 crypto investors read thisCommentary
Loyalty programs face several problems and Loycha wants to solve them by creating a platform where loyalty points never expire, customers have high loyalty returns, point redemption can be exchanged for unlimited products and services, and there are unlimited point transfers to any wallet. Holders will have the opportunity to receive coins any time they spend money with partners, invite friends to join the platform, become a brand ambassador, and/or trade coins in exchanges. The real revolution for this platform is that Loycha will protect customer data. Only customers will have access to it, and they can choose who can see their data. The loyalty ecommerce market is saturated, and we have seen many other players in this space. What makes Loycha different? For starters, it has a solid team with notable advisors.The team themselves have incorporated integrity into their mission because they put charity at the heart of their culture, they do not charge fees for transfers to charities and donations, and they plan to donate 5% of net profit annually. The team is also developing its platform on the Stellar platform and has recently launched its partnership with the Stellar foundation. There is also a working MVP on the platform where users can leverage tokens. Our concern is around the lack of users and corporations on the platform. Loyalty programs can definitely use enhancement, but they require a large network of partnerships and customers to generate demand. Loycha is unique in that it has a working platform but without significant marketing or users, it is hard for us to gage how successful the project will become.
Investment Information:
- How to invest: The first step in obtaining LOY tokens is registering for the white list at the following link.
- Discount: Loycha has prepared two kinds of bonuses: Quantity Bonus + Time Bonus. The two can bring you up to total 40% bonus, which will only be available to early adopters. A full breakdown of the bonus structure can be found at the following link.
- Eligibility: Loycha has no mention of geographical restrictions.
- Token Price: 1 LOY = $0.01 USD
- Jurisdiction: Albania
- Accepted forms of currency: XLM, BTC, ETH, BCH, USD, EUR
- Minimum purchase amount: $50 USD
Market: 3.5
- Problem addressed/solved: According to Loycha, modern-day loyalty systems provide everything but loyalty. They cannot achieve personalization and targeted marketing, increase rewards, process them in real time, enable great customer experience, increase the number of services and products where customers can spend their coins, or increase the number of partners.
- Target customers/customer/ segments/verticals: Loycha is looking to unite customers and the companies from whom they most frequently purchase goods or services. The platform is really designed for companies that want to advertise their products without the middlemen (Facebook, Google, or others) charging for those advertisements. Instead, customers will be able to purchase goods from companies with LOY, and the companies simply pay a fee for the transaction versus paying beforehand for the advertisement alone.
- Value creation: The loyalty token and rewards application will reduce customer acquisition and marketing costs for partners. They’ll also enjoy near real-time process with a blockchain-secure environment for improving front-end capabilities for customer experience. At the end of the day, Loycha wants to improve customer shopping experiences and give businesses the opportunity to retain loyal customers via the LOY token.
- Competition: Many blockchain startups want to develop new forms of advertising that prove less expensive and more effective. Loycha differs in that it provides an advertising AND loyalty-based platform that aims to increase customer loyalty. The hard part will be separating itself from other “loyalty token” projects that also want to reward users for their shopping, participation, contributions, etc.
- Market size/potential: The largest companies in the world tend to have their own loyalty programs that customers can join. Therefore, Loycha is looking at mostly middle to lower tier companies who want loyalty programs but have neither the time nor the resources to implement that protocol.
- Regulatory risks: Loyalty programs must abide by GDPR and other data protection regulations. Even though Loycha is ensuring the privacy of customer data, it must do its due diligence and ensure it follows all international data protection regulations.
Transparency: 5
- Investor value: The value for LOY will be determined by the traction it gets (i.e number of users and partners). Loycha has many different ways to incentivize the use of LOY. Whether that’s with promotions, airdrops, or another form of participation, the LOY token has its place on the platform and will be the main crypto within that platform.
- Disclosures: Loycha’s best attribute is its level of transparency with the project. Not only is there a functioning MVP, but it also functions on the blockchain with the token. It could be the first time BMJ has seen a project in the pre-ICO stage with this high level of an MVP. The website and whitepaper go into incredible detail on the offerings of Loycha and how the ecosystem actually functions. The only knock is the lack of information on the LOY token. There’s no specific page for the token itself, so the totality of its features are relatively unknown.
- Token distribution: Distributed to community 70%, reserved funding 10%, founders and team 10% (tokens will be locked for 12 months), advisors 5% (tokens will be locked for 6 months) and bounty program 5%.
- Use of proceeds: 50% Product Development, 25% Marketing, Sales, Merchant Acquisition, 10% Integration and Security, 10% Partnerships Expenses, and 5% Legal and others.
- Caps: Soft cap: $250,000 USD; Hard cap: $1.5 million USD
Team: 4
- Track record: Loycha has a group of early- to mid-aged professionals that, for the most part, have engineering or developer backgrounds. Ozal Mehment has a degree in Computer Science and has mostly worked on special projects for airlines to increase customer loyalty and improve CRM. The CTO, Resat Dilbaz, is a developer in every sense of the word. He’s worked on mobile apps, web apps, and games for all platforms. It’s rather evident that the team is missing a crucial component for every startup… a front man. Loycha doesn’t have that leader who’s been an entrepreneur in the past or has significant business experience. The majority of the Loycha team members are back-office tech guys, which could hurt the project in a business context if not enough people actually know how to get a startup off the ground.
- Integrity: There’s no doubt that the Loycha team has talented individuals and a solid group of advisors, but the major concern here is whether it has the right combination of workers to make the project successful. Some of the members have no mention of Loycha on their LinkedIn profiles while others have invalid links attached to their bio. Having said that, Loycha represents itself well with its social media channels, giving people plenty of ways to reach out and inquire further about the project.
- Ozal Mehmet, CEO & Co-Founder (LinkedIn)
- Resat Dilbaz, CTO and Co-Founder (LinkedIn)
- Can Mehmet, Co-Founder & Javascript Developer (LinkedIn)
- Ali Agaj, Chief Financial Officer (LinkedIn)
- Hassan Foreman, Chief Operations Officer
Team Members
Token Mechanics: 3.5
- MVP: Loycha has launched its MVP and it’s certainly one of the more impressive ones when considering how early it is in the project’s life. The MVP is available on the Apple and Google Play stores, and you can even watch a demonstration video on YouTube that walks through the functionalities of the app. You can create a user account on the blockchain, spend coins, earn coins, and can confirm transactions in the Stellar network with the MVP.
- Token use case: Although Loycha does not break down its specific token use cases, it appears that the LOY token will primarily function as a reward for user actions on the platform, and users will then use their LOY for purchases with partnered companies. Loycha wants to create a real community, so the project has a variety of ways that users can win LOY, including participation in marketing campaigns, inviting friends, and spending LOY at partner locations.
- Value-added: Loycha revolves around the community it intends to build, and the community will only grow through real incentivization. Locyha wants its token to be at the center of the community and readily accessible via different methods that are broken down at the following link. Partners offer LOY as incentive and in return will accept LOY as a form of payment for their goods and services. If Loycha catches on and acquires thousands of users/partners, the LOY will have more value for those who are on the platform.
- Decentralization: Loycha is creating a decentralized blockchain application of loyalty where partnerships will be automatically integrated with each other through Loycha coin and won’t need paperwork to increase the number of partnerships.
- Token Supply: Max token supply of 1 billion LOY.
User Adoption: 1.5
- Technical difficulty/investment expertise needed: Unless you can speak Russian, the Loycha explanatory videos won’t help too much in explaining the project’s goal and how the team plans to reach it. Loycha’s “About” page has a full synopsis on the problems in the loyalty market and how Loycha plans to solve those problems. It’s a pretty straightforward project that simply wants to reinvent loyalty programs to produce better outcomes for both the partner companies and the end users.
- Halo effect: Loycha does not mention any partnerships on its whitepaper or web site. This might be confidential information, as “partnerships” may also refer to the partner companies that will join the platform. Loycha takes a stab at social responsibility by not charging charitable partners transaction fees, and the team plans to donate 5% to charity every year (from revenue).
- Buzz: Loycha has less than 500 followers combined on its Twitter and Facebook accounts with low engagement across the board. The Instagram actually has the best engagement conversion rate, with just over 100 followers and an average of 28-30 likes per post. It’s clear Loycha is making an effort with its social media and marketing efforts as it has started plenty of accounts that includes Facebook, Instagram, YouTube, LinkedIn, Galactic Talk, Medium, and Twitter.
