BMJ Score: 3.7
Quick Summary40 Investors read this
CommentaryCryptocurrency investors could benefit from real-time market intelligence. The market is ready for advancements to help make cryptocurrency more accessible to the layman, and WatermelonBlock promises to do just that! We like the niche focus that WatermelonBlock has on solving a very real problem, and are impressed by their all-star team, use of IBM’s Watson technology, and press buzz. On the flip side, though, WatermelonBlock does not yet have an MVP, and their roadmap is lackluster. We are excited to see what WatermelonBlock can bring to the table because there is potential to revolutionize the crypto market, but until we see a working platform, we have some reservations.
- How to invest: In order to participate, you must pre-register for the ICO and join the waitlist here.
- Discount: 25% bonus throughout the pre-sale.
- Eligibility: Residents of the U.S., China, Japan, and the Republic of Korea are excluded from the sale.
- Token Price: Token Sale - 11.6¢ per WMB; Minimum contribution of 5 ETH.
- Jurisdiction: The company is officially registered in Singapore under the name WATERMELONBLOCK PTE LTD and operates out of Melbourne, Australia.
- Problem addressed/solved: Cryptocurrency investing can be confusing and time-consuming. It also poses specific resource challenges for investors, such as comparing sources and analyzing different information flows, dealing with rapidly increasing volumes of data, factoring in the levels of influence of different information sources, managing emotions to avoid hasty decisions or panic reactions that cause investors to lose money. WatermelonBlock harnesses the power of AI to scan social and global media platforms to rank the market sentiments of crypto, keeping investors in the know regarding news and influencers in the field.
- Target customers/customer/ segments/verticals: WatermelonBlock will be a tool for investors and businesses. Investors will use WatermelonBlock as their top resource for real-time market data and analysis, improving their decision-making. Using sentiment analysis, WatermelonAnalytics will allow businesses to search, analyze and compare individual phrases, hashtags or direct URLs to harness industry-specific insights. Businesses can create their own customized index, allowing them to track not only the sentiment of any given brand, but the sentiment of certain phrases, products, and releases.
- Value creation: In short, WatermelonBlock enables investors to see the thoughts and opinions of industry experts in real-time at the press of a button, providing actionable insights and detailed contextual analysis for decisions regarding trading or holding crypto. WatermelonBlock gives investors the power of big data and AI in order to provide accurate indications of how the market thinks and feels 24/7. WatermelonBlock will also utilize sentiment analysis, incorporating the external influences that move the needle of the market into their analysis.
- Competition: The competition for a portion of the crypto investor market is fierce. Many projects such as Cindicator, Invacio, and Sentigraph offer advisory, analysis, and even automatic trading platforms in an attempt to get a hold of a brand new market segment. The use of AI and big data is also extremely common in the blockchain industry. WatermelonBlock will hit competition that offers more services than it does, but it hopes to separate itself based on its unique sentiment analysis.
- Market size/potential: According to a 2017 survey conducted by Blockchain Capital, 30% of millennials would rather invest $1,000 in Bitcoin than $1,000 in government bonds or stocks. It’s clear that the acceptance of cryptocurrencies is taking over the younger generation, but the market remains small as it hasn’t yet hit the mainstream. Having said that, the B2B market stands much larger at the moment.
- Regulatory risks: The cryptomarket on a whole is subject to much regulation; the success of this project will be contingent upon whether individuals are permitted to buy and trade crypto by various government constraints.
- Investor value: The value of the token will increase as the demand for access to the WatermelonBlock platform does the same. WatermelonBlock has also taken a unique initiative to increase the value of the token. WatermelonBlock is adding a PoB (Proof of Burn) protocol where tokens are destroyed by sending them to a wallet address that is not accessible, and therefore not spendable. This process is verifiable on the blockchain and adds value by constantly reducing circulating supply. WatermelonBlock will burn tokens up to 50% of the total supply. When users pay fees in the native WatermelonBlock Token (WMB), 50% of all fee payments will be sent to a wallet address that is neither accessible nor spendable, and thus will be destroyed.
- Disclosures: The WMB project has a decent white paper (50 pages) and below average roadmap. Other than the white paper and roadmap, they do not provide any other valuable sources of information. Once their MVP is released and available on the app store, it’ll give investors a better idea of what the finished project resemble. As one of the only projects leveraging the Watson AI platform, WMB promises to democratize the power of social media analytics. The project does have a functioning beta, but it is built on the NEM platform, which could demonstrate some risk.
- Token distribution: 60% token sale, 20% team members, board members, and developers, 10% emergency token reserve, 10% seed investors.
- Use of proceeds: WatermelonBlock does NOT provide exact percentages as to how the funds raised from the ICO will be allocated. Instead, they list the activities that will be financed by the ICO funds in order from most to least amount of funding: development of the app suite and bot, financial regulatory license compliance, white label and B2B marketing, ongoing mass marketing, maintenance and hardware infrastructure, and building a data center.
- Caps: Soft cap: $8.5 M USD; Hard cap: $19M USD.
- Track record: The CEO, Elliot Rothfield, is a passionate entrepreneur whose focus revolves around UX and how WatermelonBlock will behave in the hands of its users. He leads an impressive team of individuals that have solid professional experience in their respective fields. Another highlight of the group is Bill Angelidis, the founder and director of Asta, Australia’s largest and most well-renowned blockchain development agency. WatermelonBlock has 20-30 people on the team including COO, CTO, blockchain dev specialist, PR, head of finance, NEM consultants, IBM Watson specialists, marketing coordinators, crypto advisors, social media managers, and web developers. They have covered their bases for potential success.
- Integrity: Registered business in Singapore and operating in Australia. A community-based project with a big focus on transparency, they are open to a visit of their HQ. 8 out of 10 ICOs do not allow people to visit the HQ and meet the team, so this is a huge plus.
- Elliot Rothfield, Director/ UX Designer (LinkedIn)
- Daniel Shani, CTO (LinkedIn)
- Sonia Miles-Khan, Governance/ COO (LinkedIn)
- Boris Peter Manitius (LinkedIn)
- • Bill Angelidis, Blockchain Development Specialist (LinkedIn)
- MVP: They have a working application but it’s being beta tested at the moment. WatermelonBlock will publish its app for cryptocurrency (WMB token) market sentiment analysis in August 2018. Its unique features include Watermelon Index, MelonScore, Personalized Portfolio, and WatermelonAlarm, designed to help investors make more accurate and better-informed trading decisions.
- Token use case: The WatermelonBlock Token is used to access premium features within the application. Premium features require a subscription to be paid in WatermelonBlock Tokens (WMB). The WatermelonBlock Token (WMB) has three different primary uses: to be traded via the automated WatermelonBot, to pay for WatermelonBlock premium features, subscriptions and associated products such as WatermelonAnalytics, and for use within the WatermelonBlock white label cryptocurrency payment system and business to business subscriptions.
- Value-added: The WMB token exists to support a variety of functions on the WatermelonBlock platform. The token is required to access all services offered by WatermelonBlock. It allows WatermelonBlock to seamlessly integrate all their apps, platforms, and services.
- Decentralization: WatermelonBlock does NOT indicate that they’re a decentralized platform.
- Token Supply: 400 million total token supply.
- Technical difficulty/investment expertise needed: The WatermelonBlock project requires little to no investment expertise. The project, in a nutshell, gives investors or businesses enhanced access to organized big data and sentiment using IBM’s Watson.
- Halo effect: WatermelonBlock does not list any partners; however, their association with and use of IBM’s Watson should spark interest from the general crypto community. IBM made waves when they partnered with Stellar Lumens as their primary cryptocurrency, so the name “IBM” alone brings added value to the WatermelonBlock project.
- Buzz: WatermelonBlock has mediocre buzz across the web. Their Facebook page has a solid 1,100 followers, but their Twitter is lacking with a mere 150 followers. Having said that, their YouTube has a more impressive 454 subscribers and a great marketing video.