The ICO Bubble Solution

Estimated time to read: 6 minutes

Introduction

Don’t be fooled by its name: Simple Token is attempting something ambitious.

Still hot off their Initial Coin Offering, is looking to become the ‘Wordpress’ of blockchain technology. Responding to the overwhelming costs and labour now associated with launching an ICO (and the difficulty in distinguishing yourself in an over-saturated market), Simple Token aims to connect companies that might otherwise pass on blockchain technology with this exploding digital space. And Simple Token have the authority to tackle this. With an ICO of their own that exceeded their target by 189%, employed 30 full-time in-house staff, and boasted an active community of 7,500 Telegram users, this is a team that breathes ICO efficiency.

Just as Wordpress now operates the back-end of close to 20% of all websites, Simple Token could eventually be a household name in setting up ICO’s, incentive schemes, and blockchain foundations.

Too many of the recent batch (of ICOs) seem more motivated by greed and pursuit of a quick buck, rather than a bonafide cryptocurrency purpose and utility.” - Jason Goldberg

Use Cases

Simple Token is wide-reaching in how it can be applied to real world problems, and can be further divided into how businesses versus consumers may use Simple Token.

For Businesses

Simple Token’s goals are rather straightforward. Firstly, they are looking to reduce congestion on the Ethereum blockchain — a problem only worsening as more and more applications are built atop it. Secondly, and more prominently, Simple Token are enabling consumer applications to build thriving token economies without the financial, regulatory, and technological burden of creating and maintaining their own in-house cryptocurrency. These are addressed by:

  1. Developing a custom sidechain chain technology, being the OpenST Protocol. This is an attractive alternative to the direct Ethereum blockchain, which further benefits the entire crypto community by directing businesses away from the main Ethereum blockchain and improving network flow.

  2. Enabling consumer applications to build their own community branded tokens without dedicating the time and resources involved in creating a custom token. Essentially, companies can focus on the software side of things — which is hopefully what they’re good at — while the ‘ICO process’ of launching branded tokens, setting up incentive schemes exclusive to the supporting community, and meeting regulatory guidelines can now be facilitated by Simple Token and the OpenST Protocol.

For Consumers

The design of Simple Token encourages consumers to transact with the token in a way not dissimilar to Frequent Flyer points. For example, if Airbnb decided to utilise the Simple Token blockchain technology, there would be an option to transact in fiat as well as an Airbnb token — although the token would be a more attractive option. Airbnb power users (frequent users) would be incentivised to contribute to the community by frequently leaving reviews, maintaining a high rating, contributing to forum discussion. These users would then be rewarded with additional tokens, which could be put to use on Airbnb services.

Overall, Simple Token honed in on a grating market flaw and have a solution that businesses and users alike would be reluctant to ignore.

Our rating: ★★★★★

Technology

Fundamentally, Simple Token is EIP20 protocol that any consumer company can use to launch their own token economies in a safe and scalable environment. Simultaneously, Simple Token is a software suite which enables developers of consumer companies to engage with the entire blockchain funnel (i.e. launching, managing tokens) in a way that is as intuitive as platforms such as Twilio or Stripe.

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Supplied by The OpenST Protocol & Platform Utility Side Paper

It all works like this:

  1. The OpenST protocol connects the public Ethereum blockchain to Simple Token sidechains, a subset of the main Simple Token blockchain.
  2. A staking contract is developed on the Ethereum mainnet and corresponds with a minting contract on the Simple Token sidechain whereby branded tokens can be transferred back and forth.
  3. The OpenST protocol uses a two phase implementation which proves the intent of the minted token and establishes the token utility.
  4. Once the coin minimum utility is established, the OpenST protocol issues a series of REST APIs (a set of functions that that allow for the creation of applications), enabling developers to abstract the complexity of managing their newly minted tokens.

The OpenST REST API allows developers to engage with their minted token
however they wish. For instance they can engage with:

  • Smart contract method invocation
  • Private key management
  • Settlement finality

Or on the consumer level, provide:

  • Consumer transaction history
  • Analytics
  • Rewards and incentives
  • Pay-per-go
  • Price stabilisation mechanisms

Overall, the technology behind Simple Token is already impressive and should become even more robust in time.

Our rating: ★★★★☆

Team

While Simple Token is still a ‘young’ project, the founding team already have a lucrative working history and number of successful projects under their belts. Points that should give small-time investors confidence include:

  1. Founders Jason Goldberg (CEO) and Nishith Shah (CTO) have worked together for over 15 years on a variety of projects. These two serial entrepreneurs built and later sold Jobster in 2004, Social Median in 2008, Fab.com — which raised $300 million — in 2011, and Hem in 2016.
  2. Simple Token spawned out of another company started in 2016, being Pepo, which is still active today, showing thatprojects they initiate and then move on from continue to be supported.
  3. The development of Simple Token was and still is transparently and articulately recorded in developer blog posts, where the efforts gone into this project to ensure its success and the wider crypto community are discussed.
  4. The Simple Token ICO was perhaps the most professional ICO executed to date. In preparation for the ICO, Jason and Nishith hired more than 30 full time in-house resources to work on Simple Token, assisted by 40+ extended team members, two major law firms, a big four accounting firm, three economists and a dozen part-time community managers.

The short of it is: these guys play to win, and they’ll spare no expense to get there.

Our rating: ★★★★☆

Key Partnerships

Simple Token has so far announced 9 companies that have been building on top of their OpenST protocol, the first of which will go live early in 2018. Since their pre-ICO they have signed:

  • 704 Games
  • Tesloop
  • Pepo
  • Gushcloud
  • Digital Knights
  • Interview Bit
  • Look
  • Floship and;
  • Xain

As the ICO bubble continues to inflate, we will likey see a growing number of regulatory challenges around coin offerings, making it a hotspot for class actions. While Simple Token are still early into their journey, these nine customers validate their initial value proposition and the overall market opportunity.

Our rating: ★★★☆☆

Social

The marketing behind Simple Token is clean and professional; you won’t find ‘HODL’ memes and any mention of Market Cap and price, thankfully.

While a brief scroll through their Twitter feed might leave an inquisitive speculator wanting for more, at this stage much of Simple Token’s efforts are still directed inward to their supportive community. At least during their ICO, twelve part-time community managers were overseeing social media and the active Telegram, and even now there spokespeople are readily — almost shamefully — available on the local subreddit, despite only just over 1,000 people having subscribed at the time of writing.

Really, the only mark against Simple Token here may be community sentiment towards their branding. Currently, the third highest thread on their subreddit is a discussion centred around how uninspired the logo is and that it’s scarcely distinguishable from a vacant Facebook profile picture. The official response as of yet is that current branding is purposeful and here to stay.

At the very least, the marketing behind Simple Token does no disservice to the brand, a quality which seems to be becoming rarer and rarer.

Our rating: ★★★★☆

Conclusion

While people may still be tentative about supporting a token in its infancy, it’s important to remember that Simple Token is the result of several years of development, crowd funding, and marketing.

With more ICOs launching — and failing — every month, the market opportunity open to Simple Token is immense. So long as they can keep the ball rolling over the next months and sign up more customers, Simple Token might be one of the few tokens able to profit once the ICO bubble eventually bursts.

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You can purchase Simple token exclusively at Binance.