Initial Public Offerings were the go to capital raise option for investors looking for the newest hot stock to acquire. Unfortunately, with all of these IPOs the small investors were generally the last to get in and usually after multiple valuation increases for the venture capitalists. However, with recent successful ICOs of various coins and tokens offered, the momentum and energy draw this arena attracts may soon upset the corporation stock market and its ability to fund debt expansion.
Heads up IPO stakeholders, the Initial Coin Offering (ICO) market is here to stay.
AdEx is an online ad serving network aiming at disrupting the existing online advertising landscape and address its significant problems: advertising fraud, privacy and consent to receiving sponsored messages. Ironically, my 4 week old son woke me up minutes before the AdEx token sale was released. I opened my computer to see the terms, conditions and instructions and was dismayed to see “no USA citizens or Residents” were allowed to participate. I instead watched around 8,100 filled almost instantly as AdEx launched its Ethereum capital raise.
Many factors impact the desire of individuals to participate in ICOs and here on MtKander.com we will be exploring an ICO Analysis Framework. Most important, because all coins and tokens are software, is the code that underlies the functions. Scammers and Pumpers will fail to review the code in depth and promote projects with flawed foundations. Providing a hat tip and initial ICO push, New Alchemy (a leading boutique blockchain consultancy) published a positive audit on the AdEx token’s underlying code just yesterday.
The AdEx plan was to hold the ICO for 30 days, but this token sale only lasted 8 hours until the hard cap of ETH was met. The demand for this company’s token that can decentralize the Ad marketplace by eliminating existing intermediaries between the advertisers, publishers and consumers, could have just launched.
I worked as a Data Scientist for an online retailer and knew of the complexities involved with advertising on Google search pages. The auctions are anything but transparent, and the ability to optimize your strategy is more based upon best guess than applied mathematics. However, we all realize that online advertising is an incredible format to reach individuals, but the advertiser can only hope that their message is delivered to the right person. To be honest, front running an online user’s emotional desire, based upon their recent actions, can be calculated, sorted and optimized. The longer you stay on a website, there is an increased probability that the data scientists working for the website know what you are going to do next.
AdEx enters the marketplace offering a different solution. They have created an exchange where publishers, advertisers and consumers can all participate to increase their happiness. The interaction between publishers and advertisers is accomplished via smart contracts creating an atmosphere of transparency and trustless trust.
The end user, you, will benefit from the AdEx User Profile. This functionality allows users to personalize their profile to understand and control the ads delivered to them.
By combining smart contracts with encrypted user data, the ecosystem should be able to optimally define and deliver which content is presented to each user. I imagine these calculations will be controlled by machine learning algorithms designed to maximize the probability of successful ad delivery, but the whitepaper did not address this aspect.
If successful, these algorithms will increase the happiness of the user, by reducing their wasted time and only delivering relevant content per their profile, which in turn will increase the utility of the ecosystem because users will remain engaged and additional advertisers will seek to acquire AdEx tokens to buy and sell advertising time within the AdEx ecosystem.
Jack be nimble, Jack be quick… and Jack can jump into these blockchains!
After 15 minutes, AdEx had raised 27,333 ETH. As an incentive to initiate investor action, individuals who purchased on the first day earned a 30% bonus to the planned ICO valuation of 1 ETH = 900 ADX.
After this point in time, there was a reduction in the rate of investment and after 6 hours of the AdEx ICO they were within 10% of their goal.
A glitch in the AdEx capital raise status page occurred about 8 hours into the campaign. I noticed the same number appeared again that I saw in the first instance of the launch 8,188. I was not watching the launch on my phone and failed to grab a screenshot, but I speculate this may have been the amount of ETH invested by the company insiders. A refresh of my the internet page did revert back to the current status (at that time) of 37,123 ETH raised.
AND ITS GONE…
I refreshed the connection and watched as the time ran out for new investors to acquire their AdEx tokens.
After only 8 hours and 7 minutes AdEx reached their goal.
Now they must meet their stakeholder’s expectations.
One question does remain…
How many of these ICOs will USA residents and citizens be prohibited from participating in to increase their wealth?