Weekly Altcoin Update – Week 2

This weekly’s altcoin update will highlight lesser-known projects with a disruptive product in their particular industry. The following projects will be highlighted this week: Okipad, LUNR token, and GET Protocol

Okipad

The main issue for cryptocurrency and blockchain startups is that the capital is minimal; therefore, the public sale is often held through an IDO or ILO pad. Therefore, capital efficiency is vital for startups because the first 6-12 months in the cryptocurrency industry are crucial to be financially relevant for investors. The current launchpad landscape for ZRC-2 projects on the Zilliqa ecosystem is relatively thin. Currently, there are solely two launchpads; ZilSwap and Okipad.

Burn mechanism

The design of these launchpads are different; whereby ZilSwap burns 30% of the raised capital, Okipad requests a 5-10% fee for their services. In general, burning assets are the most inefficient way to create value and are capital inefficient. The token burning concept translated to the traditional financial industry; this would be the equivalent of flushing dollars through the toilet. Besides the concept itself, the percentage of capital being burned is relatively high. Due to that, the funds are burned, these will not flow back to the underlying ecosystem. Essentially, this only allows funds to get out of the ecosystem instead of a sustainable re-investment of compensation fees.

Okipad requests a 5-10% compensation fee for their services, and these will be partly used for operational costs. Therefore, the underlying Okipad business model is more sustainable for the ZRC-2 ecosystem due to that Okipad can play a significant role as an incubator.

Post-launch performance

The post-launch performance of Okipad is acceptable for a ZRC-2 project; there is limited capital available on the ZRC-2 ecosystem. Additionally, the low number of projects launching on the ZRC-2 ecosystem in the last few months made it relatively complex for Okipad to create value. Nevertheless, Okipad has three projects that are willing to launch on their pad, creating value for the ecosystem. In general, every project that launches on Okipad will create synergy and potentially attract new capital to their ecosystem. Around 200 OKI stakers are eligible to participate with ILOs and are compensated for the perceived risk through a staking APR of 40%+.

LUNR token

The need for high-quality data is one of the most requested intangible assets of the last years. The emphasis on the quality of data is essential, due to that businesses can lose significant amounts of capital because of inconsistencies in the utilized data. On the other hand, companies are using social media data more and more to identify their audience and the opportunities surrounding their particular audience.

Post-launch performance

Lunarcrush allows retail investors and ventures to utilize high-quality data about more than 500 different cryptocurrency assets. Their native token, the LUNR token, allows investors to get even more historical data up to 2 years while simultaneously getting rewarded for their input on the website. The token was launched in October of last year and grew significantly in many metrics.

The network activity of LUNR is critical because the product relies on the user base. Currently, more than 40k holders have performed a cumulative 400,000+ transactions and are rewarded over 6,1 million LUNR tokens for their input on Lunarcrush.com. The project has a marketcap of 13 million and is currently just outside the top 5 projects on the ZRC-2 ecosystem based on marketcap.

GET Protocol

The ticketing industry is one of the biggest global industries and is perceived as significant for many related industries (e.g. entertainment industry). However, there are a few significant issues with the current ticketing solutions, which increases the perceived risk for ticket holders.

Frauds, forgery and scams

The secondary ticketing market is exposed and exploited by malicious actors. The main issue is that these malicious actors exploit the weaknesses of their potential buyers by selling exclusive tickets, and therefore putting an emphasis on the opportunity of getting one of these limited tickets. The buyer has little to no options to obtain a similar ticket themselves. Therefore, buyers often get lured to these financial traps and lose money. According to a recent report, approximately 12% of people buying concert tickets get scammed.

What is GET Protocol?

GET Protocol develops a convenient and user-friendly blockchain application to prevent fraud and give the event organizer more power to control the secondary market. The Digital NFT ticketing solution of GET allows ticket holders to solely sell their tickets through the application, preventing potential scams. Additionally, the QR codes of the tickets utilize dynamic QR codes, essentially providing the user their QR code just before the event starts. To enhance the user experience, event organizers can utilize the ‘Digital Twin’ technology. Adding a tradeable NFT to the entry ticket enhances the user experience and increases the retention rate by reminding the user of previous events.

White-label license

The underlying infrastructure of GET Protocol is robust and is relatively complex due to the blockchain aspect. Therefore, the threshold for ticketing ventures can be relatively high if they transform their current ticketing infrastructure to a blockchain infrastructure. Therefore, GET allows ticketing ventures to get a white label license and utilize the GET infrastructure. GET gets compensated through a relative fee of the ticket value.