ICO Analysis: DataWallet

I love the way The Economist describes the data economy:

“Data are to this century what oil was to the last one: a driver of growth and change. Flows of data have created new infrastructure, new businesses, new monopolies, new politics and—crucially—new economics. Digital information is unlike any previous resource; it is extracted, refined, valued, bought and sold in different ways. It changes the rules for markets and it demands new approaches from regulators. Many a battle will be fought over who should own, and benefit from, data.”

As people spend ever more of their time engaging with online services, the volume, and importance of the data created from these interactions increases. Internet users are being cut out of this rapidly growing economic sector there is an opportunity for data providers to reclaim the value they create online to leverage their data for financial gain or decline access.

DataWallet looks to be the vault mechanism for individuals to harbor their data and monetize it for their own betterment instead of third-party corporations under the current data brokerage model.  DataWallet is allowing data providers to manage their data profile providing assurances that the data is secure and private which requires private key management and storage which is used to encrypt the data. The data provider will be in control of which information is included in the profile and which fields are exposed to the data exchange at what point in time.

The organization provides a technical white paper that is plain enough to follow for the retail investor but detailed enough to support the likes of the data scientist community. The DataWallet requirements point out their ecosystem’s primary value proposition is to facilitate the secure and consensual exchange of data.

 Token

The token is a native currency called DXT; the company has not discussed in the white paper what blockchain that they will be running on, they did mention that PoW with Ethereum will not work and mention QTUM for their PoS capability. DataWallet’s native digital currency, abbreviated as DXT, sits at the center of the DataWallet Smart Contact network and is paid for the exchange of data. DXT is the main unit of exchange within Datawallet’s closed network. Users have the ability to earn tokens through expressively sharing their data with chosen companies; they can also utilize their tokens to pay for AI-driven services in the DataWallet App Store.

Team

The core team comprises a mix of technical PhDs and corporate executives with backgrounds varying from the academic space to marketing and consumer research. The team boasts many Ivy league graduates as well as Stanford alumni. The company has some notable advisors from both the crypto and academic world and some prominently featured investors on their website including the founder of Salesforce. The team has the bench strength in blockchain development and possible access to investor portfolio companies.

Verdict

Risks

  • No blockchain listed as to where the DXT currency will be built upon or if this is going to be a permissioned blockchain project. This could limit currency trading post-ICO. -2
  • Lack of a revenue roadmap as to when the organization plans to make money from the use cases listed. -2

Growth Potential

  • Early stages of a massive marketplace with data possibly being the new currency in the years to come. +2.5
  • Provided solid use cases on how DataWallet will provide service offerings to both companies who purchase data and to individuals or organizations looking to monetize their data. +3
  • A stacked team of PhDs, technical developers and business associates that provide a healthy mix of product development and product sales to enter the market. +3
  • Ability to leverage notable investors for possible access to their existing portfolio of companies as early adopters of the program. +2

Disposition

Based on the above analysis, we arrive at a score of 6.5 out of 10 for DataWallet. The project has potential to create a blue ocean strategy in the form of data currency secured with blockchain for transparency, reliability, and to ensure providers get paid. If DataWallet can deliver on their value proposition of facilitating the secure and consensual exchange of data; and in the process democratize the data brokerage industry to reward individuals or companies for participation than they will have longevity.

Investment Details

  • Type: Crowdsale
  • Symbol: DXT
  • Token Sale: Private Sale Stage
  • Platform: Not Listed
  • Tokens Available Via ICO: 333,333,333
  • Token Price: $0.18

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