TravelChain (TT) Token Sale
TravelChain (TT) Token Sale
TravelChain is a decentralized platform for data exchange in the travel industry. TravelChain gives the impression of a very ambitious project; the team will have to work hard to launch the entire infrastructure. There is also the issue of the TravelChain community which should be formed on the basis of this infrastructure. If everything is implemented according to the parameters set during the ICO, TravelChain will radically change the world travel industry.
It is important that by mid-December the team is able to demonstrate the project's MVP. Before making a final decision about participation in the ICO, we consider it sensible to wait for its launch; potential investors should analyse it themselves.
The Blockchain community generally has a positive attitude towards projects that will "change life for the better". This could happen this time as well if the community becomes aware of the project; so far, the marketing of the ICO is not particularly successful. We also see a risk in the fact the mechanisms for marketing and promotion in the future are not very clear. In this regard, it should also be noted that TravelChain's marketing budget is smaller than typical budgets for other projects' ICOs.
Another possible issue lies with establishing relations with legal entities (players in the travel industry). TravelChain’s founders plan to sell them 30% of the tokens issued at the initial stage, but at present this is not legally possible: no jurisdiction has any legislation that allows legal entities to book cryptocurrency on the balance.
In addition, the sale of tokens to market players is estimated at about 10 times the price of TravelToken during the ICO. We doubt that in the coming months many will find such a transaction economically viable.
However, assuming the project is implemented in accordance with stated plans, the scale of the future ecosystem will increase the value of the project's tokens; therefore we can recommend participating in the TravelChain project's ICO to long-term crypto project investors who accept the risks we have identified.
Economy of the project
Management of the economy parameters of the TravelChain ecosystem is expected to be carried out by its users and economy observers. Economy observers will manage the blockchain’s economic parameters, trying to balance them and acting in the long-term interest of the community. An Economy Observer Committee will be formed from active participants of the ecosystem: team members, competent activists, representatives of companies and corporations participating in the life of TravelChain.
The operating activities of TravelChain will be financed through two mechanisms:
The first one is fees for operations in the system. For each action in TravelChain, a user will have to pay a fee, the size of which is set by the economy observers. Fees will be fixed with regard to the type of an operation and dynamic with regard to the amount of information published. At the moment, size of the fees is unknown, but it is known that only 20% of fees are allocated directly to TravelChain (Development Fund). 80% is paid to referrers, who invite new users to the platform.
The second one is the funds raised during the ICO. There will be two stages:
Immediately after the project ICO, a Development Fund (30% of total token issuance - 630 million) will be established. It will be sold to travel industry participants, which is intended to both provide additional funding and serve as a marketing tool. On the Development Fund Sale, the tokens will be sold for US$0.1428, which is 9.4 times more expensive than during the token sale. Thus, it is possible to attract up to US$90 million given full placement.
From April 2018 to the end of 2020, additional token issuance will begin. 10% of tokens will be additionally issued per year. Thus, from April to December 2018 an additional 157,500 thousand tokens will be realized in the 12 months of 2019 — 225,750 tokens, in the 12 months of 2020 — 248,325 tokens. The total amount of placed tokens will exceed 2.73 billion. Total issuance goes to the reserve fund and remains under its management. Technical observers of the network will receive rewards from this fund. These tokens will also be allocated to the Digital Development Fund. Community members will receive rewards for their ecosystem development work from the Digital Development Fund.
A total of about US$100 million can potentially be raised during the pre-ICO, ICO and the DFS stage. In contrast, it is very interesting to look at TravelChain's expense budget:
The total amount of expenses for three years will amount to $6.7 million — 15 times less than the amount of funds the project wants to raise. So, in terms of the tokenholder's economic security, the value of platform fees has no significance. However, even if they equalled zero, it is still unclear why TravelChain needs such money.
TravelChain’s services can be roughly divided into two groups: The aggregation of user data for tourism market participants, and functioning network features for mobile- and web application developers.
TravelChain for participants in the tourism market
Users will provide information about themselves, their interests and travels, for which they will receive rewards in TravelTokens. This information will be available to registered travel agencies, who will be able to analyze it and offer deals based on the preferences of an individual and the best market offers available at that moment. The emphasis is placed on the fact that, with a well-balanced offer, the interested user will have a simplified scheme of ordering and paying for a tour on the basis of a "Traveler's Passport", i.e. personal data previously entered in the database. Payment is possible in tokens earned for the sale of personal user information, among other things.
A potential tourist will be able to use TravelChain as an information resource: reading existing reviews about a location, tour operator, hotel, etc.
A tourist will be able to receive rewards in TravelChain tokens for writing reviews. The issue of false reviews or fake accounts will be addressed by the introduction of a reputation system for TravelChain members. The credibility of the information provided, communication skills, responsibility, goodwill and intelligence will be assessed in the calculation of reputation.
The project team have also announced a simplified method for using services, for example transport rental without contracts, using only the mobile application.
The ability to maintain and review history of transactions, travels and destination visits, and thus being able to analyze personal experiences and the financial aspects of recreation, even one’s history of search queries in this area.
An opportunity to participate in voting, the results of which will affect the life of the TravelChain community. There is very little public information on the rules of voting, its frequency and planned performance. However, the team stated the following about this issue: “voting is continuous, votes are counted at the time of the automated blockchain maintenance interval. This interval is managed by the economic observers of the network. By default, counting of votes for delegates and the committee will occur once every 60 minutes.
The following features are available for business accounts
Obtaining private user information, i.e. an analysis of the needs of potential customers, not only those planning a trip in the near future but also customers who are not going to travel right now but are clients of the travel industry in general. This is essentially about collecting statistics and analyzing Big Data. Gathering information clearly takes time, while large players in the travel business already have statistics based on their extensive client bases allowing them to analyze the needs of tourists. This explains the interest of the TravelChain team in engaging SME in the project, since they do not have access to such information.
Targeted delivery of direct advertising messages. The documentation states that the project will create aggregators of information and advertising cores, which can allow businesses to form and deliver personified advertising messages. The uniqueness of this service will be increase of efficiency of spending of advertising budgets.
|Crowdsale Opening Date||
340 days ago
|Crowdsale Closing Date||
280 days ago
ICO Start: December 10, 2017
ICO End: February 10, 2018
Hard cap: US$10 million .
Soft Cap: US$3 million .
Token: TT, TravelToken
ICO Price: 1 TT = 0.0151 USD
Accepted currencies: ETH, BTC
Total issuance: 2 100 000 000 TT