Digital products are becoming more and more relevant in the market. Just look at the growth of companies like Netflix, Apple, Spotify and Amazon to see that more and more people are willing to pay for products that do not have a physical copy but can be enjoyed virtually.
However, the industry is becoming somewhat monopolistic and small (and even medium) digital content producers are being left out of business. CraftR believes that Blockchain technology can create a new online trading mechanism that can benefit these producers and their content.
What is the ICO CRAFTR?
CraftR wants to create a decentralized platform based on Blockchain technology for the sale of digital assets and services that can be performed remotely via the Internet. Within this platform developers expect designers, programmers, musicians, artists and remote workers to sell their services in exchange for crypto coins. All this will work on a totally secure and easy to use platform for both customers and content producers.
CraftR’s platform will use Virtual Reality technology, allowing users to access this market by simulating a real physical space within the virtual world. This would be the first on-line market to apply this technology.
For the payments that must be made within the platform no commission will be charged and all relationships between customers and producers will be made directly between them, without the need for intermediaries.
However, the platform will work as an “Escrow” to guarantee payment to workers and will also present a Digital Asset Storage service that will provide guarantees for the buyer on the acquisition of the digital product.
The categories of products that may be marketed on the platform are as follows:
- Programming and computer codes
- 3D Objects
- 2D Graphics
- Audios and musical tracks
- Videos, Movies and Moving Graphics
- Complete virtual projects
For workers who want to practice remotely, within the market the following categories will be presented so that they can offer their services:
- Web Development
- Audio and Music
- Video and Animation
In order for digital content producers to be able to upload their material to the CraftR platform, they must contract one of the plans they have within the platform. There are 4 plans in total, the cheapest only allows to upload up to 5 digital products while with the most expensive you can upload up to 100 products. These plans must be paid for with the project token.
The products that are uploaded to the platform to be sold are reviewed by the CraftR team. It is reviewed that the article contains the descriptions given by the producer, that it is totally original and that it does not infringe any digital property right that may exist on any product.
Use of Blockchain in CRAFTR
Blockchain technology will be implemented within CraftR for everything related to the payment system. In the first version the payment purses will be external to the platform but as the project evolves the payment system through Blockchain will be fully linked to the virtual market of the platform.
Also, Blockchain will allow the Escrow service to work to guarantee the payments of workers and producers of digital content. This system ensures that relations between stakeholders are carried out without the need to interfere with a centralized body.
Use of the token within the process
The project token has been made under the ERC-20 standard of the Ethereum network. The token is called CRAFTR and will be the global payment currency within the entire platform. This implies that services and products within the platform market will be paid for with tokens. Producers will set their prices in US dollars and the platform will automatically indicate the price in CRAFTR tokens.
Content developers will also have to use the token to pay for the amount of space they can use to upload their digital products. As we mentioned earlier, there will be packages of different prices and different benefits.
It is important to add that a number of unmined tokens were left in this ICO. Of the 100 million tokens planned for this project, only 33 million tokens were pre-mined and a total of 20 million tokens are being offered at the ICO. The remaining tokens may be mined by means of the Proof-of-Stake or in Spanish Proof of Participation.
0.1125 is the established price for each CRAFTR token. The minimum that the project was set to collect was 400 ETH and the maximum is 5000 ETH. The project is accepting ETH as the payment method for acquiring the token. As mentioned earlier, 20 million tokens had been earmarked for the ICO.
Team behind the project
This project is being developed in Switzerland and has a team consisting of 7 developers and 1 consultant.
Among the members to highlight we have its CEO Willy Codoni, a computer scientist who has already been working on the idea of CraftR for almost a year and a half.
Al Kadir Bedi will be in charge of the marketing of the Project and will also be in charge of the technological development of the Project.
Date token sale began: July 15, 2018
Date token sale concluded: 30 November 2018
Date of private sale: December 04, 2018
Do they own a Minimally Viable Product (MVP)? They already have a sample about the virtual store of the project. You can see it here.
According to the Road Map, the project will be completed by 2019. They hope that the market is already linked to Blockchain technology and that the Virtual Reality market can be launched in its version 1.0.
Pros of ICO CRAFTR
Solution for the growing market of virtual products
The consumption of digital products continues to increase, making it an industry with a very large market. In addition, all market trends predict that consumption of these products will continue to grow in the coming years, making this sector positive for the future.
CraftR’s proposal helps smaller producers reach customers to market their products. With this mechanism, the market is supplied with a greater quantity of content and, therefore, it will be possible to satisfy the demands of consumers in greater detail.
Cons of ICO CRAFTR
Confusion about the funds reached
Both on the project page and on the website we are told that the maximum they expect to collect is 5000 ETH and that they plan to reach it with the sale of 20 million tokens. In the ICO they collected 2000 ETH and in a private sale they collected 3255 ETH, being the sum of both amounts 5255 ETH. If we evaluate the final figure we will see that it is a value higher than the maximum of 5000 ETH established.
At first glance this could mean that the project had a good reception in the market. The problem is when we ask ourselves what tokens were sold. It is understood that 66.6 million tokens remain to be mined but these cannot be freely manipulated by the project developers. So what tokens were sold to reach that figure?