A CryptoStandard Score of 3.7 and a Risky+ outlook are assigned to SONIC (pre-ICO starts on 14 May 2018)
The idea of incentivizing fans to listen to more music by providing more interaction opportunities with their idols is disruptive as it changes the traditional relationship between fans and artists. However, the execution ability is questionable for SONIC. There are only three people in the team without any advisors and it would likely prove difficult for them to build the platform and grow the user base at the same time.The already-dominated music industry also makes it very challenging for SONIC to supersede the leaders. The lack of marketing and social engagement has resulted in limited demand for its tokens, further undermining the success of the ICO.
SONIC aims to create a new reward system for fans and musicians. Fans receive tokens based on their actual listening duration for purchasing merchandise, supporting and booking artists. Musicians can engage their active listeners and earn tokens as an additional reward. Meanwhile, promoters and agents can utilize SONIC to receive bookings and pay artists using smart contracts.
The analysis is based on our rigorous CryptoStandard Score model which is supported by over 80 parameters. The distribution of the score and the explanation are shown below:
Idea
Our team considers the idea of SONIC quite disruptive to the music industry, greatly enhancing the value of interaction between fans and idols. Yet, the usefulness of blockchain technology in the platform is in doubt.
Competitiveness
The market is dominated by leading players such as Soundcloud, Spotify, and Youtube as well as music labels like Universal and Sony. It is very hard for new entrants to grow their user base or acquire artists. There are only a few claimed benefits including a closer relationship between fans and musicians that could help SONIC establish its competitive position.
ICO
Most of the ICO information is clear and transparent. However, the white paper does not mention whether there will be any future offering and the treatment of unsold tokens, as well as the lock-up period and token buyback policy, which gives rise to the question over the aftermarket performance of the token.
Team
The team is relatively small compared to most other ICOs with only 3 people and without any advisor. Even worse, only 1 founder declares the relationship with SONIC, which puts the team’s dedication and execution in doubt.
Community
The community is close to non-existent with 10 members in the Telegram group and fewer than 200 followers altogether on Facebook and Twitter. This greatly limits the token demand and the future growth of SONIC.
Marketing
The company has not promoted the ICO through an adequate number of marketing channels, most notably missing Steemit and BitcoinTalk. Out team considers the limited public discussion of the ICO a hugely negative signal for the project.
Documentation
Up til now, only the white paper is available for checking, which covers most of the necessary information such as the vision, competitive edge and use of proceeds. The team would release the technical paper in early April.
Financials
The company does not provide any financial projections or past figures.
Reliability
At this point in time, no prototype is available for checking and there is not a clear execution plan. Not much information regarding the company is available online. This raises serious questions regarding the reliability.
Feasibility
The key difficulty for SONIC is to attract both end users and artists given the market is dominated by formidable players. Even if it succeeds in developing a minimal user base to kick start the project, its revenue model does not appear to be strong enough to support the sustainable operation of the platform.
See their profile: https://cryptostandard.io/ico/sonic/
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