Review and Rating
KSM SVET Execution Review and Ratings
SVET Execution (Solution-Validity-Equity-Team)
It is important to note that Kusama is closely related to Polkadot but does not run on the same network even though they were developed by the same team and do have identical code genes at their DNA levels. Kusama was developed primarily for developers and as a battle testing ground for projects before deploying on the Polkadot chain. Being a “testnet” with real economic value, Kusama has its native token $KSM and users can use it in different ways ranging from validating transactions, launching a parachain, paying for transaction fees, and nominating validators to vote on governance proposals.
Kusama differs from the conventional gas-metering system to adopt a weight-based model in calculating transaction fees of which 20% of transaction fees are allocated to Block authors while 80% goes into its treasury [1]. Evaluating the project’s financial standings is such a hassle due to the unavailability of information, notwithstanding a recent publication on Jan 24th 2022 during an expansion operation of BTCS Inc, Kusama was reportedly valued at $1.5 billion [2] which would give an idea into of the project performance.
Solution rating C+
Ascertaining its legality, the terms and conditions of the network clearly outlined its legal status. The network is a registered company in Switzerland with a registration number CHE-332.596.347 under the name Web 3.0 Technologies Foundation. A physical location is also made available which is Baarerstrasse 14, 6300 Zug, Switzerland [3]. At the time of this update, Kusama is not subject to any legal proceedings. The validity rating is B.
Evaluating the current standings of KSM shows that the token is selling at $57.95 which is a huge 90% off its ATH price which can be attributed to the current market climate. Despite this, it has been able to record a market cap of $519,039,184. It would have been more interesting to know how these massive price drops reflect in the company’s valuation but we might not see that at the moment as such information is not available. Taking a little detour from the profits and revenues, it’s evident from different sources that Kusama is a beneficiary of investors at some points, but in these funding rounds, the amount vested and dates remain undisclosed and not available. But worthy to note that Kusama’s investors include its parent foundation, Web 3 Foundation, [5] 1Confirmation, Placeholder VC, and NGC Ventures [6]. Due to the absence of required information, I would proceed to give a review. However, whenever this information is made available, the reviews would be updated.
Equity Rating C+.
In 2019 Dr Gavin wood [7] founded Kusama network, a cousin of the Polkadot. Gavin is a renowned computer scientist an ex-CTO and Co-founder of Ethereum also known for his development of the Solidity language. Before Launching the project Kusama, he founded Parity Technologies in 2015. In 2017, two years later, he founded the Web 3 Technologies Foundation, which was instrumental to the formation of Kusama. While Parity Team provided the codebase, the Web 3 foundation provided the project with the required funding.
In evaluating the teams’ experience and knowledge, both the Parity Technologies and Web 3 Foundations have proven to be trusted and capable hands in the industry as their achievements both on Polkadot and Kusama are open and visible. Just to note that Web 3 Foundation consists of Gavin Wood, Peter Czaban [8] and Robert Habermeier [9] while Parity Technology comprises over a hundred diverse members spread around the world with different skill sets, proven track records and verifiable profiles. Team rating B+.
KSM SVET. Execution Rating (Solution– Validity– Equity– Team) Rating: C+/B/C+/B+
References
1. https://guide.kusama.network/docs/learn-transaction-fees/
2. https://www.globenewswire.com/news-release/2022/01/24/2371634/0/en/BTCS-Adds-Kusama-to-its-Blockchain-Infrastructure-Operations.html
3. https://kusama.network/terms/
4. https://coinmarketcap.com/currencies/kusama/
5. https://messari.io/asset/kusama/profile/investors
6. https://www.linkedin.com/in/gavin-wood-88843316/
7. https://www.linkedin.com/in/czaban/
8. https://www.linkedin.com/in/rphmeier/