28 Nov 2023 by rate3

System (Application):

The startup, a scan-to-earn cashback application, aims to revolutionize the cashback industry. The MVP creation and subsequent incorporation of blockchain technology suggest a focus on robust system development. However, the current absence of users and limited developer community (3 people) raises concerns about the scalability and sustainability of the application. The choice of Ethereum as the consensus algorithm indicates a commitment to a well-established blockchain, which may enhance the system's reliability.

Vision (Market):

The market vision is centered on upgrading sales to increase cashback. The roadmap outlines expansion plans, starting with the CIS countries and India, demonstrating a clear global perspective. Nevertheless, the competitive landscape, featuring established players like Curve, cashbackAPP, iConsumer, Dosh, and ShopBack, highlights the challenges in gaining market share. The absence of user metrics and social media followers further obscures the market potential.

Execution (Business):

The business execution is led by a CEO. The CEO-driven governance model may expedite decision-making but raises questions about a more decentralized approach. The burn rate of $5K per month, with a runway of 17 months, indicates a cautious financial approach. The breakeven projection of 24 months underscores a realistic timeframe for achieving profitability, considering the competitive landscape.

Token (Financial Proposition, Tokens):

The financial proposition involves an ask of $300K with a $3M valuation. Major investors include angel investors. The legal status, currently in the process of incorporation in Delaware, USA, aligns with industry standards. The reliance on angel investment and a modest valuation may appeal to investors seeking early-stage opportunities. However, the absence of social media metrics and user base data limits the assessment of the token's potential market adoption.

Overall Assessment:

The startup exhibits a clear vision for disrupting the cashback market through a scan-to-earn application. While the governance model and financial approach demonstrate thoughtful planning, the lack of a substantial developer community and user base, coupled with a competitive market, pose challenges. The roadmap outlines ambitious expansion plans, yet the success of these stages hinges on effective execution. Social media metrics and user acquisition will be crucial indicators of market traction and overall viability. Investors may find the realistic burn rate and valuation appealing, but thorough due diligence on market positioning and user acquisition strategies is advised.

Conclusion: Risky

The analysis suggests a higher level of risk associated with the project, potentially due to financial uncertainties or market competition.