Friendz 2018-04-13T04:52:52+00:00

Friendz

Project Description

Project overview
 
Friendz is a tool that lets multinational companies involve a community of users on social networks for marketing purposes. Users get rewarded for creating contents for brands and sharing these contents on their personal social network profile. Friendz has an already working product, €1.2m in revenues, 200 clients (multinational companies) and a community of 200k users.
The different actors on the Friendz ecosystem are the clients, the users, the approvers and the social media. Clients buy campaigns on the Friendz platform that will be spread through word of mouth. Users participate in the campaigns, creating contents in exchange for credit. Approvers are a community of qualified users that check and validate contents manually to make sure it follows the rules of a campaign and are rewarded for it. Social media are the platforms on which the content is published. Friendz tracks the figures in terms of numbers of like, interactions and comments.
 
Token model
 
The FDZ token is an ERC20 token. It has different uses within the Friendz platform.
Clients can buy a campaign with either fiat money or with FDZ. Clients will receive a special discount on the final price of products or services if they use FDZ to access Friendz marketing services and campaigns.
 
When users participate in a campaign, they are rewarded credit which can then be transferred into FDZ once they have accumulated enough of it. They can then use FDZ to buy in-app features like increasing your popularity for 1 week, seeing who votes for you for 1 week or “level up” your profile, changing its color.
 
Users will also be able to use the tokens to participate in gamified contests organized by Friendz. The game rules will be set in the chain, so that it will be possible to leverage on the power of full transparency of the network in order to create a totally fair system.
 
Whitepaper
 
The whitepaper is very well structured and informative. The business model and the use of the token within the platform is very clear. However, it lacks technical depth about some algorithms on the platform like how they will promote a user to approver and how the discounts will be applied to clients who pay using FDZ instead of fiat.
This whitepaper looks more like an opportunity paper since it focuses on the business model and stays very high-level on the token economy and the technical aspects of the platform.
 
Team
 
Allessandro Cadoni – Co-founder Head of Community Division – he is responsible for the communication with users: he establishes the guidelines and is involved in the management of a wide range of tasks from engagement activities, to social media communication, to customer care, together with the Community Team.
 
Cecilia Nostro – Co-founder Head of Marketing and Sales Division – she is responsible for the communication with clients: she meets clients and makes them fall in love with Friendz. She manages the relationships with clients from the initial brief to the final report. Moreover, she always has an eye open on marketing and PR activities, working closely with the Marketing & Sales Team.
 
Daniele Scaglia – Co-founder Head of Operations Division – he is responsible for internal processes and communications: he organizes the workflow making sure that everything runs perfectly. He is also in charge of managing campaigns’ creation process together with the Operations Team.
 
Giorgio Pallocca – CTO Head of Development Division – he is responsible for the system and blockchain architecture: he is in charge of developing the platforms, smart contracts and together with the Development Team takes care of the system security. Some of the relevant professional experiences that are worth mentioning are his role as the head of development at Ohmygoodness Inc., and later as the of CEO and CTO at Dexma and Netlex.
The Friendz team is impressive compared to most ICOs out there. They have 35 team members ranging from community managers to blockchain developers. The only possible issue is that the 3 co-founders are quite young and don’t have a lot of experience in startups and blockchain technology. They are exceeding expectations so far by bringing the Friendz platform to 1.2M€ of yearly revenue in just 2 years, but it is unsure whether they can bring it to the next level.
 
Roadmap
 
Q1 2018: Listed on exchange Q2 2018: Central Europe Q3 2018: Introduction of creativity approvers Q4 2018: Expension of Friendz services to B2B clients
Q1 2019: Northern Europe Q2 2019: Widget payment system for commercial partners Q3 2019: Users internal wallet Q4 2019: Eastern Europe
Q1 2020: North America Q2 2020: South America Q3 2020: Asia and Australia
 
ICO terms
 
The token sale lasts from March 1st to March 21st.
 
Ticker: FDZ Token type: ERC20 ICO Token Price: 1 FDZ = 0.0670 USD Hardcap: 50,000,000 USD (750,000,000 FDZ) Sold on pre-sale: no pre-sale Total Tokens: 1,500,000,000 FDZ Available for Token Sale: 50% Min/Max Personal Cap: 0.1 ETH/ no max Accepts: ETH
 
There are bonuses that apply depending on the time someone joins the token sale
Token Distribution
There is a referral program which rewards users points for each person that joins the platform with their link.
 
There is an airdrop that will be deposited on March 1st. The number of tokens received depends on the number of points a user has. Points are earned by joining Friendz’s Telegram, Twitter and by applying to be whitelisted.
 
Use of funds
 
Community hype
Telegram: 81 136 members
Twitter: 48 032 followers
Facebook: 46 635 likes
 
Strengths
– Working platform with over 200k users
– They already have a team of 35 people
– The platform has only been up for 2 years and is already popular and profitable
Red flags
– Blockchain technology is not really needed for what Friendz offers. Friendz credit could be used for everything FDZ will be used for.
– The tokens give no voting rights, so governance is centralized
– Only a small portion of the roadmap is about blockchain development
– Very large hardcap (50M$) and no presale to investors
– After 2 years, Friendz still only works with Facebook and no other social media platform
 
Ratings
 
Team 4.7/10: Although Friendz has a well-rounded and versatile team, the founders have very little experience in the startup environment and close to none in blockchain. The fact that no notable investing fund is supporting them is also a problem here.
 
Token model 3/10: Friendz already had a working “currency” on their platform in the form of credits. The addition of tokens doesn’t really add anything to the platform. Additionally, their business model isn’t substantially improved with the use of blockchain technology.
 
Token distribution 6/10: The fact that Friendz did an airdrop and a bounty campaign is great because it allows the platform users to acquire tokens early, letting them explore the different features of the platform. However, the team only has a lockup period of 1 year, which we think is too low, especially with a hard cap as high as 50M$.
 
State of the project 7.3/10: Having a working product and an active userbase of over 200k is excellent when doing an ICO. Their only issue there is that their roadmap is very vague and doesn’t include any development updates, which is what we want to see when analyzing an ICO.
 
Market 6.2/10: The social media advertising market is huge, growing fast and has many legal limitations to entry. It is however already saturated by many established companies which could be an issue for Friendz. It is also not a market where there is an explicit need for decentralization.
 
ICON score: 5.4/10
 
Conclusion
 
At Icon Partners, we feel like the team behind Friendz might not be experienced enough to bring this project to fruition, especially since they plan to raise 50M$ without doing any presale. They do have a working platform with a substantial userbase, which might help them finding investors for the public sale, but their hardcap is in the higher ends of ICOs.
 
The fact that they decided to create a new token that will have no functionality their “credit” couldn’t have is worrisome. It might indicate they are creating this token only to have a way to raise funds through an ICO.
 
We encourage you to do your own research and come to your own conclusions when investing in an ICO. All the information in this review are either facts or ICON Partners’ opinions and should not be used as investment advice.
 
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This document is intended for informational purposes only. The views expressed in this document are not, and should not be construed as, investment advice or recommendations.

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