For the analysis of Etherparty, I will be posting several smaller parts where I focus on one thing, such as: project, team, funding, road map, et cetera. By doing this, I can get the information to you faster so that we can have discussion sooner. In addition, I think the posts will be easier to read. After releasing all the parts, I will also post the entire analysis and a summary.
In the previous parts of this series I went over the basics, the road map, team and funding. In this part I will look into the economics of the token and the competitors.
When Etherpart started, one billion FUEL tokens were created and sold (through pre-crowdsale, crowdsale and on the platform/exchanges) or distributed. This is a hard cap, meaning that no more FUEL tokens will be created.
Fuel tokens are used to buy, create and execute smart contracts. The tokens are paid to Etherparty themselves (and potentially other users who create templates) and are sold back on an internal marketplace. Unless Etherparty holds on to the tokens (which they have not indicated they'll do), there's not really any reason for the token to increase in value.
The price for a smart contract on the Etherparty platform is fixed USD amount. The price in terms of FUEL tokens will fluctuate as the FUEL token price fluctuates, but in USD the price remains fixed. This is good for its users since they obviously don't want the price of a service to change every day. I expect users to buy FUEL tokens only right before they need them to pay for the services. It's not clear whether Etherparty will immediately resell the tokens or hold on to them for a while.
It would be good if Etherparty releases some statement on their strategy with FUEL tokens they receive from customers. Something like a lock-up period would create more confidence with investors as it would align the interests of Etherparty with the interests of investors.
Notable competitors of Etherparty are:
BlockCAT:
BlockCAT lets anyone create, manage, and deploy smart contracts on the Ethereum blockchain with just a few clicks. No programming required. Select from our catalog of pre-built contracts, or design your own with a drag-and-drop interface.
Agrello provides an AI powered interface allowing you to build smart contract-based legal agreements on the blockchain. No coding or legal skills required.
Both of the competitors listed above have their own token, CAT and DLT, respectively. In order to do a proper competitor analysis, I'd have to go through the same steps as I did with Etherparty in this series. I won't do that for now, but I'll put it on my backlog for future posts.
What do you think of the economics of the token?
Do you know of any other competitors?
Let me know in the comments!
I will soon release the verdict, full post and a short summary. Stay tuned!
Please consider upvoting and resteeming my posts!
Thanks!
-longcat