Introduction
This report will look at the company, existing business model, application, token information and current community. This report was carried out as of 31st January 2018. We do not endorse any investment and we are not financial advisors. We merely look to research Initial Token Offerings, based on existing available information.
This highlights considerations, i.e if company has marketed themselves larger than actual or imply a larger team than currently agreed.
Cappasity seemed to be originally incorporated in Texas (Texas Taxpayer Number - 32057492848) but as of 15/03/2016 had incorporated in Delware (File # C3886130) and is still active
According to Texas Register, this registered business has ceased doing business in Texas
The entity's franchise tax responsibilities ended because the entity has ceased to exist in its state or country of formation or has ceased doing business in Texas. ref https://mycpa.cpa.state.tx.us/coa/RightToTransit.jsp
Cappasity Inc. is a small organization in the custom computer programming services industry, mainly focused on 3D Image processing. Located in Santa Clara, CA. As a brand has opened its doors in 2013, but had ended/froze the original Texas incorporation and now incorporated in Delaware as of March 2016. It is estimated that they have $333,458 USD in yearly revenue and about 18 employees.
Estimated Company Valuation: $1 million
Valued calculated based on $333k per annum gross revenue. The valuation is based on 3 times of this amount with a consideration of about 15% Net Profit.
Cappasity Inc, that was registered in Houston Texas applied for an United States Patent (Application # **_2016015021_**7) on June 16, 2017.
Does the Delaware incorporated company own the Patent Pending?
Filed in 20th November 2014, patent number not yet provided. Was before the registration of Delaware incorporation. Inventor is listed as Kontstantin Popov, also the current CEO.
"Systems and Methods for 3D Capturing of objects and motion sequences using multiple range and RGB Cameras"
"A computer system comprising: at least one server computer; and, at least one client computer coupled to the at least one server computer through a network;"
Suggests that the processing of the 3D imagery, could be carried out by a network. Does not describe what network, i.e LAN, WAN, Cloud or Internet peer to peer.
"set of 2D images of the 3D object using the plurality of RGB cameras"
".A system for three-dimensional (3D) reconstruction of an object or scene"
"Furthermore, those of skill in the art will appreciate that the various tasks described hereinafter may be practiced in a distributed environment having multiple processing devices linked via a local or wide-area network (LAN or WAN) whereby the executable instructions may be associated with and/or executed by one or more of multiple processing devices."
Seems patent could be beneficial
If the Patent Pending application is owned by the Delaware incorporated company.
3501 Thomas Rd Ste 3
Santa Clara, California 95054-2037
United States
Street Map search highlights small office
The building is a shared building, though may contain smaller separate units. It appears to be used by multiple small businesses, and we do not expect it large enough to contain 18 staff. Highlights decentralised team.
Cappasity Incorporated trademarks
The brand is protected within its jurisdiction.
According to the GitHub account for Cappasity, they have developed a module for the company Prestashop.com, an online store for businesses, using the freemium business model.
According to Prestashop’s site, they claim they have 270,000+ merchants utilising their services.
According to Prestashop’s site, Cappasity Module has had over 500 downloads and are the official partner to the site. Unlike the other two listings, Sketchfab and Social 3d, which are payable to the end customers of Prestashop.
Competitive business model
Currently on offer as FREE, via Prestashop customers, but based on pricing, it seems that PrestaShop are paying a premium to Cappasity for use of the current API.
According Nvida twitter account they have encouraged their followers to see the demo with their partner Cappasity:
Established Player as a partner
With many chip manufacturers entering the crypto-mining industry, an alliance here, would be mutually beneficial. Even though it is just starting with the AI arm of NVIDIA
From their website, they have an existing solution that can be downloaded and used. The software is called Easy 3D Scan.
We tested with the sample .mov file, and was able to generate and interactive 3D image of the sample product. This can be used as part of IFrame to be embedded as a shopping item on third parties ecommerce websites.
Software options though simple, appeared well-tested and we consider this product market ready. We would describe this software as a basic 3D interaction tool. With basic editing features, customers can create interactive 3D in appearance products from only 2D images/video.
They aim to:
First Quarter 2018
Their roadmap focuses next on moving the features from the desktop version, to the mobile world. This will allow everyday customers to make 3D AR Type interactions. Further they mention releasing a developer kit that will allow use of the smart tokens. With similar features as their existing API. That will allow automatic processes and other firms reselling or integrating with third party software applications.
Second Quarter 2018
Their ambition is to implement perhaps the first phase of the smart contracts, via a marketplace for content. Allowing third party professional photographers / media specialists to resell unique interactive content. And with the final output needed to be processed from a server, copyrights can be controlled at one point of access.
In addition they plan to utilised - Apple’s latest IOS update, ARKit, allowing them to build augmented reality experiences for Apple devices.
Quarter 4 2018 and Quarter 1 2019
The next phase of smart contract use, would be the market for content storage. With video data taking an considerable storage amount and doubling that for AR files, this solution for content storage, should keep costs low in an open competitive market.
Further, they currently have the technology to market to retail, but come end of the year, beginning of 2019, they intend to release 3D Capturing for other markets. With priority on real-estate, already being a large established market with appetite for 3D Property showings.
Good development track record
Based on quality of existing software, patent application and focused realistic road map. We expect them to be on target here.
There are 4 public repositories that appear to be managed by 1 developer, Kosta Popov, whom is also the companies CEO and the filer of the patent.
There is not to much to show to the public, accept the focus of the product. API for third parties, the end viewer module, ICO token and mobile market.
We believe there are many private repositories not displayed, included the code for the actual 3D processing and desktop application.
Shows focus, but limited developer resources
One developer on public github, with minimal deploys, highlights a possible current limitation in developers.
It is a ethereum solidity contract built on the blockchain. As thus restricted till scaling opportunities exist on the ethereum platform. It is a utility token, as such does not provide dividends, so is not a security.
Note however, the Token Purchase agreement, allows Cappasity to migrate the tokens to another blockchain, if a better solution comes along.
Content Providers: 85-95% via copyright smart contracts
Nodes: 2%
Daily Fund: 3-13%
Rewards for senior moderators
Rewards for reports that lead to the content deletion
Rewards for socially important achievements
The initial token usage will be based on copyright provable ownership. With each token holding data/information on:
Copyright ownership
Content owner
Author
Transfer of rights
Purchase
Licence
This would imply that only files processed into 3D then sold or generated for actual use, will have this information. Meaning this may be optional, at least for test versions, or private use.
Also it helps distribute future incomes, as every new fee paid, will be done in accordance to the smart contract, regulating the future use of such content.
Options that will be available in the smart contract:
Renting content
Selling content
Transferring commercial use of rights with various licensing options
Apply for tender calls
Cappasity aims to have its own nodes and allow others to create their nodes for storage of data. This marketplace, according to the white paper, will earn service fees from existing marketplace transactions.
Token Usage will also compete with normal subscriptions advertised. But due to being a utility in the background, will still have high usage, i.e copyright will be solely based on the token being used.
Phase 1 produced 326,243,078 CAPP Circulating at $2.5 Million
Phase 2 is currently capped at $47.5 Million*
Phase 3 is public and cap according to purchase tokensale agreement is $30 Million*
The information provided is not clear, and conflicting in different sources. The information provided, only allows you to do an educated guess on the amount of capital, that is planned to be raised.
I.e 125*Bonus - Tokens per USD - according to purchase agreement calculation
7 Billion / 125 = 0.06 Billion or **$600 Million **
*This figure does not include any bonus or different pricing for different phases. And is merely an estimated calculation. *Not clear on amount they wish to raise or tokens that will be distributed
*Phase 2 according to purchase token sale agreement is capped at $20 Million, yet Cappasity’s website is listed as $47.5 Million. This can be assumed the Phase 3 may also change considerable.
Appears Phase 2 and Public Sale will aim to sell upto 7 Billion Tokens minus the ones that have already been sold. Ref: purchase tokensale agreement.
Yet on dashboard for registration, it appears that prices are pinned to Coinmarketcap prices. Which values about 5 CAPP per dollar. Far less that purchase agreement specifies.
The token seems to be already on the market as a resellable ERC20 Token.
Presale Registration is January 23rd to February 21st
Public Sale starts March 22nd till sold out or 28 days later.
Note: Currently as an ERC20 Token, also being sold on Cryptopia
CAPP token is liquid
Listed on an exchange and it also appears that it may be listed on Kucoin, according to their blog post, with the expected date to be announced by the Kucoin exchange.
Founders Tokens will be released over two years at 1/24th intervals
** Calculated as: **
Founders Tokens = (Sale Tokens sold/70)*18
So if 1 Billion Tokens are sold, the founders will hold: 257 Million Tokens, which can only be sold at a maximum estimated rate of 10 Million Tokens per month for 2 years.
Approximately 25% of the final tokens produced, will be held by the founders.
20% to be reserved for an AR/VR innovation fund
10% to be reserved for a rewards fund
43% to be allocated for further development and deployment
27% to be allocated for covering sales and marketing costs
According to token sale agreement in regards to proceeds, all funds raised will be for the company and no bonuses given to shareholders or investors.
| Founding members able to sell 12.5% of total distribution in first year and 12.5% in second year. |
Cappasity as an organisation will earn from the following, but as it is not a Security Token, holders will not receive dividends.
They currently offer subscriptions, ranging from free for basic use to $999 a year for 1000 3D images. You can sign up today, which is a good sign they are already receiving income to the business.
The main services that could be powered by smart contracts include:
3D Generation / Processing
Storage
Traffic
Privacy / Unlisted Images
High Utility
Income is based on actual usage of a single application, with percentages adjusted by a central company.
This is a single company offering a service to a range of third parties, that can use the technology. With some of the functionality taken care of in a decentralized manner.
The core team profiles that was available via Linkedin.
Note 3 profiles, 1 blank, Trader at Cappasity and Senior Product Designer was unavailable to view.
Including the unaccessible profiles, we found 10 employees of Cappasity.
Marketing / Sales experience is Low Rating
The 4 members of the team, from CSO to Community Manager, appear to either have insufficient experience or low amount of networking connections.
The advisory team, most likely being reimbursed via tokens, may be just endorsers of the project. There is no description of what services if any they will provide, apart from general advisory or consulting.
Note there are very experienced names that are advisories, which is well in line of best practice with good use of panels skill sets.
Also interesting involvement from a well established ICO Advisor David Drake. This should mean, that the ICO should adhere to good business practice.
They have pretty much the established places to have a web presence, but most are limited in network affect. It is still early and I expect that they have a small dedicated PR team to focus and increase the online following.
| Followers | Strength | |
| 344 | Low | |
| Bitcoin Talk | Read 104684 times | High |
| Medium | Not Listed | Unknown |
| Steemit | 1 | Low |
| 924 | Low to Medium | |
| 7339 | Medium to High | |
| 277 | Low | |
| Telegram | 8084 | High |
| 7198 | Medium to High | |
| Youtube | 982 | Low |
The comparison looks at the nearest competitor in the crypto-scene. Golem was picked due to already existing on the market and recognised as an established player.
Golem being more grand in scale, aims to be the world's super-computer, by processing large amount of resource intensive tasks, including rendering.
Cappasity, not quite having as high an ambition as Golem, intends to focus on 3D and AR/VR processing and storage of data. Being that Cappasity are more focused and within a set niche, should be able to compete better than Golem as a start to end solution, but less flexible in final offering.
*Averaging max supply vs market price, to obtain a equalised price for fair comparison
Their marketing team seem to be inexperienced, tie that into low amount of followers across their social media platforms. Seems to be an area they need to improve upon.
Perhaps marketing is strong enough for the crypto-community, but not well established enough for the developer community, which they will rely heavily on for use of the network. This may change, once they release an update development SDK.
The team of Advisors is one of the strongest part of this ICO. The advisory team are well established in themselves with strong lengthy backgrounds. This is likely to create a successful following and will find a market of investors. Expect price to be higher once ICO is completed.
An interesting aspect is utilising Alibaba Cloud, for some of the processes carried out in the software. In addition dedicated pages and news stories written in Mandarin. Cappasity are looking at not just the western market but large markets in the east of the world.
Even though the company has good fundamentals**, a major negative **is the ambiguous proceeds expected amount and the total amount of tokens that will actually be on the market. Dependent on this, the max total supply, will be deemed either more in line with average costs or expensive. The chance for cheap tokens has been missed in ICO phase 1 and with ICO phase 2 and public phase expected at $0.24 (Current market value), the tokens seem to be a bit on the expensive side.
Though we expect, if the company can get enough volume from customers, token holders and nodes, should expect a value increase in the token itself over the long term and as an established firm, there is less risk of bankruptcy.
The founders will control at least a quarter of the token supply. In addition will be able to sell 12.5% of the total supply in one year. Which is a bit high, considering that they will be the direct beneficiaries from dividends from the Cappasity Inc and be able to use the funds as an investment to the company.
On conclusion they have existing business and work practices in place and so far adhered to their public roadmap. From this based on comparables we give this ICO/business offering a 55% out of 100% rating and would expect a fair dollar value investment return.
