ICO Analysis: FidelityHouse | Hacked: Hacking Finance

October 18, 2018
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Many social media companies store and sell their users’ public and private data for financials gains and we all have been a victim of such acts at some point. However, it’s not just our personal data that has monetary value but any content that we produce, too. Think of a blog you have posted on your Facebook page or a blogging platform. The piece contains information and thus has value to anyone seeking such information, yet, unless you’re a professional content creator, you probably haven’t made even a single cent out of it. Some would argue that this is hardly fair.

FidelityHouse is a social content network which enables content creators to publish and get paid in return and readers to be selectively updated on their own interests. But that is not the most innovative feature of the network. Thanks to FidelityHouse Chain, any content creators can prove that he or she is the original creator of the content with reasonable fees, thus proposing a solution for one of the most important problems in the intellectual property industry.

Contrary to many blockchain projects which have only started development recently, without any working product at all, FidelityHouse is a project born in 2011 with a team continuously working on it since then. It has 63 million page views, 400 million impressions, 20 million unique visitors and 10 million videos viewed per month only in Italy. An extremely successful product which is live for seven years now hits the cryptocurrency scene to gain ground with additional features thanks to blockchain technology.

This use of blockchain allows the team to develop a fairer and more transparent content lifecycle management system, making it possible for content creators to prove the ownership of the content. FidelityHouse Chain has three components, all contributing to this very purpose. The proof of authorship tracks the existence of authenticity of any product, the proof of license proves the veracity of licenses granted by content creators to other parties and the proof of revenue documents any value generated from content.

The proof of authorship is arguably the most important component of the chain. When content is submitted, its hash value, a data which uniquely identifies it, and timestamp, containing the time of submission, is recorded onto the blockchain. As any change in the content, no matter how small it is, affects both values, the earliest content is proved to be the original one, thus proving the author of this content to be its original author. Still, as it is always possible to make “small” changes while keeping the rest intact. To protect authors and their products, a plagiarism detection mechanism is in place, which is available for a reasonable fee.

Yet not every submitted content gets published on the FidelityHouse platform. Step by step, any submission follows this model.

  1. Firstly, an author submits his or her content to the platform.
  2. Two expert moderators evaluate it and decide if it is to be published or to be revised.
  3. The content’s originality is verified by the platform’s plagiarism detection mechanism and its ownership is handed to the author.
  4. The platform gets paid for advertisements.
  5. Now the content is ready, it is open to platform users and external visitors.
  6. The revenue obtained is distributed among the content creator and moderators.
  7. These FIH tokens can be used in return for platform services or sent to exchanges.

Token

FIH tokens are used to gain access to the platform services and to reward moderators. These platform services include but aren’t restricted to timestamping and plagiarism monitoring. The content creator can purchase any single service or subscribe to a package fitting his or her needs. Any action taking place in the platform is paid or received by FIH tokens, so the content creator should have FIH tokens to benefit from platform services.

In the first stage of the sale taking place between September 1st and October 30th, a bonus equal to or over 32% is offered to private sale investors. In the following stage, the pre-sale contributors will have a chance to gain 27% bonus between October 31st and January 7th. As there is plenty of time until the pre-sale ends, the investor has no reason to hurry. Any unsold token will be burned.

The initial total supply of FIH is 1,000,000,000 tokens with the following token distribution:

  1. 50% private, pre-sale and ICO
  2. 15% founders
  3. 6.4% referral sales
  4. 6% advisors
  5. 9% team
  6. 13.6% reserve funds

All tokens except ICO tokens and reserve funds are locked for 9 to 12 months, which means there will be a very limited supply of FIH tokens in the short term.

How the team planning to use the token sale proceeds is not made public as of the time of writing.

Team

Alessandro Bellato: Bellato has worked for NEST, an information technology and services company, for over twelve years.

Filippo Marcassoli: Marcassoli was a marketing specialist at Roche Diagnostics, a healthcare company based in Basel.

Luca Del Torchio: Before joining Safilo, an eyewear company, Del Torchio has worked as a consultant at Deloitte and PricewaterhouseCoopers.

Vittorio Ferrari: Ferrari, a former marketing director at Bonduelle, has worked for Olivetti and Kodak.

Advisors

Alvise Saccomani: Saccomani is the head of trading at BANOR, an Italian investment firm.

Sebastiano Cappa: Cappa is a member of the board of directors at IAB Europe. Previously he was the head of the Italian branch at SmartFocus, a computer software company based in London.

Verdict

Below is a breakdown of the risks and growth potential of FidelityHouse.

Risks

  • Bonuses provided to private sale and pre-sale contributors are a bit high. (-1.5)
  • The token appeals to a very niche audience, namely FidelityHouse platform users. (-1.5)

Growth Potential

  • The project is live since 2011 and has gained serious community interest: 63 million page views, 400 million impressions, 200 million unique visitors and 10 million videos viewed per month in Italy. (+3.5)
  • The platform is able to support any content through its lifecycle while enabling the content creator to monetize his or her efforts. Hashing and timestamping is sufficient to prove any content’s original ownership. (+2.5)
  • There is not much competition for similar projects within the blockchain sphere. (+1)

Disposition

In many content sharing platforms, their respective creators do not get paid and it is the platform owners who actually make money. FidelityHouse enables these content creators to monetize their efforts and to prove that they are the original creators of the content. Although this is a quite important problem in the digital intellectual properties industry and the use of blockchain almost perfectly fits the goal, surprisingly there is not much competition. The project has been around since 2011 and already has seen great interest, thus an audience already exists. Still, bonuses provided to private sale and pre-sale investors are a bit high, so the ICO investor should be wary. Also, the token’s usage is restricted to the platform and thus a very niche audience, which means that if the project does not attract content creators, low demand for the token can be expected. FidelityHouse receives a 4/10.

Investment Details

  • Type: ERC20 – Utility
  • Symbol: FIH
  • Platform: Ethereum
  • Crowdsale: January 8th
  • Minimum Investment: Unspecified
  • Price: 0.0002 ETH
  • Hard Cap: 100,000 ETH
  • Payments Accepted: Ethereum
  • Restricted from Participating: the United States and China

For More Information

Featured image courtesy of Shutterstock.



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