A review of the Naviaddress website, white paper (WP) and encompassing information was conducted by the team from CryptoCentral.io (CC). This process is going to speed up the process of the ICO by becoming officially certified by the CC team, with our stamp of approval.
By being ICO certified, potential investors will have the confidence they need to know that the ICO information has been studied, and a thorough investigation into the ICO was conducted. By showing the stamp of ICO certified, it will give extra credibility to the team, and entice investors to trust the team.
The investigation was conducted with utmost care and is understood to be above what the average investor would conduct during a due-diligence investigation. All information from the website, WP, and provided information is taken as true and factual.
Under no circumstances should this report be used as investment advice or solicitation. This report is for educational purposes only and does not replace the readers own due diligence research. Investing in crypto currencies is extremely risky and can lead to loss of all investment funds. By continuing to read this document the reader understands the risks and acknowledges this is for educational purposes only and has no bearing on whether to invest in the discussed ICO or not.
Naviaddress is a blockchain ID project, which develops, markets and operates an address platform. The platform provides users with naviaddresses as unified digital IDs for any places or objects in physical and virtual worlds.
Naviaddress claims to be able to service and provide an address to the 4 billion people on the planet, primarily in the developing nations who currently don’t have a verified address.
There is a wide use case for Naviaddress and some of the fundamental functions include:
- Avoid confusion by having a unique digital representation of a geo-location for residential and business address as well as any places of interest such as landmarks etc.;
- Provision for physical building location especially within densely populated cities with complex structure;
- 3-dimensional representation of structures such as high-rise apartments;
- Helping to build identification as endpoints of postal systems; and
- Social status signaling.
Naviaddress is the first and only organization in the mapping space that is attempting to reinvent the legacy-based mapping system as we know and use today. Although their aim of creating a global digital addressing system is highly ambitious, should they succeed, the rewards for early investors could be huge.
The Token Model
Naviaddress will issue Navitoken (NVT), which is an ERC20 token based on the Ethereum platform. The tokens will be used to purchase and register unique addresses
Below is a step by step overview of the process relating to the creation of rights to a Naviaddress:
1. For (Custom & Postal) Naviaddresses:
- A Customer sends a request for a Naviaddress;
- A right to a Naviaddress is granted by the Platform;
- Tokens received from the winning Customer are burned;
- The information about the Naviaddress beneficiary (the beneficiary’s public key) is updated.
2. For Premium Naviaddresses, an auction for rights to such addresses will be set up, following which:
- Information about the Naviaddress beneficiary is updated;
- A nominal number of NVTs are burned;
- The auction fee is collected from the Naviaddress Platform wallet;
- There is a mutual settlement with the unsuccessful requestor, if any;
- Information about the Naviaddress beneficiary and address storage is updated.
All unsold tokens will NOT be burned. Instead, it will go to Naviaddress platform development fund. This fund will not go to the team, but rather act as an incentive mechanism for the team and other stakeholders for platform usage.
White Paper Review
The WP reviewed was “Naviaddress”.
No information or consideration will be given concerning grammar or spelling, unless it is extreme.
The Naviaddress WP focuses on the existing “status quo” system we use today and does a good job explaining the benefits of switching to the new digital system. However, in doing so there are some questions concerning the token model that are not adequately explained such as total token issuance, the token burn rates and figures as well as pertinent information concerning the ICO. It does however, explain why the system can harness the power of block chain to drive efficiency.
The whitepaper also fails to explain in detail how their proof of concept model work. They hint at the possibilities of the bigger picture, provided they achieve all their milestones; as stipulated on their development roadmap and on their intended partnerships. Naviaddress has included their legal disclaimer which is quite lengthy and stresses the inherent risk associated with such an experimental venture.
Other key information such as NaviToken (NVT) distribution and use of proceeds is not mentioned on the whitepaper, nor is information about the team. This information can be found on their landing page however, it would have been good practice to have an all-encompassing whitepaper document. The Naviaddress whitepaper does a poor job at aggregating all information in one document as one can expect from a product disclosure document.
Business Key Products
To understand the business process operations, we need to analyze the primary stakeholders that are expected to interact with the Platform and how the token fits within this model:
- The Naviaddress Platform is created and managed by the Naviaddress Operations team. The team will coordinate and shape the strategic direction of the company. The NVT tokens will not give voting rights to the token holders.
- Developers, geographical/mapping companies, governments etc. can develop various products, transactions and services relating to the Naviaddress System and help extend the platform. Developers receive NVTs by creating new locations and extending the services and products. These activities are incentivized by the Naviaddress Platform.
- Customers, have the right to acquire rights to a Naviaddress and publish this information within the System in the blockchain ledger. Every Platform member is eligible to exchange Naviaddresses for NVTs.
- User, Individuals who use Naviaddress applications and activities.
Navtokens (NVT) are pure utility tokens and are used to power the platform. These can also be redeemed to create “Premiun Naviaddress”. These will allow the purchaser to:
- Assign a physical location to the premium Naviaddress;
- Assign additional metadata to the premium address;
- Modify the location and the metadata associated with the Premium Naviaddress; and
- Exchange the premium Naviaddress on the secondary auction market.
NVT will be used as the primary revenue source for Naviaddress. Users could pay with Fiat to utilize the platform, or pay for leasing of a unique ID, however the platform will convert this value to NVT tokens for access.
The paid model for Naviaddress may hinder mass adoption. Although the current model is inefficient and can cause confusion, change on such a global scale should have as little friction and cost as possible.
After reading the WP, the next place that potential investors will closely scrutinize is the project team. It is imperative that the team information is accurate, up to date, and all information is readily available.
Naviaddress has a core team of 9 people and 11 advisors. As far as crypto projects go, the core team to advisor ratio is odd. Generally, for a team this size 3-5 advisors are sufficient. Having 11 advisors indicate a lack of strategic leadership and planning abilities. Furthermore, with this level of external commitment, these advisors may have been given a large proportion of tokens as part of their benefits package. And therefore, the likelihood of them dumping could be high. Although, the website does provide information on vesting period for company and management team for 36 months lock-up after the end of ICO, no such detail is readily available for advisor remunerations.
The team only has one blockchain architect as well as a geo mapping specialist. The project has a huge blockchain based infrastructure that will need to be built, they have a large team of people working on the project also, who are not listed on the main webpage. The following is a quick summary of some of the main team members follows:
- Their Chief Scientist Rostislav Yavorshiy does not have a LinkedIn profile;
- The Co-founder and CEO, Dmitry Moiseev’s LinkedIn profile is quite active with over 500 connections, and a long list of work history.
- Mikhail Gamzin who is the founder of Naviaddress has only 307 LinkedIn connections;
- CFO, Dmitry Khmelidze also doesn’t have a LinkIn profile;
- VP, Andrey Li has an Impressive resume. He studied MBA from INSEAD, as well as having worked with City Group and UBS. He is also well connected on LinkedIn with over 500 connections;
- Advisor, Alexander Busarov who did his BSc from London School of Economics (LSE), has also co-founded Wabi; who successfully launched and completed an ICO recently.
After having received additional information about the rest of the team members and advisors, they are quite competent, and can be found outside of just what’s available on the website.
Website and Social Media Review
The website for the Naviaddress was visited and inspected on March 18, 2018.
Having a clean and professional website is absolutely critical to impressing potential investors who are investigating your project. The website is the visual, and written representation of the company as a whole, if the website is not up to par, potential investors will leave without a second look back.
Naviaddress has a very nice website that is laid out well. It loads quickly and gets the important information across to investors with easy to read fonts, graphics, and precise videos. It has many good points, and not many errors or omissions.
One of the best features of the website is the opening panel. As soon as it loads people are given information about the pre-sale that is happening, bonus information, and access to the Whitepaper and the executive summary for the project. As the reader scrolls down information about the project, token financials, team & roadmap are given so that they can have a better understanding of the project.
For the social media side of the project it has some decent traction, but it is certainly not viral at this point. The Telegram has a decent following of about 4,244 people, the Facebook has over 3,000 likes and followers, Twitter has approximately 7,000 followers, and the Bitcointalk thread has 26 pages worth of comments. The projects outreach is not bad, but it certainly needs to increase its marketing in order to draw in more people for the ICO.
The Telegram channel and Bitcointalk are fairly active, and it appears that the team themselves are managing and posting in the channels. However, when I probed into the tokenmetrics of the project and pushed for more information, the admins simply stopped responding. This may be due to the fact, they don’t know and/or haven’t been provided further information. Regardless the reason, it’s not a good look for a company trying to raise millions.
From a Google search of “Naviaddress” they show up as first on the search results, which is good. ICO Bench and a few other review services have also given them 4 out of 5, which is also a positive. There are several different articles & blogs that feature Naviaddress ICO in appositive light. Overall, for the website and presence portion the project is doing quite well!
An economic evaluation is the most difficult part of an ICO. There are many factors that determine how the markets will react to a coin and it’s almost impossible to ascertain its likely success. Sometimes great projects with solid teams achieve little in terms of price appreciation, whereas less credible projects get pumped.
As is explained in the WP and on the website for Naviaddress, they are the first to attempt a redesign of our current mapping and address system utilizing blockchain technology. Hence, they will have first mover advantage, however, they have a huge task at hand, and many unforeseen challenges could arise. Furthermore, since Naviaddress is unique and the first of its kind, it is difficult to compare using competitor’s results. Therefore, we will conduct a token and financial fundamental analysis based on the entire market.
First and foremost, it is important to note that they have been actively working on the project since 2015; with the first angel and seed investment of 2.5 million dollars. They do have a minimum viable product and the app is ready to be downloaded. For the purpose of this evaluation we have not tested the app. They have 60,000 registered app users. Furthermore, and most importantly, they have partnerships with Uber, DPD and Booking.com.
As for the token pricing model, Naviaddress wishes to raise $20 million dollars, for 40 percent of the total NVT token supply, which gives it a valuation of $50 million dollars on a fully diluted basis. We feel that this amount is excessive, given the company has managed its operations with only $2.5 million over 3 years (2015-2017). Furthermore, the concept is still very experimental at its current stage. They are not solving a big pain point within the Crypto or traditional business model. Hence, adoption may be extremely slow. On a positive note, Naviaddress has recently gained a lot of positive reviews within the crypto community and hence, may result favorably on its price. It has received 4.3/5 and 5/5 with ICO bench and Track ICO respectively. It also received 10/10 by Fundico and was featured on Cindicator as the most promising ICO’s to invest in.
Naviaddress has an MVP and operational product on the market. They have some capable advisors to rely on for guidance. They have been featured in various articles and review sites and have very high overall ratings. They have a well-polished website and good online presence. They will also have first mover advantage as they are the first to challenge the current digital mapping space.
Naviaddress community is also very small for a project of this scale. Their Telegram Channel has c. 4500 members. Since they are the first movers in the space it is difficult to forecast how it may be perceived by the community and social media ecosystem as a whole. There may be some confusion for the “premium” Naviaddress and how they will be acquired or “leased”?
Although the potential should Naviaddress achieve its goals is huge, they appear to have a small community. Since they will have first mover advantage, they could acquire a very large market share, outside of their beta.
One of the biggest opportunities and threats is the first mover advantage. Since they will be the first to attempt a complete overhaul of our current addressing system. However, by far the biggest threat to Naviaddress right now comes from the market forces. We are currently going through a severe bear market where almost 50 percent of the existing tokens have either retraced back to or below its ICO price. Hence, Naviaddress will likely to dump if the market maintains bearish. If and when the markets recover, many appealing crypto currencies will be competing with Naviaddress for market share.
The digital mapping and address verification market is about to be disrupted by Naviaddress. However, were not sure the market is ready for such a disruption. The project will only succeed if they manage to partner up with many government and multinational corporations, especially someone who is already within mapping space such as Google or Apple. So far, the team appear to be on target with potential partnerships with Uber, DPD and Booking.com.
The size of the market and the revenue targets have not been identified in the WP, hence, we cannot use traditional financial metrics to be able to reliably place a valuation on the token. Having the first mover advantage can be a blessing and a curse, as any lessons learned will be costly. They have a small but growing community and marketing will be critical for mass adoption.
It might take a longer than a year to adopt the concept. In early digital maps era before smartphone introduction it took Google maps several years to show traction as well. Google Maps for Android and iOS devices was released in September 2008 – 4 years after the technology and business was acquired by Google from Where 2 Technologies company which started to develop the concept early 2003.
Despite some of these smaller issues, the greater opportunity for the possible disruption is large. They have a working product now, beta version of addressing system on blockchain and their market research for how numbers can help change the navigation world is impressive.
The review of the Naviaddress project has found minimal issues. Aside from the issues highlighted above, the team appear to be competent, the WP is well written, and the website is well put together. There are a few suggestions that would should be considered to improve the quality of the entire “package” and are outlined in the summary below. Based on the findings of the Naviaddress team, WP, project, and market condition it has been given a PASS by the CryptoCentral team.
Disclaimer: This is not an investment advice. It is of paramount importance that everyone should do his or her own due diligence before investing in any product, platform, tokens etc. Cryptocentral.io does not endorse any content or product published on this page. Our aim is to simply provide all the readers with the latest information in the field of cryptocurrency / blockchain industry that might be of interest to our readers.