Gilgamesh (GIL) Rating
Gilgamesh is a knowledge-sharing social platform powered by Ethereum smart contracts and blockchain technology.
Gilgamesh Platform is knowledge - sharing Etherium smart contracts based social networking platform, pooling together knowledge providers and users - readers, critics and authors. The Platform allows to share a content including books, articles, publications, opinions in a protected environment allowing authors to stay anonymous. Gilgamesh is aimed to compete with learning and education market leaders by means of creation a secure and organized resource for knowledge-seekers that transforms the publishing industry and the way readers interact with one another by using Blockchain technology.
|AVERAGE SCOPE 0.22||INVEST||OUTLOOK POSITIVE|
GE McKinsey Matrix
We determine Gilgamesh competitive strength at a medium level, considering it’s unique business model (Blockchain - based copyright protection system) but the presence of several large competitors on the market. Industry Attractiveness is high: the market will grow with a CAGR of 4.9% annually according to Technavio’s analysts estimates. Revenues of e-book sale grow at 3.3% CAGR rate, while total market is valued at US$11.8 bln for 2018. As a result, we conclude that Gilgamesh is considering as a good object for investment.
|Grow Penetrate||Selective Harvest or Investment||Harvest for Cash Generation|
|Invest for Growth||Segment & Selective Investment||Controlled Harvest|
|Selective Investment/Divestment||Controlled Exit or Dis-Investment||Harvest foe Cash Generation|
Figure 1: McKinsey / GE Matrix | Source: ALFA Ratings
The platform indent to monetize project through several channels:
- - Authors or content providers advertisement
- - A service fee for publishers as mediators of the flow of knowledge from authors to readers
- - Fee and commission from books, e-books, and audiobooks purchases users make on the platform
We estimate revenue generation potential at a moderately high level, relying on the strong competitive market positioning as well as the probability of global expansion. In general, business model is perfect: we highly appreciate the vision of the project by its founders, but the market chosen by Gilgamesh grows enough slowly and is already saturated with large players.
Estimated start date: an 13, 2018 - 17:03 PM PST, Estimated end date: Mar 24, 2018 - 18:04 PM PDT, Duration: 70 Days - 10 Weeks, Current bonus end date: February 24, 2018 - 17:04 PM PST, Current bonus end block: 5149273, Token exchange rate: 1 ETH = 1200 GIL tokens, Hard cap: 12,500 ETH, Total tokens for sale: Maximum 18 Million GIL Tokens, Minimum transaction amount: 0.1 ETH, Accepted currencies: Only ET
FIGURES 2,3,4: %, Bonus in Weeks, Using of Revenue, Token Allocation respectively
Gilgamesh team is going to allocate funds received from ICO mainly to founders and stuff (65% of total revenue), 16% to operations and 13% to marketing needs, 6% of funds will be used to legal spending. We estimate the structure of the budget as quite universal, taken into account the character of Gilgamesh’s business model.
All sold tokens will be distributed between founders, who will gain 20%, users – 30%, early contributions and advisors – 5%, 20% stays with Gilgamesh and 25% is planned to be raised through ICO. According to whitepaper, token sale purchasers can gain influence in the governance of the Gilgamesh platform, spend tokens on the platform on goods and services, or maintain their initial status to vote and influence the Gilgamesh platform for future features and changes. Money is also expected to be provide as a token-based compensations for the founders. Founders will receive GIL tokens over a 24-months vesting period with a 6-month cliff which means founders will mature 25% of their GIL tokens every 6 months.
Gilgamesh allocates 1% of the total number of GIL tokens (2.4 M GIL) to the bounty program. The bounty campaign will be realized through the following channels: signature and avatar bounty - 20%, translations bounty - 15%, blog post / Media bounty - 10%, Twitter bounty - 10%, bug bounty - 1 0%, Telegram bounty - 5%, voting DAPP bounty - 5%, miscellaneous bounty - 15%.
The bought GILs could be used to: purchase a book, audio, or eBook; publish a book on the blockchain; advertise (service providers); legal advice for publishing & copyright; advertise (authors); pay platform fees; pay a critic to write a review (author); hire a book designer; advertise a book; hire a printer; hire a copywriter Hire a book distributor; hire an editor, hire a marketer.
All token-holders have the ability stake tokens in the Gilgamesh platform to vote and take part in the government of the platform. As a result, the Gilgamesh platform is going to be designed based on the token-holder’s vote.
Global literature market grows steadily, it is set US $121.1bn by 2021, up from US$114.8bn in 2016, according to Pwc estimates, mainly due to several factors:
- the advancement in technology;
- rising population of educated youth;
- increasing smartphone penetration across the globe;
- free accessibility and e-book reader applications.
Another one driver is the availability of a real-time translation of e-book in various local languages that will also incite the market over the forecast period.
Pwc forecasts global publishing market will grow slowly, by 1.1% CAGR over the next 5 years, considering the evidence of unique challenges in each segment of the market. Narrow professional literature will generate a higher proportion of profit compared to consumer and educational books, Pwc analysts expect. Professional books will make the most significant contribution to the digitization of the industry, supported by consumer and educational books respectively. Using of professional literature within the e-books will drive the market growth, as many professionals are not available to carry hundreds of books at the same time, it is enough to take an e-book.
US market is more digitalized than any other national markets: the share of e-book revenue in the total books sale is 42%, while in other regions e-books sales occupy 39% of the market in average (as for 2017, for UK, Canada, Australia, New Zealand).
Figure 5: % of E-book Sales in Total Sales, 2017
It is important that more than the third of books published in US are self-published as for 2017, in Canada, books, published by authors without agencies are comprised 29%, in UK – 24%, Australia – 23%. It creates an excellent opportunity for wild publishing services to occupy the fat share of the market.
Figure 6: E-Book Sales Breakdown by Publisher Type, 2017
Hexa Research expects Asia Pacific will grow faster than other regions over the 2014 - 2024 on account of rising adoption of smartphones and other digital reading platforms such as Adobe e-Book platform and Kindle. India and China are distinguished by numerous educational institutes from any other country in the region. These institutes prefer e-reading over the classic books to reduce the necessary facility as well minimize the cost attached to with paper books.
About 60% of the books sold in this region are educational as a result of higher number of educational institutes. Preference of digitization, especially journals in STM (Science, Technology and Medicine), to access a larger volume of information is expected to drive the market growth over the forecast period. This factor will accelerate nonfiction & education segment, resulting in 28.4% contribution to the overall market by 2024 (Hexa estimates).
The major part of total revenue will be contributed by the fiction literature. The demand for the genre has been increasing on account of consumer preference for leisure reading, and the segment is expected to grow at a 7.8% CAGR over the forecast period.
The industry is characterized by the involvement of some large companies that operate in the market for a substantial period including Amazon, Hachette, Harper Collins, Penguin Random House and Kensington Publishing. Each of them has a large share of the market (US market: Amazon - 83.3%, Apple iBooks – 9%, B&N Nook – 4%, Kobo – 0.3% etc.). The main focus of the leaders is to make strategies on expanding the reach of the market to customers and to capture a larger market share.
As for direct competitors of Gilgamesh, we found some platforms very similar to this one:
- DECENT - is a Blockchain Content Distribution Platform that Network allowing to efficiently distribute virtually any form of content, including written, music, videos, e-books and pictures. The distribution does not rely on third parties meaning that artists will also manage their IP rights and pricing themselves.
- CreateSpace - one of the main centralized platforms owned by Amazon. It enables publishers to self-publish in print for free from anywhere in the world. The clincher is that the print book will only be available for sale at Amazon.
- Steemit — A social network and public publishing platform from which any Internet application may pull and share data while rewarding those who contribute the most valuable content. Also some self-publishing blockchain-based platforms already exist at ICO token-sale stage.
We conclude, that there’re some strong competitors, including blockchain - based projects as well as the well - experienced large publishing companies. In our view, Gilgamesh’s team has an amazing business model view and some competitive advantages, but the project's marketing resources are limited, especially when compared to large market players, such as the Amazon Create Space and Apple iBooks. Nevertheless, Gilgamesh is already has a lot of concerned people and followers, who respond about the project in the best way.
Gilgamesh’s Team consists of five founders and three external advisers. Core team members are the following:
Mahdi Pedram – founder and Software Architect. Over 10 - years experienced software developer, UI Architect, and Ethereum Smart Contract Developer. Has experience within eBay, ex-founder and CEO of Mexo Inc.
Atefe Mosayebi - Software Engineer & Project Manager at Gilgamesh, telecommunications specialist at Tehran Urban & Suburban Railway operation Co.
Ali Rasekh - Director of Operations & Security Manager of the project. Has a background in Cyber Security consulting (Accenture, Deloitte), Director of Cyber Operations (Nova Chapter) in the Association of Information Security (ISSA).
Mo Vahedi - Product Manager, Solution Delivery Lead at Gilgamesh. SDLC expert with a background in Computer Science and Software Development, possessing over 7 years of professional experience leading and delivering enterprise and customer facing Apps in the Aerospace and Technology industries.
Mohammad Amoozegar - Blockchain Data Analyst at Gilgamesh. As a web-site indicates, Mohammed has about 4 years of experience in experimental research and SPSS with specialization in in blockchain market research.
Gilgamesh’s Team also attracted 3 external advisers, who take part in the development of the platform from different perspectives:
Kumar Gaurav - Blockchain & Business Advisor. Founder of founded Cashaa, a blockchain - based payment and banking platform, ranked among the top 100 Blockchain companies in the world, Chairman of Auxesis Group.
Nathan Christian - Blockchain & ICO Advisor, technical expert in Blockchain - based accounting and financial applications. Serial entrepreneur with over 35 start-ups in his portfolio.
Douglas Park - Legal & Business Advisor. Douglas Park is a transactional attorney who has been named to the Super Lawyers list in Northern California in and securities Business/Corporate law. Worked with Starting Startups at Stanford. PhD in Business from Stanford Graduate School of Business, JD from University of Michigan Law School.
Reza Dibadj - is an accomplished corporate and securities with MBA earned from Harvard Business School, JD magna cum laude from Harvard Law School.
The project team consists of experienced specialists supported by strong team of advisers. Team members have a sufficient experience in the field of Blockchain, software development, business operations, law and product management. It’s important to note the existence of a high expertise level of team advisers in corporate law, but the lack of information about their experience in copyright law specifically, that are relevant for this project.
Among strategic partners of the project specified on the company’s website are a lot of press sites and some ICO rating agencies.
The only one real valuable partner of Gilgamesh is Cashaa – is a gateway to consumer-centric and affordable financial products aimed at consumer adoption of Blockchain without having to understand the technical details of Blockchain technology. Cashaa’s wallet system, integrated with the peer to peer exchange with full spectrum of fully digital financial services, enables its community to save, spend, borrow and get insured, with a simplified user experience in a legally compliant way. Cashaa was founded by one of the Gilgamesh’s announced advisors - Kumar Gaurav. He founded Cashaa in 2016. This platform is already ranked among the top 100 Blockchain companies in the world.
We regard this partnership as strategic important: the name of Cashaa, as well as consultations from its founder will have a positive impact on the Gilgamesh’s Development.
Social Network Activities
Gilgamesh is actively promoted through Twitter, Telegram, Medium, Bitcointalk, Github, Reddit, Facebook, etc. The project regularly updates and post news in social networks. Actual numbers of subscribers on the official pages of the project in social networks are following:
Facebook - 707 Subscribers
Twitter - 3979 Subscribers
Telegram - 2519 Subscribers
Medium - 2519 Subscribers
The project is actively discussed at social networks, where users demonstrate sufficient interest in the platform. The project is quite attractive for users and causes a lot of positive feedback and opinions. Gilgamesh conducts the marketing campaign mainly through Facebook, Twitter and Telegram. In our view, the social media marketing campaign is rather effective and shows aroused great interest among audience and press.
The marketing campaign of the project focus on working with and integrating with third party companies to sell and ship books, develop analytics and tracking methods, and secure service providers for the self-publishing platform, according to Gilgamesh whitepaper. The main objects of Marketing Team of the project are to increase general awareness and knowledge of the Gilgamesh platform to potential customers, service providers, and users.
In our view, marketing strategy is described rather vague, the ways to achieve the company’s goals are not specified.
During comprehensive analysis of the project, the only one risk associated with the market, was identified. In our opinion, publishing market is fully saturated. The emergence of new blockchain technology will force the market to move towards the development of new techniques for the property rights protection, but existing players will continue to maintain their monopoly and influence for the foreseeable future. Nevertheless, Gilgamesh’s business model could be attractive for self-published authors, private critics and new other market players. This fact creates good conditions for the global expansion of the project.
The market risk is estimated at a Medium level.