Pareto ICO – A Peer-to-Peer Content marketplace for Crypto Asset Analysis
The Pareto Network incentivizes the generation and sharing of information about tradable opportunities in cryptocurrencies and related assets. It is designed to elevate information about market inefficiencies and deliver more accurate price discovery within emerging crypto assets. It replicates the function of research desks at investment banks, provides a flow of analytic information, and aligns economic incentives around access to this information as a service.
Pareto ICO – The Opportunity
“For many events, roughly 80% of the effects come from 20% of the causes” – Vilfredo Pareto.
Cryptocurrencies require a different type of investment analysis in comparison to conventional equities or FOREX. Assessing the viability of a new cryptocurrency or a token typically requires evaluating:
- the open source software or technical architecture of a project,
- the proposed model of the decentralized market,
- the economic design and its ability to incentivise new market player behaviour,
- the long-term viability of the blockchain or protocol stack within which the token resides,
- the security of transactions and data, and
- the regulatory requirements within the marketplace, to name but a few.
This creates a challenge for investment analysis because existing investment information tools cannot be ‘applied’ to the above factors. Currently an investment analyst would review numerous financial information such as balance sheets, P&L statement, commercial transactions, future financial projections based on factors such as market share, sales and expected future profits to determine the viability of a project or an equity. The above factors take a more specialised and technical skill set to evaluate the merit of the crypto asset in question.
In the Crypto markets, investors do not have access to conventional sources of research or equity analysis. This lack of fiscal information is the greatest challenge to crypto investment analysis and the speed at which new cryptocurrencies and tokens are entering the market as tradeable assets. To illustrate this, in July, there were over 800 cryptocurrencies available to investors and it is likely this will grow to over 1,000 by the end of 2017. This represents a huge opportunity for investors, but the sheer number of choices makes it nearly impossible to differentiate between them. Investors need information tools to help devise and implement investment and allocation strategies to take advantage of cryptocurrency as an asset class.
Pareto ICO – The Solution
The Pareto Network is the first real-time actionable intelligence platform, providing decentralised investment analysis through their peer-to-peer content marketplace, from content providers who can provide the technical skillset and analysis need to conduct due diligence of this emerging asset class. It will enable participants to make informed investment decisions in the cryptocurrency markets. The Pareto network is made of three parts: Original analytical content from Content Providers, the Pareto Platform which distributes content, and Token Holders who received the content based on their ranking by the platform, determined by the number of tokens they hold.
Original Information/Analysis provided by content providers, could include (but is not limited to) the following:
- Analyst reports – coverage of new & existing tradable tokens or investments
- Sector reports (e.g. storage, prediction, computing)
- Analyst reports on return on staking/mining
- Technical trading alerts and reports
- Codebase reviews
- Code vulnerability and security assessments
- Evaluation of investor tools
- Evaluation and discussion of fund management tools
- Crypto investment manager surveys
Content Providers may be individuals, or organizations. They may generate single items of information, or multiple items produced over time, like subscription models within investment banking research desks. Submissions of content to the Pareto Network is open to Content Providers who will be required to purchase Pareto tokens (PXT) to pay for platform access and to prevent spamming or inappropriate content reaching Token holders who pay for this service.
The Pareto Network incentivises and rewards all network participants through its unique waterfall reward structure outlined below:
- Original Content Providers contribute content to Pareto Network
- Pareto Network distributes content Data Item releases to Token Holders in prioritized sequence
- To maintain or improve their position on the waterfall, Token Holders “vote” rewards on the value of Content Releases. Holders that do not spend their tokens are penalized for inactivity by not maximizing their place in the network or for attempting to use Pareto tokens for speculation.
- Voted tokens are rewarded to Content Providers – these supplement direct rewards from Pareto Network.
The Pareto Network uses a ranking algorithm to determine the order in which Pareto token holders are provided with the information created by the Content Providers. The outcome of the ranking algorithm is called the waterfall, and it is akin to a Leader board. There are a variety of criteria which have an influence on a holder’s position within the waterfall and these can be used strategically to obtain information.
Pareto tokens are required to access the Pareto Network. Spending tokens by paying Content Providers is the best way to move up in the rankings to receive the information available in the Pareto Network first. Thus, Pareto tokens represent the cost to the holder of accessing the Pareto Network and receiving its content at the optimal time relative to other holders.
The price of Pareto tokens will reach equilibrium at a level reflecting the perceived value of information available in the Pareto Network. Holders who have reached the equilibrium will therefore sell off some of their Pareto tokens on the secondary market, providing further platform liquidity.
The Pareto Network is creating a new Ecosystem that will improve efficiencies in the generation and distribution of investment analysis and information valued by investors. Pareto will contribute to the rationalization of the crypto asset markets for blockchain-based investments and facilitate more efficient allocation of capital within this revolutionary and rapidly growing sector of the global economy. At a human level it will enable those devoting their time and talents to the crypto space to share their analysis and to benefit from Vilfredo Pareto’s insight that a fraction of the inputs account for majority of results.
Pareto Token Sale Details
|Token Symbol||Pareto Token (PXT)|
|Total Number of PXT created||500,000,000|
|Percent of PXT sold to public||40%|
PRESALE - Open
|Presale Closes||January 15, 2018|
|Bonus during Presale||1 ETH = 1700 PXT (39% Bonus)|