The DigRate has assigned Quality Rate High to Eticket4 project.
Eticket4 is an international P2P-platform, operating on the secondary market of ticket sales for sports, music and other mass events. The Eticket4 platform acts as a link and arbitrator when making a sale transaction, verifying the seller and transferring tickets to the buyer using courier service, and also blocking the amount received from the buyer until he gets to the event. The Eticket4 ecosystem provides for the interaction of all market participants: investors, event organizers, ticket brokers, as well as ticket buyers.
The project founders have a successful experience, that is confirmed by the functioning business in the field of ticket sales since 2016.The project team carried out a detailed analysis of the ticket sales market and the competitive landscape. In contrast to the blockchain projects planned for launch in the US and UK in 2018 (Blocktix, Aventus), Eticket4 is an already operating business, that has experience of entering foreign markets. Also, there are successful companies such as StubHub, Viagogo, Kyazoonga in the global market. Among the similar projects that conducted the crowdsale in 2017, Crypto.tickets can be note ( A2 score of investment attractiveness ⎼ 5.2 points). During the ICO, the project raised $1.75 mn, and the price of its TKT token rose 3.5 times ⎼ from $0.06 to $0.21 since the ICO end date.
The company describes in detail the advantages of its platform, the growth factors of the ET4 token price and the measures taken to reduce the risks of investors. The economic nature of ET4 defines a token as a digital unit of Eticket4 service, that is transferred to the buyer as points for the purchase, and it is not a basis for recognizing the token as a security. The team also provided the results of the Howey test.
In order to reduce the risk of tokens devaluation and the manipulation of its price, a number of preventive measures are envisaged: limited issuance of tokens, their buyback by the platform, and ET4 listing on exchanges (after the project enters the European market).
To maintain liquidity and ensure the buyback of ET4 tokens, a reserve will be formed. The minimum platform fee (2%) for a transaction in company tokens, lottery of the prize fund, and cashback are the main factors of high demand for ET4. An additional motivation for owning tokens for event organizers is the ability to regulate the secondary ticket market for their events, restrict re-sale, set the ticket's limit price, and receive commission from secondary transactions.
Deficit model of the token ⎼ passive growth factor of the ET4 price. The foreseeable purchase of ET4 tokens for fiat means that the buyer, when using fiat money, also demands the tokens, and then spends them, that facilitates the turnover of ET4.
The operating Eticket4 ticketing platform with an annual turnover of $2 mn and an average monthly growth of 2-3% provides ET4 tokens with real, rather than speculative, liquidity.
In general, the decentralization of current Eticket4 business model will allow it to enter new markets, and the price of the ET4 token has a high growth potential in the long term with low sensitivity to market conditions.
More information about the strengths and weaknesses of the project can be found in our review.