Parsec Frontiers: Medium Quality Rate | Digital Rating Agency

Parsec Frontiers: Medium Quality Rate

18.01.2018

Parsec Frontiers: Medium Quality Rate
The DigRate has assigned Quality Rate Medium to Parsec Frontiers project. The Parsec Frontiers team is developing a multiplayer online game centered on the colonization of planets in the Milky Way. The blockchain economy is fully controlled by players and is to allow users to mine and use rare metals, create modern ships and defense systems, as well as buy and trade resources for profit. The project team has described the business model and the game universe in detail. The project website has information that the game is already developing, although, the prototype and the source code for the product has not been published on GitHub. The game is to use its own currency - Parsec Credits [PRSC]. This is a classic crypto token, which is to be traded on exchanges, while all users are to be able to exchange tokens for other cryptocurrencies or fiat currency. The issuance of PRSC tokens is limited and the team has described a mechanism in accordance with which a portion of the tokens is to be withdrawn from circulation and destroyed. The project team has presented the results of a Howey Test, according to which PRSC tokens are not securities. Escrow is not used by the project. Additionally, there are no legal documents (for example, Terms & Conditions, SAFT) and information about the legal structure of the company. The project is supported by strong consultants and well-known experts in the blockchain field. Information on project support from VC investors has not been disclosed. At the time of drafting this review, marketing activity was insufficient. Furthermore, the project is not widely discussed on blockchain news resources. The described game world is not a unique idea, and the project has several successful competitors, such as EVE Online and Star Citizen. Star Citizen, which has been being developed since 2012, has sets records for fund raising through crowdfunding and has a huge fan base. Using the EVE Online example, the introduction of blockchain technology is not a prerequisite for successful monetization of an in-game economy. The business model of Parsec Frontiers contains considerable risks, as the innovative component of the project and the benefits are not obvious. Pros and cons of the project, can be found in our review.