An independent review of FETCH AI (FET) - Picolo Research
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Independent research on blockchain startups and ICO's An independent review of FETCH AI (FET) 21 February 2019 - Lennard Neo Picolo Research is an independent research-house. The company has not received any remuneration (cryptocurrency or otherwise) in preparing this analysis. Powered By: www.picoloresearch.com
FETCH AI Spec Buy
Making Distributed Ledger Technology Smarter
Summary
General
Fetch AI is seeking to combine machine learning (ML), artificial intelligence (AI),
Ticker: FET
autonomous agent systems and a distributed ledger network to create an
economy where data could be exchanged seamlessly. Machines integrated with White Paper: Click here
Fetch AI’s protocol would be able to communicate and solve complex problems Sale Period: 25 Feb 2019
in our daily lives, eventually increasing efficiency that is beyond human
Website: Click here
capabilities.
Concept MVP Established Sale info
Pricing: $0.0867
Accepted: BNB
Company overview Min Goal: NA
Cap: $6m
Fetch AI is incorporated in the UK with an aim to create a digital economy where Token Sale % 6%
autonomous agents can interact with one another without human intervention. Escrow: Yes
The environment will create a decentralised digital world to perform useful Bonus: NA
economic work where information trades effortlessly. There is a plethora of
applications that can be adopted, but the overall bottom line is to bring data to
life. Checklist
Management:
Here are several issues that Fetch AI seeks to resolve: Product:
Commercial:
• Creating economic efficiencies by providing market intelligence to prevent
Interest:
issues such as shipping empty containers and energy waste by power grids
Fulfilment:
• The “disconnect” between centralised systems as they cannot effectively
communicate with one another
• Scalability of distributed ledger technology
Birds-Eye View
100%
75%
Rating
50%
25%
0%
Viability Product Management Deal Structure Community
www.picoloresearch.comCommercial & Technical Strategy
Fetch AI is building a product that facilities execution of tasks, delivering data,
providing services and getting rewarded for the efforts displayed. The
technology encompasses a 3-layer architecture; 1) Autonomous Economic
Agents (AEAs), 2) Open Economic Framework (OEF), 3) Smart Ledger. ML and
AI are integrated across all layers to incorporate an intelligence element into the
system.
Several significant features include:
• OEF – The digital world where AEAs operate in, allowing them to access
services and connect with other peers. In addition, high-level commands
(transfer, explore, search and discover) and low-level commands (reaching
consensus, peer trust, transactions and protocol control) can be executed
• AEA – A digital entity that acts on its behalf. They are paired with existing
hardware and can exchange data with other agents to fulfil requirements of
the owner
• Smart Ledger – A unique blend of blockchain and DAG with two main
components; 1) smart contract on the ledger and 2) data stored on the DAG
• uPoW - Useful proof-of-work consensus that builds market intelligence and
trust over time
• Machine learning intelligence that increases efficiency using past, present
and future elements employed by AEAs
• A synchronisation of 40k tps between nodes and 30k tps for mining blocks
Figure: Fetch AI 3-layer Architecture
www.picoloresearch.comTeam Fetch AI has a total of 31 employees working for the company as compared to 38 listed on their website. Here we sort out relevant personnel together with their experiences: Humayun Sheikh (CEO & Founder) – 23+ years of experience as an entrepreneur and investor within IoT, ML and AI space. One of the first investor in DeepMind, owned by Google Toby Simpson (CTO) – 27+ years of experience in programming and designing engines. Past experiences include Ososim Limited, DeepMind, Nice Tech Limited and Creature Labs Thomas Hain (CSO) – 16+ years of experience in research and academia in advanced machine learning technology. A professor and the head of Speech and Hearing Research at the University of Sheffield. Holds a PhD from Cambridge Jonathan Ward (Head of Research) – 13+ years of experience as a research scientist and engineer in algorithmic design. An expert in the field of ML, complex systems and blockchain. Holds a PhD in computer science from UCL Troels F. Ronnow (Head of Software Engineering) – 17+ years of experience. Expert in the field of computer science and theoretical physics. Prior experience includes Nokia Technologies, Post. Doc., and Utopia Solutions. A co-author of 35 patent applications and holds a PhD from Aalborg University Maria Minaricova (Head of Business Development) – 20+ years of experience in marketing and program management. Prior experience includes GEANT, Oracle, Arthur Andersen, and AMP. She is also a member of several groups including IoT alliance, Women in AI, EU Blockchain observatory and forum, and European AI alliance. Arthur Meadows (Head of Investor Relations) – 24+ years of experience in product marketing and consultancy. Prior experience in companies such as Uvue Ltd, itzMe, Stream 121, Grapeshot and NeuStar. Holds an MBA from Cambridge Judge Business School. Addition team members include: • 19 Software and Machine Learning Engineers • 5 researchers and scientists The project has a C-suite team that boasts a wealth of experience in establishing technology companies. They are backed by a strong team of engineers, developers, and scientists with experiences in big companies such as Google, Sony, Bloomberg, and Nokia. It is also important to note that almost 50% of the team are PhD holders, with 5 members not having a LinkedIn profile. www.picoloresearch.com
Advisors Melvyn Weeks – Assistant Professor in Economics @ University of Cambridge Monique Gangloff – Senior Research Associate @ University of Cambridge, PhD in Structural Biology Niall Armes – CEO @ TwistDX Ltd, PhD in Molecular Biology Steve Grand – Expert in creating artificial life forms, AI, Robotics Jamie Burk – Founder & CEO @ Outlier Ventures Kash Iftikhar – Vice President @ Oracle, Head of Business Unit @ Dell, MBA Investors Outlier Ventures (Seed Stage) – With a believe in decentralised data infrastructure, Outlier Ventures invests at the convergence of blockchains with artificial intelligence, the internet of things and robotics. Past investments include Haja Network, Ocean Protocol, IOTA, Sovrin, SEED. Blockwall Management GmbH (Seed Stage) - A European asset manager exclusively focused on crypto assets, specifically in layer-1 protocols. Partnerships MOBI consortium – As a member of the consortium, Fetch AI is working to collaborate with manufacturers within the transportation and mobility sector Blockchain for Europe – Fetch AI is one of the 4 founding members for the association, which represents blockchain organisations in Europe alongside Ripple, NEM and Cardano Artificial Intelligence Innovation Network – A network that brings researchers across diverse fields to examine transformational AI technology on business and society ULedger – A blockchain protocol that allows Fetch to integrate real world data from IoT devices into their network Binance – Token sale will be conducted on Binance Launchpad Roadmap Fetch AI was incepted in 2018 and released its ledger code promptly in Q3 2018. However, the release of Virtual Machine (VM) was delayed in Q4 2019 and only released in Feb 2019. Below, we cite some major developments going forward: • Feb 2019 – Private test network • Apr 2019 – Full public test network with smart contracts, Develop community support • Jul 2019 – Alpha release • Q2 2019 – Beta release with all expected main net functionalities functional • Q4 2019 – Main net release www.picoloresearch.com
Token Sale
Fetch AI raised $2.06m in seed funding and $0.975m & 24,597 ETH in private
sale. Total tokens supply will be fixed with 17.6% allocated for token sale
(including seed and private rounds) and 15% for mining. Investors, advisors,
foundation and team will have a lockup and vesting periods.
Token Details Details
Token Symbol FET
Token Type Utility
Issuance Platform Ethereum (ERC20)
Total No. of Tokens 1,152,997,575
Price per Token $0.0867
Bonuses NA
Softcap NA
Hardcap USD 6m (Investors own 6% if Hard Cap reached)
Market Cap Valuation USD 100m (Fully Diluted basis assuming hard cap reached)
Token Lockup (Investors) 3 months lock up, quarterly vesting thereafter
3-year vesting with quarterly release (50% year 1, 25% year 2,
Token Lockup (Team)
25% year 3)
Private-sale Date Apr – Jul 2018
Public sale Date 25 Feb 2019
Incorporation Singapore
Fetch AI has a planned expenditure for its first three years namely on working
capital, operation cost, and academic partnerships. The greatest costs incurred
would be salaries and working capital associated with the development of the
technology.
The main token functionalities are 5 folds:
Currency for transactions – FET tokens act as the medium of exchange
between agents
Staking/ Mining – Users will be able to earn FET tokens by providing value to
the network
Connect to the digital world – FET is required as a deposit to access the
network to encourage appropriate behaviour
Access to services in the digital world – Allowing AEAs to view, explore and
search the digital economy and interact with other nodes to negotiate services
Access to ML/AI algorithms – Access to a range of intelligence tasks that are
available on the smart ledger
Token Sale Split
17% 6%
12%
Launchpad Sale Seed/Private Round Advisors
10%
15%
Team Foundation Mining Rewards
Future Release 20%
20%
www.picoloresearch.comCommunity Engagement / Social Media
Fetch AI has several social media channels to engage their community. Regular
updates on the team’s developments are posted on Twitter with a Medium page
where articles are posted to educate the community on the technology. They
also have a Youtube channel with 25+ videos explaining what the project is
about.
Engagement developments have been gaining traction as Fetch AI’s homepage
is constantly rising in ranks since Jan 2019 based on Alexa Rankings. The top 3
visitors by countires are US, India and UK respectively.
Here are the project social media statistics as per the report date:
• Telegram (English) - 13,100+ members
• Twitter – 3,921 followers
• YouTube – 481 subscribers
• Medium – 62 Followers
Competitor Analysis
Fetch AI will be competing with several blockchain projects that have the
intention to integrate ML and AI. However, Fetch AI’s product features display
superiority as compared to their peers. Here we list a couple of its competitors in
comparison to Fetch AI.
Project Name Fetch AI Cortex Labs Neurochain
Blockchain/ DAG with
Infrastructure Type Blockchain with AI Blockchain with ML
ML and AI
Symbol FET CTXC NCC
Proof of Involvement
Consensus Algorithm PoS + uPoW Cuckoo Cycle PoW and Integrity &
Proof of Workflow
Smart Contracts Yes Yes Yes
Block TimeStrengths • Innovative product allowing the autonomous exchange of information with higher throughput against its competitors • Token sale conducted on Binance Launchpad adds to the credibility of the project • Potential exchange listing within a short period after TGE given Binance partnership • Good deal structure with low hardcap of $6m and reasonable market cap valuation based on the initial circulating supply of tokens • A strong team with great wealth of experience and academic record Weaknesses • Past companies founded by CEO had huge liabilities (UVue with GBP 800k debt, and Mettalis with GBP 3.2m debt). Another company itzMe has shut down its website and no longer operating • Delayed VM launched could create a snowball effect onto other milestones in the roadmap • Minimal commits and no Github activity from most employees, however, Binance has asserted that most developments are done privately and will move to public repositories in due course Opportunities • AI $15.7 trillion impact – PwC research predicts that AI could contribute $15.7 trillion to the world economy by 2030. This is equivalent to a 26% and 14.5% boost to GDP in China and North America respectively. The sectors that will have the greatest potential AI impact would be automotive, healthcare, and retail and consumer sectors. PwC also states that one of today’s start-ups could become a market leader in 10 years. • Truly Autonomous Blockchain environment – This sector has been saturated with numerous blockchain infrastructure projects, however, those that have ML and AI integrated are far from many. Not to mention one that can create a digitalised environment for devices (agents) to interact with one another and to take advantage of meaningful data. Furthermore, most applications interact with data through pull methods rather than push and Fetch AI’s technology is seeking to resolve this. Threats • Machine learning models require huge computing power, and resources to run. This could increase exponentially if the complexity of the problem increases, eventually resulting in the network becoming inefficient • Developing AI programs could get out of hand if not developed right. One good example is Facebook abandoning two of their AI experiments after the bots created an incomprehensible language that only the machines could understand www.picoloresearch.com
Conclusion
In conclusion, Picolo Research presents a ‘Spec Buy’ rating on Fetch AI. The
technology offers a unique proposition where the ecosystem is crowded with
blockchain infrastructure projects. Generating additional value through the
creation of AEAs will re-establish how inefficient information is being utilized.
The opportunity is there, and it essentially boils down on the team delivering the
technology timely.
We highlight several reasons to affirm our rating,
• A novel idea to create a digital world where autonomous agents can interact
with one another
• Binance launchpad listing enhances the project’s credibility and adds
foundational support to the team
• Good dealhas
Astronaut structure
taken with low hardcap and market cap valuation based on
conservative
initial exposure
circulating token supply
acknowledging potentially
high risk and high reward.
• Significant competitive edge against similar projects
Not withstanding the above, Picolo acknowledges a couple of issues such as
close to empty GitHub repositories that have been rectified by Binance and will
be released in due course. In addition, most top management positions have
links with past company failures by the CEO in the past such as Ososim, Uvue,
and NOVUS4, which had huge debts or had ceased to exist. However, the debt
has been cleared and it is difficult to attribute failures to a handful of employees
as there are other employees involved. Last but not least, integrating AI and ML
into blockchain is challenging, affecting the practical implementation of the
network.
In light of the preceding, Picolo analysts recommend an overall ‘Spec Buy’
rating on Fetch AI.
www.picoloresearch.comAbout the Analyst
Lennard specializes in fundamental and technical analysis in digital asset
investments. He became acquainted with blockchain, cryptocurrency and
ICOs in 2016, and recently decided to take a meaningful step away from
traditional banking to join this industry. Previously, Lennard spent 3 years
with an investment bank in forex and debt capital markets. Prior to this, he
also had entrepreneurship experience working with an e-commerce startup
and a local social enterprise. Lennard graduated with a master’s degree in
Applied Finance and is fluent in English, Chinese with a basic in Korean. He
is a CFA level III candidate.
Ratings Definition
Monitor – Continue observation until clarity of information is provided
Sell/ Avoid – Investment is associated with high risk of losing capital
Hold/ Neutral – To maintain current levels of position until the next updated
release
Spec Buy – A speculative opportunity for investors with higher risk tolerance
Buy – A high conviction buying opportunity
Disclaimer
This report has been compiled by Picolo Research. Picolo Research is an
independent provider of research on cryptocurrency ICO’s. We have not been
paid, nor mandated for this research report. The views expressed within this
report are Picolo’s in its entirety.
The contents of this report and its attached documents have been prepared
without taking account of your objectives, financial situation or needs.
Because of that you should, before taking any action to acquire or deal in, or
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Whilst Picolo believes the information contained in this report is based on
information which is considered to be reliable, its accuracy and completeness
are not guaranteed and no warranty of accuracy or reliability is given or
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or employee of Picolo or its related entities. Picolo at all times reserves the
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and its subsidiaries, and the terms under which such services are offered. The
information in this report may have been used by Astronaut Capital
(www.astronaut.capital) in making an investment decision. The information
within this report is our own opinion only and is not to be used in making a
decision for investment.
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e: admin@astronaut.capital
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