Datecoin (HOT ICO) - dating service that uses neural networks and artificial intelligent algorithms based on working business model with blockchain use
Vladyslav Antonov
DateCoin is a token designed for a new international dating service, next generation of a successful product Denim. It features reliable growth mechanics based on global expansion strategy to enter new markets and increase the audience. This is one of the most hyped projects at the moment.
ICO Structure:
TOKEN SALE: MAR 30 - MAY 30, 2018 (GMT+3)
Maximum amount of tokens to be issued: 466 153 846 DTC
DateCoin tokens for sale: 303 000 000 DTC
Token: DTC
Token type: ERC 20
Soft Cap: $ 4 000 000
Hard Cap: $ 20 000 000
Price per 1 token: From 0.0001875 ETH to 0.00025 ETH(discount will decrease with increase in funds raised).
Minimum contribution: 0.1 ETH
Know Your Customer (KYC): YES
Accepted currencies: Bitcoin (BTC) / Ethereum (ETH)
Strong sides:
- DateCoin is the secured with working business model and growing audience of MVP, dating service Denim;
- Blockchain is used to solve the core problem of dating industry: user identification and verification;
- Project is based on profitable business, experienced team in dating industry, marketing and web design;
- Datecoin has working web-platform: https://zolushka-project.ru/;
- It has impressive application statistics. For example, iOS annual statistics;
- Dating service "Denim" has over 800 000 registered users;
- In 2017, total revenue of Denim amounted to $ 2.5M;
- Appreciation token is based on the price rise through growing service demand;
- Soft Cap was already filled;
- Official DateCoin telegram channel has 100,000 members;
- DateCoin team is already negotiating with HitBTC, OKEX and Idex;
- Over 65% of tokens are for sale;
Weak sides:
- Overly competitive market. There are several large competitors on the market such as OkCupid, Tinder, eHarmony etc
- Token is based on Ethereum platform, therefore it takes additional risks related to Ethereum platform
- It's a utility token, therefore it's not backed by any assets;
- Facebook recently announced that it launches Dating feature. It might influence dating market in the future
- Large gap between Soft and Hard Cap (4 and 20 millions respectively)
Summary: I like that DateCoin project formed large community during ICO period. So far, its telegram channel has 100,000 subscribers, Soft Cap is already filled and not that far from reaching the Hard Cap. Project is based on working platform, with real revenue, real employees and good business model. There are several issues with this project: competitive market and uncertainty over product demand in the nearest 5 years. Its total supply is 500 million tokens, while the average ICO price is around 14 cents, which opens a solid opportunity for x3 - x5 returns upon release on the market (mid-term). The main objective of the team at this moment is to keep the community solid and interested after the token release. Listing on large exchanges and detailed road map should help to reach this goal, at least for the first couple month. I definitely recommend everyone to visit their website and join telegram channel to get more information about the project.
DateCoin - Official ICO channel
Interview with the team:
- What is Denim and could you tell us more about it?
In 2015 we launched an IT project, based on the concept of satisfying the needs of the particular group of wealthy men and glamor ladies interested in meeting them. This approach has received a significant feedback from users and after a short period of time our project reached more than 700 thousand users. Currently, Denim dating service is one of the leading providers of mobile dating in Russia with quickly growing audience and high profits from a single active user.
The idea of connecting successful men and beautiful ladies is widely promoted across the world in various media, books, tv-series and movies. We can confidently state that a lot of women would like to be with financially secure men, who are able to meet their needs.
There are several thousand beautiful ladies registered on our website, who are interested in relationships with foreigners – they are ready to go to resorts, business trips, or to meet in Moscow or other world’s capitals with them. All girls registered on the website are verified, which allows to make sure there are no bots or fake accounts.
The men audience of our service from Russia, USA, UK, China, UAE, Spain, Poland, Estonia, Finland and other countries is attracted by the opportunity of dating ladies they like. We are positioning our product as dating for successful men, who are proving their wealth and serious intentions by purchasing a quite expensive access to the service. Dating, romantic encounters, joint travel or distant communication with an interesting person – users themselves determine the type of their interaction.
The application has full-fledged web version:
Promo-site: http://denim-app.ru/
Also, there are a few side-projects, for example a pageant http://bikini2017.ru/vote
Main economic indicators:
LTV - 2 390.00 rub at an average of 27.88 days
Profit distribution is approximately the following, +/-5% depending on the intensity of customer attraction.
35% of audience paying for the service first time at registration
65 % of returning audience
% of payments in mobile app: 11%
% of payments on web-site: 22%
% of payments in IOS: 50%
% of payments in Android:17%
Purchase decision making timing: 22 часа
All time ROI – approx. 70%
Annual ROI – 180-220 %
Marketing expenses paid off on 2nd month
Company saw its first profits on 3rd month
2. You claim that you have working business model and growing audience of MVP. What makes your “business model” working? Do you have some initial revenue and statistics that can confirm this claim?
The main difference between all dating apps, besides mechanics and technological features is in marketing and ideology.
We are working with our product’s idea through all stages: from banners to the app’s pages in the App Store and Google Play, and then to the registration process accompanied by an e-mail, then finally to the promotional descriptions of the paid services. This is the main driver, which makes our MVP work – it happens because we have already maintained an image of expensive and effective service.
Earlier we were investing quite a lot in marketing for new users, but now our reputation is working for us:
http://www.mhealth.ru/promotion/vyberi_svoju_zolushku_v_bikini/
http://www.maximonline.ru/guide/promo/_article/vyberi-luchshuyu-zolushku-vbikini/
https://www.cosmo.ru/sex-love/he_and_you/top-5-mest-dlya-znakomstva-s-uspeshnym-muzhchinoy/
http://playboyrussia.com/news/konkurs_-zolushka_v_bikini/
Annual visitor data:
Annual iOS data:
We have noticed some interesting statistics in IOS, regarding the first-time payments, going directly through Apple services. The second and further payments are processed through the cards, because it’s cheaper for users.
Note that the revenue is stated after deduction of Apple’s fee, which is 40%
3. Let’s talk about the problems which your project solves. For example, you are trying to solve low efficiency in finding a matching partner. How do you plan to work on that problem?
Neural networks technologies, intellectual algorithms and big data analytics for quick search of ideal partners.
A user does not have to filter the whole database of ladies and spend time on going through massive number of profiles – intellectual algorithms are making a selection. In case a user’s preferences change or he wants something new, he may always specify his search with standard filters and the system will adapt to his new requirements.
The potential of AI usage in niche of dating services is extraordinary. Millions of users are interested in fast and effective search of a perfect match.
Many males are dreaming about specific girls, which are similar to the girls they know, but for a certain reason they didn’t manage to enter in a relationship with them. Computer vision algorisms and big data analytics are making it possible to find ladies that would best satisfy the needs of a user among millions of ladies registered in the service, in other words arrange the best way to find matches – to make an ‘ideal’ selection.
Currently we are using the following verification process for female audience in our products: a girl sends confirmation picture of her holding a paper with her profile ID number. After that moderators are comparing the person on two pictures.
The introduction of neural networks and intellectual algorithms can automate the verification process, which in its turn will speed up confirmation time and reduce moderation costs. In such system moderator will be only required to solve disputes.
With computer vision technology, we can protect our users from dating ladies, who impersonate other people.
Data safety and privacy of correspondence
In many cases, cyber-attacks are possible because of the fact that services are saving on protection of user data and their correspondence. As a result, private data, credit card numbers and correspondence become available in the internet. Any service, which has a dialog feature, sooner or later needs to arrange safe storage and transmission of messages in them. Society has seen cases, when private life of users leaked in public access, which undermined trust to dating services. In our case, we have several challenges in regards to this sphere: to keep the essence of user correspondence and extract all the necessary information about people in order to simplify meeting their dating requirements. We are offering to introduce symmetric data encryption for dialogue functioning, where semantic analyzer is acting as the part of dialogues like users themselves. The only difference between the analyzer and users is the fact that it does not store any messages from conversations in any database but deletes messages from server after processing them. Server stores messages in encrypted form in the main database, which is often the target of intruders’ attack. And the decryption keys are kept in a separate storage on a separate server. Such approach will make personal data unavailable for outside parties and solve the most of safety challenges, which occur during the interaction of service administrators with the its servers.
In order to implement abovementioned technologies, we are planning to expand our development and big data & machine learning analysis staff. The process of technology implementation is planned to finish in 2019.
4. Why do you need your own token? Can’t you just use Ethereum or Monero instead?
We are envisioning the token and the whole ICO process as means of marketing for preparation of potential markets and the token itself as an instrument off which investors will be able to profit.
We are already accepting BTC and ETH as methods of payment.
The issued token in our case is a voucher for the future services. In other words, during ICO we are selling our services for the next following years.
Blockchain is used for solving one of the most important issues of dating – user verification and identification.
5. How do you plan to increase amount of active members from 700,000 to over 19 million within 3 years?
Users around the world are actively shifting their search for a match to on-line, more and more often using their smartphones and contemporary apps for that matter. The audience is growing and becoming more selective and goal-oriented in choosing search instruments. From the other hand, services are evolving and their quality is growing. As a result, internet dating sphere is steadily developing in terms of number of users and monetization level.
According to the analysis of market of online dating and competition map, it is difficult to associate DateCoin with a particular dating market segment. Conversely, we are looking for our own users in every segment, merging the most profitable and popular services among users, offering our own unique product. In such way we are striving to fill our niche in dating sphere and acquire a share of global online-dating market, satisfying the most demanded users’ requests. Product’s development and scaling will be conducted accordint to a plan. When choosing priority markets, we first take into account analytical data: market size and perspectives, size and solvency of the audience, population involvement in the internet sphere, social networks and dating services.
The first stage of DateCoin expansion will be aimed towards European part of the world as it is the most financially attractive, with the high level ARPU, high users’ loyalty and simple requirements for market entrance. Such countries would be Germany, Spain, Italy, France, UK. At the same time, we will conduct market research and launch and localize the app in South Korea and Brazil.
The second stage will be devoted to straightening our positions in Europe through Norway and Sweden and also launch the app at the dating industry largest grounds – USA, Canada, Argentina, China and Singapore.
The third stage will be marked by switching to the full working capacity in countries of presence, straightening positions in Europe and launching in the following countries: Portugal, Holland, Poland, Belgium, Austria and others. Localization and launch in Mexico and Australia.
The fourth stage will be aimed towards global expansion and launching the app across the word. Using the experience gained during first three stages, we will direct our efforts to improving the product and increasing loyalty in every country of presence.
6. What’s your marketing plan?
Product’s marketing in every region will be based on the following principle:
1. Research of target audience and payment methods of the market.
2. Product launch, based on market analysis.
3. Market testing.
4. Adjusting the product so that it meets requirements of a particular market. \
5. Product advertisement on popular local resources and also through opinion leaders.
6. Beginning of active marketing campaign, purchasing of large amounts of traffic.
7. A/B tests and strategy amendments.
Advertisement optimization for targeted action – the most effective strategy. We are planning to optimize ads for the following actions:
• Registration in mobile app.
• Purchase in mobile app.
Our business model implies specific targeting, which helps in achieving higher ROI in advertising.
7. There are a lot of dating services around the world. What makes your project better?
If we take a look at competition on Russian market, it looks like the following: https://j83me8.axshare.com
Search query ‘dating’ returns our app as 10th from 1000, considering that we are not investing in marketing in such query. This marked is flooded with fraudulent apps, which main goal is to arrange a subscription and not to provide a service, where after registration money are regulary deducted from credit cards due to various reasons. We are not using mandatory subscriptions and payments – our monetization is absolutely transparent – which is one more indisputable benefit for a user as it solves one of the main issues of dating – subscription and hidden payments.
8. What makes your team competent in this market field?
Our team consists of specialists with many years of experience in respected business areas. Among those is development of IT products, including those with high load.
Dating market is one of the most competitive and we have achieved great metrics of cost of a user and also revenues from one paying user.
When it comes to global expansion, we plan to attract industry specialists for every local market.
9. Why do we need another dating service?
People always need new trends and new technologies.
So far, the problem of international dating services is very concerning, for example, in cities like Singapore, Dubai, Hong-Kong with lots of expats and singles, existing apps are not solving problems of dating in terms of lack of time. Usually users have to spend a lot of time to find a perfect match.
10. Have you started negotiations with exchanges ?
Yes, we already have started communication with exchanges because project’s approval by popular exchanges is important for crypto-investors. Currently we are at the preliminary stage of negotiations with:
- HitBTC
- OKEX
- idex
The presence of large exchanges is required for liquidity, however we are also focused on finding one or two strategic partners, which who we will integrate through API.
Analysis was prepared by Vladyslav Antonov - Investor, entrepreneur and ICO analyst (Click here to join Vladyslav's channel)