Investment Research Report - Betswap ($BSGG)
1. Summary of key points
1. Betswap is a multi-chain decentralized sports betting exchange. The transformation of traditional sports betting in the form of DEX into a game as simple as trading virtual currency brings the benefit that individual bettors can move away from the traditional betting industry where the bookmaker determines the odds, so that the market can flexibly determine the odds of the game, and individual bettors can open new odds on their own. But on the other hand, the liquidity and trading depth of the order book determine the quality of the product experience.
2. Betswap's technical and team background has extensive experience in the sports betting industry. Compared with projects of the same type, Betswap's marketing level is average, the project's route planning is relatively clear, and it always develops products around sports betting, and strives to combine it with GameFi and NFT. However, there is still room for improvement in the combination of products and tokens, and the use scenarios of tokens need to be further enriched.
3. Judging from the community activity and on-chain data, this part belongs to Betswap's weak link. The growth rate of followers is average, and the frequency of updates is average. Social media interactions with followers are mediocre. However, the recent horse racing chain game developed with Oly Sport has attracted more attention from the community and the outside world, and the discussion is acceptable. At present, there are few coin-holding addresses on the chain, and most of the tokens are concentrated in the hands of the project party.
1.1 Advantages
1. Judging from the disclosed roadmap and released products, there is progress every quarter, and testnet products and staking have been launched. Judging from the testnet products currently online, the development of various functions of the product is relatively complete.
2. Betswap is in a relatively large betting track market, and the user pays at a glance and the unit price is generally high. Betswap transaction fees are 1.5%, and if you can have a stable user base and open up new markets, the project income will be very considerable. In addition, coupled with the 30% fee repurchase and token burning mechanism, the deflation brought by the token will also have a lot of energy.
3. The project has two major potential growth points in the second half of the year, the first is that the NFT horse racing game product developed in cooperation with Oly Sport is nearing completion, and the project will collect handling fees from players' horse racing bets and take out a part of the BSGG to buy back and burn. According to the latest revelation from the team, the project is scheduled to be listed on Binance by the end of the year, and if it can be realized, it will bring significant user volume and transaction volume to the project.
1.2 Challenges
1. There is still a relatively large development space for the combination of project token and project, and there are only 3 use scenarios at present; 30% fee repurchase and destruction mechanism (up to 90% of the total amount of tokens burned), staking, community autonomy proposal voting rights. The project itself has a betting system, but it does not use BSGG as a designated token for subscription consumption. The liquidity and transaction depth of the betting order pool itself largely determine the user experience and the future development of the project, and the project plans to launch the betting liquidity pool in the future.
2. The marketing ability of the project is not a strong point, there are few online and offline marketing events, and one of the largest investors, Wonderland, has redeemed the project investment, which has a certain impact on the ecological resources of the project. However, considering that there are co-founders with rich investment banking experience in the team, the team will still seek better investment institutions in the future.
3. The on-chain data is poor, the token holding addresses are few, the token holding is more concentrated, and the rest of the holding wallets are mostly small holders, and the growth of on-chain transaction volume and new addresses is not ideal.
4. Compliance risk, according to official information, the project does not hold a betting license in any country for the time being, and there are no restrictions on the use of users with high compliance requirements such as the United States.
1.3 Outlook
The project has been launched for a year, and Betswap has a good foundation from a technical and product perspective, with most of the main features already launched, significant and NFT games nearing completion. Due to Betswap's disclosed trading platform profit model and current trading situation, Betswap may be exposed to certain centralization, liquidity and compliance risks. The project is in the process of development and there is still a lot of room for improvement. The progress and results of the project's betting liquidity mining and exchange launch will be the key nodes for the success of the project.
1.4 Summary
Based on the above information, Web3 Research has rated Betswap as CCC with a stable outlook.
2. Multi-dimensional perspective assessment
2.1 Project Description
Betswap is a decentralized betting exchange marketplace that connects bettors and bookmakers through an order book and is committed to providing a fun, fair, and transparent environment for its users.
The essence of Betswap lies in the needs of the global gambling community, which has long struggled with limited access to betting platforms, long wait times, and difficulty transferring fiat currencies back and forth from banks. Leverage order matching engine technology to connect bettors around the world. It allows betting on all sports and esports events through third parties, providing liquidity for all major sporting events.
Throughout the user experience, Betswap does not custodial users' funds and allows users to use their virtual currency funds at any time. This DAO is ultimately different from traditional gambling organizations. There will be no unreasonably multi-million dollar compensation packages for founders, and there will be no special executive or board dividends or incentives.
3 Economic model
BSGG is an ERC-20 token that is the platform currency of the Betswap trading platform. The BSGG token provides holders with a variety of functions, including governance, staking. Reduced fees, and more.
Betswap plans to redistribute the majority of its revenue (excluding operating costs) to token holders through a regular token buyback and burn program, with the long-term goal of reducing the total number of outstanding tokens by 90%, increasing demand for remaining tokens, and adding value to all its users and token holders.
4 Team/Financing/Partners
The Betswap team has experience in different sports betting, sports betting exchanges, financial technology, and blockchain. The technical level and management level are acceptable.
CEO Mavic has been involved in Bitcoin mining since 2016 and works as a risk manager at a Web 2 sportsbook.
MARTIN, DIRECTOR OF PRODUCT, PREVIOUSLY WORKED AT BETFAIR AND WORKED WITH A NUMBER OF SPORTSBOOKS, AND BEOFRE JOINED BETSWAP.
THE HEAD OF BLOCKCHAIN HAS PROVIDED SECURITY CONSULTING TO DIFFERENT CRYPTOCURRENCY EXCHANGES AND WORKED WITH THE ETHEIRUM FOUNDATION AT ITS INCEPTION.
Co-founder Max is a former investment banker who specialises in financial fundraising, financial technology. Wait a minute.
Betswap's investment institutions are generally mediocre, namely Wonderland/Shima capital (which invests in 1inch and Alg)/M6 capital/DSA. Wonderland recently redeemed its investment as the largest investor in Betswap due to internal reasons. The project will also need to be injected with new investment institutions in the future.
5 On-chain data
Judging from the on-chain data, Betswap token holding addresses are few, token holdings are more concentrated, and the rest of the holding wallets are mostly small holders. The growth of on-chain transaction volume and new addresses is not ideal.
6 Community Analysis
According to Web3 Research's observation of the performance of the Betswap community, until August 2022, 8, Betswap has been operating official accounts and communities in English on Telegram, Twitter, and Instagram. Twitter had the highest number of participants, with 16,23938. Details about the community are shown below.
Betswap operates communities on many major social media platforms, with average fan growth and update frequency. Social media interactions with followers are mediocre.
Go live details
Betswap is listed on AscendEX.
Open Deposits and Withdrawals: 8:18 a.m., August 9 (Beijing Time)
Open trading: 8:18, August 21 (Beijing Time)
Open trading market: BSGG/USDT
About AscendEX (Formerly BitMax)
AscendEX (BitMax) is a platform built by a team of senior quantitative trading professionals on Wall Street, adhering to the core values of efficiency, transparency, and robustness, and is committed to providing a wide range of financial products and related services to institutional and individual clients.
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