Summary

Symbol: ACE

Tokensale Start Date: 01/08/2017 (19:00 UTC)

Tokensale End Date: 31/10/2017 (19:00 UTC)

Category: Events & Entertainment

Focus: Sports and Entertainment — Talent Development/Management

Introduction

First blockchain company to massively tokenize celebrities. Disrupts talent management: decentralizes it, provides funding & promo resources to rising stars. Starts with ACE tokens for tennis. Next: football, poker, basketball, hockey, actors, bands, models.

Analysis

Celebrity & Sports Talent Management Market

Over the past five years, consumers have experienced steady improvement in disposable income, which has generated greater revenue for entertainment and sports industries through which more performer and athlete contracts can be successfully negotiated. Over the five years to 2017, industry revenue is anticipated to grow. Over the next five years, celebrity and sports agents are anticipated to continue growing in line with prevailing consumer spending on entertainment and sporting industries. Total advertising expenditure is projected to increase as consumer spending rises. In addition, agencies will continue to diversify clientele and represent clients in new media platforms such as video game developing. Though currently, competition among sports agencies is very high. Several dozen companies, both large and small in size, offering their services to professional athletes in a variety of sports. Some agencies are focused on a particular sport, others choose several priority directions, however, most agencies still provide services in many sports.

Barriers to entry for the Celebrity and Sports Agents industry are relatively low. This reflects the low level of capital investment required to start a business, including the reasonable costs of acquiring an agent’s license and meeting the basic qualifying criteria, in addition to the minimal office equipment required to have a functioning agency. However, the industry bases success largely on personality. An extensive network of contacts is essential, both as a means of winning clients and as a way of finding work or endorsement opportunities.Many establishments operate with only a handful of clients and take a standardized 10.0% share of their clients’ earnings, which are generated through jobs that the client pursues and negotiates.

Description

TokenStars, a blockchain company plans to tokenize aspiring celebrities careers. TokenStars aims to provide funding resources to sportsmen and other celebrities at the young age and to decentralize talent sourcing and promotion. Token holders can get compensations for successful players recommendations, localizing content, growing players fan bases and referring investors via a generous Bounty program.

TokenStars will use the shared infrastructure and launch the new verticals to tokenize aspiring celebrities, including football, poker, basketball, hockey, cinema actors, musicians, models.

Revenue Model

Estimated revenue for each development scenario (pessimistic, realistic and optimistic) is $39.7 million, $60.6 million and $78.2 million respectively. Revenues are formed from prize and advertising fees in a ratio of 30% to 70%. In the first years of the project, cash flow for the agency will be generated by the income of professionals from advertising contracts. The income from the cohort of juniors will allow the scaling of the business in future.

ACE plans to sign advertising contracts with top-200 players, who earn substantial prizes to cover their own costs for participating in tournaments. Therefore, ACE does not have to incur additional costs for training and relocation. In the future ACE intends to sign a contract with a current professional coach and open a small ACE Academy for juniors, which will significantly reduce the cost of training.

Judging the economic model, it has been worked out in detail, and various scenarios of development have been considered from the negative to the most optimistic. Creating a financial model, the developers demonstrated full competence in this area and in the objectivity of their assumptions.

Potential

TokenStars aims to disrupt the global talent development industry by providing funding resources to rising stars in sports and show-business while decentralizing talent sourcing and promotion worldwide.With ACE, young players like Maria Sharapova can get funding for academy costs, coaches, sparring partners, and tournament participation, as well as help with signing sponsorship agreements, says Elena Masolova.

ACE will provide funding and promotion resources to young aspiring tennis players at the critical junior age, significantly increasing their chances for success, as well as representation and promotion for established (pro) tennis players.The project has already signed its first contract with an established professional player — Veronika Kudermetova, winner of 19 international tournaments (№66 in WTA ranking in doubles, top 200 in singles).

Blockchain technology will allow fans to collectively support athletes, and to decentralize the key processes of scouting and promotion, thereby lowering the costs dramatically and shifting most of the created value to the community.

TokenStars will start with tennis and football verticals. At later stages, it will utilize a shared infrastructure and launch the new verticals (poker, basketball, hockey; cinema actors, models, musicians). The football GOAL token sale is conducted simultaneously.

Value Propostion For Investors

TokenStars will allow swapping of sport-specific tokens (ACE for tennis, GOAL for football, and others later) for the general STAR index token, so early supporters will get a priority seat in the launching verticals.

The project has well- balanced stimuli for talent sourcing (paying a referral fee to tennis coaches as high as their annual salary) and promotion (up to 10% of the first contract with an advertiser), including appropriate compensation for intermediate steps (even if a player wasn’t selected, or a contract wasn’t signed) which should provide a high-quality flow of candidates.

ACE product tokens offer token holders addtion value adds like exclusive communication with stars, one-on-one training, VIP tickets and books, business endorsements well below market price, etc.

Tokensale

TokenStars will be holding its ICO on September 10, 2017. The target for the token sale is $7,500,000. For every 60 tokens sold, 20 additional tokens will be created and retained for the team, partners and advisors, and 20 additional tokens will be created and retained for the community. The undistributed tokens (difference between maximum number of created tokens and actually distributed) will not be created. The ICO is expected to end on October 31, 2017 or when the funding cap is reached. The company to issue tokens is based in the British Virgin Islands. The company to run operations is based in Cyprus.The development team refers to the bookbuilding platform ICObox, which will assist the project in conductingtheICO.

Key Facts

Max number of sold tokens (Cap): 99,000,000

Max number of created tokens (Cap): 165,000,000

Token price at Token Sale: 0.0001 BTC

Funding Target: 7,500,000 USD (Soft cap) , 9900 BTC (hard cap)

Token Type: ETH (ERC20)

Payment Method: BTC,ETH

To buy tokens, you will be asked to sign up at their website. The purchasing option will be available in your profile.

Token Supply Post ICO Remains Unchanged

Token Percentage For Investors: 60 (99 mln Tokens)

Token Reserve Split 20% Team & Advisors (33 mln Tokens), 20% Community (33 mln Tokens)

Funds allocation

38.6% for initial grants to junior players 12.9% for additional grants to the most perspective players 19.3% for marketing promotion to grow community 8.4% for PR: events and partnerships 4.6% for Sales: sponsorships & ads 3.9% for IT & tech development 3.9% for Management 1.9% for Scouting (in-house) 1.5% for Legal consulting (blockchain & sports) 5.0% for Other costs (audit, travel)

Ico Rating

Overall Outlook on the investment: POSITIVE

Hype Score based on social media buzz: HIGH

Risk Score based on reviewing the team and the whitepaper: LOW

Roadmap

Views From The Web

Good

This is a very nice way to help future and present athletes specially tennis players. This is not just helping future tennis players. This also updates tennis lovers about their idols and everything about tennis. I think this will really help a lot of people to make it convenient for them to search information about their idols and the sport.

The choice of field to be tokenised is different.

It provides career to young starts by financial support making it more vital .

The payment mode includes both Bitcoin (BTC) and Ethereum (ETH) .

There is huge possibility of massive recognition as they have tied with star players so it will definitely not disappoint investors.

Implementing DAO mechanism for making key decisions.

Has a very Public team

ACE is based on a proven business model of the talent management agency (TMA).

Decentralizes the talent promotion process with the Global Promoters Network.

These are the opportunity to build up an unlimited network of scouts and promoters, a clear and heightened motivation for the market, a decentralized voting system and the opportunity for token holders to make decisions on organizational matters.

The project has clearly formulated development plans, the implementation of which is now carried out in accordance with the established deadlines; the economic model with moderate assumptions is still stable under different scenarios, as well as a thoughtful marketing strategy.

Issues, Risks & Concerns

Website Setup : As one browse through the site, it became quite clear that they accentuated the sports of tennis. With regards to the site, It would have been better if they organized its information in more formal way. It appears as though it was trying to bombard any site visitors with information rather than let them explore and learn it by themselves.

: As one browse through the site, it became quite clear that they accentuated the sports of tennis. With regards to the site, It would have been better if they organized its information in more formal way. It appears as though it was trying to bombard any site visitors with information rather than let them explore and learn it by themselves. Site Content : The site could look better. One feels very overwhelmed by it’s design and the amount of most of the time is not helpful information. It’s hard to find anything useful and informative there and it’s accompanies by too many moving pictures and graphs.

: The site could look better. One feels very overwhelmed by it’s design and the amount of most of the time is not helpful information. It’s hard to find anything useful and informative there and it’s accompanies by too many moving pictures and graphs. They basically want to support young raising tennis players. Quite noble idea and it’s always good to promote the youth, however it’s quite bad that they focus only on tennis players. I’m not sure if this project is at any worth for an investor and will bring profit. It’s more of a charity to help young players.

No cap for maximum purchase volume during pre-sale .

When it comes to use of tokens it uses Decentralised Community Voting which is quite new to gain popularity.

ACE has well-balanced stimuli for talent sourcing (paying a referral fee to tennis coaches as high as their annual salary) which should provide a high-quality flow of candidates.

The project risks are in execution, not in the technical barriers or lack of product-market fit.

Tokenstar’s team, it is planned to hold two ICOs almost simultaneously — the tennis project ACE (ICO on September 10, 2017) and the football project GOAL (ICO on September 30, 2017). Investors’ funds will go immediately to two projects, which may lead to a dilution of liquidity for each of the projects.

The marketing strategy has not been published, i.e. investors will not be able to get a clear idea at the moment whether ACE will be able to attract the necessary number of users to the platform.

It is also vital to take into account the fact that the project currently has a low profile in the media.

Tokenstars has serious and experienced classic competitors. Sports agencies are businesses running into billions of dollars of income.

Team

Pavel Stukolov : CEO.

: CEO. Irina Shashkina : CMO.

: CMO. Evgeniy Potapov : CTO.

: CTO. Vladimir Shmidt : CFO.

: CFO. Madina Hooke : Head of sponsorships.

: Head of sponsorships. Anton Vdovin : Scouting Analyst.

: Scouting Analyst. Irina Soshinskaya : Localizations Manager.

: Localizations Manager. Mikhailius Derkach : Design Advisor.

: Design Advisor. Dmitry Rodichev : Developer.

: Developer. Timur Gavrilov: Head of Product.

TokenStars has been founded by CEO Pavel Stukolov , a Russian investment professional (with a total valuation of assets exceeding $95 million), working with marketing director Irina Shashkina (formerly CMO at Groupon Russia and Biz Dev Executive at Rambler&Co;) and scouting analyst Anton Vdovin (an MSc in International Business and winner of math and chemistry student championships who has played tennis at regional tournaments).

Conclusion

Token Stars aims to supply resources and contribute to the promotion of soon-to-be stars, while radically changing and decentralizing the talent management industry.This Project offers sponsorship and promotion to young and promising tennis players so that they do not quit professional sport, thus increasing their chances of success.

When an athlete has earned the prize money and has achieved celebrity status, he or she starts entering into sponsorship contracts, the proceeds of which will be received by the token holders.This concept is very attractive from the financial perspective and, most importantly, it will actually help people develop their talents and pursue their aspirations.

Also many popular editions, including Cryptoinsider, Finance magnates, VC.ru, Forbes and Coinfox, publish articles about Token Stars.

But for me their long term profitability and the amount of invetsment in a Sports star is a concern which if one sees the given link can see that the breakeven is only reached in 6–7 Year of operation which according to me raises some concerns on the long term profitability and even questions can be raised if it will even operate that long. So the key will be how they execute the whole Token Stars platform and concept post ICO and help maximize investor returns and their long term viability and profitability.

Reference

Disclaimer: This is not investment or trading advice, always do your own independent research.

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