Anti-scam and anti-fraud project by InnMind and partners: comprehensive analysis of ongoing ICOs, project assessment and due-diligence for investors

Every hour our telegram and facebook groups are bombarded with new announcements of upcoming ICOs. Every project claims to be the final solution to all problems with unlimited benefits for investors.

The hype that accompanies ICO phenomenon makes it difficult to take a balanced decision. ICO market has become quite a mess, and InnMind, as a global ecosystem connecting innovative minds, and international platform that supports investors with expertise and due diligence, feels obliged to help identify projects worth investing and separate them from potential scam and fraud.

We are here to make this market transparent, structured and available for everyone eager to invest or simply learn more about ICO as a financial phenomenon.

We are happy to launch our series of ICO analysis, designed and prepared together with partners from ITsynergies and TokenBooster, market experts from Switzerland, EU, Russia and other countries.

In our ICO analysis reports we will provide a comprehensive review of projects that attracted our attention. And today we are going to talk about Lordmancer II

No games! Just truth! A comprehensive analysis of online game ICO...

Lordmancer II is developed by Active Games, LLC, co-founded by Russian business entrepreneurs Anton Telitsyn and Ilya Mikov. Lordmancer II is a multiplayer free-to-play online role-playing game, with features reminiscent of many popular online mobile and desktop games. The economy, in which players can buy and sell in-game items to and from one another, will use Lord Coin as its currency. This digital currency will be available for purchase directly within the game or through outside cryptocurrency exchanges. The game is currently in open beta and is available on Google Play for Android devices. It will be available on both Android and iOS devices once the game goes live.

ICO details

Pre ICO started on August 21, 2017. The project raised 334ETH within 5 days and 2'000'000 LCs were distributed.

The main ICO round begins on November 07, 2017 and ends on December 20, 2017. A maximum of13,000,000 LC will be sold

The price for one LC will be set from $0,1 to $0,125 depending on the date and amount of purchase.

Hard Cap: The goal is $1,5M to be spent on expanding the content of the game and hiring global talent



Team

The project has a very strong professional team with many members possessing more than 10 years of experience in game design and software development. All in all there are 12 developers in-house plus a few outsourced 3D artists and modelers.

The key people in the project are:

Anton Telitsyn, founder, CEO

Degree in Science and MBA in Management. 8 years of experience in software development for startups. A trusted and respected leader, Anton has a strong technical and management background paired with profound knowledge of the technologies behind consumer software development. Anton is a serial tech team leader in a number of startups together with Ilya

Ilya Mikov, co-founder

18 years of business experience. Founded a telecommunication company in 2003, got funding from private investors and successfully sold the company in 2008. Since then he has started several cash-positive projects in telecommunication, internet and mobile marketing.

Mentoring

The Lordmancer team has also extremely qualified mentors which is a strong advantage on the market where a lot depends on advanced knowledge of launch and marketing strategies.

William Davis III

LDJ Capital, Managing Director of Technology

A tenacious leader with extensive experience and excellent board and senior executive level references in Blockchain, Crypto Currencies, Mobile Payments, Data Visualization, Data Warehouse & Business Intelligence Applications. A proven leader in organizations that are digitizing or leveraging new technology to monetize the business. Experienced in Fast growing startups and Fortune 500 culture, practices, policies and procedures. Background includes a strong track record in advising Institutional Investors, VCs, Angel Networks, Technology leaders with strategies and tactics in the new economy.

LK Shelley

Managing Partner, Affiniti Ventures | AV(M)

LK Shelley has over 17 years' international experience in the US, EU and Asia/JP. She participated in and transacted investments from US$5-$900M and exited a couple of ventures of her own.

LK Shelley is the Managing Partner at Affiniti Ventures|AV(M), collectively it invests in early stage mobile first startup including technology, platforms, digital media and entertainment, content as well as mobile gaming. She holds MBA and MS degrees from MIT.

Dmitri Sutormin

Angel investor, mobile games enthusiast.

Dmitry is a prominent russian angel investor in IT and telecom spheres. He has vast experience, had done quite a few successful multi-million exits. Formerly, Dmitry was a marketing consultant and the CEO of a training company specializing in marketing. A mobile games enthusiast, Dmitry has plenty of brilliant insights to share with the team.



Market

The project aims to unite all the advantages of mobile game application with desktop ones to the best possible gaming experience for users. Mobile games generated more revenue than online games already in 2015, as well as more revenue than console software. Where mobile games took $3 of every $10 spent by gamers on software in 2015, that figure will go up to $4 out of every $10 by 2018.

Asia has dominated mobile games revenue since 2013, compared to both North America and Europe, and is forecasted to take over 50% of all mobile games revenue in 2018.

The capitalization of the market is already high with $106,5 billion in 2017 and is going to grow even more with predicted $112,5 billion in 2018. The share of the mobile games constitutes $42,5 billion in 2017 with predicted $47,4 billion in 2018.

So even with a lot of competitors on the scene, Lordmancer II will have plenty of room for potential.

Monetization model

The demand for withdrawing special game currency and exchanging it for fiat money has been long present but not really welcomed and explored so far because it meant revenue loss for game developers due to a lot of fraud and black market deals that usually accompanied such attempts. Lordmancer II introduces Lord Coin tokens (LC) as means of payment for trading purposes among players and selling of special game items. LC tokens can be only introduced into the game when bought on the marketplace and can be withdrawn from the game and sold for cryptocurrency. Developers provide comfortable purchase and sale method of LC tokens for fiat money for those players who are not used to cryptocurrency exchanges. All in-game transactions of LC tokens are stored on blockchain (Ethereum).

Positives ✅

✅ Investment Bonuses

The opportunity presented by Lordmancer 2’s ICO is to invest heavily in a new cryptocurrency that has a built-in economic base in the form of the online game. Investors can either hold on to their Lord Coin in order to grow their investment before eventually selling it to Lordmancer II players on cryptocurrency exchanges, or they can use it themselves within the game as they see fit. The total number of tokens is limited at 20,000,000.

When buying special game items, 90% of the amount paid is burned, and the 10% are transferred onto special game account - Game Funds. Player-to-player-trade is possible inside the Lordmancer Wallet. For each transaction there is a transaction fee of 20%. 50% of the fee is burned, another 50% is accumulated at Game Funds.

Burning of tokens with every transaction leads to constant demand for LC on the marketplace and an increase in value. 13,000,000 tokens are issued within ICO and no more tokens will be issued after ICO. All these factors make LC tokens very attractive for early investors.

✅ Legal Marketplace

While such giants as the World of Warcraft failed to use the opportunities to mine special game currency legally which in the end led to black mining market in China, Lordmancer II prevents possibilities of fraud and black mining by opening its legal marketplace where tokens can be bought and sold freely between players. That means very little risk of revenue loss for developers and subsequently investors.

✅ Exchange listing

Lordmancer II is going to list its crypto currency on Lykke exchange within two months after ICO end date. Moreover, the project has already agreed with Lykke to set up a special wallet for all Lordmancer II players which will facilitate all transaction from and into the game.

✅ Marketing and Distribution

Active Games already have an agreement with a big publisher for the MENA region and is currently looking for potential publisher to launch on the Asian market to the best possible advantage.

The project has a very clear understanding of their goals and a very realistic road map to implement once ICO is successful.

✅ Strong Mentoring

The team is supported by strong mentoring team who have both experience in launching game projects and ICO, which is extremely relevant in this case.



Negatives ⛔

⛔ Lordmancer II is still at its soft launch stage, and unfortunately, we have seen many projects that have never moved beyond that stage. However, the project boasts a very strong team of developers and professional mentoring which makes it more likely to succeed. Besides, according to the road map the commercial launch in Russia is scheduled shortly after the ICO end date with the global launch in Q2 2018. The potential investors will not have to wait long for the first deliverables.

⛔ With 30% risk of not passing the Howey Test, the team leaders decided not to open ICO for american investors which probably increases the risks of not reaching their hard cap. However, the amount raised by now will probably be enough to cover developing cots and initial marketing costs.

⛔ As for the market position we saw that stable top grossing mobile games charts look set to remain the norm in the future. This is great for games leaders and their shareholders, but puts the big squeeze on mid-tier players and makes breaking through more challenging for Indies with no or little audience from their previous projects.



Links

Market Data Source

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Partners and co-authors of ICO analysis report:

itsynergis - ICO legal advisory company which assisted over 200 ICOs;

Tokenbooster - Swiss ICO advisory company from Crypto Valley, focused on token economics and token valuation;

Read other useful publications on InnMind:

► ICO marketing guide

► Tokenize the Enterprise

► Putting Forward an Investor’s Point of View on ICOs and Crowdfunding