ICO Analysis - TripAlly Token

ICO Analysis – TripAlly Token

TripAlly is an ambitious undertaking that aims to rid passengers of global data roaming costs. As the world’s first international transit stage, it attempts to streamline mobile net by lowering our reliance on SIM cards, higher roaming fees and the need for extra apparatus.

Mobile computing has become an essential aspect of our daily lives, but telecommunications regulations have made it hard to stay connected across borders (at least, at inexpensive prices). TripAlly’s value proposition is straightforward: for a predetermined cost very similar to local internet prices, travelers can get unlimited information in each country they visit.

Data roaming has seen some of the highest mark-ups in the history of commerce. As ZDNet explains, over the past five years it was not uncommon for operators to mark-up their data roaming rates by 80,000%.

The simple mechanism for arriving at info roaming costs is quite straightforward. Operators in various nations have negotiated wholesale rates for global data roaming. If Operator A’s customer travelers abroad and uses their smart phone on Operator B’s system, Operator A can add whatever mark-up it needs to arrive at the retail price. In general, the higher the wholesale price agreed, the greater the clients from the networks will pay.

Now, the very first question prospective investors must ask is: Why would cellular operators operate with TripAlly? The TripAlly whitepaper explains:

Mobile operators will receive significant revenue from TripAlly. Under a Service License Agreement (SLA) between TripAlly and mobile operators, they will keep portion of revenue from TripAlly Internet services. This means that without any extra work or expenses, mobile operators will increase their customer base and profits.

It goes on to offer a rationale for the Other revenue stream:

Why would mobile operators consider this alternative revenue stream? Because mobile operators are facing a big challenge competing with new distributive OTT services, such as Skype, WhatsApp, and Viber. Between 2012 to 2018, mobile operators will account for $386 billion USD in lost revenue to OTT services. International roaming revenue is decreasing and becoming less significant for operators to count it as a major revenue stream. This trend can be verified in any major mobile operator’s annual report.

TripAlly will deliver cheap internet services through a mobile program in your current network SIM card using networks in destination states. Naturally, this will require strong business growth on the portion of TripAlly. The faster these partnerships are forged, the more probable that investors will back the project.

Over the first two years of operation, TripAlly forecasts an acceptance rate of 20% one of travelers from the states it services. The business intends to launch TripAlly net in Thailand, Laos and Cambodia in the summer 2018 before expanding throughout Asia in 2019.

TripAlly Token

ICO Analysis - TripAlly Token

The company is issuing an Ethereum-based token named ALLY, or AllyCoin, that will offer additional payment options to present clients. Furthermore, ALLY can be redeemed for profit to users who don’t have the token.

Interestingly enough, ALLY is already approved at more than 200 places across Bangkok, Thailand. Broader implementation is expected in late 2018.

Along with easing hassle-free online link, the ALLY token can also be converted to fiat currency through a network of ATM machines in Southeast Asia. The whitepaper provides a detailed workflow of how this is supposed to work.

For non-ALLY holders, 1 day of unlimited online usage will cost $3 USD.

The ICO pre-sale premiered Sept. 17, and will operate until Oct. 15. During this period, the ALLY token is available at a 60% discount. The pr-ICO purpose is to reach 1,500 ETH by selling 750,000 ALLY tokens.

The Team

The Singapore-based company is ramping up fast in pursuit of full-scale product development. TripAlly is headed by co-founders Aleksey Gordienko, Sergey Goreev and Sergey Zubkov , that have a long and established track record in the Asia marketplace.

During the next year, it plans to roll out its services in select countries.

The team has a combined 75 years of experience in the telecommunications industry. Additionally, it has put together a strong advisory group of legal counsel and cryptocurrency specialists. The company has already created an impressive list of partners and collaborators, a strong signal that the ICO has legs.

TripAlly Verdict

TripAlly fills a large void in the data roaming market, which makes it an attractive drama for investors who know the telecommunications industry. TripAlly also boasts a solid management team that is extremely well connected into the Asian sector. As a big idea, it is going to need big financing to come to fruition.

Although the firm has laid the groundwork for operators, investors should bear in mind that telecom is highly controlled and faces lots of bottlenecks. In the end, there is a reason why operators have been able to mark-up data roaming costs so badly. Additionally, TripAlly has been in existence for a very short period, therefore it is tough to gauge its long term prospects when no true business was generated. At this stage, investors are purchasing this token because they believe in the business model.

Nonetheless, TripAlly seems confident that it can roll out its services by Q4 2018, together with Mynanmar, Vietnam and Malaysia the initial markets to start accepting ALLY internet services. The business is virtually guaranteeing 500% ROI post-ICO, even though the metrics behind this figure are not supplied in the whitepaper.

From a token perspective, the business has confirmed that ALLY is going to be priced at $3 after the ICO. To put it differently, one ALLY token is equivalent to one day of cellular internet connection. Tokens will also be liquid and tradeable on the exchanges.

Investors with a long-term time horizon may find TripAlly a good prospect. TripAlly expects to roll out its solutions at the top-100 travel destination countries by 2024.

Risks

  • Telecom is a highly regulated market that may prove difficult to navigate across international borders. -1
  • TripAlly is still in its very early stages, so investors should be cautious. -1.5
  • Mobile data consumption patterns may differ in lower income emerging markets. -1

Growth Potential

  • There is huge demand for affordable data roaming services that is expected to grow as tourism, travel and mobile penetration increase. +2
  • TripAlly has the first-mover advantage in this industry. +2.5
  • The company has moved swiftly to lock in partners and networks, and is looking to scale up quickly in the coming years. +3
  • The team is about as good as it gets for the Southeast Asia market. +2

Disposition

At this stage in the game, we consider that a rating of 6 out of 10 for TripAlly is warranted. The favorable outlook is mainly tied to the growing demand for data roaming. In 2016 alone, there have been 1.2 billion passengers worldwide. Mobile device penetration can be in the several billions. Given the outrageous fees paid for roaming, TripAlly gets the chance to make a huge splash.

At the same time, investors need to be aware that the company is rolling out its services in developing nations where mobile penetration might be reduced and data roaming charges less severe.

Investment Details

The ICO pre-sale can be accessed here.

Token info:

  • Token: ALLY
  • Platform: Ethereum
  • Amount of initial token to be issued: 100,000,00 ALLY
  • Initial fixed price: 0.005 ETH per 1 ALLY or 1 ETH for 200 ALLY
  • Pre-ICO Price: 0.002 ETH per 1 ALLY or 1 ETH for 500 ALLY

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