The AdShares ICO aims to decentralize yet another industry, the market for selling and buying advertising space. As media has been disrupted by the Internet, so an advertising marketplace may start happening outside of the usual collection of agencies, account managers, and media buyers.
AdShares Network will be the planner marketplace for programming advertising. Because the project has performed an ICO, supposedly the advertising market would be monetized using a proprietary token or coin.
The AdShares ICO is closed for US persons, as well as buying on behalf of US-based investors.
What is AdShares?
- AdShares White Paper
- Country of origin: Unknown (Registered on Marshal Islands)
- Ticker: ADST
- ICO Dates: July 7,2017 – Jan 12, 2018
- Hard Cap:
- Funds raised: 6538.44 ETH
- Industry: Advertising and Marketing
- Funds accepted: Ethereum
- My Rating: 4/5
AdShares Social Media
The chief idea behind AdShares Network is that the traditional marketplace for ad spaces is not transparent and contains high fees as well as middlemen. The market also contains censorship, namely based on political ads, or controversial topics. AdShares believes by building a peer-to-peer media buying market, more price efficiency would be achieved, as well as more fairness and less censorship. The promises of AdShares are nothing less than a revolution in advertising.
The Network by AdShares is the chief product – a connection where advertisers and publishers can exchange ad space, without agencies. The marketplace also allows users to organize and monitor their campaigns. The marketplace is made liquid via the ADST token, which has been sold in a long-running ICO.
AdShares is a curious ICO, in that its token already trades on exchanges, at least the most accessible ones – Cryptopia, Mercatox and EtherDelta.
The AdShares Team
The founder of AdShares is Jacek Zemło, an experienced developer, who created the project along with Dr Leszek Rychlewski and Maciej Kaźmierczak. The team suggests the origin of AdShares is Polish, although the company targets an English-speaking audience and an international presence.
The LinkedIn page for AdShares lists an extended team of experts beyond the founders, ensuring a complete product development and marketing. The team suggests the company is indeed ready to launch products and cut a share of the market.
About AdShares ADST Token
The ADST token had an advantage, in that it is already traded on several exchanges. ADST is listed on position 492 on CoinMarketCap, and has relatively low daily trading volumes of between 4 and 5 BTC. There are 15 million ADST tokens in circulation, and more to come as the token sale continues for a while more.
The AdShares token does not have a fixed price, but a smart contract defines the price each day, as a small supply of tokens is released. AdShares has also set up a buyback program to protect investors. The smart contract of AdShares can be used to return unwanted shares for an algorithmically determined price in ETH. This way, AdShares is a continuously financing ICO, with tentative start and finish dates.
The early buyers of AdShares tokens have not seen their value diluted, despite the fact that they bought the token at $0.10 for a total of $100,000, while the supply increases. They could sell back the tokens to the smart contract, or sell on an exchange at a much higher rate. In a way, early buyers could sell to later buyers at a higher price. The buyback program runs for a few more days, until the end of the ICO.
The production of AdShares tokens would cease when the project hits the next stage, a proprietary blockchain that will create a separate digital asset and migrate the AdShares Ethereum-based token.
The AdShares token is a part of the ecosystem of deploying, monitoring and repaying web-based ads, through a specially created smart contract. Confused? It's not that easy to understand. But the point is that they have a real-world use of the token, and that's what I look for when choosing an ICO to spend my money on.
Investing in AdShares: The Pros
Investing in the AdShares ICO is as risky as any other. But at least the AdShares token has gone through a price-discovery stage, and has seen an increase in trading volumes.
AdShares has been around for a while, and may be regarded as one of the most trustworthy projects, at least when it comes to having some staying power and attracting buyers.
AdShares has a simple enough business model that it can fill its promises, although it may take years of growth before achieving significant results, to take even one percent or less from the advertising industry.
The Risk of AdShares
AdShares trades on low-volume, highly speculative exchanges. So owning and selling ADST at the wrong moment may mean immediate loss.
AdShares, however, has a slightly lower risk because of the mechanism of withdrawing the Ethereum provided initially. Keep in mind, this mechanism will end in a few days- as soon as the ICO has ended. This raises some doubts whether the smart contract was not put in place to benefit early buyers, who could sell their tokens and receive ETH at a higher rate. But after January 12, the ICO purchases are permanent, states the company in a recent blog:
” On 5th January we will trigger declareCrowdsaleEnd function of the Adshares contract. This function activates irreversible countdown of 7 days until the end of the token sale. You will have a week to make a final decision if you want to participate in the auction or not.”
After that, AdShares will set out to create another blockchain, which would be known as the ESC blockchain. Buying into the ICO at this moment would mean an entitlement to a certain amount of the new ADS coin, with AdShares becoming defunct. The additional risk of switching between coins should be accounted for. The varying price of the ADS token would put buyers at some additional risk of volatility and a period of price setting.
Final Thoughts on AdShares
The promise of AdShares lies in securing the next token, ADS. The team has promised it would focus on listing the token on big exchanges, which would ensure more liquidity.
In the longer term, the project success would depend on building the new blockchain with all the required elements, such as wallets and interfaces.
AdShares may also meet with competition from similar projects such as Basic Attention (BAT), which also aim to revolutionize web advertising. The advantage of BAT is the Brave browser, an already functioning software, while AdShares will only add a browser wallet similar to MetaMask. The function of the ESC network and the wallet would be to gather micropayments from ads, going directly into the users' wallets. Competing with BAT may be a challenge for AdShares.
Right now, it is unknown why an investor would need the AdShares ADST token, except as a means of speculation. The token would mostly be a means of exchange for advertisers and media companies, with little use for viewers. This adds to the risk of owning a volatile asset, which may bring gains if sold, but only at the right moment.
Toward the end of the ICO, AdShares is creating a sense of missing out, but it is still best to research the project and decide on its potential. My advice is to avoid committing non-refundable funds to this token sale, and await the distribution of the new ADS token.
Should YOU Invest?
Honestly, most people looking to invest in altcoins, tokens, and ICOs are hoping they discover the next Bitcoin or Ethereum. The chances of that are rare.
So where is your money best invested? My recommendation might surprise you. It's free to join, and won't require that you invest in risky cryptos!