Xender, one of the biggest file sharing app companies in the world, has announced the launch of its ICO MovieChain which seeks to democratize the sharing of movies all across the globe. The company had laid the seeds for this several years back by removing the dependency on the internet for sharing of files. The app has become very famous all across the globe and especially in countries where the internet infrastructure is still a challenge with it being either non-existent or faulty.
Now, they are expanding their offering with the new platform called Moviechain which will help in the offline distribution of movies in a legal manner. This would be a direct challenge to the online sharing platforms like Netflix and would be the first of its kind.
Overview of Moviechain:
Name of the ICO: MovieChain
Hard Cap: 10 million USD
Payment Methods: ETH
Pricing: 0.01 USD per token
The pre-ICO sale is already completed. The public sale will begin in April, 2018 and will go on for 15 days or till the hard cap is reached.
20% of the tokens are allocated for rewards.
The above are the details of the ICO and we have packed them in the small space so that the investors are aware of the details quickly. Now, let’s move on to what the platform is all about and what it plans to do using the funds and what is the roadmap for the same.
Xender is a large company with a daily active user base of more than 10 million and a monthly active user base of more than 100 million. Millions of files are shared in an offline manner through the Xender app and hence it does make sense that they take this to the next level. The next logical level would be content and movies which is considered as the next ‘oil’ as far as the next generation is concerned. That is why they are now expanding their footprint into the movie industry.
They are building a platform called Moviechain where users can download and watch movies. They would also be able to share the movies with their friends. The large advantage of this is that all this sharing is done offline without the need for an internet connection. This enables the access of such movies to everyone around the world and not restrict the same to the privileged ones who have access to high speed data and internet. This is in opposition to what Netflix does as Netflix is dependent on the users having an internet connection and this restricts its usage and also leads to a wastage of a lot of data in the process as the users download large sized movie files.
The movies in Moviechain can not only be downloaded, they can also be shared with their friends as well. The way it happens is that the users can download the movies from the Moviechain cloud and watch it for 30 minutes for free. This is the approximate cut off time and if the users want to watch more of the movie, they have to purchase the same for a nominal payment through MVC tokens. They can also share the movies to their friends and the users earn tokens each time a friend purchases the movie. This way, the user not only is able to watch the movie but can earn as well. And all these movies are fully legal as the Moviechain company has already started purchasing of a large number of movie titles for offline downloading and watching.
Does the Project Have a Use Case?
We believe so as the market for watching of movies is something that is universal. Though the languages might differ, the fact remains that a large part of the world is fascinated by movies. There are some major companies already involved in the distribution of movies on laptops and mobiles but all of them require a fast internet connection. This means that a substantial part of the world is left out of this business as the internet infrastructure in many countries is not yet fully developed which means that either they do not have a connection at all or even if they do have one, it is either slow or unreliable.
Even for those who have access to a fast internet connection, it does mean that there is a lot of data usage due to the download of the large files. And this is where the use case for Moviechain comes in as, in a first of its kind move, it has enabled the sharing of such movie files offline, which means that the files can be accessed and shared without the need for the internet. Also, people have access to a large number of movies in the movie library and hence they can decide what they want to watch. Also, other online services charge a flat cost per month irrespective of the usage while in Moviechain, the users will be charged only for the movies that they watch.
They have also managed to integrate the usage of the MVC token into the platform by making sure that payments for all movies can be done through MVC which should only increase the usage of the token and hence its value, in due course of time.
Does the Team have Strong background?
We believe that this team has a strong background as the project is being run by Xender, one of the largest file sharing apps in the world. They have a huge user base as they have monthly active users of over 100 million and that gives them a large distinct advantage over many of the ICOs out there. They have a readymade large userbase to tap onto and it is only a matter of time before they begin to start moving over to the MVC platform as well.
The team is also well experienced as it has Peter Jiang, the founder of Xender, at the helm. The CMO is Tony Ruan and Jian Liu as their CTO. The fact that the man behind the company is someone who has grown Xender from 0 users to half a billion should speak a lot about the strength of the team.
The RoadMap for the Project:
The first stage of the project is to buy the legal rights for the movie titles for offline downloading and sharing. These will then need to be loaded into the Xender cloud. The plan is to purchase English and Hindi Titles and any other titles that are available. In fact, a large part of the funds collected would be used for the purchase of the same.
They also plan to expand and grow their presence in India during this period. The next stage, that would happen in 2018 Q3, would involve investing in growing infrastructure and doing R&D. By the end of the year, they plan to integrate the blockchain technology into the system and by the middle of 2019, they plan to expand their user and market base very aggressively.
They already have their development center set up in India and have also started purchasing movie titles from production houses like Sony and Eros which shows that they are quite serious about their business. They also have a team of encryption experts and well on their way as far as the preparation is concerned.
What does the Community and Social Media Think about Moviechain
They have a pretty good presence in Telegram where they have more than 4000 users and likewise, their presence on Twitter and FB is also pretty decent. But they should be given the benefit of the doubt as most of the userbase for Xender so far has been in China and they are unlikely to use much of twitter or FB. They have plans to build their base in India and that’s why we have been able to see that they are hiring more of English PR and community managers which should see them grow their social media presence in due course of time.
We were also able to locate them on the panel of a few blockchain summits in India which shows that they are quite serious about improving their presence and also taking their entry into India pretty seriously. Considering the fact that Indians are quite crazy about movies and combine this fact with the offline storage and sharing of movies, we believe their media presence should show an uplift in due course of time, though we are not sure whether that would be in time for their ICO.
Opportunities and Threats:
As we have been saying all through our review, we believe that the opportunity for this ICO and the MovieChain company as a whole is large, if they play their cards right. They have a good combination of a strong team, large company backing it, a strong user base and have tried to hit the sweet spot for the Indian audience by entering into the movie market. They already have an established user base in India as well, through Xender, and that loyalty is likely to carry on to MovieChain as well and that’s what we believe they would be hoping to crack as well. As far as spending goes, Indians do not mind spending for movies and with their concept of offline sharing, they have again hit the sweet spot as the growing number of mobile users would love the concept of offline sharing and viewing of movies through a mobile app and again, this is a large opportunity for the company to target.
As for threats, it would come in the form of the established companies who would probably come up with their own versions of offline viewing which could then cut into the viewership of Moviechain. There could also be a problem of too few movie titles being chased by too many companies which pushes the licensing costs to a very high level. There is also the problem that the concept of tokens and blockchain may not sit well and grow with the Indian movie audience but we believe that Moviechain would cover that by providing the option of both fiat and crypto payment as well.
We believe that Xender and Moviechain have a good product on their hands. It would all come down to execution of their plan but considering that they already have the experience of growing a large brand from scratch, we believe that they would have the capability to do so once again. Also, their combination of offline viewing and sharing, movies and mobile app should serve them well in the future as well. Also, they already have a large user base which should make their job of conversions that much easier.
Considering the above factors, the ICO might be something that is well worth investing in, especially due to the fact that they have integrated the usage of tokens in their platform itself. Also, though they have not specified the exchanges that they are going to list in, we believe that they would be able to approach a large number of major exchanges to get their tokens listed which should only increase the demand in the future. Unlike many other ICOs, they are backed by a large company and plan to be in business for many years which will only add value to the token due to the strong fundamentals.
Liked what you read? Join us on Telegram.