Micro Cap Gem
ALERT: Chasing the Micro Gems series aims to dig up the projects that have a low market cap, decent team and potential to explode in value. These projects pose a high risk-reward ratio so please DYOR before investing. We invest a small portion as a gamble on these projects. Do what fits you after DYOR.
A key difference between our Micro Cap gems picks and other outlets is very simple: we do not shill; we just point the positives and not-so positives for you to decide whether a project is a gem or not.
We mentioned this earlier but it bears repeating: DYOR.
Today we are looking at a project called Phantasma that wants to become the SOUL of blockchain space.
What can Phantasma do?
Phantasma claims itself to be the next generation Blockchain platform with its interoperability and NFT (Non Fungible Tokens) protocol built into the code.
If Phantasma were to pull off all its initiatives, this question has to be reframed to: ‘what can Phantasma not do?’
For instance, Phantasma is into:
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Blockchain solution for content distribution/delivery
Phantasma aims to combine the Proof of Stake with great transactions per second to avoid the scalability issues down the road.
To achieve this, they have unlimited side-chain support and each side chain can run transactions parallely.
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Oracles
DeFi and Data Oracles seem to be the buzzwords for 2020 craze.
Phantasma incorporates both of them on their platform. Phantasma’s inbuilt oracles have been operational since its mainnet launch.
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Gaming
Phantasma has integrated gaming platform Steam onto the blockchain using Pavillion Hub.
If you scroll to the Pavillion Hub page, you will see that Phantasma is one of the 3 options they listed for transactions.
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NFT
Phantasma is built to support the NFTs.
Most blockchain’s have to either build a layer or tweak their platform to accommodate NFTs but Phantasma has been built keeping NFTs in mind.
NFTs have the potential to be the one of the best use cases for cryptos in the future and Phantasma is looking to be at the forefront of that adoption.
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Staking
Phantasma is built to be a Proof of Stake protocol.
To enable a smooth staking without congesting the network, Phantasma uses two coin model.
Phantasma’s native token SOUL can be staked on the app to generate Energy (K-CAL) at the rate of .002 per 1 SOUL token.
The amount of SOUL you stake also provides you with the voting rights on the platform.
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DeFi
Developers can launch DeFi solutions on Phantasma to leverage its fast TPS and low fees.
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Encrypted email
Phantasma is creating an oracle to fetch emails from centralized servers to encrypt and store on blockchain.
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ID
By staking Phantasma token (SOUL) you can unlock the ID feature which lets you use the ID to receive funds into the Phantasma app.
You can use the ID as your email address as well as chat nickname (chat feature is part of the roadmap).
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Storage
Phantasma’s team has also built a storage solution that lets users create truly decentralized applications on the network.
Apart from what we covered above, Phantasma also has the double token system, Cosmic Swap, ability to tokenize anything on the platform.
As you can see, Phantasma wants to be the blockchain solution that offers it all.
How will Phantasma derive value?
Each of the use cases and uses require Phantasma tokens and the fact that 40% of Phantasma is already locked in could potentially drive value to the token.
Again, that depends entirely on the success and adoption of the network.
Applying our framework
Let’s see how Phantasma fares under our framework.
Problem
One of the biggest problems in blockchain right now are: Scalability and projects addressing issues in sylos.
We have separate blockchain solutions for storage, email, oracles, NFTs, ID, and so on.
If the blockchain platform is the ‘enabler’ we don’t see a reason as to why these solutions cannot be brought onto one platform.
Phantasma’s team might have had this same thought because they are building a blockchain platform that can accommodate all of these various needs.
Instead of trying to add layers for an after-thought solution, Phantasma is building ground up for all the use cases.
Team
Sergio Flores who leads the Phantasma crew has extensive experience in technology and specifically in blockchain and related fields.
Other team members include game developers, mobile experts, designers and more.
This team is as impressive as it can get for a micro cap gem.
Partnerships
Phantasma’s partnership with Pavillion Hub to bring NFTs to the masses is a great move in its mission.
They collaborated with GOATi Entertainment to make this integration possible.
To make cross-chain integration seamless, Phantasma has also partnered with Aleph. This partnership allows Phantasma to “integrate the off-chain Aleph (DeFi) database and data into Phantasma’s dApps and wallets, allowing data to be written on Phantasma Chain”
Addressable market size
The multiplicity of industries that Phantasma is looking to get into opens a wide market in the order of billions of dollars.
NFTs alone has grown from $0 to $200 Million in less than two years and is projected to be a $315 Million business in 2020. We anticipate that this number will reach a billion dollar market in the coming years.
Revenue model
As a blockchain network, the transactions on the network and the fees exchanged is what goes into the network value.
Similar to Ethereum or other platforms like it, there is no subscription or fees to use the Phantasma platform, however, there are some features that are unlocked using SOUL tokens which in theory bring value to the token.
What do we like?
A project with history
For a project that is under $10 Million, we found that Phantasma has been pretty consistent in its execution of the Roadmap.
Multiple verticals and active team
Unlike other blockchains, Phantasma is looking to solve many issues with one solution. We particularly like the NFT niche, ID and two token system.
Below ICO price
Right now, Phantasma is below its original ICO price. The project has been gaining traction for the past 3 months but we believe that there is room for growth.
A great roadmap and consistent execution
One thing that we particularly liked is the consistency with which the team has been executing on its goals.
You will see from the below roadmap that they have been at this since 2017.
Please check out the status of their roadmap.
Things to consider
Chasing too many verticals
Phantasma is trying to solve many issues and this could hamper the team’s focus on where they dedicate their resources.
If this leads to a potential bug or inefficiency in the system, that can backfire big time.
Crowded space
There are way too many blockchain solutions in the space (and more will be coming each day). Will Phantasma stand out with its novel solution is something we will have to wait and see.
Still early
Phantasma launched its mainnet in October 2019 and it is still too early to tell where this project is headed.
We think there are big things in store for Phantasma but that is our opinion. Someone reading the same information as we did might come to a different conclusion.
Thank you for reading and sharing this article. We appreciate you.
Sources:
Stay safe and healthy!
Also read:
Chasing the Micro Cap Crypto Gems #4 - Skrumble Protocol - Why We Changed Our View On This?
Chasing the Micro Cap Gems #2: aXpire, a Blockchain Business with a Working Product
Chasing the Micro Cap Gems #1: TRIAS aims to bring Trust in Technology
IMPORTANT DISCLAIMER
Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.
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