Review of DeepCloud decentralized cloud platform

DeepCloud is a decentralized cloud platform for dApps that utilizes AI for resource and task matching.

Metrics

The Total Hard Cap is $3,000,000.

Presale Round: 1 DEEP = $0.1, no bonuses. 3.13% of the Total Supply or 6,250,000 were allocated.

Private Round: 1 DEEP = $0.1 with bonuses ranging from 10% to 30%. 9.38% of the Total Supply or 18,750,000 tokens were allocated.

Public Sale:

The Public Sale will be conducted on BitMax on July 18, 2019, at 8:00 AM EDT. The allocation for this round is 2.5% of the Public Sale Supply or 500,000 USDT.

The token price is the same as for the previous rounds, $0.1.
The personal cap for regular users is $500 and for those holding 10,000 BTMX or more – $1000$. Investments are accepted in USDT.

There are KYC and lock-ups for Token Sale tokens (50% will be released before the listing, the remainder will be vested with 16.67% unlocked each month). Here you can find detailed information.

Total Supply: 200,000,000 DEEP.
Valuation: $17,000,000.

Initial circulation is estimated to be 1.88% of the Total Supply or 3,750,000 DEEP, considering the 50% of Public Sale tokens (or 1.25% of the Total Supply) and 0.63% of pre- and private sale participants.
Valuation: $375,000.

There were both Airdrop and Bounty. The tokens will be distributed after the Public Sale is conducted, the timeframe is yet to be announced.

Social metrics:

The official website was created 13 months ago.

The official website monthly visiting rate is 4.4 thousand.

According to Alexa ranking, the top visiting countries are Vietnam (30.7%) and Russia (2.4%).

The official Twitter: (@DeepCloud_AI) was initiated in April 2018, and now has 8700 followers. The activity there is very high.

The official group in Telegram (@deepcloud_ai) was created on April 20, 2018 and now has 13.5 thousand users. The communication is dominated by questions about the terms of the Public Sale and the project’s metrics. The core team states that the project has a long-term vision and that investors should be patient, given that there already is an MVP along with some partnerships.

The official Medium (@DeepCloud_AI) has 350 followers. It was started on June 9, 2018, and there are plenty of articles about the project.

There is also a group in Facebook (600 followers), a profile on LinkedIn (177 followers), a YouTube account (70 followers, 6 videos, the maximum view count is 2.7 thousand).

Key players:

The team:

The team is based in Singapore, EU, Latin America, and the U.S. According to the LinkedIn profile, there are 11 members, but the websites lists only 8. Two of the team members were let go during the bear market.

Max Rye – CEO from February 2017. Before working on DeepCloud, Max spent 4 years as a Regional IT Director at Hyatt Hotels Corporation in Southern California. At the same time, he was a Senior IT Specialist from 2011 to 2018 at Mahler Private Staffing (a large American HR company focused on private residencies). In addition, Max acted as at Royal IT Support (a California-based company focused on IT services) from 2003 to 2018.

Geeta Chauhan – CTO from May 2018. Along with working on DeepCloud, she acts as CTO/Practice Head at AI в Silicon Valley Software Group (a consulting company focused on machine learning, blockchain, and computations, the website is down) since 2016. In addition, Geeta acts as a CTO at Sustinnova, Product Design & Startup Advisory (a California-based innovative company focused on developing products, providing technical consulting, and working on the blockchain) from 2015. She also spent roughly 7 years at Nokia as a Director of Strategy and Technology and as a CTO at Alcatel-Lucent. From 2001 to 2009 Geeta was Director of Development at Telera (further acquired by an American IT company Genesys). Her former working experience includes working at various technical positions from 1993.

Joseph Vargas – Cloud Architect from 2017. From 2008 to 2015 Joseph worked at large American IT companies(VMware, Hewlett Packard Enterprise) as a Senior Cloud Architect and Senior Solutions Architect. Before DeepCloud he acted as a private AI consultant and researcher (participated in initiatives like Open AI).

Felix Castro Rodriguez – Head of Development Team from 2018. His former 7-year experience includes various development positions in Mexican IT companies.

Maged M. ElJazzar – Head of AI/ML Engineering from March 2018. According to his profile on LinkedIn, Maged doesn’t work with DeepCloud from 2019 and switched to working in another company. Apparently, the info about Maged on the website is outdated.

Gerard A. James – Online Marketing and Growth Manager from October 2018. Like Maged, Gerard states that he doesn’t work with DeepCloud anymore in his LinkedIn. However, the team states that he has some degree of relationship with the project.

Before joining DeepCloud, Gerard spent 4 years at Skyscanner (one of the world’s largest platforms for searching flights) working in the marketing department.

Derin Karim – Project Director from September 2018, started as a Community Manager. Derin has experience with community management in blockchain projects like Pchain, TheKey, Zebi.

Kevin de Koning – Head of Digital Content from October 2018. He has over 20 years of experience in graphic design-focused companies in the Netherlands.


Advisors:

Jan de Koning – the former СЕО and President of various European companies that aren’t related to blockchain or IT in general. During the last 3 years, he has been acting as a Consultant within a Netherlands-based company.

Hitters Xu – Founder of NEO (#16 CMC) and Nebulas.io (#103 CMC).

Vishwas Manral – Founder and CEO of NANO SEC (an American company that focuses on the development of a cloud platform for secure applications; private).

Dr. Ahmed Sayed – Ph.D. in Computer Science at the Hong Kong University of Science and Technology.


Partnerships:

DeepCloud has a total of 20 partnerships and there are several screenshots of MOUs attached to some articles in Medium.

Some partners are American telecom companies, but the majority of them come from Latin America and come from the TV sphere, including the university-focused niche.

The most interesting partnerships are:

  • National University of Singapore

There is an MOU about sharing scientific and technical information, joint research and monetization of developed technologies.

  • International Bank of Reconstruction and Development, one of the project’s representatives says that this initiative is currently on hold due to focus on larger partners.
  • The Mexican government, which decided to build a distributed database of transportation for Coahuila. The soft launch is scheduled for July 2019 and it will define whether the tech is ready for being launched ‘state-wide’ (it’s hard to tell what is the essence of this initiative and whether it requires a decentralized cloud platform).

Investors:

According to the admin in Telegram, there are more investors than LD Capital.

The announcement about LD Capital taking part in financing DeepCloud was published on July 10.
LD capital is a large crypto fund with HQ in Shanghai that works from 2017. Among its investments are 200 projects, such as Eos, ZCash, Neo, Qtum, Vechain, Stellar, OmiseGo, and Huobi. One of the latest ones is Sero.

Technology and idea

White paper:
A 29-page ver 2.0 of the official document was available at July 11, 2019.

Value proposition:
DeepCloud aims to create a decentralized cloud platform for dApps that will utilize AI for effective resource and task matching.

The platform has 3 silos: Iaas (Infrastructure-as-a-Service) – cloud computing model; Application Marketplace; Developer Community.

The network’s consensus mechanism is called Proof of Service (PoSe). The scalability problem is solved on Layer 2 with masternodes and DAG with Gossip protocol.

The main feature is the utilization of masternodes (called ‘controllers’) and AI, which allows constant evaluation of the network’s state and quick allocation of necessary resources for specific tasks while minimizing the costs based on data about previous consumption in similar circumstances.

This is achieved by sharding and categorization coupled with dApp clustering by:

  • consumption of the computing power;
  • multimedia streaming;
  • storage;
  • IoT;
  • games;
  • DEXes.

The Whitepaper mentions use cases for smart cities, TV providers, supply chain IoT developers (highlighting free transactions and distribution of ‘heavy’ resources based on the principle of the closest locality) and WEB 3.0 (highlighting the high network’s throughput, utilization side-chains, and the SDK).


Tokenomics:

The token will be ERC20, but the team has already announced a further conversion to BEP-2 of Binance Chain. Previously, the token was planned to launch on Nebulas network.

The economic model isn’t fully detailed in the Whitepaper (the standard outline is applied – token acts as a means of payment through smart-contracts; miners receive transaction fees; resource providers receive rewards, but they have to lock up portions of those tokens).

The team claims that they will provide more information on tokenomics in next iterations of the Whitepaper.

Competition:

The competitive advantage of DeepCloud is the utilization of AI for matching.
The market caps of competitors on July 12, 2019:
Golem – $73.8 million;
iExec – $23.5 million;
SONM – $6.4 million.


DeepCloud GITHUB:

According to one of the team members the official GitHub has only a portion of the code. The reason behind this is the IP for AI algorithms.

DeepCloud Roadmap & MVP:

The roadmap starts from Q1, 2018, but up until today, only private and public MVPs are launched, which should’ve been reached in Q4, 2018. In addition, DeepTransfer (a sharing service for large files) was launched.

Judging by the messages in the official Telegram group, the team wants to restructure the important milestones because it’s not likely to be possible to launch the mainnet in Q4 2019 because the testnet launch was delayed.

DeepCloud Summary

Strengths:

  1. In theory, there is a clearly stated competitive advantage of utilizing AI algorithms for effective resource and task matching.
  2. Strong CTO with vast experience in IT, and competence in AI consulting. Presence of the creator of Nebulas in advisors also looks reassuring.
  3. LD Capital in investors, which latest investment Sero went up 6х on Gate.io and is now being traded at 30x. LD Capital’s investments have good performance.

DeepCloud Risks:

  1. Lock-ups for the Public Sale investors seems negative, given the small allocation.
  2. The economic value isn’t clear for some partnerships.
  3. The project has a rather high total cap of $17 million, considering the competition.

Weaknesses:

  1. There are concerns about the performance of AI algorithms because the code isn’t available and it can’t be evaluated even approximately.
  2. The team has a strong СТО, but other members don’t have such a high level of expertise. Moreover, the status of the two team members isn’t completely clear.
  3. The logic of the team’s actions is a bit intricate: the network for the token was changed twice (initially, it was Nebulas, now Binance Chain); a sudden Public Sale on Bitmax. All of these happened within previous 1.5-2 months.
  4. Roadmap delays: the testnet wasn’t delivered in time

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