My due diligence on TERNIO (TERN)

Putting together this DD for the ETH community. I have consulted in digital advertising for years and have closely followed Ternio for the last few weeks so I think I know more than the average person. They are relatively new, not a ton of press, and subreddit is quiet – r/ternio

Ternio's angle is to provide blockchain to the digital advertising ecosystem. They are using a combination of Stellar and Hyperledger. This is important because they need to support a huge amount of daily transaction volume which Ethereum can't handle (think if you had to store every time someone visited google – now do that for 20 million sites across the world).

Company details:

website: https://ternio.io/

whitepaper: https://ternio.docsend.com/view/4jji4v4

presale: Open $10,000 USD minimum. $0.06 sold out. $0.07 next $1mm, $0.08 next $1mm, $0.09 next $1mm

accepted: BTC, ETH, XLM, USD

public: April 2nd, 2018. TERN price is $0.10. $25 minimum buy in

airdrop: Yes. airdrop.ternio.io

details: 100,000 TERN given away daily to members of their telegram. 20 members get 5,000 TERN each which equates to $500.

start: Registration open. Begins Feb 5th, 2018

telegram: ternio-token

This is a B2B play. Digital advertising is a huge industry with hundreds of billions of dollars flowing through it. When an advertiser like Coke wants to advertise on NY Times, they don't call them up and give them the ad. There are hundreds if not thousands of companies that sit between the Advertiser and Website.

Example 1: http://www.verticalresponse.com/blog/how-to-decipher-the-online-display-advertising-landscape/

There are too many companies in this industry, but there is enough money flowing to support all companies in the short term. The problem is all these companies that sit between the advertiser and website take the majority of the money. NY Times earns $0.40 on the dollar that Coke spends advertising. That means 60% is getting scooped up by companies such as doubleclick, oracle, facebook, or others.

There is also a ton of fraud due to all these companies sitting in the middle. 50% of them take a cut when they shouldn't. That means a crap blog can misrepresent themselves as NYTimes and capture some of the Coke advertising dollars. The person in charge of all advertising at Proctor & Gamble has open criticized this for years. Example 2: http://www.cmo.com/features/articles/2017/2/28/digital-media-supply-chain-murky-at-best-and-fraudulent-at-worst.html

Digital advertising has been looking for a solution for years and blockchain seems to be a really good option.

Why this could fail:

Little detail on the team outside of founders

Lack of partnerships could lead to no real world adoption. One announced so far.

Why this could succeed:

Everyone in the advertising industry is searching for a solution

Underlying tech and approach is solid – real world use case.

Business case is different from everyone elses

Overall, I think this has a really good chance of succeeding. Ternio has taken a completely different approach compared to projects like BAT, AdShares, and Adex. They are bringing their solution to companies with established relationships in the industry rather trying to compete. This makes a lot of sense because if only get a small amount of partnerships, it puts the 50% of fraudulent companies out of business. That means 50% more advertising dollars to go to the good companies.

TLDR: Ternio building blockchain for digital advertising industry which needs it. $224b market. Has good chance of success.

Submitted February 01, 2018 at 02:35PM }
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