N.B: The following Coin Report on Unibright is community-selected.
Welcome to the 49th Coin Report. In today’s report, I will be assessing the fundamental and technical strengths and weaknesses of Unibright. This will be comprised of an analysis of a number of significant metrics, an evaluation of the project’s community and development and an overview of its price-history. The report will conclude with a grading out of 10. I hope you enjoy the read!
Firstly, I’d like to congratulate Unibright for placing 2nd in the community poll I ran back in Q1. I am aware that this report is much-delayed but I am happy to finally have some research ready to be published.
Regarding the project, prior to my research I had very little idea what Unibright did or was seeking to achieve, having only heard about it through Twitter, with the vocal community often the cause of its appearance on my feed.
I hope this report will prove objective where it must be and fair on more subjective matters. For those who’d like to learn a little more about Unibright prior to reading this report, here are some primary links:
Sector: Blockchain Solutions
Exchanges: Uniswap, IDEX, Hotbit, Kyber Network, Bancor Network. Fatbtc, Bilaxy, COSS and HitBTC
Unibright was officially launched in Q2 2017, with the Unibright Smart Contract Lifecycle and Unibright Contract Interface. However, it was not until Q4 2017 that the team partnered with Ambisafe and Iconiqlabs to ready the token launch and find seed investment.
It was then in April 2018 that Unibright created their UBT token, launching with a public sale between April – May, amounting to 67% of the maximum supply of UBT for purchase by the public: 105,000,000 UBT. The remaining 45,000,000 UBT were distributed amongst the team, advisors, seed investors and in a private sale. The public token sale raised over $12,000,000 and the token was issued on the ERC-20 standard, functioning as a utility token for Unibright’s products and services.
By Q2 2018, the first working versions of Unibright’s Workflow Designer, Lifecycle Manager and Explorer were available for use with Ethereum blockchains and SAP (Systems, Applications and Products).
Having been in existence for two years, Unibright has quite a lot of price-history available, although the vast majority of this had been spent in consolidation, as I will discuss at length in the Technical Analysis section.
For now, it will suffice to say that Unibright formed its all-time low against BTC around 100 satoshis in Q4 2019, preceding the current bull cycle that has led to the all-time high of 5,088 satoshis just earlier this week.
At its core, Unibright is a blockchain solutions service for enterprises, with the ecosystem built around the Unibright Framework, with UBT tokens acting as vouchers for use of this framework. The primary aim of the project is facilitating seamless integration of blockchain technology for businesses that are looking to make the most of the benefits this technology provides; but there is much more to the Unibright ecosystem, with security tokenization also a key component via Unibright Freequity, which facilitates all-in-one asset tokenisation in a compliant manner.
As stated on the Unibright website:
“Unibright is a team of blockchain specialists, architects, developers and consultants with 20+ years of experience in business processes and integration. We turn ideas into businesses, and improve processes with the help of blockchain technology.
We develop enterprise applications, invest in start ups, build process modelling tools and create a 360° ecosystem around tokenized assets.“
I look forward to delving into its progress since inception.
Let’s begin with some Metric Analysis:
Below are listed a number of important metrics, all of which are accurate as of 28th April 2020. For anyone reading this who has yet to read a Coin Report, it might be worth reading this section of the first report, where any potentially unfamiliar terms are explained. For any terms or metrics specific to this post, I will provide explanations besides the figures.
Price: $0.335 (4,340 satoshis)
Circulating Supply: 142,465,000 UBT (~7.5mn locked as per https://unibright.tech/)
Total Supply: 150,000,000 UBT
Exchange Volume: $2,307,258 ($1.363mn excluding likely wash)
Network Value: $47,732,613 (6183 BTC)
Maximum Supply: 150,000,000 UBT
% of Max. Supply Minted: 100%
Network Value at Max. Supply: $50,257,200
Exchange Volume-to-Network Value: 4.83% (2.86% excluding likely wash)
Average Price (30-Day): $0.136
Average Exchange Volume (30-Day): $369,032
Average Network Value (30-Day): $20.224mn
Average Exchange Volume (30-Day)-to-Network Value: 1.82%
Volatility* (30-Day): -0.2921
Average Daily On-Chain Transactions (30-Day): N/A
Average Daily Transactional Value** (30-Day): N/A
NVT*** (30-Day): N/A
% Price Change USD (30-Day): +257%
% Price Change USD (1-Year): +1452%
USD All-Time High: $0.34
% From USD All-Time High: -1%
Premine % of Max. Supply: N/A
Premine Location: N/A
Liquidity (calculated as the sum of BTC in the buy-side with 10% of current price across all exchanges): 3.97 BTC**
Liquidity-to-Network Value %: 0.06%
Supply Available on Exchanges: 1,122,624 UBT
% of Circulating Supply Available on Exchanges: 0.79%
*Volatility is calculated by taking the average price over the given time-period, calculating the difference between it and the highest price and it and the lowest price over that same time-period, and multiplying those figures together. The closer to 0, the less volatility during that period, and vice-versa. Read this for more on volatility.
**Liquidity on non-traditional exchanges, where majority volume is traded, like Uniswap, is closer to ~$240,000, as per this source.
Supply Emission & Inflation:
Block Reward Schedule: N/A
Average Block Time: N/A
Current Block Height: N/A
Annual Supply Emission: 0
Annual Inflation Rate: 0%
Circulating Supply in 365 Days: N/A
ICO Period: 20th April 2018 – 20th May 2018
Total Tokens: 150,000,000 UBT
Total Tokens Available for Sale: 105,000,000 UBT
Total Raised: $12.6mn
Average ICO Price Per Token: ~$0.13
Total Tokens Sold: 105,000,000 UBT
Token Distribution: 9% seed funding; 12% private sale; 6% team; 6% advisors; 13% public presale; 54% public sale.
Address Count: 9,244
Supply Held By Top 10 Addresses: 14.61%
Supply Held By Top 20 Addresses: 18.94%
Supply Held By Top 100 Addresses: 52.4%
Inactive Address Count in Top 20 (30 Days of No Activity): 17*
*Excluding top three richest addresses, which are IDEX, Hotbit 1 and Hotbit 2, respectively. Instead, I’ve included addresses #21, #22 and #23.
There’s quite a lot to work through here, but I’d like to begin by taking a look at Unibright’s Volatility, which came in particularly high (as one would imagine having glanced at the price chart). I calculated its 30-day figure to be -0.2921, which places it 4th-highest amongst coins previously reported on, indicating to me that it is very likely that now is not a good entry for speculators. Remember, you usually want to be buying during a period of low volatility and selling high.
Moving on, let’s take a look at the two Liquidity-related metrics:
For buy-side Liquidity, I calculated that there was 3.97 BTC of buy support within 10% of current prices across listed exchanges, equating to 0.06% of its Network Value. However, this is not including the liquidity of exchanges like Uniswap and Kyber Network, where orderbooks are not used. This is not particularly impressive given the growth of Unibright over recent months (as we will discuss in later section), but the majority of the volume does occur on non-traditional exchanges, so perhaps this should come as no surprise. If we look at this source for Uniswap liquidity, for example, we find there is $241,419 of liquidity currently available – significantly more than that found on traditional exchange orderbooks. This would equate to 0.5% of the Network Value.
Looking at the sell-side, I calculated there to be 1,122,624 UBT available for purchase on the orderbooks, equating to 0.79% of the circulating supply. This is the 4th-lowest among prior reports, indicating that very few are willing to sell their UBT, at least not through traditional exchanges, with so little of the supply held in orderbooks. Again, it is difficult to glean too much from this, as much of the volume occurs via liquidity providers on Uniswap and Kyber Network.
Before I move on from the General metrics, let’s take a look at those related to volume:
Unibright traded a report $2,307,258 of Exchange Volume over the past 24 hours, equating to 4.83% of its Network Value; an impressive figure. Unfortunately, it is highly likely to be a false one, although through no fault of the project itself. It appears that almost half of this volume is coming from Hotbit; an exchange notorious for wash trading. Moreover, there are a couple of other exchange listings that are highly likely to be wash. Having examined the orderbooks myself, this does indeed appear to be the case. As such, if we discount Hotbit entirely along with FatBTC and Bilaxy volume, Unibright traded $1,363,029 in the past 24 hours, equating to a more modest but respectable 2.86% of its Network Value. Further, its Average Daily Volume for the past 30 days was $369,032 equating to 1.82% of its Average Network Value for the same period.
Now, with regards to UBT’s supply emission, in short, there is none, as tends to be the case with ERC-20 tokens that were issued following an ICO. Thus, annual inflation is 0%; fantastic for the speculator. This, in essence, means that there should be no real headwinds for price growth (as we can quite clearly see from its recent price-action – more on this later).
Let’s wrap up this section with a look at Distribution:
Looking at the Unibright rich-list, I found that there were 9,244 holders, which is the 13th-highest figure recorded in these reports. Of these, the top 10 addresses control 14.61% of the supply; the top 20 control 18.94%; and the top 100 control 52.4%.
Naturally, this is excluding the #1 #2 and #3 addresses, which are owned by IDEX (#1) and Hotbit (#2 and #3). These contain 12.98% of the total supply (a vast discrepancy from the 0.76% actually on the orderbooks, as discussed above). Instead of these addresses, I have included #21, #22 and #23 in my calculations, as these are privately-held addresses.
I’d like to mention that this is highly decentralised concentration of supply, particularly for an ICO. Regarding the activity of these addresses, 17 have been inactive for the past 30 days. Among the 3 active addresses, 2 have been distributing, with 269k UBT and 50k UBT distributed each, and the final address has added 29k to its balance across the same period. Clearly, the largest holders are not buying at these prices.
And that concludes this section; onto the Unibright Community:
There are two primary aspects of community analysis: social media presence and Bitcointalk threads. I’ll begin with the former before moving on to the latter.
Concerning social media presence, there are four main platforms to examine: Twitter, Facebook, Telegram and Discord.
Unibright is present on all platforms except Discord. To begin, let’s look at the various social metrics that I calculated from the Unibright Twitter and Facebook accounts:
Twitter Followers: 8,424
Average Twitter Engagement: 1.8%
Facebook Likes: 3,347
Facebook Posts (30-Day): 1
Average Facebook Engagement: 0.75%
As usual, I will be using RivalIQ‘s social benchmark report for evaluation purposes.
Unibright has a modestly-sized Twitter audience of 8,424, which places it in the top third among coins previously reported on. It also has quite strong engagement, with its average engagement rate at 1.8%. This is 40x greater than the average across all industries and among the top third again of prior reports. This was expected, if I’m honest, given how engaged and vocal the community have seemed at a glance.
Now, with regards to Facebook, Unibright has a smaller audience of 3,347, which is 11th-highest among prior reports. It has worse engagement than Twitter at 0.75%, although the relevance of this is diminished when taken into consideration with the fact that only 1 post has been published in the past 30 days.
There is no Discord group publicly available for Unibright.
The Unibright Telegram group contains 4,570 members.
This is clearly the hub of the community, as the discussion was near-constant, with plenty of active engagement from many within the community.
I have summarised my findings from the past week of activity below:
- Clients have to purchase UBT from the open market.
- There are currently ~7.5mn UBT locked within the Unibright Framework, equating to 5% of the supply.
- The team are active in the group and promptly answer community questions.
- Ethereum, EOS, Hyperledger, NEM, Libra and Tolar are all blockchains supported by the Unibright Connector.
- After being locked within the Unibright Framework, tokens do not leave the framework – this acts as a kind of deflationary mechanism.
- Clients are contractually able to rebuy UBT for use within the framework at a predetermined value per token, but these cannot be withdrawn from the framework.
The Unibright BitcoinTalk thread was created on February 6th, 2018, and has since generated 1,198 posts spanning 60 pages in 810 days. This equates to 1.48 posts per day, on average. However, in the past 90 days, the thread has had 14 posts via 4 individual posters, giving an average of 0.15 posts per day; a significant decline in engagement with the thread.
Regarding the announcement itself, it is presented as an infographic, with the tagline of “The unified framework for blockchain based business integration“. Below this, we find links to social platforms and the website, followed by an overview of the project itself. Here, we discover that the team has over 20 years of experience in business integration, with Unibright looking to capitalise on the growing number of businesses seeking blockchain solutions – enter Unibright Framework. With the framework, businesses can select from templates that fit specific use-cases and Unibright automatically generate everything required for integration.
Following this, there is some detail on current problems and how Unibright solves them, with the former including costliness of development, difficulty of deployment, complexity of the data and integration issues. Solutions within the Unibright Framework include the Visual Workflow Designer, which allows for users to design blockchain solutions with no coding required; the Contract Lifecycle Manager, which transforms visually designed workflows into platform-dependent code instantly; the Explorer, which functions as a monitoring service for these systems within one user-friendly dashboard; and the Connector, which facilitates the integration into existing systems.
Subsequently, we find information on the UBT ICO, with the use-case of the token detailed as follows:
- Smart contract creation, for which UBT is required for deployment.
- Smart contract connection.
- Additional Unibright features, such as workflow template purchases and smart adapter usage.
- Marketplace of third-part add-ons.
- Incentivising clients.
We also find a breakdown of token distribution, which has been covered in earlier sections, as well as information on the core team, which I will delve into in the Project Leadership section. Finally, we have a list of partners and clients, with the former including Ambisafe and Iconiqlab and the latter including Lufthansa and Shell. It is noted that some clients are attributed to SPO Consulting GmbH, which is also run by the Unibright team.
And that concludes this section on the Unibright Community.
Let’s take a look at some Development:
For the following Development analysis, I will be evaluating project leadership, the website, the roadmap, the whitepaper, the wallets and finally providing a general overview:
There are 7 core team members listed on the website, along with 8 advisors. There are also 14 employees listed on LinkedIn.
Among the Core Team:
- The CEO is Marten Jung, who is also Head of Blockchain Development, with 20+ years of experience in business modelling and software engineering.
- Stefan Schmidt is the CTO and Head of Software Architecture, also having 20+ years of experience in business modelling and software architecture.
- The Chief Information Officer and Lead Frontend Engineer is Ingo Sterzinger, who has 15+ years experience in web application development.
- Dr. Thomas Schmidt is the Lead Engineer in Data Modelling, with 20+ years of experience in software engineering, project management and ISO standardization initiatives for speech and language technology.
- Fabian Schlarb is the Test Lead Engineer, with 12 years of experience in development, testing and systems integration.
- The Chief Communication Officer and Lead Usecase Specialist is Bastian Emig, with 15+ years experience in requirement definition, implementation and training.
- Daniel Benkenstein is the Chief Marketing Officer, also founder of Herzblut.io, with 14+ years experience in online marketing and entrepreneurship.
- Ruud Huisman is the Networking Manager and Ambassador.
- Jack Wiering is the Community Manager.
The Unibright website is quite modern in its design and relatively well-branded, although the entire content of the site is native to the homepage and is not particularly detailed. That said, there are micro-sites specific to each component of the ecosystem that contain more detail.
Upon navigating to the site, you find the Unibright logo emblazoned across the centre of the homepage, following by the tagline “Blockchain Based Business Integration: Unibright makes it easy to integrate blockchain technology into existing business“. Below these, the aforementioned micro-sites can be found, with one for each of the following: Unibright ThinkTank; Unibright Solutions; Unibright Ventures; Unibright Framework; and Unibright Freequity. Further down the homepage, you also find recent articles from the blog, followed by a brief overview of the project, as well as an overview of the utility of the token, including for purchase and deployment of smart contract creation, smart contract connection, tokenisation of assets via Freequity and access to consulting workshops. We also find a concise chronology of the history of the project, from conceptualisation to the launch of Freequity in 2020. As we come to the footer of the homepage, we find a list of partners and clients, information on the core team and links to social platforms, though these are quite hidden.
Regarding the components of the Unibright ecosystem, below I have provided a brief run-through of the details found on each of the micro-sites:
- An independent think tank that is actively developing strategies and solutions for the digital world. Unibright provides workshops and calls for clients, with a First Touch workshop that is currently sold out at 2k EUR and a Deep Dive workshop at 5k EUR.
- Blockchain consulting for enterprises, which includes building out use-cases, protocol choices, integration and systems monitoring. The First Touch workshop is again sold out at 1k EUR, and the Deep Dive workshop is priced at 2.5k EUR. There are also blockchain packages including development, priced at 10k EUR, 50k EUR and 100k EUR depending on the requirements of the client.
- An investment firm partnering with businesses that require capital at every stage, with projects currently including a hydroelectric power plant and scientific research, as well as the design, concept and development of Carbonara – a solution to measure energy consumption of blockchain transactions, compensating for CO2 emissions.
- The Unified Framework For Blockchain Based Business Integration. This is the core component of the ecosystem, allowing businesses to integrate blockchain solutions “without a single line of code”. Demos are provided for potential clients, as well as use-case templates (9 currently available with more in the works). There is also a section here on the token itself, with transparency on lockups and utility. Further, there is a token calculator available for clients to determine the number of UBT required for usage of the Framework.
- Focused on tokenisation, providing services at all stages of the process. This includes token definition, issuance, custodian services, exchanges and liquidity, integration, derivatives and portfolios. Workshops are available for these services, similar to those for the Thinktank and Solutions. Freequity token issuance will be facilitated via Liquidity Pools, as opposed to bid/ask orderbooks, whereby liquidity for a security token is provided by a pool of supply with and underlying stablecoin, utilising a price determination mechanism based on the quantity of tokens left in the pool, adjusting after every trade.
The Unibright roadmap is presented via a Medium blog post, as opposed to a more traditional chronological timeline, but it is accurate as of April 2019.
It begins with the current ongoings at Unibright, which include working on clients; specifically, working on use-cases with a US real estate client, a German food company and a German consulting company. Further, the team are developing the Framework itself, including providing a graphical interface for the Mapping Engine in the Connector; integrating a Blockchain Query Language; enhancing the Batch Tracing Template; and enabling Milestone Payment Templates for usage in the public demo. Thirdly, they are building out the ecosystem via networking, marketing and education, including working within associations like INATBA, EBF and Bundesblock; providing speeches and workshops; and preparing lectures for universities.
Moving onto the Future Roadmap, it is emphasised that clients are the biggest priority. The target for 2019 was for 5-10% of UBT to be locked within the framework (achieved as of now, as we discovered earlier in the report). Beyond this, by the end of 2020, the team would like 15-25% of UBT locked in the Framework and complete automatic setup for clients to setup a Unibright Framework SaaS environment. By the end of 2024, Unibright would like to have 80% of UBT locked within the Framework.
The only available whitepaper is dated April 2018 and thus is not particularly useful for our purposes (it would be great to have an updated document available).
As UBT is an ERC-20 token, it can be stored on a plethora of wallets, including hardware wallets (Ledger, Trezor etc.) and web wallets.
*UPDATE: 10th May 2020
As was brought to my attention upon publication of this report, I had overlooked a couple of important recent updates for Unibright, and so I have included an overview of these below, although my overall assessment of the project has not changed; as prior readers will recall, I am certainly interested in Unibright from a fundamental perspective, but the risk/reward remains skewed to the downside for me and until that changes no improvements in fundamental quality will make me a buyer (as the movements in price since the publication of the report have shown – cycles are of primary importance for speculators). Nonetheless, there were some important points overlooked and I believe that these additional components cement Unibright as a upper-tier project fundamentally:
The Enterprise Ethereum Alliance (EEA)
The Enterprise Ethereum Alliance is an organisation of enterprises seeking to make Ethereum the primary choice for integration into businesses. More specifically, the EEA will be provide standards for open-source development across the member companies, facilitate cross-deployment among these members for all manner of use-cases and create private blockchains utilising Ethereum. Enterprise Ethereum is not separate to public Ethereum, except that it is distinguished as “extensions to public Ethereum providing enterprise-focused additions”. The three core features of focus are privacy, permissioned networks for private usage and performance.
Why is this relevant to Unibright? Well, because the Unibright team are leading the EMINENT Task Force, which is the Ethereum Mainnet Integration for Enterprises. Alongside ChainLink, Unibright will be providing their expertise into developing solutions for the integration of Ethereum into enterprises. As Unibright’s own personal vision for its project is to build blockchain solutions utilising the Unibright Framework, the EEA’s aims are well-aligned, as the Unibright Connector provides adapters for Ethereum and thus the building out of Enterprise Ethereum is mutually beneficial for the members of the Alliance and Unibright itself.
The Baseline Protocol
The Baseline Protocol was announced by Microsoft, EY and ConsenSys in March this year as “an open-source initiative that combines advances in cryptography, messaging, and blockchain to deliver secure and private business processes at low cost via the public Ethereum Mainnet.” Unibright will be a key player in the development of the protocol, facilitating cross-system connection via Ethereum. More specifically, the protocol will allow businesses to collaborate in complex ways without leaving sensitive data on-chain, enabling secure yet private collaboration utilising the benefits of blockchain technology. Baseline will achieve the aims of the EEA, with Unibright contributing to the development of the protocol itself as part of the EMINENT Task Force. More specifically, the Unibright Framework will be Baseline-compliant, with the Workflow Designer (mentioned earlier in the report) allowing for the visual definition of baseline-ready processes, the Lifecycle Manager seamlessly producing code to connect to smart contracts for the protocol, the Connector providing ready-made adapters for connection to Baseline and the Explorer allowing for full monitoring of these processes. Overall, this is the breakthrough that the EEA was waiting on and the key role of the Unibright team cements the project’s position as a leader in its space.
And that concludes my Fundamental Analysis on Unibright.
The first thing to notice is that Unibright is quite clearly at the tail-end of a monster bull cycle, having rallied out of long-term accumulation in January.
Before we get into more recent movements, however, let’s take a look at the earlier stages of its price-history. Firstly, UBT began trading in May 2018, initially peaking at 2,437 satoshis before bleeding out for several weeks, culminating in a low in October 2018. This began a process of mini-cycles playing out, with successive higher-highs and higher-lows, up until February 2019. Here, price bottomed above 300 satoshis and peaked shortly afterwards at 1,214 satoshis.
This peak remained untested again for about a year, as price began a lengthy bear cycle here, breaking below the previous all-time lows from October 2018 and falling to new lows around 100 satoshis, where it formed range support. Price actually remained range-bound for almost 8 months between 100 satoshis and 280 satoshis, before breaking out in January 2020 above range resistance and beginning the current bull cycle.
Since January, price has been on an absolute tear, rallying violently for successive weeks and taking out high after high, with the prior all-time high of 2,437 satoshis eclipsed in February. This led to a high of 3,548 satoshis, after which price rejected hard, breaking the prior low and turning Daily market structure bearish. One might be forgiven for thinking this was the end of the bull cycle, as it does appear to look like classical euphoria and complacency, but UBT hit support at 1200 satoshis and bounced hard, with April price-action taking the token to new all-time highs on rising volume. The current all-time high was formed earlier this week at 5,088 satoshis, where it appears to be taking a breather.
Quite clearly, Unibright is in the latter stages of the bull cycle, and it is impossible to predict a possible climax. I think we are likely in the thrill stage of the cycle, which will swiftly be followed by euphoria, if we are not already there, that is. When one considers the fact that just 5 months ago price was at a little over 100 satoshis… that’s 50x against BTC in less than half a year. I simply would not be a buyer at these prices and at this stage of the market cycle and had I have been a buyer inside the accumulation range of 2019 I would be selling much of my position here to secure profits.
That, however, is not to say that I don’t want to be a buyer – it just means that I will be waiting for the next accumulation range to form, wherever that may be, before I buy. I am waiting for anger and depression and only then I will be a keen buyer.
This could still have some legs and continue on for another 100% to 10k satoshis, making it a 100x for those that bought the bottom, but risk/reward is significantly misaligned here for new buyers.
This report is now over 4,000 words, and it is time to draw it to a close.
My final grading for Unibright is 6 out of 10.*
*I would like to note that the grading would be an 8 were it not for the relative illiquidity of the token and, more importantly, the stage of the market cycle that it is currently in, as that alone has significant risks for speculators. Fundamentally, I feel that there is plenty to be interested in here. My grading will be updated to reflect the fundamental soundness when speculative prospects are far greater.
If you have enjoyed this report, I have recently launched Premium Content on the blog that you may be interested in. You can find out more here.
Here, you can find my grading framework, for reference.
Lastly, here is a link to a Google Sheets file with any significant data from previous reports compiled for cross-comparative purposes. I will keep this updated as I continue to write these reports.
I hope this report has proved insightful and that you’ve enjoyed the read! Please do feel free to leave any questions in the Comments, and I’ll answer them as best I can.