Gas

Trader#6510
www.twitter.com/Crypto_Gass

**THIS IS NOT FINANCIAL ADVICE, JUST MY OPINION. DO YOUR OWN RESEARCH
AND HOLD NO ONE ACCOUNTABLE FOR YOUR TRADING ACTIONS BUT YOURSELF**

Coin Pitch – In-depth analysis for Orchid Protocol [$OCT]

Brief Overview

$OCT is a decentralized, open-source and uncensored Internet. The protocol uses an overlay network
built on top of the existing Internet; it is driven by peer-to-peer tokenized bandwidth exchange. The
contributors share their surplus bandwidth and activate their internet-connected device as a node. Since
central authorities do not monitor the transaction to purchase the bandwidth, both parties are fully
anonymous and surveillance-free. The protocol implements a “Chaumian mix” message forwarding
system. It is a cryptographic solution to overcome collusion attacks on the orchid network that pairs
nicely with the medallion system. The Medallion is the Orchid Market’s token for proof of work and is
required to enter and participate in the market, this prevents trivial entry into the market (resulting in
attacks). This ensures that each node demonstrates its realness to the system. Additionally, each node
checks the correctness of its neighbour’s behavior, furthering the security of the protocol. The current
alternatives to using the internet are: unprotected access – giving your ISP complete browsing history and
allowing them to sell or share the data, using a VPN – which is untrustworthy at best and it is likely the
VPN providers will “sell-out” to the same incentives that traditional ISPs did and lastly tor- where only a
few thousand unpaid volunteers host relays and exit nodes meaning sophisticated hackers a tractable
number nodes to monitor/compromise. Orchid has already researched and begun planning for attacking
including: denial of service, quality of service, eclipse (similar to the 51% attack on BTC), Sybil
(pretending to be multiple users), economic attacks and inference attacks. The three parts of the Orchid
Protocol in which the purchase and sale of bandwidth will occur are the: Relays, Proxies and Users.

Company Background

The co-founder, Gustav Simonsson, has worked as a core developer for Ethereum and has additional
software/back-end engineering experience. Jay Freeman is another founder who has worked for over a
decade on a popular application called Cydia allowing users to install software packages on jail broken
iOS devices. Stephen Bell has been a serious entrepreneur and venture capitalist for over 2 decades and
brings experience from a start-up Internet Company in China (a major geographic focus for the protocol).
Dr. Steven Waterhouse is the CEO/Founder of Orchid Labs. He has previous experience at Pantera
Capital where he has been a visionary and invested in existing blockchain projects such as Zcash ($1.7B
Mcap), Civic ($285M Mcap) and Ripio ($157M Mcap).

The advisors on Orchid Protocol are some of the best I have seen. Paul Veradittakit was an advisor to the
incredibly successful ICOs: ICON and Enigma. Gavin Wood is the founder & CTO at Parity
Technologies that specialize in the blockchain. Dr. Dan Boneh is a professor and head of cryptography at
Stanford University and lastly, Alexander Lloyd who is a human rights advocate and MD of Accelerator
Ventures.

They have seed round investments from some of the largest VC funds in Silicon Valley including:
Andreessen Horowitz, Sequoia Capital and Polychain capital. These funds are there to ensure the success
of the product in both the financial and material aspects to the protocol.
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Investment Analysis **but not advice**

The utility for the tokens are that consumers pay the bandwidth contributors in orchid tokens through a
peer-to-peer exchange. The token promises payments that are arbitrarily cheap, un-forgeable, irreversible
and anonymous. One possible hiccup in acquiring new users onto the system is that they cannot accept
fiat currencies on their platform, meaning that users must be well-versed in using exchanges to acquire
tokens as well as wallet setup and management. This could further delay Orchid Lab’s vision of seeing
their protocol used by the general public in the near future.

The tokenomics for this project are mediocre. There is no incentive for token holders to continue to hold
or stake their tokens. This is a result of PoS having security flaws, such as the attacker holding the
majority of tokens. However if the attackers include governments, they can be motivated, oppressive and
have the resources to pull off an attack.

In terms of user acquisition, DADI plans on implementing a front-end interface for consumers to
purchase services in their currency of choice. This will allow for easier adoption of the platform as
consumers can use the platform without worrying about exchanges and wallets. Lastly, they already have
functioning clients on their platform/tech, this company is miles ahead of any other ICO that I am
familiar with. They have existing revenue, clients, 4-year-old company and the team has worked together
on projects in the past.

According to Freedom House, over 2/3 of all Internet users live in countries where THE Internet is
censored, surveilled, and the government limits their ability to access info or communicate with others.
This illustrates how large of a potential audience there is in the decentralized and trustless Internet
market. The scariest prospect is that if the orchid protocol is implemented correctly, the countries that are
censoring the Internet will almost certainly ban it. However, this would not necessarily stop people in the
country from using the protocol.

Orchid has plans to implement an API for websites to directly interface with and incorporate tokens into
the service, file sharing, email/messaging and an arbitration service. This will be years out on the
“roadmap,” but still should be considered.

Catalysts

This is the section where I would normally put the price catalysts for the coin in the short-mid terms.
However, orchid protocol is in the very early stages of development and do not even have a roadmap for
the project. There are plans to release a beta of the protocol in early 2018 that could help generate some
hype if the beta works as intended. However, they do not plan to open source the project until the end of
2018.

Valuation

At such an early stage in the project it is nearly impossible to try and give an accurate valuation to the
project. We could look at similar projects (decentralized, open source web network) such as Substratum
who has a market cap of $353M. However, this would just be a gauge to the value of a successful
implementation of the orchid protocol with a large following and working product. It is safe to say that
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orchid protocol is at least a year away from being anywhere close to having a finished product. They have
not even released the token metrics for their own project, making it impossible to gauge if this project is
undervalued (assuming the hard cap is reached) given the stage it is at.

Investment Risks

The top risk factors include:

• The token lockup period after the TGE is a full year. A lot can happen in a year’s time, the market
cap of crypto could be worth trillions of dollars. This means any possible returns on the project
could potentially be thwarted by the opportunity cost.
• The project is open sourced and the developers are fully committed to the producing the best
possible solution for the problem they are trying to solve. While this may not be bad thing, it
appears as though they have no intentions of making the project a quick flip or doing extensive
marketing campaigns anytime soon.
• I have heard they gave massive discounts to the VCs, which has potential to be dumped onto the
average investor if they catch wind of things before we do.
• Very early stage project, the whitepaper was formatted similar to a research paper.
• Brand new company, founded in 2017

Key Takeaways

They gave huge discounts to VCs in Silicon Valley, a full year on the token lock up, more than a year
from the project being finalized, incredibly early stages of development and it is not open sourced yet.