Boson Protocol, is a decentralized commerce protocol (dCommerce), which uses NFTs and game theory mechanics. That is, tokenize the products and services of the real world, the commercial data and thus create a liquid market.
In contact with Cointelegraph in Spanish, Roberto Sanz, owner of the company RSResearch, a company that manages analysis of the cryptocurrency market and business projects, announced through his “Fundamental Analysis Boson Protocol”your impressions about the project platform tokenization.
“We can understand that Boson Protocol is one of those projects in which a token is not necessary for the idea to work”
According to the analyst, for “tokenizing businesses with NFT has to be technological”. It is not necessary to be knowledgeable in the matter or user of it, it is enough to know that you use the marketplace and that you can obtain other different things with greater privacy than on another website, according to Sanz.
The protocol has a team that is related to the blockchain ecosystem and the banking sector. According to Crunchbase data, there are between 11 and 50 people involved in the project. Among them, the founder of Ocean Protocol. However, according to Sanz’s perspective, “He is a person closely linked to Boson and that is good”.
Sanz in his Fundamental Analysis of January 2023, detailed that Boson Procol NFTs (rNFTs) are redeemable for off-chain items and appear as a bridge between the isolated blockchain and the physical world without relying on a centralized company. By March 2021, Boson Protocol had already raised USD 35.8 billion in 6 private financing rounds. Then, in April of that same year, it started its ICO.
Transparency
In the content of the report, Sanz highlights, among other key points, the issue of “tokenomics”. On this aspect, the specialist mentions the transparency of the protocol, highlights that the percentage of circulation of initial tokens is very low and, It is reason to be alert. In addition, the rest of the data is just a sample to understand what his “showcase” is like, he said.
Likewise, he emphasized the fact of the percentage relationship in which they distribute the tokens.
It indicates that the reality reflected in the previous image is that Advisors, Founders/team and early investors already occupy 56.6% of the tokens in circulation, which is considered very disconcerting and not recommended to invest in a ICO.
“Because? Easy. As soon as they start their distribution, the token is simply going to have a selling pressure that the market will not be able to withstand, be it bullish, lateral or bearish (even worse)”.
Also adding that, even though the project is in its “ initial stages”is not a reason for “not have more transparency from their own website, or in their whitepaper”as it doesn’t reflect the word tokenomics anywhere, Sanz explained.
Regarding the issue of token settlements to holders, it stands out that the graph shows how, currently, 54% of tokens are in circulation. Although, one point to consider, according to Sanz, is that there are still 3 years to go from the date of publication of this analysis (January 2023), for the issuance of tokens to end in its entirety.
Given this context, two questions arise, the first is how positive it is, and the second, how negative it is that there are only 3 years left for the protocol to totalize the issuance of tokens.
It also details that, one would have to think that “If this project goes ahead, the best investment is not now, but when it is close to finishing its issuance, and see that the project continues to have traction with good catalysts.”
Utility
The Boson token works to establish the governance of the protocol. When the token utility has no decentralized value, it is because DAO voting is controlled by whales. Also, these tokens are eligible to make commitment deposits.
“When that token is volatile, with high inflation and that it is not worth you as a buyer for anything else. Has no sense. You lose time and commissions when buying that token”, explained the analyst.
He also added that one cannot talk about use, if it is said that the utility is governance and staking.
Network effect, exchanges and liquidity
The owner of the company, RSResearch, reflects in his report, the graph of social networks, and mentions how Boson shows suspicion in them. A “clear disinterest” is highlighted for about a year, at which time the protocol reached its maximum of at least a little more than 70,000 followers on Twitter.
The same way, In the following image reflected in Sanz’s analysis, it is observed how the ten main wallets worldwide have control over the supply of the token, which is equivalent to having control of 70%. What according to Sanz, marks it as a “free fall and without brakes in the price”.
According to Sanz’s research, a part of those who belong to Boson’s team have their funds on Gate.io, and spread them around their team, transiting through different wallets within the exchange.
Likewise, in Kucoin, there are also a large number of tokens, which, since they do not have blocks, can be sold at any time. Next, there are the largest wallets and other smaller ones that are represented by the purple circles.
The specialist explains that:The bigger the circle, the more tokens you have from the project”, adding that, “The power of negotiation is controlled by a select few”he detailed.
Indicators
Sanz shows in the graph of 4h and 1d, how the project is. He mentions that at first glance it seems that the project is abandoned and it highlights how all the tokens have been sold since the beginning, except in mid-October 2021, when it suffered a rebound as a result of the announcement of the launch of the official version, the Mainnet Launch in mid-November.
“Since then, the duster of the real non-usability that the project has with its token has already been seen. At a speculative technical level, if at any time there is good news or a positive rumor, the price would rise very quickly due to its low MCap”, comments Roberto Sanz.
On the other hand, as far as onchain analysis is concerned, Ricardo Sanz shows in the graph how, in just one week, 1,000 wallets were made with small $BOSON tokens.
The trigger for this situation was the appearance of the protocol, Boson Protocol, at a Vogue and Google fashion event, where they explained what the purchase process is like through the NFTs in their marketplace. This makes it clear, according to Sanz, “that a good promo causes momentary interest, but does not encourage the purchase of the token”.
In addition, in a slightly deeper analysis of the active addresses of wallets, it is observed that there is a high concentration in those who have around USD180,000 in $BOSON (at the current price of this report, January 2023), with more than 1M tokens, he explained in his report.
Likewise, he explained that the valuation of prices in the event that the market does better, without taking inflation into account, would suffer a rise of USD0.34. This being a bit optimistic and, it would be a “nature scene” if the market manages to recover and doubles the total MCap.
To conclude his analysis, Sanz defines that Boson Protocol, “is a project whose fundamental is not so strong or so disruptive, simply one more evolution and with a “complex” system in which its token does not serve a common user, which is the large percentage of users of a marketplace”.
The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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