While the rationale of many Blockchain projects might be beyond common understanding, this one aims to take advantage of a rather obvious market fact: the considerable marketing budgets which are made available after ICOs by companies to promote their project.
The idea of AB-Chain, a Hong Kong-registered company with Russian roots, is to create an advertising platform for ICO companies with payments in cryptocurrency.
“We will provide companies having raised money through an ICO with an ad network where they can buy online advertising using cryptocurrencies, i.e. without needing to convert them to fiat,” AB-Chain’s founder Vladimir Dyakov tells us.
Startups usually spend 20 to 30% of their budgets on marketing and advertising – and this is even more true for those who raise considerable amounts of funding via ICOs. Thus Dyakov expects to see the emergence of “a $ 200 million advertising market in cryptocurrencies” as soon as next year “with a 200% annual growth rate over the next five years.”
With their budgets in cryptocurrencies, most post-ICO will face issues while converting these budgets into fiat. Amog these issues may be high commission fees, high local taxes, and the low liquidity of cryptocurrencies.
The AB-Chain platform will accept the 10 most popular cryptocurrencies as payment means. Post-ICO companies will thus have a quicker and simpler way to conduct their online campaigns through dedicated ad networks.
AB-Chain is also launching its own token. Dubbed ‘ABC coin,’ this cryptocurrency will provide advertisers and other token holders with specific incentives. These includes a lower commission, and a mechanism to raise the value of ABC coins: “We will burn 50% of all received commissions to have their price grow, thus 5% of the ABC turnover in the platform will be burned,” explains Dyakov, who expects the tokens to grow three-fold in value until the end of 2018.
AB-Chain will measure itself against serious competitors, such as A-Ads – which currently claims more than 113 million impressions per day, – Cointraffic.io and Mellowads. This is not to mention such classic ad networks as Adcash.com, Adsterra.com or BuySellAds.com.
The young company has just raised more than $370,000 in a few days in a pre-ICO sale, essentially from Russian and Chinese investors.
AB-Chain expects to conduct its ICO in late 2017 and launch its first ad network in Q2 2018. The startup is advised by top managers from such organizations as Qiwi Bank and Alfa Bank.
