Kibo: an inside look
In the course of KIBO ICO we see how on the network statements about the project appear, which obviously don’t come along with the reality. It’s particularly surprising to see people who call themselves experts among those who post such conclusions. Under the guise of analysts, they offer people to listen to their point of view, but it is clear that while preparation of the analytical reviews their authors didn’t even get familiar with basic information about the project. Therefore, it’s impossible to say that they have spent time on the qualitative analysis of the project. In that attentive reader can convince himself by reading the information on KIBOplatform. We don’t quite understand how could self-respecting person give false information to public, but let it be on their conscience. I’m sure that in the near future, these people will have to publicly explain this behavior in front of their audience, if they have a little respect for them.
My name is Alexey Miller and I'm one of the founders of KIBO. In turn, in this block post I will reveal for the reader some of the KIBO project the details, which are intentionally or due to lack of understanding trying to show to you in a different way. After reading, you can use simple logic and links to facts to create your own idea of what the KIBO project is and why we’re developing it in this way. So, let’s begin.
Who and why will play KIBO LOTTO?
The product itself which KIBO launches isn’t new. Today in some countries up to 80% of the population regularly plays the lottery. This is a huge market with a turnover of nearly $ 30 billion a year. For a visual example, you can visit www.wintrillions.com and see what sums are played in lottery every week for a several times only in some countries. Please note that draws jackpot amount is only a half of the funds received from the sale of tickets.
Despite such popularity, there are still some major issues that bother every player. Their discussion can be found on online forums easily.
- No guarantee of 100% fair draw;
- Lack of transparency in the distribution and the formation of the prize pool;
- Long payments and prizes with high commissions retention;
- Winner anonymity issue.
With the foundation of smart-contracts and blokchain technology the perfect solution to all these issues appeared. KIBO LOTTO offers it. It’s completely transparent and 100% honest gameplay with instant payment of any size within a few minutes to anywhere in the world without commissions.
Another important factor is the fact that for the first time KIBO offers access to a single lottery from anywhere in the world.
If translate all this into simple terms: KIBO is a more convenient solution to the market with a huge demand. And it’s obvious that such a decision will replace the old format of the game. As an example, today almost no one sends a letter in an envelope, and waist a few days until it reaches the recipient. Everyone uses e-mail because it’s more convenient and faster. Exactly the same is a pretexts for KIBO. The same product, but in a more convenient form.
Why the recommendation system is the basis of KIBO development?
An interesting product is good. But how tell millions of users about it? Perhaps many will say advertising, but is such tool effective today and how much does it costs? Let’s take famous Facebook or Instagram. Anyone can go out there and create an advertising campaign. The cost per click of more or less targeted audience will start at $ 1 and above. If you have the conversion of 20% of people, which is very cool, you attract 1 million users for a cost of something from $ 5 000 000. Since the formation of the jackpot is done by funds received from the sale of tickets, a platform needs to attract a large audience. Almost none of young startups can afford to spend millions of dollars on advertising. But even more important – this just doesn’t make any sense.
Today, high-quality marketing strategy is a crucial factor in the development of a company, and simply spend millions in advertising is no longer a method. Now the most effective way to attract an audience is a correct integrated recommendations system. That is why today companies are working so hard on how to convince the user to recommend a product to others. This effect is achieved by itself if the product has high quality and solves issues. Vivid examples of this are Instagram, Facebook or Whatsapp. These companies are growing only because they have been recommended. In the growth stage these products didn’t bring any income so they couldn’t add some extra motivation to recommend, and only possible way to do so was with the expense of investors' money. Not many dare to reward for the recommendation of several million users, especially when a product is still not profitable. If a quality product manages to add some additional motivation, audience growth will be much faster.
Additional financial motivation is especially needed when a company comes to an existing market. For example Uber, which came out on the existing market by offering demanded product only in a more convenient format. KIBO does the same. UBER Company has received such growth due to the fact that you were allowed to present a free ride to a friend, and if a friend took this gift, company would give you a free ride. This is a direct financial incentive to recommend UBER to friends. Someone would call it a pyramid; competent people call it a thoughtful marketing. Everyone knows the result, today UBER has the largest share of the market and the capitalization of the company has reached $ 60 billion within several years. Now this model is copied by many local taxis and so they’re developing successfully.
At the beginning of working on KIBO we realized that without a strong marketing strategy we won’t get a fast audience growth. Therefore, we started to integrate the successful growth model in our project. What a lottery can give people? Of course tickets to participate in a series of free draws. But where young startup can get a few million dollars to organize these draws? We’ve decided to build an affiliates network throughout the world, which will chip in on these draws, and after the platform launch will attract first customers.
Ponzi scheme or a powerful development strategy?
Ask yourself how to build an affiliate network all around the world without investing in marketing? Properly built multilevel system of compensation for the recommendation is the perfect tool. Firstly it must be said that many just confused this method with a Ponzi scheme because of the lack of competence. People who say this probably just don’t understand what they are talking about. In a Ponzi scheme income is promised to the new users, payment of which is provided by new investors. At the time when the flow of new deposits ends, such a scheme collapses because it can’t pay what have been promised. It has nothing in common with multi-level recommendation system that huge number of companies worldwide uses today, including KIBO.
It should be noted that a classical work, where most of the people are employed in, is almost no different from a multi-level compensation system. Every company has CEO who is managing heads of departments. These departments have staff units and they have employees of a smaller unit. These are the same levels of affiliate networks. The higher the level the more the employee receives as his experience brings the greatest benefit to the company. The difference of the reward system in KIBO is that the results of your work will bring you income even after you stop working. In the case of a classic work after you stop working, the results of your work will be received only by the owner of the organization. Many just don’t realize this fairer labor model.
It is also very important to understand that this reward method removes a huge amount of organizational issues. Some companies with classical wage system are trying to solve the same issues by giving their employees different options and shares, which are received only after they achieve certain results. This way they try to motivate employees to work more efficiently. In the reward system KIBO using there is no need in motivating an employee to the result. He/she works for him/herself, and his/her income is directly dependent on the applied efforts. The company doesn’t pay anything, just shares the profits from the results and gets the best specialists who know how to do their job. Our affiliates themselves are motivated to develop and grow, and, what is very important, they are interested in sharing experience and helps the growth of their affiliate network. Thus KIBO have thousands of sales departments that grow on their own and help each other to develop, because it directly affects their income.
For example, you have $ 15 per a product sale made by your manager. In the classical rewards scheme you pay him a motivational bonus of $ 5 for the fact that he has sold the offer. Part of the collected revenue a company spends on advertising and organizational issues. In our case, we just distribute this $5 up to level 5. There are no debts, other marketing costs and organizational issues, our partner network is simply more efficiently and developing itself. It's simple grade 1 math. It’s surprising that those who claim themselves experts may not understand this, moreover call it a Ponzi scheme. What kind of results this model can achieve you can see in this example. Today the number of affiliates in KIBO network all over the world is close to 4 000. All of them are interested in developing their customer network and together they chipped in on a powerful tool which allows them to easily get the audience at the start. We precisely set ourselves this goal, and as you can see we’ve already reached it without investment in marketing. It would be very curious to see how respected experts and analysts would achieve this goal?
In the details, how this mechanism is used by KIBO?
As you know there is the ICO at the moment and anyone can purchase KIBO PLATFORM for 10 ETH. If someone wants, he can participate in the formation of an affiliate network on ICO stage, but he can just don’t. It’s not in any way obligatorily, and doesn’t impose any restrictions on platform owner. If someone purchased a platform from your recommendation you get 3 ETH. At this stage there is only one level. Every second company today has one level reward for recommendation. That’s the way we seek to increase an affiliate network and its geography growth at ICO stage.
We have another kind of reward to increase motivation and network efficiency in the future. After the launch we will pay to the owner of the platform 10% from all the incomes of its affiliates down to level 7. Terms of those payments are incorporated in the smart-contract. These affiliates can appear only if on ICO stage you and your affiliates recommend KIBO PLATFORM to new users. So you build your affiliate network, which will bring you extra income after KIBO LOTTO launch. KIBO offer you 10% of the income from ticket sales of all your affiliates down to level 7. Why KIBO does it? This encourages partners to recommend KIBO PLATFORM and gives motivation to each owner of a platform to help their affiliates to achieve maximum effect in the development of customer base on their platforms. KIBO is a powerful affiliate network, which independently develops and finances itself.
Where affiliate payments come from?
Perhaps many people are interested in from what 7 levels of affiliates receive 10% of the income of affiliates under them. Just be careful please and you will understand that this is a simple addition of numbers. From each purchased ticket the reward for affiliates is 17%. 10% of them gets the owner of affiliate on which these tickets were sold. And 7% is paid to top 7 levels, 1% per each level. If you are a careful reader, you will notice that the 1% in this case is the 10% from income which is paid to the owner of the platform for each ticket sold. By a simple addition you can see that all these incomes have been included in the ticket price and there are no any Ponzi schemes. It's marketing that correctly linked some motivational factors, which in the right composition can solve a large number of tasks.
Where payments of 5% from winning friends up to level 3 come from?
Note that a customer doesn’t receive an income from ticket sales. 10% from ticket sales is received only by a platform owner. Customers receive only 5% of the prize of those customers who were invited by him up to level 3. Especially for this purpose +15% is feed into the prize pool. They paid 5% for each user up to level 3, if the winner has someone who invited him.
All this is only a small part of intertwined mechanisms. Every little thing performs its specific task. KIBO strategy has no extra parts without purpose. Of course, we won’t describe every single detail, but we touch on the most basic. Next, I will reveal a few issues that cause some users misunderstanding.
Why there are 2 types of tokens in KIBO?
As you can see in order to achieve our goals, we have to build an affiliate network, which have a strong motivation to build a customer network and provide these affiliates funds for organizing a series of free drawings with big prizes. The fact is that usually the ones who are able to invest are less motivated to work. For the achievement of the tasks that we faced, we created 2 types of tokens for each audience. We offered KIBIT for those who just want to invest, these tokens is funding the start. Partners who bought KIBO PLATFORM are active people, who are willing and able to work. They will attract customers to their platform by a series of free draws which are financed by KIBIT sale. Thus, every platform owner for 10 ETH will get his own lottery with more than $ 2 500 000 advertising budget .
Why is there a minimum KIBIT purchase for 100 ETH?
If we give everyone an opportunity to purchase KIBIT, then we will reduce the motivation of Kibo Platform owners to attract customers. Thus, lower our potential for development. If the platform owner has KIBIT, he can count on income without doing anything, and such thoughts decrease his motivation for action. If we reduce the motivation of thousands partners to grow client network, we reduce potential of affiliate network for several times. This is contrary to the objectives of KIBO LOTTO. We plan to earn income from customer base. This means that first of all we are interested in partners that have maximum motivation in growing customer base. Today, a network of such affiliates has more than 3,500 owners worldwide. It allows us to count on a very high growth rate of the customer network.
Why don’t you give away KIBO PLATFORM for free?
If we start giving away free platform, we don’t believe that people will understand what they’ve received This cost allows us to see that the platform owner has understood what he acquired. Before purchase something a user has a tendency to understand on what he spends his money.This price is available for anyone, but at the same time helps to ensure that a user would understand and appreciate what he purchased. Thus all of the platforms are most active and ready to build the customer network.
How 10ETH received from the sale of KIBO PLATFORM are distributed?
- 3 ETH is send as a reward to a user by whose referral KIBO PLATFORM purchase was made. So we motivate partners to help increase the affiliate network on ICO stage.
- 2.4 ETH is the tickets that a partner receive at platform launch
- The remaining sum is used to form a series of free draws fund where same partner will attract its customers.
So you can see that KIBO team doesn’t take anything from a platform purchase.
Why are you making partners pay 2.4ETH subscription fee?
First, it’s clear that if we want to get money from people, we could just take off the monthly fee for the platform and pick ourselves 2.4ETH. But as you can see, with this money we buy 24 tickets for a partner. For participation in 8 draws of the main platform lottery, 3 tickets per draw, in a month. Some funds return to a partner in the form of profit because they are the first customer on their platform. The company takes only 10%, which is 0.24 ETH, although it could be 2.4ETH I think you agree with this.
The subscription fee is a monthly investment of each partner in the development of their business. The same as if you opened a store and pay for its rent. But unlike a store where you just give money and that’s all, here you get tickets which have a certain value and get 10% return. Why do this? Thus we insure the platform at an early stage and provide a guaranteed minimum jackpot each draw. But even more important is that we demonstrate to new users that the game is going here. When show to user something new, he's used to follow the crowd, because that's how people are. Buying for partners 3 tickets for each draw, we create activity on the platform and newcomers, who were invited to the same partners, see that. At acquaintance with something new this is an additional element in increasing the level of trust. Something that helps to overcome the barrier of the first registration. So that is only one of the tools, which promotes the development of the customer base this partner. And it's just 2.4ETH per month. I assure you that, in the context of those income that platform owner gets with a customer base, it is a penny. If he don't have any income, the he can don’t pay it all.
A lot of users don’t know how to use Bitcoin, how do you get customers?
After registration, a user is involved in a series of free draws. This is done not just to throw money. The first task of a free series of draws is a big carrot, which is given to a new client. We encourage him to invest the time to understand crypto and make a wallet. If he does it, he gets a free entry in the draw and we get a customer who can pay. Of course it will not be 100%, but we are giving a very large carrot, and as shown by the tests we've done on the first stage with 1500 people, this works very well. About how he will pay and why I won't write, but I can, if you wish, tell you every step of the customer conversion into paying one. By participate in drawing he met with the advantages and moves to a new format of the game. In the process, we encourage him to recommend a product and make it as easy as it was done by Uber. The difference is that we don't give a ride for a friend invitation. Instead we offer him to make a gift and receive a lifetime 5% every time a friend wins or his friends down to level 3. It's obvious that such a motivation is many times stronger. With this customer’s motivation in recommendation, each KIBO owner has high chances to build a large customer network on his platform.
What is KIBO Platform?
Each platform owner receives 10% of each lottery ticket purchased on his platform, by all users down to level 5 on a regular basis. This is fundamentally different from the affiliate programs that exist today in the market. Typically, the company offers no more than 1 level of income. I.e., you get the income from those customers which you personally attracted. On KIBO PLATFORM you receive income from personally attracted customers, as well as from all customers which were attracted by your customers down to level 5. And it is this that has the potential of large income. The fact is that if your customers will recommend platform to their friends, the number of customers on your platform down to level 5 can make up to a few thousand users. And it’s only if you’ve attracted just a few customers. In order for your customers to recommend lotto to their friends and your customer base to increase independently, we build in the platform a powerful marketing tool which works without you. The basis of this tool is a series of free draws, which will start at the launch of KIBO PLATFORM. The size of prize fund of this free draws depends on the results of ICO, which began on October 1 and ends on November 10th. But we can already say that the prize fund will be several million dollars, because at the second day of sales the size of funds raised reached the point of 2 900 000 $. What does this mean?
This means that for $ 130 you will get not just a finished gaming platform with all the benefits, but also a powerful tool for engaging customer base with the marketing budget from $ 2 500 000. To start the growth of customer bases on your platform you just need to build the first line of customers. You can do this by giving others free tickets to a series of draws with large cash prizes. What could be simpler? Then the company motivates your customers to do the same, and your customer base starts to grow exponentially without you. Further, the company begins to convert your customers into paying ones, and your income starts to grow. Minimum effort and you can get a growing source of income.
So, we understood where the audience comes from, now let's talk about income.
What income KIBO Platform owner can receive?
I think everyone would agree with me that any Internet user can present free tickets to his friends on social networks to participate in a series of free draws with a prize fund of $ 2.5 million. How many friends can it be? I think 50 people in a few hours with a cup of hot tea in hand will not be a problem for anyone.
So in total you have 50 customers on the first level. Let's assume that your customers were not as active as you are, and didn’t invite average 50 people, only 3 each. What will your customer base be down to level 5 in this case?
1 level - 50 clients
2 level - 150 clients
3 level - 450 clients
4 level - 1350 clients
5 level - 4050 clients
Total 6050 users on your platform in this case.
Today in the world average statistical user spends on tickets purchase around $ 30-40 per month. Let's not be so optimistic, and assume that your users will likely spend $ 10 on tickets purchase. This means that in such scenario monthly turnover of your platform will be $ 60,500. Your income as platform owner is 10% that in money terms is $ 6,050 per month.
Let's sum this up. You bought a platform for $130 and at the start spend a few hours at invitation of the first customers. That's probably all your investments, after your income is increasing by itself. Of course no one is stopping you from inviting more customers, there are no restrictions, and it’s your choice. But running process of customer base growth will work without you after first step. All of your earnings depend on the size of your efforts at the start.
What income can KIBIT brings?
Since there are more and more platform owners around the world, it begs the question how much can KIBIT tokens bring in this scenario. We have already assumed that the turnover of a single platform can be at least $60 500 in the pessimistic forecast. If we multiple this with the number of platforms - 5000 - than the monthly turnover of KIBO Lotto in whole will be $ 605 million. 4% from this sum is $ 12,1 million. These $12 100 000 we divide by 100 million KIBITs, between which this income is distributed, and so we have $0.12 for each KIBIT monthly. Thus, 5000 KIBIT for 100 ETH today can earn you $605 in a few months after the global start. Taking into consideration the prospects of this market, the price of one such token can be estimated as 5-10 yearly incomes. This means that in the nearest future 5000 tokens can cost up to 30-60 times more than now.
Of course it’s only an assumption and it isn’t in any way guarantee. KIBO is not a launched project yet, it’s just in the development phase. But you can admit that this assumption has a clear logic and enough reserved prognosis. In the end, every one of you can make your own forecasts with your own fairer figures.
KIBO’s legal issues
Today, almost every developed with the use of smart-contracts and blokchain technology project has an open question about how it will be regulated in the future. Any new technology faces this issue, and of course projects based on this technology are no exception. At the time of Bitcoin appearance there wasn’t any legal prospect for it, but, after all, the solution was found on how to applicable this in many areas, from a legal point of view. This is just one example of such examples and there are more and more of them today.
For example on October 4 www.augur.net project launched. This project in the legal part has not less question than KIBO. The markets of predictions are banned in many countries; in fact it’s a bookmaker where you can bet on any event. This directly falls under the gambling laws and this game is banned in many countries, more than lotto. Even so the project is developing and this doesn’t stop him to get into the top 10 tokens by capitalizing on all the major cryptocurrency exchanges. Our respect to guys for that.
KIBO is not the first project which was faced with the need to address the legal aspects of the question. This issue applies to almost all projects in this area, but all of them are still developing not badly at all in fact. Why is this happening? Because it’s a promising trend, and today more and more legal field professionals are working to adopt laws of many countries for this technology. Moreover it must be said that more and more countries now create favorable legal conditions for such companies and their partners. Certainly this direction will be developing rapidly. It is for this reason that it isn’t a problem – it’s just a matter of the nearest future. How near?
Of course this issue is a top priority for us. We see great possibilities in KIBO and are well aware that in order to make KIBO a global project we have to solve the legal side of the issue. Despite the fact that we are among the first who uses smart-contract technology in gambling, we were able to make great progress in this issue. Today we can say that by the time of full launch of the lottery platform will work on the license of jurisdiction, where all these relations regulated by law. We are now at the stage of registration of all necessary documents. Into the solution to this problem for Kibo involved the best lawyers in this field today by our opinion: the company and Dr. Luka Müller himself, who is one of the few specialists in tokenizated eco systems in the world, is directly involved. We have every reason to assume that this issue will be solved in the nearest future.
The goal of this article is to widen your understanding of what KIBO is. And to share with you KIBO team vision on some details, you can learn about them on our website. I hope that these simple things to which I tried to draw your attention will help you connecting the dots and exclude false stories.
Thank you for your attention, I hope this information will be useful for you. KIBO LOTTO ICO goes on successfully. We are moving forward and in the nearest future we will already learn what KIBO will evolve into.
Author of article Alexey Miller