🧵ALKIMI EXCHANGE🧵
@AlkimiExchange was the clear chosen winner by the community for my next deep dive. And now I understand why!
This incredible project is set to disrupt the $600bn online advertising industry forever!
A potential 500x play.
Let's find out how... 👇
$DAG
@AlkimiExchange @AlkimiExchange is the worlds first decentralised Ad Exchange.
Built on @Conste11ation networks Hypergraph, its mission is to disrupt the current centralised online Ad industry by returning the value exchange between publishers, advertisers and users, to a fair equilibrium.
@AlkimiExchange @Conste11ation THE PROBLEM 🚨
To be able to fully understand just how big of a project @AlkimiExchange can become, we need to examine exactly what problems it's working to solve & the impact of that.
In 2021 the online ad space generated $602bn! With a projected growth up to $876bn by 2026!
@AlkimiExchange @Conste11ation It's safe to say $ADS are entering a huge industry that has rapid growth ahead! But it's broken...
In its current form, the online advertising industry is subject to massive amounts of fraud, with advertisers losing $59bn in 2021 alone!
That's an insane amount of losses!
@AlkimiExchange @Conste11ation How does that happen?
Because all current online ad exchanges are centralised they're essentially a closed book. Scammers create bots/malware that create fake engagement, costing advertisers heaps!
And right now advertisers have no way of really knowing...
It's a HUGE problem
@AlkimiExchange @Conste11ation THE DUOPOLY
As it stands, Facebook & Google account for 52.4% of all online advertising.
This means that Advertisers are pretty much forced into their hands, with zero control over the performance of data until it's too late. And no idea about the legitimacy of the results.
@AlkimiExchange @Conste11ation Outside of Facebook and Googles grip alternative options have surfaced. Sadly, only exacerbating the issue.
Due to what has been labelled an "ad tech tax" publishers are now only receiving $2.55 on every $5 advertisers spend!
With a 1/3 of the costs being untraceable.
How? 🤔
@AlkimiExchange @Conste11ation Currently, If an advertiser wants to display their ads online they will use what is called Programmatic Buying, or RTB(Real time bidding).
They use a third party platform & set bids they are happy paying. The platform then works through all bids and decides what to show.
@AlkimiExchange @Conste11ation 90% of all advertising is now bought and sold like this.
It's worked out instantly & automatically using technology, behind closed doors, with 49% of the money spent being used up on fees or lost!?
It's hard to believe it's actually this bad.
@AlkimiExchange @Conste11ation With such a HUGE amount of money being lost, it has led to aggressive marketing trying to drive engagement wherever possible.
Which has led to more intrusive ads, then more people using ad blockers, then even more aggressive ads.
See just how broken it is?...
@AlkimiExchange @Conste11ation THE SOLUTION! 💪
Up until now, building a decentralised Ad Exchange on a blockchain has been impossible.
It requires the ability to process an insane amount of transactions per second.
Can you imagine the gas fees?
@Conste11ation's fee-less HYPERGRAPH has made it possible.
@AlkimiExchange @Conste11ation Utilising the HYPERGRPAH network, $ADS created the ability for its users to define specific data types that asses the legitimacy of ad performance.
Being on a blockchain, this completely opens the book & allows users to monitor the data in real time, instantly detecting fraud.
@AlkimiExchange @Conste11ation Alkimi Exchange has been designed as a "plug and play"system.
This means it can simply just swap in for current centralised Ad Exchanges, making the transition for everyone involved in the process of buying & selling ads, completely seamless.
See image of how this will look
@AlkimiExchange @Conste11ation Remember our $59bn fraud issue? That's gone!
Using the set data types, all fraudulent data will be flagged & removed, meaning every dollar advertisers lost on bogus engagement will return to their pockets.
For this reason alone, businesses will be queuing up to use $ADS!
@AlkimiExchange @Conste11ation Not only that, but $ADS will be charging significantly less than centralised Ad Exchanges.
In the UK, 49% of revenue from transactions for ad spend are spent on "Ad tech fees". So almost half the money is wasted on fees before you even get an ad.
$ADS are charging 1.5%! 👀
@AlkimiExchange @Conste11ation Lastly, $ADS will provide complete audibility and instant reconciliation of all data.
By leveraging @Conste11ation's HYPERGRAPH, all data will be available in real time for advertisers/publishers to know EXACTLY what is happening.
No more closed book!
@AlkimiExchange @Conste11ation TLDR on the differences...
Centralised Exchanges
- $60bn in fraud
- Almost no visibility
- 49% in fees with a 3rd of it untraceable
@AlkimiExchange
- $0 in fraud
- Complete, real-time visibility
- 1.5% fees
$ADS estimate they can save Publishers up to 63% on revenue!!
@AlkimiExchange @Conste11ation TOKENOMICS & UTILITY 🪙
$ADS has a total supply for $250,000,000
They initially raised $2.35m from their seed rounds.
@AlkimiExchange @Conste11ation The $ADS token is fundamental for the Exchange to function.
- Users will be required to hold $ADS to access the exchange
- $ADS is required to provide the bandwith users need for transactions
- Providing reduced fees
As the exchange thrives, so does $ADS!
Real utility.
@AlkimiExchange @Conste11ation If users don't want to purchase $ADS & expose themselves to risk, they have the option to borrow for a fee.
This creates amazing passive income opportunities for $ADS holders, enabling them to lend their tokens to users of the exchange in return for a fee.
This is around 25%apr
@AlkimiExchange @Conste11ation THE TEAM
To truly make it work, having the tech is one thing. But the team need to be just as good.
Alkimi have both!
With a combined 20+ years experience at the top of the advertising industry & software development, there's no doubt they have the knowledge to make it work.
@AlkimiExchange @Conste11ation CONLUSION
$ADS has the potential to completely revolutionise the way the online ad industry operates. And I believe it will!
It will save businesses billions, provide complete transparency & audibility of data, whilst creating a better user experience for everyone.
@AlkimiExchange @Conste11ation POTENTIAL CONS
The only potential issue I can see is competition from other projects, or the bigger boys creating their own version of a decentralised ad exchange. The latter is unlikely...
$ADS has some similarities to $VRA, and I'll be doing a thread on the differences soon!
@AlkimiExchange @Conste11ation Some quick maths to finish...
Online Ad Industry value 2025 = $820bn approx
Projected fraud in 2025 = $102bn approx
If $ADS was to only capture the fraudulent part of the market, with it's 1.5% fees it would generate
$102bn x 1.5% = $1.53bn
Current $ADS market cap is $9m
#NFA
@AlkimiExchange @Conste11ation Thanks so much for reading along guys, I hope you found value in this project review!
Make sure to follow me for more of these deep dives. I try to break things down as simply as possible & showcase projects i feel have great potential
Links and sources below!
Catch ya soon!
@AlkimiExchange @Conste11ation Nothing in this thread is financial advice. It is purely for education purposes. Please DYOR.
All docs - linktr.ee/AlkimiExchange
Twitter - @AlkimiExchange
Sources.
statista.com/statistics/237…
infosecurity-magazine.com/news/digital-a…
statista.com/statistics/242…
alkimiexchange.com/wp-content/upl…
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