Monthly Report on ENGT for November of 2018 (by EGT International, Cayman Exempt Co.)
Hello and welcome! Here is the snippet of our activity for November:
- Crypto fall. Some perspective.
We see the continuing crypto bear market. By all signs, it will continue. The basic coins (BTC, ETH) have lost significant percentages with ETH losing over 90% of its value. As ETH is underlying for the ERC-20 tokens the rest of the token prices will continue to implode.
This is very similar to the deflation of the dot-com bubble eighteen years ago. Is there a light at the end of the tunnel? The answer is yes, but it will take a while.
Here is an article from 18 years ago:
Does anything look familiar?
“Of the 280 stocks in the index, 79 are down 90 percent or more from their 52-week high. Another 72 are down 80-89 percent. Only five are down less than 5 percent.”
One of these “fallen” companies is Amazon; it has lost close to 90% of its value. Yet 18 years later it is one of the most successful companies on the globe.
The moral is that we have been through this before and the companies that survived the .com crash came out as the trendsetters for the economic growth of the next two decades.
We are still far from the bottom in the crypto market. It is necessary to take a long-term view. Same as with the dot-com crash, we need to be prepared for years of recovery and retrenchment. The businesses that have made the most judicious bets will survive and still generate value. This also bodes well for tokens as they should be more valuable than the underlying (ETH, BTC) in the long term, especially for those companies that can connect their business model to their token.
- Restructuring to meet the challenges of the down market
Due to ETH losing over 90% of its value and no signs of recovery in sight we had to make some difficult decisions and reduce the scope of our immediate ambition. We will need to work with our technology partners to reduce the expenditure rates, conserve resources and make sure that we are geared for the long term. Cost cutting is the business of the day. All non-essential spending must go. Some of the cost-cutting measures will include reducing the redundant personnel and cutting on some of the support functions. One such measure would be moving to a Forum environment for the token support and knowledge base vs. maintaining 24/7-moderated TG channels. Another one will be to reduce unnecessary marketing expenditures and travel.
- Rebranding to Engy.ai
Our technology partner SolidOpinion will be rebranding to Engy.ai. This is done in order to find a fitting niche for the developed technology in the changing online advertising market. The value proposition for the market. SolidOpinion will acquire a license for the cutting edge chat-bot technology and bundle it with CommentsRadar and Engy.ai landing page. The message for the customer – online brands will be simple:
Engy.ai constantly monitors online discussions and speaks on behalf of your brand clarifying, explaining, and selling. It directs users to Engy.ai page for your brand where it chats with the prospective customer explaining the product and ultimately sells for you.
This is a unique and compelling message bundling up the technology capability of our technology partner and current demands of the market. Of course, SolidOpinion will be committed to using ENGT in the new product offering.
The rebranding and product restructuring is being done now and is expected to be unveiled to the market in Q1 of 2019.
- Progress on closed loop Engy.ai technology stack
Our technology partner SolidOpinion has made significant progress building up the necessary components for the Engy.ai ecosystem. It will, however, take a little more time to accomplish full transition with the rebranding. Therefore the decision was made to enable ENGT support on the Comments Radar product within the new Engy.ai branding, that is scheduled to come out in Q1 of 2019.