Dash: Update Report 1

October 9th 2018

From the research team at

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 Disclaimers

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Introduction

Crypto Briefing has produced over 100 deep analyses of early-stage blockchain
projects since September 2017. Our exceptional diligence has become the gold
standard for crypto researchers who demand independent and unpaid reports.

In October 2018 we expanded our reporting to provide even deeper analysis of

tokens traded on exchanges such as Binance, Coinbase, and Bitfinex.

The result is DARE – the Digital Asset Report & Evaluation.

Our reports come in two guises:

THE INITIATION REPORT

In this first report, we examine the fundamentals of the blockchain project – its
goals, its uses, its economics and team. We then assign a grade based on how we
see the overall strength of the token in the market at the time of the Initiation
Report. This will serve as the yardstick for future updates.

THE UPDATE REPORT

Our second and subsequent reports examine how the token has performed since
the Initiation Report. Have they stuck to their roadmap? Has the competitive
landscape changed? Has there been a major change in adoption?

We then issue another grade, based on the now-current strength of the token.
Updates may come quickly if the token evolves rapidly, and may be less frequent
when there is little to report.

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The world’s trusted source for
independent and unpaid early-stage
blockchain analysis and ratings.
UPDATE REPORT #1
October 9, 2018

CONTENTS

3. Introduction to DARE
Dash is one of the most actively followed and 4. Dash Overview
traded cryptocurrencies on the market today.
Its ties to the original Bitcoin code, and the 5. Tech Progress
combination of speed and privacy make it one
of the most promising digital assets. 6. Ecosystem Development
7. Masternodes
However, development delays, questions
regarding management, and growing 8. Core Team
competition increase associated risk in the
9. Token Price
current challenging market.
10. Token Volume
11. Token Volatility
12. Core Team Development
13. Verdict and Grade
14. DARE Methodology
18. DARE Grading System

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Dash Tech Progress

The Dash project has been hampered by a number of development delays. The
2017 roadmap had the DashCore 12.3 release scheduled for December 2017
and the Evolution v1 launch targeted for February 2018.

In reality, DashCore 12.3 was not released until July 2018, with the Evolution v1
tentatively rescheduled for Q4 2018.

Evolution represents a major catalyst for the Dash ecosystem as it is expected to

include a wide range of user-friendly adoption tools to simplify the customer-
merchant relationship.

While there have been a number of demos released, and a patent was applied
for, further product launch delays will bring into question the long-term viability
of the project.

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Dash Ecosystem Development

Dash aims to become a “user-friendly and scalable digital currency platform

suitable for mass adoption”. To this end, Dash has made steady progress to
grow and develop partnerships and infrastructure necessary to grow and
support its ecosystem.

It is now accepted by over 3000 merchants across the globe, and the number is
growing. The partnership with Alt36 has been used as a poster child for
propagating Dash as a payment solution for businesses. Alt36 has formed a
partnership WebJoint expanding the Dash footprint in the legal cannabis space.

In addition, problems with hyperinflation in Venezuela have showcased the

mass adoption potential of Dash, as the currency experiences a spike in interest
both in terms of wallet downloads and merchant acceptance.

Besides, the core Dash Wallet, the cryptocurrency is supported by a number of

hardware, desktop and mobile wallets.

Dash is also supported by a number of debit cards, although given the unstable
situation surrounding card licensing, the exact number varies. Moreover, it is
accepted by a growing number of ATMs across the globe.

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Dash Ecosystem Development

No less important is the ongoing success of self-governance of the network.

From the ability to vote on the 2mb increase of the block size to funding of
projects, the community has shown an ability to self-regulate in a decentralized
manner.

This is especially impressive at a time when many projects have chosen to

compromise and sacrifice decentralization and market it as a necessary measure
for efficient governance.

The core network is also growing. The number of active addresses is increasing
in a step-like fashion.

The current plateau is indicative of the need for a new growth catalyst. In this
regard, the success or failure of Evolution will likely play a key role in
determining the long-term prospects of Dash.

Dash active addresses

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Dash Ecosystem

The number of active masternodes has also been steadily growing, which
increases confidence in the health of the network.

Overall, the Dash ecosystem is showing consistent growth. However, it might

prove difficult to maintain this pace without significant new technological
development.

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Token Economy Development and Competition

Much like the rest of crypto market, Dash has been hit heavily by the correction
in prices. However, Dash has arguably been hit heavier then some of its
competitors such Monero and Zcash.

At its peak Dash had a market cap bigger than both of them, but as the bear
market has ensued Monera has passed Dash in the top 20 rankings.

Over the last three months three cryptocurrencies have largely moved together
with Monero suffering the lowest drop in price. This has been a yearlong issue
for Dash, as the network is self-funded, so a significant drop in the price of its
native asset, dramatically reduces the value of its treasury.

This creates long-term risk of project sustainability.

Dash / Monero / Zcash price

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Token Economy Development and Competition

However, when it comes to volume, Dash is the clear-cut winner.

All three of the cryptocurrencies can be considered liquid by the crypto market
standards, however, Dash, by far, sees more trading activity.

Dash / Monero / Zcash volume

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Token Economy Development and Competition

This could explain the comparatively higher volatility of Dash relative to its
competitors. This represents increased short-term risk that is not being
compensated by the returns.

Dash / Monero / Zcash volatility

It is encouraging to see healthy volume for Dash as it suggests that if and when
positive catalysts are realized there will be demand and a price recovery will be
possible.

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Core Team Development

The last couple of years saw an expansion of the Dash team and a transitioning
of number of its key members to new roles. Ryan Taylor became the CEO, as
Evan Duffield became a Senior Advisor and Fernando Gutierrez Mosquera was
named CMO, to name a few changes.

However, the decentralized governance structure of Dash limits the power of

the board and the management teams and calls for greater accountability. Some
within the community have become unhappy with current price level and pace
of development, blaming it on the direction and decision-making of the
management staff.

This has led to a proposal for the demotion of CEO Ryan Taylor. While the
proposal is unlikely to garner enough votes, it is an indicator of concern within
the community.

The management team is starting to find itself on the hot seat and needs to
deliver on roadmap milestones, specifically the Evolution platform to stabilize
the situation.

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 Final Thoughts and Verdict

-------------------------------------

Dash token maintains a B grade.

Dash has made steady progress when it comes to increasing global adoption of its
cryptocurrency. However, delays in development, especially when it comes to the
Evolution platform have stoked negative sentiment and increased risks.

Dash has been one of the more promising cryptocurrency projects because of its
focus on building out a comprehensive ecosystem beyond the blockchain
software.

However, it is in dire need of positive catalysts in order to regain momentum lost

over the past year.

We maintain the B grade, with the expectation that Dash will be able to deliver the
Evolution platform sooner rather than later.

Crypto Briefing exists to advocate for the safe and responsible integration of blockchain and
cryptocurrency into mainstream life. In addition to our Digital Asset Report and Evaluation, we
provide an unbiased and independent news outlet with updates on blockchain developments,
token prices, regulatory affairs, opinions, market reports, tech analysis, and much more.

Find us online at www.cryptobriefing.com

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DARE Methodology

Framework

The Token Report is a standardized approach to evaluating blockchain-based

projects and identifying value in the associated crypto-assets.

The token report consists of a dual structure- Initiation reports and Follow Up
reports. The grade reflects our thoughts regarding the future commercial
viability of the product based on the current state of the project. The opinion
piece reflects our views on the attractiveness of the value proposition of a
given token. The underlying methodology involves both quantitative and
qualitative analysis to ensure that we produce the most accurate picture
possible at the time we conduct our evaluation.

Our first look at a token employs the Initiation report as a vehicle for delivery.
Initiation reports provide a format that introduces the audience to the project
basics in a comprehensive. The details contained in the Initiation report include
a project summary, vertical classification, discussion of market opportunities,
user ecosystem structure, token economy design, core team member info,
explanation of the underlying technology and an outline of the roadmap.
Importantly, the Initiation report introduces readers a brief overview of key
project developments. The report concludes with a grade according to our
weighted evaluation system.

The Follow Up report offers a vehicle for sequential updates on the progress of
each token. Follow Up reports provide readers with the latest, most relevant
information on project fundamentals, including progress on tech development,
ecosystem growth, trading volume, a comparative look at token performance,
and examination of upcoming price catalysts.

An analysis of the aforementioned variables is included in support of the

project grade and verdict. Grades assigned to tokens in Follow Up reports can
reflect a change in our opinion of the project or provide a reaffirmation of the
Initiation report.

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DARE Methodology

We consider the project-asset paradigm from five key angles:

1. Technology development
2. Ecosystem development
3. Usability
4. Trading volume
5. Token performance

The evaluation looks at the current state of the project, how it relates to the
initially stated goals, and the realistic outlook for the future. These factors are
all, in some way, codependent, so they are analyzed both individually and in
the context of the overall scope and progress of the project.

Technology Development

Technological development is the core of any blockchain-based project. It is

important to note that TPRs refer to post-ICO projects. So, what we are looking
at, is the progress the team has made more than the promises that have been
laid out in the white paper.

The ideal project will have relevant technological solutions, be keeping on

track with the stated milestone schedule and be producing quality code. The
evaluation incorporates, but is not limited to:

• Code review
• GitHub activity
• Relevant news
• Roadmap evaluation
• Reassessment of relevance

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DARE Methodology

Ecosystem Development

Blockchain projects are highly dependent on network effects. It does not

matter if the project is very innovative, if its acceptance in the community and
the market is low. This is especially important for network projects that are
being built for future dApp development.

We pay special attention to near-term catalyst that have the potential to affect
ecosystem growth. An ideal project will have proven partnerships and active
dApps on its network, as well as, a strong pipeline of affiliated projects. The
evaluation incorporates, but is not limited to:

• Network analysis (dApps)

• Relevant news
• Social media
• Asset allocation
• Governance

Usability

Here we consider how the product and the underlying asset is being used. It is
important that token usage is in-line with the stated goals of the project. This is
especially true for utility tokens whose long-term value is tied to the for-
product usage as opposed to market speculation.

The ideal project will see a strong growth trend in on-chain transactions and a
large percentage of assets being devoted to consensus and other utility
activity. The evaluation incorporates, but is not limited to:

• On-chain data analysis

• Token economics
• Relevant news
• Social media
• Market research

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DARE Methodology

Trading Volume

Here we consider liquidity risks associated with underlying asset. Trading

volume is highly correlated with adoption and market sentiment, but it can
also drive them. High or low volume can affect user awareness as well as
feasibility of utility.

Additionally, we consider inflation and deflation catalysts such as lock-up

expiration and hash rate changes. The ideal project will have strong, steady
volume on the major exchanges, such that buying and selling of significant
quantities of the token does not produce violent price swings. The evaluation
incorporates, but is not limited to:

• Trading data analysis

• Governance analysis
• Relevant news
• Social media
• Token economics

Token Performance

Here we consider price volatility risks associated with underlying asset. We

look at the performance of the tokens in the context of the overall market
trends, as well as, individual project dynamics. It is important to note that
while volatility reflects risk, it is not necessarily an accurate indicator of the
commercial viability of the project. The ideal project will have an asset with
positive long, medium and short-term price momentum. The evaluation
incorporates, but is not limited to:

• Trading data analysis

• Relevant news
• Social media
• Token economics
• Value modeling

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DARE Grading

A+
Commercially successful project with a exceptional fundamentals; a thriving
ecosystem and large-scale adoption support high level of token price stability.
The token is utilized by a large community of supporters and value is highly
tied to exceptionally strong fundamentals. The governance model of the
network fully reflects the aim of the project. Long term prospects for project
appear excellent based on a demonstrable track record of sustained growth
and usage.

A
Commercially viable project with a robust fundamentals; positive ecosystem
growth and widespread adoption with high level of token price stability. The
token is utilized by a community of supporters and value is predominantly
based on actual usage of the network. Long term prospects for project look
very positive based on consistency of track record.

A-
Technologically relevant and commercially viable project exhibiting early stage
signs of adoption- while adoption at scale has not occured yet, a strong track
record of achieving goals in line with roadmap indicate risk level is low. Project
has made significant strides toward decentralization of the network, though
mitigating factors may still persist.

B+
Project typically exhibits strong tech development and ecosystem growth
progress in line with all milestones but has yet to prove commercial viability or
gain adoption. Project development has been consistent in moving toward
proposed governance structure of network, though full implementation has
not yet occurred. Token retains moderate level of vulnerability to adverse
market conditions.

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DARE Grading

B
One major progress indicator (tech development or ecosystem growth) is
typically advancing well in accordance with roadmap but the other is lagging
behind; upcoming catalysts signal potential for positive price trend. Project
remains highly susceptible to adverse conditions in the market and token price
is moderately volatile.

B-
One major progress indicator (tech development or ecosystem growth) is
typically advancing well in accordance with roadmap but the other is lagging
behind; no upcoming near-term catalysts strong enough to signal potential for
positive price trend. Project still retains significant susceptibility to adverse
conditions in the market and token price is moderately volatile. Examples may
include a technologically sound project with little prospect of adoption due to
shortage of marketing resources OR a popular token behind on tech
development because there aren’t enough devs or projects in ecosystem.

C+
Project exhibits moderate indications of progress but still faces above average
level of risk; token price is highly volatile, prospects for adoption are uncertain
due to factors such as poor marketing, lack of developers or dApp projects,
irrelevancy of tech, or critical governance issues.

C
Usability issues present substantial issue for token; significant uncertainty, but
project still demonstrates moderate progress on development or ecosystem
fronts, having passed important milestones, albeit with delays. Adverse
conditions in the market pose major risk to value of token.

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DARE Grading

C-
Project has failed to pass several crucial milestones, leaving progress largely
stagnant; while vulnerable to adverse external market conditions, the project
still retains potential for turnaround. The value of token is predominantly
based on speculation and potential for price volatility is high.

D+
Project has missed majority of important initial milestones. Underlying tech
is irrelevant and community support for project is low. Track record shows any
upcoming milestones which may play role as a catalyst for progress will likely
not be achieved. Token price is very susceptible to adverse market conditions
and exhibits persistent volatility, resulting in substantially high level of risk.

D
Consistent failure to deliver on promises with no verifiable signs of progress,
leading to significant degree of uncertainty. Underlying tech is unproven and
community support for project is marginal. Track record shows any upcoming
milestones which may play role as a catalyst for progress will likely not be
achieved. Token price is very susceptible to adverse market conditions and
exhibits persistent volatility with low level of liquidity, resulting in substantially
high level of risk.

D-
Project and token performance exhibit tell-tale signs of failure with little
chance for recovery. Evidence of underlying technology either demonstrates
poor implementation or is non-existent, with no sign of network transactions
beyond speculative trading. The ecosystem of users and support for project is
declining and untenable with no upcoming catalysts. Token price is purely
based on speculation, persistently volatile, and liquidity is exceptionally low.

F
Project has outright failed and prospects for turnaround are non-existent.
Token cannot be used for its intended utility on the network and community
support is near zero.

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