Cypher Capital Publishes Independent Analysis About Mobile Data Marketplace DENT

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Ericsson ConsumerLab recently published a report titled; “Six calls to action from consumers for operators to rethink mobile broadband”. This report uncovers six calls to action from consumers which operators must act on, to drive consumer satisfaction and monetize mobile broadband for a 5G future. One of the six calls to action is to treat gigabytes as currency. The average smartphone user globally is left with unused, paid-for mobile data of 31GB a year, or as much as 1.5TB over their lifetime. Two in five users consider gigabytes as actual currency and expect to be able to save, trade or even gift this unused data to others. However, most users today cannot use mobile data as currency.

DENT Wireless is a company that is using Ethereum blockchain technology to develop marketplaces for mobile data exchange and mobile top-up payment remittance. Accordingly, they issued an ERC20 utility token, DENT, which will be used for all exchange transactions. Their primary focus is an exchange that allows consumers and Mobile Networks Operators (MNOs) to buy and sell unused mobile data allowances.

Their intention is to create new markets, and connect previously siloed ones. The potential exists to exploit network effects, whereby this open, distributed, transparent, and competitive marketplace can attract and connect more customers, and ensure an on-going advantage. MNO’s stand to increase overall revenue, and consumers stand to recoup unused data, or acquire cheaper data packs.

Cypher Capital Ltd, a proprietary quantitative investment firm, has published their independent analysis on DENT. English, Korean and Spanish versions of their research paper can be found on their website.

Speaking about the mass viability of the blockchain based DENT platform, Cypher Capital told this publication,

“In 2018, crypto projects really need to start delivering and gaining user adoption. We think DENT will one of the most adopted tokens with potentially many millions of users (in 2018). Their Android app launched on February 27 2018 (iOS on December 29 2017). They are already live with influential Mobile Networks Operators such as AT&T and Verizon in America, Telcel and Movistar in Mexico, and Oi in Brazil. DENT is currently beta testing in Costa Rica, El Salvador, Guatemala, Haití, Honduras, India, Indonesia, Morocco, Nicaragua, Nigeria, Philippines, and South Africa. The target is to have 400 operators in 130 countries live this year.”

Cypher Capital also explored the market opportunity and possible revenue stream for DENT’s mobile data marketplaces.

“Taking DENT’s primary market as out-of-bundle data purchases, we estimate that their total addressable market (TAM) was $102B in 2017, rising to $105B in 2020 and $106B in 2025. The other mobile revenue streams are addressable via their airtime top-ups market (out-of-bundle calls in 2017 ~ $113B, out-of-bundle messaging ~ $40B) and remittances programs (domestic top-up remittances estimated to reach $10B by 2018). Wholesale data trading may be a significant growth market, with the total wholesale mobile market estimated at $177B. Clearly a considerable market opportunity exists for a company able to effectively execute in this space,”

said the investment firm.

The DENT token has been in public circulation since late last year, shortly prior to the public release of the platform in the North and Latin American regions. Trading at approximately $0.007 at the time of writing this article, it has a market cap of $74 million. Like the rest of the cryptocurrency market, DENT is trading far below its all-time high valuation.

Cypher Capital concluded,

“We have not given price estimates for the DENT token, but what we will say is, we are extremely bullish, and are strong supporters of the DENT community. DENT is solving a real problem and the token has real utility.”

Steve Jobs once said, “We’re here to put a dent in the universe.” That’s exactly what the team behind DENT Wireless seem to be doing.