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September 8, 2017
Storm Market is a blockchain-based platform utilizing smart contracts on the Ethereum
blockchain to manage marketplace contracts and gamified micro-tasks, between buyers
and sellers through rewards in the form of STORM tokens, an ERC-20 based token. Storm
Market is a platform similar to that of the world of gaming and game currencies, with its
user-friendly and an enjoyable gamified experience. Storm Market members can level up
by doing tasks to acquire more rewards. Members can use STORM tokens for actions like
task completion, or to acquire boosts for leaderboards and their profiles.
Storm Market and STORM Tokens are based on the success experienced with Storm Play
(formerly known as BitMaker), a mobile application serving over 250,000 monthly active
users (MAU), across 187 countries, with over 230 BTC awarded to Storm Players worldwide.
The success is because Storm Players love the ability to easily earn from their devices.
Storm Market has three distinct areas in which members can earn tokens: 1) Storm Play, 2)
Storm Shop, and 3) Storm Gigs. Storm Play is the current profitable mobile AdTech
application of StormX Inc. Storm Players have asked us for more opportunities to earn.
Blockchain provides a number of benefits, including expanding the opportunities for Storm
Players to earn. Storm Shop rewards shoppers with bonus tokens for everyday purchases
made. Storm Play and Storm Gigs use Storm Tasks, which are templates for agreements
made between task posters and task performers. The Storm Tasks lay out timelines,
milestone markers, and payment terms. The implementation of Storm Tasks provides
protection for both parties, decreasing the likelihood of foul play. Storm Gigs is a gamified
blockchain-based marketplace platform that will roll out a vast range of micro-task
categories including: 3a) QA testing, 3b) machine learning, and 3c) higher skill freelance
tasks.
People worldwide benefit by adopting STORM and Storm Market as the mechanism for
commerce, especially when vetting a members capabilities to perform a task, and
eventually the ability to algorithmically determine any members marketplace reputation.
In addition, Storm Market saves all members in this new platform up to 40% in transaction
fees due to the usage of blockchain that allows saving the costs of existing middlemen in
other marketplaces.
Website: www.stormtoken.com
Overview 5
The Freelancer Marketplace 5
Storm Tasks 7
Introduction 7
Freelancing is the Future 7
Current Challenges 7
The Market is Big 8
Team Overview 30
Key Team Member(s) Detail 31
Lead Advisors 34
Crowdsale Partnerships 37
Acknowledgements 37
Appendix A: Why Advertising was the Insertion Point & Evolution to a Gamified
Marketplace 38
StormXs Mission is to enable ways to earn through gamified micro-tasks from anywhere,
at any time, on any device, by:
1. Making it easier to find new opportunities
2. Making it easier to advance
3. Making it easier to engage, no matter what role a person is playing
StormXs Principles:
1. Effective global inclusion can only happen when all marketplace participants can
negotiate and settle efficiently
2. The ability to earn and improve ones condition is a basic human right
3. Efficiency is about respecting the most valuable resource of all time
There has been a major shift in the freelance marketplace over the last five years.
Today, employers place a much higher emphasis on technology and automation, rendering
the traditional work schedule nearing obsolete. Companies hire people from all over the
world while maintaining operational efficiencies and reducing costs. The digital world
allows for a company to hire a software developer from Brazil, a user experience designer
Figure 1: The traditional information worker paradigm is being disrupted by technology and automation.
Centralized platforms have established this as a strong market. Companies like Fiverr,
Taskrabbit, Upwork, and Mechanical Turk have billions of dollars circulating their platform,
but existing inefficiencies are hurting the freelancers. Freelancers and requestors are
losing up to 40% of their exchange in platform transaction fees1 with long transaction
periods, and not receiving the corresponding value in return. Under the centralized system,
the freelancers are not given the protections that they deserve. This creates a toxic
relationship between the task poster and task performer. Freelancers want to earn more,
and to keep more of what they actually do earn. Blockchain can change these dynamics.
1
Example, Mechanical Turk charges an additional 20% commission when requesters need more than
10 people, as seen in: http://www.businessinsider.com/amazon-mechanical-turk-price-changes,
and https://requester.mturk.com/pricing
By utilizing blockchain, Storm Market significantly reduces the fees associated with
posting and performing a micro-task and enables the return of the cost savings back to the
freelancers, Storm Players. Unlike the traditional companies in the industry that charge
between 10%-40% in transaction fees in a $2 trillion market, Storm Market will charge a
very low 1% fee.
Companies hire people from all over the world while maintaining operational efficiencies
and reducing costs. In the United States alone, 34% of the workforce consists of freelancers
and that number is expected to rise to 50% by the year 2020. In India, over 135 million
people rely on freelancing as a primary avenue of payment for their time. The market
potential does not stop there. There are currently 4.68 billion eligible workers worldwide,
yet only 3.4 billion are currently working. This results in an untapped potential of nearly 1.3
billion people, or 27% of the eligible working population. Todays banking systems, credit
systems, and processing systems are not designed for micro-transactions with high
fees and inefficient middlemen. As freelancing becomes more prevalent in the
global economy, the opportunity exists for Storm Market to unify the global
workforce by creating a secured, decentralized, and gamified micro-task platform.
Centralized platforms have established this trend as a strong market. Companies like
Fiverr, Taskrabbit, Upwork, and Mechanical Turk have billions of dollars circulating their
Freelance platforms charge very high transaction fees, up to 40%2, and the
counterparties to the freelance transaction are not receiving the corresponding
value in return. Centralized systems do not provide protections for the freelancers,
creating ineffective relationships between the two parties. The community complains about
the high fees only after the bad experiences of miscommunication, not getting paid, not
receiving quality work, and more.
The world is already going in the direction of freelancing economy, the gig economy, and
sharing economy. People around the globe want not just the opportunity to get by; people
want the opportunity to advance.
As mentioned above, there are over 1.27 billion people that are eligible to work that are not
counted as part of the working population of 3.4 billion eligible workers. This subset of
eligible workers face problems creating credit and thus, problems gaining access to the
resources accessible in developed nations. Most of these challenges exist because credit-
making infrastructures and processes do not financially support micro-transactions as the
units of economics are not in alignment.
For example, if a person earns $1.00 USD for a task, to get paid that amount often incurs a
$0.35 flat payment processing fee, along with a service fee on the transaction. If the fee
were 40%, as with Upwork or Mechanical Turk, that would leave the person with $0.25 in
earnings for that job out of the $1.00 potential. Blockchain solves these micro-payment
inefficiencies.
2
For example: Mechanical Turk 20%-40%+ additional fees: https://requester.mturk.com/pricing,
Upwork 20%+ depending on amount earned: https://www.upwork.com/i/pricing/freelancers/, Fiverr
20%+ depending on the amount earned, and also Fiverr passes the PayPal fees to the freelancer:
https://forum.fiverr.com/t/payment-fees/2993/12.
Figure 2: Storm Play is a fun way for Storm Players to earn cryptocurrency rewards by opting in to try out new
products and services. The above image is a screenshot of a real customer, Hulu and Hulus Storm Task.
This unique approach to the advertising marketplace helped develop the idea behind a
much larger opportunity to extend this network of potential Storm Players into a
marketplace with more earning opportunities consisting of a wide variety of gamified
micro-tasks.
Through Storm Play, StormX, Inc. has already taken steps to validate, iterate, and grow a
sustainable business (with 250,000+ monthly active Storm Players). Building out
blockchain-based marketplace capabilities is the next evolution of the company. Here are
some of Storm Plays highlight achievements (as of August 21st, 2017):
By using the blockchain and adding additional features to Storm Play for Storm Players to
earn more STORM tokens, all players involved in the marketplace benefit. An improved
marketplace needs to be created.
Storm Market and STORM tokens have the opportunity to democratize access to resources
through more task opportunities to a global audience of 4.68 billion eligible workers
through a gamified user experience of micro-tasks. Storm Markets goal is to be the
platform that promotes enabling standardization through the Storm Tasks by helping
people from both sides of the marketplace conduct business in a timely and efficient
manner. The real differentiating opportunity is to create a beautiful and simple experience
making it the easiest platform for creating and doing micro-tasks.
Leveraging blockchain technology creates a better experience for all participants within this
community. This is a marketplace where participants earn rewards for everyday activities
such as viewing advertisements or trying out new products and services in Storm Play,
shopping in Storm Shop, performing small projects, completing surveys, identifying objects
in photos, or completing any other gamified micro-task in Storm Gigs that a Storm Maker
seeks to have completed. The company vision involves increasing the number and
Figure 4: Storm Market includes Storm Play, Storm Shop, and Storm Gigs for various ways to earn.
StormX, Inc. proposes STORM token as an ERC-20 token that will facilitate transactions
within an opt-in, secured gamified marketplace run by blockchain-based smart contracts
on Ethereum. StormX proposes to build an application for connecting participants in this
marketplace called Storm Market. The following categories of network members are in
the Storm Market:
Storm Players: are the freelancers who join the Storm Market network and perform
tasks, build out the Storm Market network ecosystem, and earn STORM tokens.
Storm Makers: are companies that solicit Storm Players to perform desired tasks.
Storm Makers work directly with StormX, Inc. to define the objectives and the
engagement they desire to achieve.
Storm Master: monitors the Storm Market ecosystem against fraudulent activities
and maintains the positive growth of the network of Storm Players. Storm Master
will recruit Storm Makers to engage the network of Storm Players.
Gamification principles are used throughout the Storm Market. Gamification is the
process of adding games or game-like elements, such as a micro-task, to encourage active
participation. Gamification is the process of integrating game mechanics in 'non-gaming'
contexts (Dederding et al., 2011), such as websites, apps, and services in order to boost the
user's motivation for participation, enhance the level of engagement and increase user
loyalty. It is an iterative process in which a gameful design framework is deployed to foster
Gamification strategies and techniques create the easiest and most enjoyable way
for people to earn within the Storm Market platform.
Experience rewards system (XP) for:
Creating tasks
Completing tasks
Managing other Storm Players that a person referred in to complete a task
successfully
Helping categorize a task or helping to rank a task
Administration enabling us to listen to, iterate on and update the platform for
optimal user experiences based on Storm Player community feedback. StormX, Inc.
will use agile engineering methodologies to accomplish this. This will enable us to
know if the platform is working, or not and then, quickly iterate.
Treks are journeys designed within the platform experience that help a Storm Player go
from being a new user of the platform, to a master user of the platform. Strategic treks
increase earning opportunities for the marketplace platform of gamified micro-tasks
include the following types of treks in Storm Gigs:
QA Testing: Enabling Storm Makers to reach Storm Players with mobile devices to
help test out a new application release, new features, or a beta service. These types
of micro-tasks could be setup to have hundreds or thousands of Storm Players test
out a new application or service, across multiple kinds of devices, operating
systems, languages, and geographical locations.
Machine Learning: Enabling Storm Makers to target and reach Storm Players with
devices to help assist with identifying objects in digital images, or providing
crowdsourced data about weather.
Peer to Peer: Enabling Storm Players to become Storm Makers themselves. These
types of micro-tasks help another Storm Player with data entry, making dentist
appointments on behalf of another Storm Player, and more.
Other markets are in the pipeline to be tested and vetted for rollout. StormX, Inc. will also
look for other markets with other use cases for the Storm Market platform as they become
viable.
Storm Markets vision is help people get work done, and to make monotonous work much
more enjoyable through a gamified platform. People already have gamified services like
This platform has vast kinds of maker treks. Storm Players and Storm Makers earn tokens
by doing different kinds of tasks. Each action-loop and journeys corresponds to different
kinds of Storm Player types, to make them applicable to different kinds of real world
people. Storm Market addresses the following different types of users:
Gamification mechanics focus on enabling Storm Players through journeys, from beginner
level to mastery level for each of the Treks. The mechanics focus on helping Storm Players
become advocates of the Storm Market platform.
The basic unit of the gamification design process are action-loops. An action-loop serves
to boost a user's engagement.
User Goals + User Motivations = Builds Personalized (By User Type) Challenges
(Please see the next illustration on Gameful Design)
Storm Makers offer different tasks, like QA Testing, for Storm Players, that are categorized
by their difficulty level. Storm Players get the tasks according to their Experience Points
(XP). After performing the task, a Storm Player can level up. Different action-loops will be
designed for each of the four phases of the Storm Players journey to mastery on different
treks. Over forty (40) game mechanics will be deployed to create an effective gamification
framework, that takes into account the six player types and their intrinsic and extrinsic
motivations.
Figure 8: Action loops are the micro-engagement engines that create an effective gamification framework
Figure 9: User intrinsic motivation driven approach, based on Deci & Ryan Self-Determination Theory, 2012
1. New Member Onboarding: A new Storm Player in Storm Market will first
complete three basic micro-tasks to teach the new Storm Player how to use
the platform and then be rewarded with free STORM tokens. Once a new
person visiting Storm Market completes the training tasks, five new tasks
unlock.
2. Marketing Visibility via Boosts: Todays freelancers struggle with being able
to market themselves, inhibiting their access to more opportunities. With
Storm Market, Storm Players will be able to use STORM tokens for boosts.
Boosts give the Storm Player access to more micro-tasks for a certain period
of time.
3. Marketing Visibility via Badges: Badges, which can be acquired only with
STORM tokens, help Storm Players increase their visibility on certain
leaderboards and rankings. Badges increase a Storm Players visibility to
Storm Makers or give them access to certain special tasks.
4. Training: Todays freelancers also struggle with understanding what is
required in terms of skill to gain access to different types of tasks. Storm
Market members will be able to do training tasks to receive STORM tokens.
Each skill will have its own level to increase based on the number of tasks
completed. These training tasks will also help the Storm Player understand
Storm Market will serve as an application layer between Storm Tasks and marketplace
participants, enabling members to post tasks and solicit other network participants to
complete these tasks with STORM tokens.
Note: The Ethereum network is limited in terms of scalability allowing for only about 8.5
transactions per second. As a result, StormX plans to build an optimized platform with a
hybrid implementation of both blockchain-based and proprietary services in its gamified
micro-task marketplace. The Storm Task transactions will be settled on the Ethereum
blockchain, and other functionality described in this white paper will be offered by StormX
as proprietary Storm Market services. StormX also plans to develop and host other
proprietary features related to both the Storm Tasks and the proprietary Storm Market
technologies, and make such features available via APIs. By offering these features, StormX
aims to improve overall member adoption and experience within the Storm Market and
minimize fees associated with the execution of Storm Tasks.
There will be certain actions within the Storm Market platform that will trigger various
rewards. Examples of the types of actions that will be tied to rewards, in addition to
STORM tokens, designed into the Storm Market platform experience are:
Stamina that limit a Storm Player to a certain number micro-tasks a day
Completing a micro-task
Unlocking exclusive content or micro-tasks
Creating a micro-task
Referrals of new Storm Players that join the platform
Experience (XP) that is tied to managing Storm Players and their respective micro-
tasks completed and created
1. User profiles
Each individual Storm Player and Storm Maker has their own profile page
Profiles include status, tokens earned, micro-tasks created, Storm Players
managed, referrals made.
Profiles will also include Treks, Badges, and more.
For Storm Master to be able to iterate on the overall platform usability and
user experience (Please see next section for more details on dashboard)
Account Name and Avatar is a simple name registry to register root hashes
for names so members can be identified by name and establish reputation.
Membership levels (later phases)
Login and logout of account
Access to multiple Companies to work on behalf of
Request a withdraw
Acquire tokens and spend tokens i.e. engage other Members to do in tasks,
buy Boosts or engage companies to perform tasks
Search/browse companies, tasks and other members
Manage profiles i.e. avatars, ratings & reviews, experience level, skill level,
track training, track community engagement, along with contact information
like email address.
5. Ratings/Reviews Program
Ratings and Reviews is a proprietary Storm Market program that will allow both parties of
any transaction to rate their experience with the counterparty to an engagement at the
time of Smart Contract completion. This may also provide functionality like:
Storm Market members will be assigned a level that is commensurate with the members
participation in the Storm Market marketplace, as measured by the amount of STORM
tokens earned or number of micro-tasks completed successfully by the member over a
period of time. As a members participation level increases, the member gains access to
micro-tasks with higher reward potential.
7. Storm Contracts
The Storm Market platform (please see roadmap section for timing information), is
designed to facilitate engagements between Storm Makers and Storm Players via
Ethereum-based smart contracts. The Storm Contracts create and enforce the terms of an
engagement. Storm Market application lets members create Storm Contracts with the
following characteristics:
8. Escrow Service
The escrow service is for processing events on the tasks: creation, progress, state
transitions, and more through a proprietary Storm Market service to support the Storm
Contract experience. It will verify and confirm that the Storm Maker has the required the
STORM token budget for each Storm Contract available in their wallet address, and hence
the Escrow Service is a portion of the Storm Market Application that should execute in each
instance of a Storm Contract - when it is created or completed. When a Storm Contract is
created as a smart contract, the Storm Contract will be the tracker of the STORM tokens
until the contract is completed. When Storm Contracts are completed, then the Storm
Contract will initiate the release the STORM tokens to the Storm Players designated
address from the Storm Makers address. Storm Market will not have possession of the
STORM tokens and there is no custodial function. Storm Market will verify that the funds
are available. The Storm Contract will be active as long as the timeframe allowed for it is in
the present. Once the timeframe allowed for the Storm Contract expires, the Storm
Contract will no longer be considered active.
The Storm Market admin dashboard and analytics is for agile gameful design engineering
and iteration. This includes but is not limited to:
Reward/Feedback integration
Visualization of key metrics for platform operations
Big data analytics of member actions
An agile engine (for adding/ changing game mechanics roles, STORM token values,
rewards, and durations in real time)
Daily reporting on status of the platform health
Storm Market Member security is also of high importance to StormX, Inc. Security will be
addressed with the following strategies:
Seeking long-term external partnerships and services, like using APIs from Coinbase
or Civic (this is also mentioned above for platform security strategies).
In opens lines of communication regarding plans and technology architecture with
firms like Perkins Coie and Silicon Valley Bank for their expertise on best practices
on general blockchain-related user security as well as the regulations involved.
Utilizing proprietary knowledge of security from experience working in mobile
adtech.
Including plans to integrate with Storj, Sia or Dropbox for various needs in Storm
Market.
STORM tokens are an ERC20-compliant token that will be created during the token
generation event period. Up to ________________ STORM tokens will be created during that
period, and there are no further plans to create more STORM tokens.
STORM tokens will be used in Storm Market as the native token for all interactions between
network marketplace participants. STORM tokens can be accessed by using any wallet
service that supports ERC20-compliant tokens, such as MyEtherWallet, Parity, and the
official wallet sponsor of STORM tokens, Jaxx.
STORM tokens and distribution will benefit from Storm Plays traction to date by leveraging
our Storm Player network of 250,000 monthly active users, and by permitting Storm Players
ways to redeem their Bolts for STORM tokens (instead of BTC or ETH), as well as ways to
use the tokens for benefits within Storm Market e.g. for Boosts of Badges. Initially, Storm
Play and Storm Market will operate as two separate apps, but each app will cross promote
the other to its respective user base. Storm Play will eventually be integrated into Storm
Market (see Roadmap).
Token distribution is expected to commence one week after the completion of the
crowdsale. To be notified of updates regarding the token distribution event, participants
The Token pool for the crowdsale, including presale of tokens, will make up 72% of
the total pool of STORM tokens.
User Rewards Pool the Rewards Pool will make up 8% of the total pool of STORM
tokens. This pool of STORM tokens will be used for member rewards within the
Storm Market marketplace app, and for general user acquisition and promotions
(referrals, login reward bonuses, promotions, and more).
Company Pool Employees, partners, and contractors (staff) will be 20% of the total
pool to encourage team members to own the products that are built. This token
pool will be used to continual incentivize StormX team members, partners, and
contractors.
All employees (current and future) will be able to immediately use the tokens
on the Storm Market platform.
All employees (current and future) will be subject a one year lock for any kind
of transfers.
This will also be used for acquisitions in acquiring strategic talent or
intellectual property for the project.
STORM token will be implemented as a Smart Token using the Bancor protocol. The smart
token template is an ERC20-compatible token template. More information about Bancor
can be found on the Bancor website and the Bancor white paper.
1. Reach and have an easy and fun member friendly onboarding experience to grow
user base from 250,000, to 2.5 million, then to 25 million MAU with an account and
doing tasks.
2. Create a process to onboard 100 Storm Makers quickly initially. Each Storm Maker
creates 5 or more new tasks a month each
3. Continually increase the type of ways to earn from QA testing, machine learning,
surveys and beyond
StormX plans to offer STORM tokens for sale in Q3 2017. During this stage, Storm Market
planning, gamification research, scope refinement, and prototype development will be the
focus for the upcoming new product. Gamification is the enabler to increase the network
effect flywheel for Storm Players. While the roadmap may appear to be following the
waterfall methodology, the milestones indicate the start of any milestone focus with work
(not just the iteration of the gamification model) that continues going forward in an agile
and iterative manner.
Implement the major user experiences of mobile app. Mobile app is not hooked to
back-end service.
Design of back-end service (i.e. architecture, database design, etc)
Define smart contract interface (using the same concept of ERC-20) that each smart
contract inherits from specific to each engagement.
Implement web service that provides an interface to smart contracts.
Analyze, review, update the gamification model
Integrate web calls to interface with data analytics back-end into mobile app
Integrate additional features into mobile app & back-end service
Perform usability testing of mobile app
Incorporate learnings of usability testing
Analyze, review, update the gamification model
The success of Storm Market depends not only about the solution being created nor the
technology behind the solution, the success is about the team that intends to utilize that
technology in order successfully implement a solution.
Strong team that has already been working together for several years
History of execution and growing a profitable business
Storm Market is the next evolution of a product roadmap resulting from traction
Figure 14: From bottom left to right: Reo (Engineering), Sue (Design), Esther (Engineering).
From middle left to right: Calvin (Engineering), Arry (COO), Brian (Data).
From top left to right: Simon (CEO), Derek (Marketing), Rui (Engineering), Sean (Engineering).
Rui has over 25 years experience in software development and program management
developing over 20 commercial products. He has authored 6 technical books, 25+ technical
articles and whitepapers for TechNet, MSDN and Cisco on Lync Server and previous
versions. Rui is also an inventor of three USPTO patents. Rui also has a background in
cryptography, and degrees in mathematics. He specializes in Security, Software
Development, Product Design, Project Management, Technical Writing, Public Speaking and
Training.
ARRY YU COO
Arry has over 20 years of experience working with the best in the Fortune 500 like: Google,
Microsoft, Expedia, and KPMG, LLP. She is the COO of StormX and brings her passion for
business to the company. Arry's strength comes from over 15 years of IT business
development, product strategy and implementation experience serving Fortune 500
companies working on everything from large enterprise data warehouse projects to
executive strategic organizational design to trustworthy computing user experience
research projects. Because she has both business and technology expertise, she is able to
navigate fluidly across the business as a fluent operator end-to-end. Over the years, she's
Calvin is the founding CTO of StormX, Inc., who helped cultivate the right strategic people
for StormX allowing for its continued growth year over year by recruiting Simon in as CEO.
Having to fund his own rent and cost of living he worked full time while earning himself a
degree in Computer Science, he founded StormX, Inc. by building the profitable application
BitMaker, which is now known as Storm Play. While working 40+ hours a week and studying
in one of the most competitive majors at the University of Washington, he developed
Android applications. Calvin received three job offers from Fortune 100 companies in
Seattle upon graduation, however he turned them down to build towards a bigger dream
with StormX, Inc. With millions of app downloads to his portfolio, Calvin is able to build and
execute on building apps that are popular with users all over the world.
Sean has over 20 years of experience that brings business, engineering, and data
warehousing together to build products that best serve people. His specialties include
client-server architecture, data warehousing, and analytical marketing. Seans experience
includes running analytics products, business intelligence teams and software for
companies like Big Fish Games, and Amazon.com. Sean is a graduate of Cornell University,
N.Y. with both Bachelors and Masters degrees in Computer Science.
Matt, a blockchain software engineer, is an early Ethereum adopter with deep technical
knowledge of core Ethereum codebase, cryptography, and formal verification / security.
With over 6 years experience in wide variety of areas, from kernel and embedded
development to networking, crypto and statistics, Matt regularly speaks at information
security and blockchain events, and is very active in the Ethereum community. He is also
the co-author on academic treatise "Towards Blockchain Transaction Privacy", presented at
2nd IEEE European Symposium on Security and Privacy. Matt also works for the Ethereum
Foundation.
Jon Nolz was recently the vice president of product strategy for Hipcricket where he lead
the strategic vision of the AD LIFE platform. He previously built from scratch and led
Hipcrickets Mobile Advertising Network, a premium mobile ad network that taps into the
buying power of the mass market with industry-leading capabilities to target customers via
location, ambient criteria and highly-specific demographic information. Jon has a deep-
rooted background in product strategy, new media, digital advertising and direct response
marketing with executive positions at drugstore.com and InfoSpace. While at
drugstore.com and InfoSpace, he was instrumental in the development of ad services, ad
sales, and ad management capabilities to help both companies effectively monetize their
online and mobile customers. He also worked at TBWA/Chiat Day where he led an account
team focused on advertising plans for the Pathfinder, Quest, Frontier, Xterra model lines
and Nissan Parts & Services. Jon also spent time working on Nissans luxury division, Infiniti
and agency new business.
Sue leads design across marketing and product for Storm Market (includes Storm Play). As
an experienced designer with a background in programming, she continually seeks out
new ways to improve web and mobile experiences for users by exploring different
approaches. In addition to optimizing usability for our users, Sue creates visuals to clarify
the companys flows and processes.
Derek assists the company with the day-to-day operations in a variety of different ways.
Derek leads marketing operations, including social media, analysis and reporting, user
communications, public relations, and network development.
Esther has been programming since her days at Mount Holyoke College, MA where she
graduated with a B.A. in Economics. Her background in running her family business,
experience working in Silicon Valley, along with her love of coding, gaming and startups has
made her an integral part of the StormX, Inc. team. Favorite languages include MySQL,
JQuery, CSS, HTML/5, JavaScript, JSON, Ruby, AngularJS, and others.
Web and Mobile development expert with experience in: Python, Django, Linux, Android,
Ruby, and Go. While attending college, the Brazilian Government selected him to study
Computer Science in San Francisco. He used the knowledge he gained to continue working
on projects that impact the lives of many.
Bill Shihara is the CEO and co-founder of cryptocurrency exchange Bittrex , which
celebrated its third anniversary in January 2017. With the guiding principle of fostering
blockchain innovation, Bittrex has enables its users to buy and sell over 190 digital assets
and/or cryptocurrencies from around the world. Prior to Bittrex, Bill has a combined 15
years of cyber-security experience at Amazon, Blackberry, and Microsoft, managing a
number of different areas from threat intelligence, security architecture and development,
and security response.
Jeff is an American internet entrepreneur known for shaping the worldwide market
acceptance of VoIP. He has been the founder/co-founder of numerous startups including
VON, Vonage and FWD. In addition to being a VOIP pioneer, Jeff is known as an
entrepreneur, investor, strategist, photographer, speaker, futurist, producer, and a curator
of large scale tech conferences.
Steven Nerayoff is an investor, founder, venture capitalist and a prolific entrepreneur. His
Experience includes the formation and operation of several companies in Silicon Valley as
well as New York City. He is the founder and CEO of Maple Ventures, a Venture Capital firm
primarily focused on emerging technologies including blockchain-based payment systems,
consumer focused internet startups, and socially conscious organizations.
Brad has been mining bitcoin in 2011, and in 2013 I started exploring other blockchain
technologies. He started manually trading cryptocurrencies in 2013, and has since
developed internal Quant Prop Trading Strategies for traditional markets and
cryptocurrency algorithmic trading. Since 2008, Brad has been Producing Facebook and
Iphone Games with Slightly Social, building games with the highest ARPU ever seen on
Facebook. Brads specialty is in building communities & increasing the monetization of
users for Facebook & Iphone apps. Brad is also the Fund Strategist for Alphabit, a digital
cryptocurrency fund.
Guy has held numerous leadership positions, from CEO of Mytopia, to founder of Particle
Code and Appcoin. His current role, Co-founder Bancor, has connected Guy with the best
and brightest individuals that comprise the blockchain industry. He has been an active
angel investor and an emerging technology entrepreneur for over 15 years, his experience
in technology and vision has allowed Bancor to be one of the largest blockchain companies
in the world.
Ivan is an experienced mobile ad tech exec of over 30+ years, and successfully taken
companies through three IPOs. Ivan Braiker was President and Chief Executive Officer of
Hipcricket, a pioneer in mobile engagement platforms, where he was directly responsible
for growing revenue and leading Hipcricket to be a major force in the industry. Earlier in his
career, Mr. Braiker was President of Steamline Publishing, Inc., where he returned the
company to profitability within one year. Prior to Steamline Publishing, Mr. Braiker was
President and Chief Operating Officer of New Northwest Broadcasters, LLC, leading the
acquisitions of radio stations across the Northwest while doubling cash flow within three
years by strategically re-engineering and consolidating 43 stations across eight markets. As
President of Satellite Music Network (SMN), he established the first radio network using
satellites to distribute live 24-hour programming. Mr. Braiker has been a featured speaker
at industry and financial conferences on mobile marketing and been quoted in many major
publications. He attended American University in Washington, D.C., studying International
Relations, and was honorably discharged from the U.S. Air Force Reserves-Andrews Air
Force Base.
Damon is currently the founder and CTO of Appuri. Appuri is a Customer Data Platform
that enables Software as a Service (SaaS) businesses to maximize their retention,
engagement and revenue. He was also the founder and CTO of Z2Live, which was acquired
by King for $150M in February 2015. Damon is also a leading developer of high-quality free
to play social games on iOS with over 50 million downloads. Some of the titles include the
wildly popular Battle Nations (http://bit.ly/vvDWSw), Trade Nations (http://bit.ly/hWZxgO)
and MetalStorm: Wingman (http://bit.ly/mQeXj5). Prior to Z2Live, Damon was the original
lead for the original XBox Live, with many of its marquee features like voice chat, voice
commands, friends, notifications, networking, security, authentication and authorization.
His Xbox Live Gamertag is 'd'.
CK (Chun-Kai) Wang is co-founder and CEO of Kooapps where he leads a mobile gaming
company with 40+ employees. Kooapps has released several successful games including
Pictoword, and has offices in Seattle, Taiwan, and the Philippines. CK has experience
designing mobile products and scaling server infrastructure, and he also teaches server-
side web development at the University of Washington. Prior to Kooapps, CK was a
software developer at Microsoft Research where he built a large-scale web service to
analyze the entire Twitter stream for named entities. CK has a BS in Electrical Engineering
and a MS in Computer Science from Stanford University.
We would like to express our gratitude to the many people who supported us as we wrote
this paper. A very special thanks to Bill Shihara for his continued support as an advisor,
investor, and friend to the company since our inception. Bill was one of the first people to
believe in the company and the vision. Wed like to also thank (not in any particular order):
Ari Paul, Michael Dunsworth, Steven Nerayoff, Kevin Croy, Carlo Vicari, Meirav Heral,
George Howard and GMH Strategic, Dr. Hanan Gazit, @ActualAdviceBTC. Very special
thanks to the Wachsman PR team, The Dunamu & KakaoTalk Team (Korea), Perkins Coie,
LLP., Deloitte Tax LLP, Campbells, Galvanize, Cofound.it and the CMH team. Many thanks
to our community members who use Storm Play every day.
Also thanks to our spouses, family members, friends, advisors, investors, team members,
and Seattle community for your support of this entrepreneur journey. We could not do
this without you.
Your support and feedback were truly important to us in improving this document. Thank
you.
Unfortunately in 2014, the public perception of Bitcoin and blockchain was negative[1]. The
media heavily portrayed Bitcoin as an extremely risky and fraudulent space. Much of this
negative perception around Bitcoin and blockchain came in 2014 with the fall of Mt. Gox[2]
due to hacking, and the fall of the Silk Road[3] due to drug trafficking. The founders of
StormX Inc. saw the market situation as:
Digital advertising spent by companies in 2016 was over $72.09 billion US Dollars[4]. One
million new mobile applications were created in 2016, for more than 8 billion different
mobile devices[5] in the marketplace. Looking quickly at some general mobile market
statistics[6], one gets the sense of the enormity of activity that is occurring in this
marketplace, particularly mobile. Mobile commerce is now 30% of all U.S. ecommerce
(Internet Retailer, 2015). Mobile commerce is growing because:
There are 2.6 billion smartphones globally (Internet Retailer, 2015), and by 2020,
there will be 6.1 billion smartphone users globally[7]. (TechCrunch, 2015)
66% of Americans own at least two digital devices (smartphone, desktop or laptop
computer, or tablet), 36% own all three (Pew Research Center, 2015), and 85% of
adults ages 18-49 use multiple devices at the same time. (Google, 2016)
The digital advertising marketplace ecosystem is filled with companies (e.g. advertisers,
publishers) and users but also the bad actors, the middlemen like the Affiliate Networks,
the bots, hackers and fraudsters[8]. This is a problem area that is ripe for the blockchain
ecosystem to address. StormX has been working on validating this problem for more than
three years and know that the ultimate solution is a decentralized, transparent digital
marketplace based on the blockchain.
Advertisers should care about Engagement and CPAs. The industry of digital advertising
has been moving towards raising the achievement expectations, increasing quality (e.g
engagement over installs and impressions), and strategies that are more measurable and
actionable. This is because, to the business, a user that meaningfully engages with the
product in some way is more valuable than an impression (CPM) or an install (CPI).
Advertisers focused on optimizing for installs (CPI) create the optics of success, a large
amount of installs for a lower cost however this is short term success as installs do not
lead to results. Focusing on installs creates a business environment that is a race to the
bottom.
Users are inundated with an average of over 5,000 advertising and marketing messages
per day[9]. Advertisers are experiencing a significant strain on their resources as the
competition for users attention continues to increase. Advertisers need to measure how
effectively their ads are performing on a conversion basis. Whether the conversion metric
is about an app install, payment for a digital good, or something else, the ultimate cost to
the Company is how much they are paying for the new user to perform an action (an action
that ideally is engagement towards a sales-related conversion.)
The average conversion rate in AdWords across all industries is 2.7% on the search
network and 0.89% on the display network. (WordStream, 2016)
The average CTR in AdWords across all industries is 1.91% for search and 0.35% for
display. (WordStream, 2016)
What we know is that every Company has their own metric on what conditions produces the
strongest LTV and what they are willing to spend on acquiring a new customer (CAC). CPI/CPM
pays for someone to view the ad or download, but these do not actually produce sales
conversion results. Engagement alone doesnt reach the economies of scale that matter to the
business. A new user is only as good as the actions they take to interact with and/or complete a
purchase in your product. --Simon Yu, CEO StormX, Inc.
[10]
AS A RESULT, MOBILE AD FRAUD IS PREVALENT IN CPI AND CPM
There is a massive amount of ad fraud that exists in digital advertising. Alex Matia says in
an article in eZanga: Ask most marketers about the state of digital advertising, and theyll
tell you its come a long way But, theres one area where its still lacking: fraud detection
and prevention. Billions of Dollars are lost to ad fraud annually.[11]
Ad fraud is prevalent in CPI and CPM. Two example strategies that fraudsters use to
illegally game the system (CPM) for their own benefit and bottom line, is with Pixel stuffing
and ad stacking. This means advertisers, big and small, are paying for impressions that
they are not actually receiving. Theres a number of other fraud strategies that can be used
all harm the advertisers and users, the core fundamental players of any marketplace.
For example, ad stacking: Ad stacking occurs when ads are literally stacked on top of each
other within a web page, but only the top ad shows. When a user visits that page, an
impression is counted for each of the ads, and all of the advertisers are charged, even
though only one of the ads was seen.
In CPI ad fraud, fraudsters can deploy bots to make it appear as if many more installs took
place than that actually occurred. This leads to advertisers paying significantly more. An
example of this fraud[12] was a case that identified a suspicious set of installs. A quick
analysis revealed that these were not new installs, but bot installs and app updates. This
There are also Mobile Affiliate Networks, portraying how expensive and broken Digital
Advertising is. Mobile Affiliate Networks who work on a CPI basis provide offers that pay
for every app install made. App developers, affiliates and media buyers use this
opportunity to earn money by promoting these offers and products. With an average CPI
payout, ranging from $1 $10, this Mobile Affiliate business can be very lucrative[13],
supporting the reasons for the high amount of fraud in this space.
Ad fraud is a critical issue. A study released by Tune Inc. (one of the industry leaders in
mobile attribution analytics) took in data from over 24 billion clicks and over 700 ad
networks to provide insights into how critical the issue is showing that somewhere
between $7.2 billion and $16.4 billion is being lost thanks to ad fraud[14].
Users have become the commodity of the digital advertising marketplace and it is hurting
the quality of life for humans. Users are the ones losing the most in the ecosystem
because the only content visible to them is the content that provides the most profit to the
advertising publisher. This results in users being hit with thousands of message per day on
multiple channels, such as: email, mobile and social media. Companies would like the
attention of users, pushing and forcing messages on them remember, they are people first.
Currently, the digital advertising marketplace treats users as objects being sold to the
highest bidders. This has created a downward spiral of noise and established inefficient
Mobile ad blocking has increased 90% year-over-year. (HubSpot, 2016). For context, web
adblocking has cost publishers nearly $22 billion in 2015 alone. (PageFair, 2015)
Then team also knew that 4X as many customers would rather watch a video about a
product than read about it. (Animoto, 2015). 77% of consumers agree that they would
prefer to ad filter than completely ad block. (HubSpot, 2016)
The last point above was a key insight in the statistics that helped prove our initial
hypothesis. The high propensity of users to an opt-in experience around content from
advertisers was higher than the marketplace had realized.
The hypothesis (based on the understanding of the digital advertising marketplace and
knowledge of consumers as Millennial generation consumers) was that despite the market
perception, Users would prefer to opt in to view content, whether it be videos or ads, as
opposed to being pushed content via sponsored content in personal feeds or before being
able to perform any desired activities. The strategy was to focus on user experience and
user rewards.
In February 2017, the first major release was launched, called Storm Task. This allowed
Storm Players to opt-in to additional multi-engagement level experiences (not just videos),
to try new products and services offered by companies. Within the first three months of
Storm Tasks launch, there were more than 800+ products within the platform, including
Storm Task has created a revolutionary multi-engagement level experience that gamifies
the experience for Storm Players, increasing the retention rate of those Storm Players to
the advertisers product or service.
StormX, Inc. has grown from nothing into something that has product-market-fit. Storm
Players love Storm Play because of the ability to earn and Storm Players have been asking
for more opportunities to earn. The digital advertising marketplace was an insertion
strategy to create the first decentralized gamified micro-job marketplace on the blockchain.
The VP of Product at Upwork has said, "We would love to be in a world where we enter
information and instantly get back a freelancer who is qualified to the job and is ready to
do it now[19]." This is possible through Storm Market and blockchain. The traditional "9-5"
job will become obsolete as we move towards an environment where workers seek instant
gratification for their completion of various tasks. An individual can now drive for Uber in
the mornings, perform app development in the afternoon, and graphic design in the
evening. A Mckinsey study said "The Industrial Revolution moved much of the workforce
from self-employment to structured payroll jobs. Now the digital revolution may be
creating a shift in the opposite direction[20].
Through Storm Market, we anticipate creating the ability to maximize human potential to
not just get by, but to truly advance by utilizing the untapped skills and talents of people
from all around the world. The basic concept of a micro-task is straightforward: people
receive a small reward for a small task. There are many types of possible micro-tasks, like
Storm Play: completing a survey, viewing an advertisement, or Storm Gigs: testing the
usability of web applications, or otherwise providing internet-based services.
[2] Mt. Gox as documented in Wikipedia at: https://en.wikipedia.org/wiki/Mt._Gox. When the company began
liquidation activities in April 2014, over 850,000 bitcoins (worth $450 million USD at the time) were announced
to be missing. Additional source can be found at: https://www.wired.com/2014/03/bitcoin-exchange/.
[3] The Silk Road was the first online black market, best known as the platform for selling illegal drugs. It was
shut down in October in 2013, and the operator was finally arrested in October 2014:
https://en.wikipedia.org/wiki/Silk_Road_(marketplace). Additional source can be found at:
http://fortune.com/2014/10/24/bitcoin-fraud-scam/.
[4] Forbes, Digital Ad Spending will Surpass TV Spending for the First Time in History on September 2016:
https://www.forbes.com/sites/brandonkatz/2016/09/14/digital-ad-spending-will-surpass-tv-spending-for-the-
first-time-in-u-s-history/
[8] Similar problem statement was used by Brave in their recent BAT (Basic Attention Token generation event
on May 31, 2017. https://basicattentiontoken.org/
[9] According to various sources, this number can range from 1,200 messages a day to 10,000 messages a day.
Its a large volume of messages not all of it is in digital form. We also agree that it is difficult for most living
humans to remember more than a dozen of them. Source CBS News on September 2016,
http://www.cbsnews.com/news/cutting-through-advertising-clutter/
[10] ComScore by Joe Nguyen, Ad Fraud in Mobile Advertising the Next Battleground in August 2016:
https://www.comscore.com/Insights/Blog/Ad-Fraud-in-Mobile-Advertising-The-Next-Battleground
[11] eZanga, Ad Fraud Types of Ad Fraud that Plague All Marketers by Alexia Matia on December 2016,
http://blog.ezanga.com/blog/ad-fraud-101-types-of-ad-fraud-that-plague-all-marketers
[12] Example grabbed from a Mobile Ad Fraud prevention vendor called App Flyer
https://www.appsflyer.com/product/mobile-fraud-solutions/
[13] 24 Metrics A Guide to CPI Fraud and How to Stop Fraudulent Conversions by Tobias G. in September 2015
at: https://24metrics.com/blog/cpi-fraud/
[14] VentureBeat May 2017 by Stewart Rogers, 24 Billion Clicks Show Mobile Ad Fraud is Rampant: 8 Networks
are 100% Fraudulent: https://venturebeat.com/2017/05/05/24-billion-clicks-show-mobile-ad-fraud-is-rampant-
8-networks-are-100-fraudulent/
[15] Source from Sprout Social, Reach versus Impressions: Understanding Engagement Terms on September
8 ,2016 at https://sproutsocial.com/insights/reach-vs-impressions/
[16] Source on installs leading to dead engagement is from ReadWrite dates September 17, 2015 at
http://readwrite.com/2015/09/17/acquisition-dead-engagement-app-installs/
[19] Rashid, Brian. "The Rise Of The Freelancer Economy." Forbes. Forbes Magazine, 26 Jan. 2016. Web. 30 June
2017.
[20] Pofeldt, Elaine. "McKinsey Study: Gig-Economy Workforce Is Bigger Than Official Data Shows in U.S.,
Europe." Forbes. Forbes Magazine, 10 Oct. 2016. Web. 30 June 2017.