Gems (GEM) Review – Gems ICO Ratings and Details

Ticker:
GEM

Token type:
ERC20

Total Tokens:
8,000,000,000

Available for Token Sale:
25%

What is Gems?

Gems is a platform that is similar to Amazon Mechanical Turk and Guru.com in that it offers micro-tasks to be requested and completed for money. The micro-tasks are usually simple, and unspecialized, able to be completed by pretty much anyone with an internet connection. Examples of the work includes labeling photos or objects that are part of a larger project. According to Gems, micro-task employers are overpaying by 500 to 1500%, while the workers are being paid very little.

By decentralizing the platform on which the micro-tasks are offered they avoid some of the market inefficiencies and fees charged by the networks. Gems is built on the Ethereum blockchain, and it allows anyone with an internet connection to have access to the micro task workers without having to worry about task verification, which it one of the leading causes of inflated costs.

The ICO does not provide a lot of detail regarding what it hopes to achieve going forward, but it does list some of the things it would like to accomplish within the first quarter of 2018. They have already made available an Alpha, and they would like to begin admitting job requesters, but will start by only admitting one at a time in order to ensure quality.

How Does Gems Work?

The platform proposes eliminating the extra fees and middlemen involved with micro-tasks, and instead utilizes four components to offer a more efficient solution. The first aspect of their plan is staking, which is how they attempt to prevent poor or insufficient work. The requester, verifier, and miner all donate a certain amount of GEMs that are held in escrow until the task is completed. If anyone doesn’t live up to their end of the deal they will be penalized some of their tokens.

Trust score is another feature that is proposed by the platform. Miners will earn a higher trust score with the more tasks that they complete, and eventually their score can allow them to act as a verifier of other miner’s work, which means that the quality of work is being monitored and the verifier can earn extra money.

Modules will be built on the platform over time as there are tasks that come up commonly. The modules will allow those common tasks to be more easily requested and filled. Finally, the Gem payment system will be more cost efficient by grouping payments together in order to conduct as few transactions as possible. At any time, miners or verifiers are able to receive the payment they are owed through their payment channel.

Features and Benefits of Gems

Gems compares itself to other existing platforms for micro tasks in order to demonstrate the benefits it provides. With Gems there is no fee per task, and no fee for researcher sign-up, which is not the case with Amazon mechanical turk and Crowdflower. It also promises that there will be no redundant tasks.

Additionally, the service will be open to the unbanked – all you need is an internet connection, and it is simple to sign up and be a worker. The platform also uses an open source UI/UX unlike their competitors.

The Gems Token Sale

The token sale for Gems has already taken place, having started on January 30th, 2018 and ran through February 16th. Strangely, they have not yet announced how much money they raised from the sale. The tokens are referred to as GEM and are distributed as ERC20. In total, 8,000,000,000 tokens were created and 25% of them were made available as part of the token sale.

There is no hard cap or specific fundraising goal stated by the ICO, as they use a Dutch auction format. This means that the hard cap decreases over time, and that the price per token is determined when the hard cap and the contribution amount meet. There were bonuses that were included for white listers who were broken up into tiers. A 20% bonus was offered for 1% of contributors within the first hour, 15% for 10% of contributors in the next two hours, then the bonus would decrease by 1% every two hours until it was gone. The sale accepted ETH.

Unfortunately, the ICO does not provide information regarding the planned allocation of the tokens created, and due to the Dutch auction format, they cannot explain the intended use of the money raised during the sale.

Who’s Behind Gems?

The founding team members are the only ones identified and profiled through the Gems website. They are Rory O’Reilly and Kieran O’Reilly. Rory was a student at Harvard studying psychology and economics but left before graduating to co-found the online video editing company Gifs.com in 2014. He has been named on Forbes 30 under 30 list and his primary expertise is in consumer tech.

Kieran is Rory’s younger brother and was also a Harvard student – studying computer science – prior to dropping out with his brother. He helped to co-found Gifs.com and serves as its CTO. Like Rory he is a Thiel Fellow and was listed among Forbes 30 under 30.

The site also details the company advisory board, which boasts some truly impressive individuals. In total there are five people on the board, including the co-founder of Twitter and Medium – Biz Stone. There is also Joey Krug who co-founded Augur and works for Pantera Capital. Other companies co-founded by members of the board include Aragon, NEO Global Capital, Stampery, and reCAPTCHA.

Conclusion

Micro-tasks and mechanical turks are something that multiple ICO’s are looking into as they represent a potential source of millions of jobs for people all-around the world who do not have specialized skills. These jobs are available now, but because of the middlemen and centralized platforms, the costs to requesters are quite high and the payment to miners very low. Obviously, this platform has some appeal, but it also has some competition currently on the market.

We like that the platform already has an Alpha available to try, but we are concerned over the lack of details in a variety if other areas. They indicate that they are making 25% of the total tokens available for the public sale, but only state that the other 75% are going to be held by them without much explanation regarding what their plans are. Furthermore, they have not announced the token metrics even though they have already closed the whitelist. By not announcing a hard cap and using the Dutch auctions method, it appears that the team is trying to raise as much money as they can, not necessarily as much as they need.

Peter Lehmann

Peter is a blockchain investor and cryptocurrency writer at Vkool.com. Since 2014 Peter has advised blockchain startups and ICOs on content marketing, strategy and business development.

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