Read More Reports

LOOM NETWORK (LOOM)

A Layer-2 scaling solution for Ethereum that is a network of DPoS sidechains, allowing for scalable user-facing dApps and games.

KEY METRICS [as of 6 Nov 2018]
Ticker LOOM
Latest Price $0.1099 USD
Current Market Cap $66.24MM
30 Day Avg Market Cap $71.72MM
24H Volume $1.21MM
30 Day Avg Volume $4.57MM
Circulating Supply 602,315,240 LOOM
Total Supply 1,000,000,000 LOOM
All Time High Price $0.7744 (4 May 2018)
No. of Unique Addresses 7,060
Project Website https://loomx.io/

KEY HIGHLIGHTS

  • Raised $25MM via a private token sale in January 2018
  • Part of Techstars NYC 2018 class, one of the world’s leading startup accelerator programs
  • Released several working products since going live in March 2018, including an online coding school with 300,000+ developers (CryptoZombies), the Loom SDK, an alpha of a mobile trading card game platform (Zombie Battleground), three sidechains (PlasmaChain, GameChain, SocialChain), DelegateCall, and EthFiddle.com
  • Released the first live Plasma Cash implementation for secure interchain asset transfer

RECENT NEWS

  • Sep 2018: Developed the ERC721x token, an extension of ERC721 that adds support for multi-fungible tokens and batch transfers, while maintaining full backward compatibility
  • Sep 2018: Delivered 2 million cards to Zombie Battleground backers on PlasmaChain
  • Aug 2018: Launched the Loom Marketplace, running on PlasmaChain
  • Aug 2018: Released ERC20 support for Plasma Cash
  • Aug 2018: Completed successful Kickstarter and released Zombie Battleground alpha game running on GameChain to 1,800 early backers on Windows, macOS, Android and iOS

WHAT IS LOOM?

Loom Network (“Loom” or the “Project”) is a Layer-2 scaling solution for Ethereum that is a network of Delegated Proof of Stake (“DPoS”) sidechains, allowing for highly-scalable games and user-facing dApps while still being backed by the security of Ethereum.

Layer-2 Solutions

Due to the finite processing power of blockchains, congestion on the Ethereum network is increasing as the number of users increases.

To solve this problem, many scaling solutions are working to build on top of Ethereum, in which they create a blockchain that is said to be interoperable with existing blockchains. This allows them to utilize the trust and decentralization of the Ethereum network, while building value on a second layer.

Loom Value Proposition

In Loom's case, the Project offers developers an SDK to build and deploy on Layer-2 solutions so that their dApps can support large transaction volumes (i.e., online games, social apps, etc.) and scale to millions of users without causing major congestion on the Ethereum blockchain.
Loom's sidechains make it possible to use Ethereum exactly as it was intended — a highly secure, base-layer platform that supports more complex and feature-rich applications built on top of it.
By using Plasma Cash-based relays to transfer assets across chains, Loom can preserve the security of the Ethereum mainnet, while enabling increased speed and scalability through Layer-2 DPoS consensus of its sidechain.
This allows users to get the best of both worlds  —  gasless transactions and sub-second confirmation times, and the assurance of having their tokens fully backed by the security of the Ethereum mainnet.
Loom's goal is to allow app developers to have smart contracts that can access more computing power when necessary, or the same computing at lower costs for tasks like free trials for onboarding new users or applications that do not need the full security of the blockchain.

Key Features of Loom:
  • Loom SDK: The fundamental building block of Loom Network is an SDK that allows developers to quickly build their own blockchains without having to understand blockchain infrastructure — a "build your own blockchain" generator.
  • Shared Sidechains: A network of interconnected, high-throughput sidechains, such as GameChain and SocialChain, that use Ethereum as their base-layer.
  • PlasmaChain: A Layer-2 hub that bridges multiple sidechains to Ethereum, allowing for faster and cheaper token transactions and a more performant chain for developers to deploy their dApps.
  • Delegated Proof of Stake: Loom supports DPoS out of the box, which enables dApps to scale with gasless transactions and sub-second transaction times. Online games and social apps are the two initial types of dApps that Loom is focusing on, but developers can build any type of dApp using the Loom SDK.
  • Secured by Plasma on Ethereum: Loom inherits the security of Ethereum mainnet on its Layer-2 sidechains by using Plasma Cash-based relays to transfer assets across chains.

TOKEN SALE AND ECONOMICS

KEY METRICS
Token Name LOOM
Token Type ERC-20
Private Sale Allocation 45% of Total Supply
Token Sale Date Jan 2018
Token Sale Price 22,500 LOOM / 1 ETH
Amount Raised $25MM
Circulating Supply 602,315,240 (60.23%)
Token Supply Distribution:
  • Private sale tokens made up 45% of total token supply.
  • Team was allocated 10% of total tokens issued. Half unlocked in Jan 2018, with the remaining half vested equally in Mar and Jun 2018
  • Advisors received 10% of issued tokens (unlocked in Jan 2018)
  • Team Reserve funds constitute 35% of the total token supply.
Private Token Sale:
  • Conducted in Jan 2018 for 450MM LOOM at a rate of 22,500 LOOM = 1 ETH and raised a total of 20,000 ETH ($25MM) at ~$0.07 per token, selling 45% of total token supply
  • Loom did not conduct a public token sale
LOOM Token Ecosystem

Currently, the LOOM token acts as a lifetime membership card to all dApps running on Loom Network. Holders can transfer data & digital assets between Loom DAppChains & the Ethereum mainnet. However, Loom is moving away from the membership model & will introduce staking, validating, & delegating functions to the LOOM token.

Token Governance & Use of Funds

Loom uses Trezors and Ledgers as hardware wallets, and has cold storage private keys stored in multiple safety deposit boxes around the world. The company keeps specific location information private for security purposes.

As of October 2018, Loom Network has already used 15% of the funds from their total raise across the following activities in the ratios below:

  • Marketing: 35%
  • Software development costs: 55%
  • Operations: 5%
  • Legal & Compliance: 5%
LOOM Token Release Schedule

The following chart represents the number and breakdown of all LOOM tokens that are to be released into circulation on a monthly basis. Loom adopted a relatively simple methodology in releasing tokens, with 60% of total supply in circulation from the initial token unlock date (Jan 2018). There is no timeline for the release of the untouched Reserve funds (35% of total supply). However, Loom has confirmed that a portion of the Reserves will be locked to allow themselves to operate some validators for the first year. Reserve tokens will also be used for airdrops or other promotional items in the future.

LOOM Token Holder Concentration

The Top 100 holders collectively own 903,124,381.74 (90.31%) of Loom's total supply. The holdings of the Top 20 can be visualized below:

LOOM Token Overview & Use Cases

Current LOOM Token Utility: The LOOM token acts like a software license key that gives users access to the Loom Network. When a user attempts an asset transfer from a Loom DAppChain to Ethereum (or to another DAppChain), the dApp first checks the user's LOOM token balance. If the user has at least 1 LOOM token, he/she can proceed with the asset transfer. If not, he/she will need to purchase a token before being allowed to transfer data between chains.

Future LOOM Token Utility: The Loom team is currently implementing additional ways to add more utility to the LOOM token. Three areas which could add utility to the LOOM token are as follows:

  • Users: Pay a commission on every trade on the marketplace, but will get a large percentage of those commissions instantly refunded as rewards in LOOM tokens that are repurchased from the open market. LOOM will also be a native currency on the marketplace for buying and selling in-game items
  • Devs: Staking and ongoing payment to host and run their apps on shared chains (PlasmaChain, GameChain, SocialChain, etc)
  • Validators: Will stake tokens, and in turn will earn the LOOM fees paid by the developers who are hosting their dApps on PlasmaChain, as well as commission fees from the Marketplace
  • Delegators: Any token holder is able to stake their tokens with a validator node and collect a share of their rewards

ROADMAP & UPDATES

Loom Network did not publish a whitepaper as they believed that “instead of writing the ‘perfect’ blueprint before building a product, our blueprints are in the form of minimum viable products that evolve organically based on real world data.”
Consequently, Loom’s roadmaps have been mainly focused on short-to-medium-term goals. An analysis of their first published roadmap from April 2018 is displayed below.

MILESTONE ACHIEVED LINKS
Launched Loom SDK in production with first sidechain & large-scale dApp, DelegateCall.com2018: Q1Medium
0.5 release adding more users to Golang SDK | 0.8 release of Solidity support | 1.0 public beta release | Launched first production-ready Plasma Cash implementation2018: Q2Medium
Completed successful Kickstarter for Zombie Battleground, with over 1,800 early backers | Launched the Loom Marketplace running on PlasmaChain2018: Q3 Medium
Delivered almost 2 million cards to Zombie Battleground backers on PlasmaChain | Developed the ERC721x token, an extension of ERC7212018: Q3 Medium

At the time of publishing their first roadmap, Loom had 5 DAppChain projects and 7 total internal projects (CryptoZombies, DelegateCall, Zombie Battleground, Loom SDK, EthFiddle, EthDeploy, and SolidityX).

Past Quarter (Q3 2018)
Jul
  • Launched World Hackathon Tour
  • Hosted hackathons in Tokyo, Beijing, & Shanghai
  • Charge fee when users withdraw
Aug
  • Completed Kickstarter for Zombie Battleground, with over 1,800 early backers
  • Zombie Battleground alpha game release
  • Launched the Loom Marketplace, running on PlasmaChain
Sep
  • Delivered almost 2 million cards to Zombie Battleground backers on PlasmaChain
  • Developed the ERC721x token, an extension of ERC721
Updated Roadmap

An updated roadmap was published by Loom in September 2018, detailing their plans for Q4 2018 to Q1 2019. This updated roadmap contains details of every milestone planned for each product on the Loom platform.

PlasmaChain (previously ZombieChain)
Q4 2018
  • External testnet for 3rd party devs  (completed)
  • External testnet2, with support for external validators (completed)
  • Staking testing with 3rd party validators
Q1 2019
  • Mainnet voting and staking
Plasma Cash
Q4 2018
  • Plasma Cash all-in-one technical paper  (completed)
  • Plasma Debit for arbitrary denomination payments and token splits
  • Atomic swaps and multi-coin transactions
  • Checkpointing to reduce the data required for safely receiving plasma coins
Zombie Battleground
Q4 2018
  • Mobile (completed)
  • Card packs unleashed (completed)
  • Mainnet exporting of cards
  • Online Player versus Player functionality on the blockchain
  • Full public beta (160 cards, PvP, rewards, all transactions on the blockchain)
Loom Trading Post (Marketplace)
Q4 2018
  • Enable ETH, LOOM, & credit card payments (completed)
  • Enable withdraw of tokens to mainnet
  • Enable BTC payments
CryptoZombies
Q4 2018
  • Release of CryptoZombies Season 2 (completed)
  • Launching global network of CryptoZombies meetups (completed)
LOOM SDK
Q4 2018
  • Transfer gateway for ETH and ERC20s (completed)
  • Developer Logging subsystem upgrade (completed)

As shown above, while Zombie Battleground and DelegateCall have remained key priorities, much of the focus has shifted away from dedicated dApp-specific sidechains (i.e. each dApp has its own chain) toward shared sidechains that allow developers to deploy to more easily.

More details on Loom's latest roadmap can be found here.

Commercial Partnership and Business Development Progress

  • ConsenSys: Co-hosted a blockchain game hackathon in New York in August 2018 with ConsenSys
  • GameWith: Organized two Tokyo hackathons in June and July 2018 and conduct regular CryptoZombies workshops with GameWith, one of Japan's largest game media sites
  • Mossland: Organized a hackathon in Seoul with Mossland in September 2018. Mossland are creators of a blockchain-based augmented reality ("AR") game where users buy and sell virtual real estate

Games built using the Loom SDK include:

  • Neon District: A hybrid card-based RPG and MMO set in a futuristic, tech-noir world
  • Axie Infinity: A game about collecting, raising and battling fantasy creatures
  • Mossland: Building Moss Pop (location-based AR mobile application where users can discover ERC20 tokens scattered around the streets, and collect them by consuming relevant advertisements) and Moss Store (marketplace for digital contents and VR/AR games in the Mossland ecosystem that can be purchased using their ERC20 token, Moss Coin) on top of the Loom SDK
  • CryptoWars: A blockchain-based strategy game that lets you build your village, summon your army, form alliances, and go to war with your enemies

TEAM OVERVIEW

  • Matthew Campbell
    CEO and Co-Founder

    Former scalability expert at Digital Ocean, Thomson Reuters, & Bloomberg.

  • Luke Zhang
    CTO and Co-Founder

    Former lead developer at Blockmason and previously built a global supply-chain network.

  • James Duffy
    CMO and Co-Founder

    Founded a 7-figure company with additional experience as a lead developer at a Korean e-commerce startup.

  • Mohit Tater
    Head of Marketing

    Serial entrepreneur that has founded a publishing house, content agency and digital marketing agency.

  • Michael Cullinan
    Head of Business Development

    Former product manager at Thomson Reuters and CEO of Canopy Innovations.

  • Roy Shapira
    Games Director

    13+ years of game development at Space Cowboys Studios, CI Games and Ironbelly Studios.

  • Georgios Konstantopoulos
    Lead Plasma Researcher

  • Eduardo Pereira
    Blockchain Developer

  • Vadim Macagon
    Application Developer

Loom currently employs 70 staff members with roughly 20 developers. Further information can be found on their team page here.
Loom has 4 advisors and can be found in the Appendix.

TRADING DATA

Liquidity

The LOOM token is listed on 21 exchanges. Core crypto trading pairs include LOOM/BTC, LOOM/ETH, LOOM/USDT, LOOM/BNB, LOOM/NEO.
Core fiat trading pairs include LOOM/KRW & LOOM/INR.

Volume & Market Cap

LOOM token currently trades on Allbit, Binance, Bitbns, Bithumb, Bitrue, Bittrex, Coinbe, CoinExchange, DDEX, DEx.top, DragonFX, Fatbtc, GOPAX, Hotbit, IDEX, Kucoin, LATOKEN, Poloniex, Tidex, Upbit, and YoBit.

TECHNICAL OVERVIEW

Github Overview

Loom Network currently has a total of 165 Github repositories. Of these, 75 are public Repositories and 90 are private repositories that host the Loom Network code base. Overall, the Loom organization has frequent commits to the collection of repositories.
Additionally, key public repositories have documentation in Github, as well as in the separate Developer SDK.

Top Public Github Repositories
go-loom

Go package for building Go Smart Contracts for the Loom SDK.

16 People   487 Commits  
loom-js

JS library for building browser apps & NodeJS services that interact with Loom DAppChains.

407 People   9 Commits  
plasma-cash

Plasma Cash - ERC721/ERC20/ETH support

799 People   9 Commits  
cryptozombies-lessons

CryptoZombies Solidity Tutorial

1,028 People   87 Commits  
Top Private Github Repositories
loomchain

Loom SDK

15 People   1,413 Commits  
gamechain

GameChain

9 People   765 Commits  
cryptozombie-course

CryptoZombies Lessons

15 People   1,642 Commits  
delegatecall.com

DelegateCall Website

19 People   2,236 Commits  

PRODUCT & METRICS

Loom's ecosystem is made up of several products:

The Loom SDK: Foundational piece that supports all of Loom's other tech. Since all of Loom's sidechains are built on the SDK, all the new features Loom adds to the SDK gets passed on and integrated into every sidechain

PlasmaChain: Plasma Cash-backed hub for transacting between sidechains and the Ethereum Mainnet. It is a Layer-2 hub that other sidechains can use for faster and cheaper token transactions on Loom's DEX / Marketplace, as well as functioning as a more performant sidechain that developers can launch their Solidity dApps on.

Source: Loom Management Team

GameChain: A highly-performant sidechain optimized for interactive mobile games. This chain is a sidechain to PlasmaChain and does not connect directly to the Ethereum mainnet. It is the chain that Loom is currently using to run the alpha version of Zombie Battleground

SocialChain: A sidechain optimized for social applications. It is currently used to run DelegateCall and is the first sidechain built by Loom

DelegateCall: DelegateCall is a Q&A site for Blockchain and Ethereum-related questions that runs fully on SocialChain

CryptoZombies: Interactive code school that teaches you to write smart contracts in Solidity through building your own crypto-collectibles game. Nearly 300,000 users since launch in December 2017

EthFiddle: Allows developers to compile Solidity code directly in the browser, so they can quickly test & debug smart contract code, and share a permalink to the code in a click. Roughly 128,000 developers have used EthFiddle since September 2017.

SolidityX :  A secure-by-default superset of Solidity that compiles down to regular Solidity (protecting against known security holes)

EthDeploy :  An easy way to spin up private Ethereum blockchains for testing and demoing your dApps

CryptoZombies Origins: An in-browser playable game / tutorial that teaches the basics of the blockchain

Zombie Battleground: Collectible card game that runs on the GameChain. Gamers buy, sell, and trade their cards freely on the marketplace.

Loom successfully raised $321,606 (with an initial goal of $250,000) from 1,693 early backers for Zombie Battleground on Kickstarter over a 60-day period between June and August 2018. The backers purchased almost 2 million Zombie Battleground cards, all of which have been delivered since the game's alpha launch. Zombie Battleground is currently averaging 575 weekly active users on alpha and will be opening the public beta by end of November or early December 2018.

Source: Loom.Games

Zombie Battleground serves a number of important purposes in Loom's long-term strategy. The game drives the development of Loom's SDK and sidechain technology, since games need to be able to handle hundreds of thousands of simultaneous users sending dozens of actions to the server per minute. Loom's position is that if sidechains can successfully handle running games fully on-chain, the technology can be applied to any type of application. The success of the game will also drive user adoption of the Marketplace, an internal economy where users can trade their collectibles and encourage use of the LOOM token for transactions.

Additionally, early success of Zombie Battleground and its revenue model (earning through Marketplace transaction fees rather than in-app purchases) provides a tangible use case that underscores the capabilities of the Loom Network to attract gaming partners and developers.

Loom Trading Post (Marketplace): Gamers from Zombie Battleground trade their in-game items via the Loom Trading Post (Marketplace). One of the key objectives for the Project as a whole is attracting the largest number of users trading on the Loom Marketplace. Loom sees this as driving the most token usage in the near future, and the technical requirements for the internal DEX are also a major driver of Loom's own feature development on PlasmaChain.

Source: Loom.Games

COMMUNITY DATA

Social Community Overview & Strategy

Loom has a robust community growth strategy that incorporates incentives and campaigns to attract gamers on various platforms to prove out the network's scalability to the developers who will be building dApps on top of Loom sidechains. Focuses include:

  • Viral Content Marketing — Loom has an active Medium blog that receives over 75,000 visitors per month (https://medium.com/loom-network/), with top posts that receive ~30,000 page views. Several of Loom's articles have been featured prominently in the community by influencers.
  • Email Marketing — Loom has a current subscriber base of 125,000 people, 60,000 of which are developers authenticated with Github accounts.
  • CryptoZombies — Interactive code school that teaches users to write smart contracts in Solidity that has 300,000+ developers who have learned to build dApps and provides an additional developer base that can be funneled to build on the Loom network.
  • PR Campaign — Loom launch announcement was covered by Venture Beat, CoinDesk, BTCManager, Blockchain News, The Merkle, Coin Central, Blockchain Gamer, CryptoBit Games, GameWith, and BitFalls, amongst others.
  • Zombie Battleground - A Kickstarter campaign that provided Loom with a large pool of mainstream, non-crypto users. Raised $321,606 from 1,693 early backers who purchased almost 2 million cards that were subsequently delivered since the game's alpha launch.
  • Strategic Partnerships - Loom has several strategic partnerships with organizations such as ConsenSys and others with first game devs building on Loom Unity SDK to source developers who will build on the platform.
Community and Social Channels

Global Reach Through Localization — Loom employs a global strategy where local community and marketing managers translate products, marketing content, and forum moderations across English, Chinese, Korean, Japanese, Thai, Russian, and Portuguese to reach global user bases and developers.

Loom has a truly global community, with a focus in Asia, North America and Europe across the following active channels:

  • Telegram (English) | 14,500 members
  • Twitter (English) | 15,800 followers
  • Twitter (Japanese) | 1,300 followers
  • Twitter (Korean) | 215 followers
  • Facebook (English) | 13,100 Likes
  • Facebook (Thai) | 1,700 Likes
  • Medium | 7,800 Followers
  • Reddit | 1,200 Subscribers

COMPETITOR OVERVIEW

While there are many base layer protocols attempting to solve the scalability issue, for the purpose of this analysis we will be focusing exclusively on the Layer-2 scaling competitive set. Currently, the majority of Layer-2 scaling solutions are not actively traded given the nascency of the technology, but can be segmented based on development progress towards a live testnet or mainnet

Key Comparables: Layer-2 Scaling Competitors
NAMEDESCRIPTIONTESTNETMAINNET
Skale LabsLayer-2 smart contracts scalability solution that delivers a commercially usable Ethereum Virtual Machine (EVM) on a plasma chainXX
Menlo OneLayer-2 scaling solution that leverages a Proof-of-Reputation system to solve issues specific to identity and governance.X
Raiden NetworkLayer-2 scaling solution enabling near-instant, low-fee and scalable payments.X
CounterfactualGeneralized framework for native state channels integration in Ethereum-based decentralized applications.XX
TrueBitSecure, scalable, off-chain decentralized computation.X

Differentiating factors of Loom from its competitors is as follows:

  • Track Record of Building and Shipping Products: Many projects have yet to actually launch their platform outside of a testnet. Loom Network has been live in production and being used actively across a wide range of products
  • Built on Ethereum: Other blockchain platforms that are focused on scalable applications are attempting to compete with Ethereum instead of building on top of it like Loom's DAppChains. Loom Network is collaborative with Ethereum, and has the full support of the Ethereum community
  • Developer Community: Loom Network is highly focused on developer adoption, building the first DAppChain apps in-house in order to show other developers what is possible, as well as training the next generation of developers to build apps on their chain (CryptoZombies with 300,000 users)
  • Technical Innovations Advancing the Ecosystem: In addition to launching the first true Ethereum scaling solution live and in production, Loom also released the first live implementation of Plasma Cash. Further, Loom recently released the new ERC721x standard for cheap batch transfer of NFTs

APPENDIX

Additional Product Detail - Demo & Screenshots
  • Zombie Battleground Sample User Stream 1
  • Zombie Battleground Sample User Stream 2
  • Loom Game Marketplace
Advisors

Binance Research provides in-depth analysis and data-driven insights of digital assets by generating unbiased, institutional-grade research reports for investors in the crypto space.

©2018 Binance Research. All rights reserved