2020 Highlights & 2021 Forecast
This article describes the major changes in 2020 and will take a look what to expect in 2021 with respect to DENT Wireless’ products (developments and extra features), strategic and marketing plans, the DENT ecosystem and the DENT tokenomics.
Table of Contents
- 1 General Focus of the team in 2020
- 2 DENT Wireless’ products
- 3 DENT Wireless’ Marketing and Communication in 2020
- 4 DENT Token: distribution, tokenomics and price in 2020
- 5 DENT Wireless Marketing in 2021
- 6 DENT Tokenomics in 2021
- 7 Opportunities
- 8 Final Conclusion
General Focus of the team in 2020
Shift from SIM to eSIM
In general, we can see 2020 as an in-between year where the team shifted focus from offering a marketplace and direct selling of “SIM data”, i.e. data and prepaid top-up packages issued by local carriers, into acting as a global MVNO with its own private labels for eSIM data plans and Global Voice Calling.
During the year, it became obvious that the team doesn’t want to spend time, energy, and money anymore with respect to the “legacy” of the SIM products and SIM users.
The team didn’t even spend any efforts to improve the “SIM related products” or to increase the sales for these products.
On the contrary, there was no signal that the huge userbase of 26+ million of mainly users with non-eSIM enabled (Android) devices were nurtured by “keeping contact with them” or by offering them interesting competitive priced SIM data and prepaid packages.
Focus on product development, No marketing but preparation for 2021
Partly due to the Covid-19 pandemic, the team focused in 2020 on further product developments for DENT eSIM and TEAMS.
The developers created 4 marketing tools that can be used for the upcoming marketing campaigns in 2021 for “introducing” DENT eSIM to the world.
Furthermore, the team was busy with the preparation for the launching of the new distribution channels for resellers (Gigastore and DENT eSIM Developer API portal) and the Cloud Stack platform for other MVNOs.
Also, the team didn’t really try to increase the user- or client base, but they just did some pilot and marketing testing on a low scale without spending any advertising costs.
For example, the team tested a new referral marketing campaigns “Get 5GB for you and your Friend” where both the new user and the referrer was being rewarded with free data (5GB) the moment this new user buys his first eSIM data plan.
So far the general focus, let’s look into the specific details…
DENT Wireless’ products
DENT SIM Data and Prepaid top-up packages
As described in the introduction, during the year it became clear that the team won’t spend time, energy, and costs anymore with respect to these “legacy” products.
The focus is on the eSIM data plans, the traditional “plastic” physical SIM top-up market for local carriers all over the world is “history”.
The team failed to achieve its original plans as described in the Whitepaper.
The idea was 2-fold.
First, By acquiring a huge user base of DENT App users, DW wanted to take advantage of the “united buyers principle” by forcing the local carriers to give DW a “quantum discount” such that DENT App users could buy the data and prepaid packages with a discount in comparison what they otherwise had to pay to their local carriers (or their local resellers). Either DW would sell these packages directly to their users inside the DENT apps (or on the Marketplace), or telcos could offer the packages themselves on DENT Marketplace (by using the Telco Trading Desk).
Unfortunately, the carriers didn’t cooperate and didn’t want to give DW a discount and/or wanted to participate with the Telco Trading Desk.
Think about it… These DENT App users were already clients from the local carriers and “had to” buy their top-ups anyway as they already “purchased” the SIM card (with data or prepaid fiat value). And why would a local carrier give discounts to DW if they don’t bring in new clients?
The second “big idea” was that DENT app users could sell their unused data to each others that they were not using and otherwise should lose due to expiration of the validity.
Again, to let this model work, the local carriers had to cooperate which they didn’t. So, this model failed miserably.
By the time the team had found out that both models didn’t work, they spend over $50 million worth of DENT tokens (60 billion tokens) by giving away free DENT credits to “freebie seekers”.
With as result a huge userbase of 26+ million of mainly users with non-eSIM enabled (Android) devices with prepaid “contracts”.
Surprisingly, in 2020, DW didn’t do anything to “nurture” this huge userbase by “keeping contact with them” or offering them competitive products.
Of course, there is the hope that some of these 26 million users will eventually purchase an eSIM enabled device and can become in the future a (paying and recurring) customer for the DENT eSIM data plans.
But the majority of these 26 million users were “acquired” in 2018 and the first half-year of 2019. And most of them were not active anymore after their “first and only” package purchased with the free DENT credits.
So, probably, it will be a hell of a job for the marketing team to convert the existing “freebie seekers” userbase later into paying customers in case these users will get their eSIM enabled devices.
In hindsight a huge waste of time and money.
DENT Global Voice
During the year, the number of supported countries has been increased to 141.
Besides the existing Afterburner Benefits as the free Voice minutes for users who have deposited DENTs into the AB Vault, the team introduced new free voice minutes by bundling them “within” the eSIM data plans…
Since November 18, 2020, for every 1GB eSIM data purchased, a DENT App user will get 10 free Global Voice minutes (with 30 days of validity).
With respect to the sales volume of actual voice bundles being sold on the marketplace, we can be short…
There is hardly any interest in the DENT Global voice bundles, the volumes are minimal.
DENT eSIM data plans and DENT TEAMS
After the beta launch of the DENT eSIM data plans in December 2019, where initially 25 individual countries were supported, the team skipped these country plans in April 2020 for the current worldwide data plans (at the same time 25 more supported countries were added).
In September, 25 extra countries were added, and in December, another 5 countries. So, the number of supported countries is now 80.
During the year, the developers added these extra features:
- Easy installation via QR Codes and auto-installation.
- More payment features as option to pay with fiat via Credit Card and PayPal, Google Pay, Apple Pay, Samsung Blockchain wallet, and with cryptocurrencies as BTC, ETH, BAT, DAI, and split payment feature to pay with both DENTs and fiat.
- DENT TEAMS was launched with first the easy pooling feature and later the (dedicated) allocation/sharing feature.
- 10 Free DENT Global Voice minutes for each 1GB purchased.
And we know that the team is working on these additional features:
- Option to sell unused data on the “revamped” Marketplace (via DENT Apps) or on DENT Exchange.
- Develop a prototype of DENT eSIM with an embedded telephone number. Hopefully followed by an actual launch.
DENT Earn Tab
The same “lack of focus” as with the SIM related products, was visible with respect to the Earn Tab features.
Instead of the promised launch of a new DENT Earn 2.0 with additional features, the marketing team “downgraded” the Earn Tab with lower DENT rewards for watching the daily videos, and closing down the Earn Tab for DENT App users in many countries.
Think about it, for watching the daily ad videos, the rewards are now 30-50-80 DENT credits. So, on average 53 DENT credits per day (just a little more than 1 dollar cent). Who is going to watch a 15-30 seconds video each and every day for this minimal reward?
I think the team “killed” this potential revenue stream, and it will be hard to get the prior “active” Earn Tab users back in case the rewards can and will be increased in the future.
During the year 2020, there were no changes with respect to the Afterburner Loyalty Program.
Although the team had promised in the roadmap to add eSIM benefits for the Afterburner program, this hasn’t happen yet.
Despite the fact that we don’t have official figures, we can expect that due to the lower Earn Tab rewards (see above) and less interest from traders on DENT Exchange (see below), that the total number of DENTs kept in the AB Vault is decreasing.
During the year there were no major changes with respect to DENT Exchange.
After BTC hits the $20K level, finally after a few days, the withdrawal minimum limit of 0.05BTC was changed into 0.005BTC.
Yes, the minimum level was higher than the $1.000 daily withdrawal limit such that no one could withdraw BTC anymore. A simple change that should have been done “years” ago.
Also the trading pairs DENT/BNB and DENT/ETH were “delisted” due to lack of interests.
The trading volumes in all pairs decreased. Not only for the data packages and voice, but also in the DENT/BTC trading pair mainly due to the lower free DENT incentives (referrals and rewards).
Also, after the addition of the extra digits in the DENT/BTC trading pair, several traders left the exchange as it became more difficult to trade and make an income from the prior relatively higher bid-ask spread (but primarily because this market is being dominated by a few participants and there is an unequal playing field.
Hopefully, the upcoming new revamped DENT Exchange and the Marketplace for selling of unused data will give a push, and will increase the transaction volume. Unfortunately, the team hasn’t give us any idea what to expect.
So, far the technical and new developed features for the DENT products. Let’s look at…
DENT Wireless’ Marketing and Communication in 2020
As described in the intro, in 2020 there was no focus on marketing. The team used the “Covid19 period” to create 4 marketing tools.
During the year, there were a few trial campaigns via social media informing the public about the redeem codes, the 5GB for you and your friend campaign, and we had the Bunq campaign. (Click on this last link to see what my thoughts are about these 2 last campaigns)
Also the referral marketing policies were changed…
Less Free DENT incentives – Shift from free DENT credits to free data
The number of DENT credits that DENT app users can earn by referring friends were significantly reduced during the year. From thousands, to hundreds, to just 100 DENT credits, and as per today, there is no referral program active at the moment.
As with the Earn Tab, the marketing team doesn’t communicate about the marketing campaigns. They only introduce the campaign, but never informs us about when a campaign will end (or has been ended).
Of course, for both the Earn Tab and referral activities done by DENT App users, this can be very frustrating when it happens. You invited your friend with the assumption that you will get a referral reward, but then all of a sudden, you won’t get rewarded.
And what about DENT App users who are spending time and energy to earn DENT credits but all in a sudden the Earn Tab program closes, or the rewards are minimalized?
(Tip for the marketing team: follow the discussion on these sites to see where DW can improve as there were several complaints and remarks)
Although the team came up with a new improved website, with new instruction videos, and news via tweets and re-posting on social media (as in the Telegram chat group), the overall web presence of DENT Wireless and its products has not really been improved. (Try it yourself, just Google eSIM related search terms and you won’t find DENT)
The team still thinks that they can run the company and that the clients will come after just posting a 140 characters tweet.
The communication from the management with the crypto community was terrible. For example, they just created a new roadmap without any communication at all.
Although the community begged and cried for more information and an AMA. Very disappointing.
Also, the team just ignored the KuCoin hack. While thousands of DENT token holders were in uncertainty about there tokens, the team simply ignored the fact. A perfect example that the team doesn’t care about its token holders.
Also, the social media team should be fired immediately. I have never seen admins in a Telegram Chat Group that are so rude and unhelpful. All they do is referring people with questions to support, try out the DENT App, read the “outdated” whitepaper, or wait for the news.
They have banned so many (interested) users for nothing. And now they want to make it easier for them via an AI bot. Well, in this case I can understand, because a bot is better than the current admins who act as robots without any empathy and who scare off all chat members.
Furthermore, the support should be improved. People want to chat right away if they have a problem. Just asking people to contact you via email and not answering or only after days, is very bad for your branding.
Before going into more detail about what we can expect in 2021 with respect to DW’s marketing, let’s first look back at 2020 what happened with the tokenomics, DENT tokens distribution and releases, and DENT token price.
DENT Token: distribution, tokenomics and price in 2020
A “must read” are these 2 recent articles:
- DENT tokenomics: differences between DENT credits and tokens, what’s wrong with the current DENT tokenomics and how to improve it?
- DENT token distribution and releases. How is the DENT token distributed and all insights about main company wallet releases.
But let’s start with the main company wallet, aka the war chest.
What many of you maybe don’t know (or forgot) is that besides the unreleased DENT tokens (12.5 billion), DW also keeps 4,380 ETH in the main company wallet.
And although DW has taken out almost 9 billion of DENT tokens from the war chest in 2020, they didn’t take out their ETH balances. In hindsight, this was a very smart (or lucky) move as you can see in the details below:
As you can see, the dollar value of the war chest increased from $4 million to almost $7.2 million, primarily due to the strong increase in ETH price.
So, DW, the company, is in a much better financial position than a year ago.
I expect that the team will sell all remaining DENT tokens from the war chest in 2021. Yes, the total releases for 2020 was 9 billion and there are still 12.5 billion tokens left, but if you watch the total releases in Q4 2020 with a total of 3.9 billion tokens, you’ll have noticed that the releases are accelerating…
Now, let’s look at the DENT Exchange Wallets (22.9 billion DENT tokens).
These wallets are kept by DW on behalf of all DENT App and Exchange users. These wallets include DENT credits (on behalf of regular DENT App users who either bought them or got them for free as incentive) and DENT tokens (as deposited (and earned) by traders inside their DENT Exchange wallet or deposited into the AB Vault).
We don’t have the exact breakdown, but let’s assume that 0.9B belong to “traders”, 2.0B belong to AB Vault holders, and the remaining 20.0B are kept by DW to coverage the regular DENT App users’ DENT credits.
Furthermore, it’s important to understand that we are talking about the DENT micro ecosystem. Hence, all DENTs inside the DENT Apps and DENT Exchange. This is a “black-box” system, we can only trace (via etherscan) the incoming and outgoing DENT tokens, but what happens inside is less clear. Although all trades on DENT Exchange can be monitored.
If we look at the DENT macro system, we are looking at the total of all 100 billion DENT tokens. Hence, including the DENT tokens kept on exchanges and in cold wallets (kept by token investors and traders), plus the DENT tokens inside the micro system.
Or to say it in other words… the DENTs inside the micro system are the utility tokens, and outside the micro system, we can call these the security tokens.
Of course, for DENT token investors, the more DENTs are required inside the micro (utility) system the better as it will lead to less supply on the exchanges.
OK, so far the definitions, let’s get back to the tokenomics.
Since April 29, 2020, DENT App (and TEAMS) users can buy the DENT eSIM data plans by paying with fiat (before that date, only payments with DENTs were allowed).
To “compensate” DENT token holders, and to activate the DENT eSIM data plans, since this feature is operational, DW will automatically buy DENT tokens via the DENT/BTC pair on DENT Exchange, the moment a user will pay (partly) with fiat instead of paying with DENTs.
As all DW does is purchasing DENTs with BTC when this happens, there is no need for DW to keep the purchased DENTs. So, when the many small DENT payments reach a “certain” level, DW will sell the DENTs again for BTC, and the process can repeat itself.
This way of buying DENTS has no upward price effect what so ever as DW is buying and selling the same number of DENTs. It’s even worse as all buy orders are being executed at market prices, and also most of the sales orders. So, DW is leaking trading costs (bid-ask spread costs). Read this article to see where else DW is giving away valuable DENTs to the wrong people?
So, to explain it in easy words…
The token velocity is so fast that there is no upwards price pressure on the DENT token price. The DENTs inside the micro system stays the same without any effect for DENT token investors or traders.
Furthermore, as explained in the tokenomics post, there is just no reason for any DENT App user to buy DENT credits.
On the contrary, if a DENT App user wants to buy DENT credits, he will be penalized by paying a markup on the market/conversion price of somewhere between 10-20%.
But what’s interesting for DENT token investors is this question:
Will the DENT micro system increase or decrease?
Or to phrase it better in other words…
Will the number of DENTs kept inside the DW Exchange wallets in- or decrease?
Well, as assumed above, there are 20 billion DENT tokens kept to cover all the DENT credits kept by DENT App users.
Most of these users got these DENT credits as referrals or rewards. And most of them have just a small number of DENT credits (lower than 2,000 DENT credits).
(Do the math: 25 million DENT app users who have 20 billion DENT credits in total, so, on average a user has 800 DENT credits as “leftover”)
But as explained above under the referrals and reward topics, the number of DENT credits that can be earned are minimal nowadays.
Hence, the net effect will be negative. More DENT credits being used for purchases than being obtained via incentives. As a result, DW will sell the DENT tokens hold to cover these DENT credits.
In fact, in November and December 2020, the DENT Wallets decreased already with 1.9 billion DENT tokens (from 24.8 to 22.9).
What about the DENT tokens kept on exchanges and in cold wallets?
Well, look at the Bittrex Global balance of 1 billion DENT tokens. I think you already know that Bittrex recently stopped the trading for the DENT/BTC pair such that you can’t trade DENT anymore on Bittrex.
So, all these DENT tokens have to find a new “destination”. Some will end up in cold wallets, and others are being transferred to other exchanges and are sold on the market.
With as end result, that there is no exchange anymore left where citizens from the USA (and several other countries) can trade or invest in DENT.
The only exception is KuCoin, but the volume there is very low and this exchange has lost trust from many investors due to the recent KuCoin hack.
And there is still the risk of a delisting of either the DENT/ETH and/or the DENT/USDT trading pair on Binance. The volume is a little higher in the last months, especially as the volatility of the crypto market has increased and also because DW has sold 5+ billions DENTS in the last 10 weeks (out of the war chest 3.9B and 1.9 out of the DENT Exchange wallets).
But what happens when the volatility decreases or the war chest is empty?
OK, let’s look at the DENT token price in 2020.
As you can see, the price for DENT increased in 2020 about 25% from $0.000160 to almost 0.000200.
In the first 3 quarters the BTC and DENT moved in the same direction where overall BTC outperformed DENT a little. Except in August we saw a quick spike in DENT.
However, in Q4 BTC (and ETH) took a rally and really outperformed DENT. BTC increased from $7200 to $34K+ (480%) and ETH from $131 to $737 (562%). (BTW as per today ETH is now already $1.131).
The big question is will the DENT price follow BTC and ETH with a delay?
The general theory is that first BTC will increase, then the top 10, then the top 50 and high volatile popular (hype) tokens, and finally by the remaining tokens with smaller MC.
And we already have seen many tokens to explode in December 2020 and early January 2021.
Is DENT missing the boat?
Well, I think partly yes, due to the high relatively sales from the team during the last 10 weeks (5+ billion).
So, that’s the market sentiment but let’s look more into the fundamentals.
DENT Wireless Marketing in 2021
The year 2021 will be the “year of the truth”. Either DW will attract sufficient new eSIM users who they can convert into recurring paying customers, or the team will fail.
The 26+ million current user base is more or less a “legacy” without any “customer value”. Most users were freebie seekers who never had the intention to buy telco products from DW, and currently live in unsupported (eSIM) countries (Indonesia, Bangladesh, etc.) and most of them have no eSIM enabled device (yet).
As said the war chest is $7 million, the marketing tools have been created, the product is about ready (except for the selling of unused data feature, and embedded telephone number).
So, the marketing team has to start all over again. And it comes all down on the effectiveness of the marketing campaigns.
So far, I’m not impressed with the 2 pilot campaigns and DW’s web presence. The essence is that people don’t know about DENT Wireless and the DENT eSIM data products.
Hence, to acquire new eSIM users, the team has to convince new potential users and either come up with a free trial or start a “try-and-buy” deal where new users will get a discount.
Or to say it in other words…
The marketing budget for 2021 has to be used for acquiring potential new eSIM customers with no guarantee that these trial users will become recurring paying customers.
Also, the regular DENT eSIM data plans should be priced competitive. If you have read my article about DW’s pricing strategy, you’ll see why I don’t like the one worldwide data plan but prefer individual country plans, or even better, a Pay as you Go pricing model.
This one worldwide plan leads by definition to an average price for all 80 supported countries. Hence, it will be very difficult for DW to compete in the “lower priced” countries.
Also, the 365 days validity is an interesting feature but it will lead to less unused data. And as other global eSIM providers use shorter validities and make an extra income of 15-20%, they can decrease the price accordingly where DW has to keep prices higher.
Same can be said for the upcoming feature of selling of unused data. Again, DW will miss the extra income and become less competitive. Especially, if traders will buy the larger sized data plans with a discount and sell these in smaller items on the new marketplace. With as result that traders will take margin away from DW (from current existing DW’s customers), and making it more difficult for possible resellers to offer the data plans to their clients for a decent margin.
Just read this article where I have analyzed 10 possible negative effects by launching the marketplace for selling of unused data (including a huge fiscal threat with respect to EU VAT rules).
So, it has to be seen after “the trial period ends” whether DW can convert new users into recurring buyers of the regular eSIM data plans.
And don’t forget, mobile data is a “commodity”.
I mean DW is just a “middleman”. In every country, there are just a few local mobile network operators (often a number between 1-5). These networks allow “guests” from other M(V)NOs access to their network to send and receive mobile data.
The delivery process of the data is “the same” for any global eSIM provider who has an “agreement” with the local carrier that its users may allow the network for data transmission.
Of course, the local carrier can offer different qualities of network platforms as 2G, 3G, 4G, 4LTE, 5G, but they will offer the same quality to all participating M(V)NOs. And yes, a competitive global eSIM provider can opt for Single Carrier Support while others opt for Multiple Carrier Support, but in the end, the service is a commodity.
The only real extra feature that DW currently has to offer that most other global eSIM providers don’t offer yet, is the TEAMS sharing feature. Maybe soon to be followed with the selling of unused data feature, and/or telephone number service.
And in a commodities market, the one who can offer the cheapest price and has the best and most effective marketing will win the battle.
And with a marketing budget of just $7 million and non-competitive pricing, I don’t think DW will win this battle.
That said, do some math, in case the marketing team will succeed.
Let’s assume that DW will spend $5 million for new (eSIM) user acquisition.
How many new recurring users can they acquire for this amount?
As explained, to acquire a new user is not that difficult if you’ll give away free data or offer an awesome deal. What matters is how many of these users will become recurring users and buy the regular priced plans.
And now I can come up with all kinds of marketing models and theories about how to set up the marketing campaigns properly for the highest effect, but let’s keep it simple.
If the marketing team can acquire an actual recurring customer (someone who purchases a regular plan after the first try-out or first deal), by spending $5.00 per user, the team will do a great job.
Hence, hopefully, the team can acquire 1 million new recurring users in 2021.
Now, let’s assume that there is a retention rate of 70% (after each year, DW will lose 30% of its customers to competitors).
(You know, with “one click”, a user can buy and install an eSIM data plan from a competitor)
How much can DW sell to these new 1 million users in the first 3 years (after the trial/deal period ended)?
First, we need to make a prediction about how much data the average user needs per year.
As DW is a “secondary” data-only provider, we need to predict how often the average user will get “out of his bundle” with his local provider. I mean running out of data with the current (monthly) plan, or while travelling abroad (to avoid high roaming costs).
Let’s assume this will be the case in 10% of the time.
So, as on average, a user will use 3GB mobile data per month, you can expect the average user to spend about 300MB per month for secondary data (or 3.6 GB per year).
Well, assuming that the average user needs 3.6GB per year, and that the price per 1GB stays $3.75 (the current unit price for the 20GB plan).
In that case, the “customer lifetime value” (CLV) will be $29.57 (year 1: $13.50, year 2: $9.45, year 3: $6.62).
But I expect the prices to decrease significantly in the coming years.
And the CLV to decrease to somewhere between $10-$20.
If we look at the theoretical DENT token price based upon transaction volume only. Assuming that all transactions are paid with DENT tokens (and ignoring the current fast velocity), we will end up with a total Market Cap of $10-$20 million (1 million users times CLV).
Well, the current MC with all tokens into circulation is 100 billion times $0.0002, equals $20 million.
So, the current market price of the token, is in line with the expectation that DW will acquire 1 million new recurring users this year.
DENT Tokenomics in 2021
As explained, the DENT token has no real benefits for DENT App users at the moment. I made several recommendations how DW can improve the tokenomics, but for all of them, I have not heard that the team will implement them in the future.
At the supply side, as already explained, we can expect that DW will sell the remaining 12.5 billion tokens on the market in 2021, that there will be some pressure from Bittrex Global users (1.0B), and that the number of tokens in the DW Exchange wallets (22.0B) will decrease over time.
But I also expect many DENT investors who are now in a loss to sell their tokens if they have the chance during short “pump” spikes.
Note: most of the average investor bought during ICO at a price of $0.0004 (current loss -50%) or during the aggressive user acquisition period the first half-year of 2019 for prices between $0.0008-$0.0010 (current loss -75% or more).
And as these investors already “dollar cost averaged” due to the gradually decrease in price the last years, most investors have invested too much, and will eagerly selling (part of) their DENT holdings.
Of course, we also have to look at the demand side.
And maybe DENT will be picked up by new investors. But there are almost no influencers who follow or publish about DENT. And DW’s management doesn’t communicate with or does any PR for potential investors.
So, where should this demand come from?
Of course, there are also opportunities.
The new plans with respect to the Gigastore and allowing resellers to sell the DENT eSIM data plans to their own users can be a hit. But so far, the DENT eSIM Developers API is still in beta phase. And we haven’t heard of any reseller who wants to participate.
Same can be said for the Cloud Telco Stack platform.
Also, we don’t know anything about the progress with respect to the IoT/M2M market.
Hence, as a (potential) token investor, you can only hope that the team will exploit these opportunities. But they are all in the first (research) phase with a high risk of failure.
If you look at the company from the viewpoint of a potential or existing DENT token investor, there is just one conclusion…
The risks are too high in relation to the possible revenues.
The team failed miserably with respect to the aimed goals as described in the original whitepaper.
Instead of becoming the “unicorn” where users from all over the world could buy, sell, trade and share (unused) mobile data with each other, this “project” turned into a “startup” MVNO with one major telco product, “the backup data-only provider”.
I mean that the DENT eSIM data plans are only purchased as “backup” by people who already have a primary contract (prepaid or postpaid plan) with their local provider, and who are either running out of data with their current (monthly) plan, or are travelling abroad (to avoid high roaming costs).
DW can’t compete as primary data provider with these local providers as these providers have so much more to offer. Think about bundled plans (with discounts) with components as: telephone number, voice minutes, data, SMS, discounted smartphone/device (with monthly rental free payments), broadband, TV channels, landlines, free Netflix, etc.
The DENT tokens issued were mainly used to acquire a user base of 26+ million users where most of them have currently no value anymore for the company as these “freebie seekers” will never buy the DENT eSIM data plans.
The current eSIM user base is somewhere between 10-20K users only, where 90% and more only got the this data for free (or 1 DENT) as a trial or as part of the “Get 5GB for free for you and your friend” campaign (as bonus for first-time buyers).
So, the team has to start all over again with acquiring new eSIM users and clients.
The war chest is just $7 million and it is doubtful whether the marketing team is capable to spend the money wisely and acquire the right new customers.
There is no “evidence” that the current worldwide data plans are competitively priced and that first-time users will convert into recurring paying customers.
Furthermore, there is no backup by Venture Capital. If the money out of the war chest is being used, it has to be seen how the company will attract new capital if needed.
The DENT tokenomics are really bad. There is no incentive at all for DENT app users to buy DENT credits.
The team will sell the remaining DENT tokens (12.5 billion) probably this year with an expected downwards price pressure effect. Especially, as the team sells anyway no matter the price or market conditions.
Of course, this outlook can change during the year as the team managed to implement and succeed with the wanted roadmap items, improve the tokenomics, becomes more price-competitive, attracts many new clients, etc.
But at the moment, the team performance hasn’t convince me. If you look at the token DENT token price, the “average investor” agrees with me as the market sentiment in the crypto world is very positive but the DENT token price “doesn’t move”.
As always do your own homework. This is not an investment advice.