Buying tickets can be a nightmare, primary vendors such as Ticketmaster charge 20% fees, Viagogo or StubHub prices can be 2x-3x more and using craigslist, etc… is a gamble that tickets aren’t worthless counterfeits.
Well, these are exactly the kind of problems Aventus aims to resolve with their blockchain-based ticketing platform.
Ticketing Industry Problems
According to Aventus, “The current system is broken” and the ticketing industries problems can be summed in the following four key areas.
- Touting – Nowadays, most major gig sell out within hours, if not minutes. However, its not that too many enthusiastic fans are purchasing tickets, rather, the majority of them are scooped by touts and bulk-buying bots, who will list them straight away on secondary resale websites, marked up to make a profit.
- Counterfeits – Fraud is always a possibility when purchasing tickets on the secondary market, as there is no great way to establish the veracity of the ticket or against websites promoting tickets to events that don’t exist.
- Oversight – It is estimated that 25% of customers don’t even know whether they are buying from a primary source or a resale site. Many tickets completely sidestep the primary sale process.
- Promotion – Smaller concerts suffer from a lack of funds and so sales can lag, they just don’t have a cost effective way to promote themselves. Ticketmaster CEO, Sean Moriarty sums it up: “Nearly 35% of ticket inventory goes unsold, and if you ask fans why they didn’t go to shows, one of the most popular reasons is ’I didn’t know about it’”
Aventus Layer Cake
Aventus’ model will be built around their core architecture called the Aventus Protocol, built on top of the Ethereum Protocol layer, which will handle the creation of events, issuance of tickets and revenue distribution. Each of the other top level layers will extract information from to be able to facilitate services and transactions.
Next, the Aventus Service Layer will provide services that the retailers and various frontend companies will be able to integrate into their operations, such as ETH account management, fiat currency to AVT conversions, various ticket + identity validation tools and tools to simplify integration.
Finally, the application layer is where the frontend companies can build their ticket sales interface, promotion, marketing tools, etc. and interact directly with customers.
The Aventus Token
The Aventus platform will run on their AVT token, issued during their ICO. These tokens will be the fuel for the Aventus ecosystem and primarily used by participants in the services layer, such as promoters or ticketing apps.
Tokens will facilitate anonymous ticket re-sales to help eliminate touting, improve promotion and oversight via stake-weighted voting mechanisms and last but not least, provide a hassle-free tool for anyone to promote events and be rewarded for doing so.
Aventus already has a proof of concept and have signed on partners who will roll out various trial events using their platform, to include companies such as Blue Horizon Entertainment (US) and Joy Records (Israel). To me, this not only proves that ticket brokers are willing to use the platform, but it goes to show that adaptability is not location/country dependent and any company worldwide can be a potential user.
The founders and directors, Alan Vey and Annika Monari, are both recent graduates of Imperial College London in Computer Science and Physics respectively and they have gathered experience in various consulting, private equity and software development roles, including also some big names like Deloitte and Goldman Sachs.
The other members of their team have experience in online ticketing software development, event marketing and coordination, ecommerce design, sales, etc.
Aventus will not be the first blockchain ticketing protocol, Annika has provided the following response on their slack channel:
On questions about whether they consider the likes of Ticketmaster a competitor, she responded:
Furthermore, as an ever more structured response, they recently created a blog post where they go into great depth regarding their competitors.
Aventus is built on Ethereum and the scaling problem could hinder the volume and speed of transactions that the platform aspires to conduct. The team however, is well aware of this issue and are already working on other options to mitigate this problem. Given that the protocol works successfully, adaptation to different blockchains should not be an issue in the future.
As a second point, the question of profitability is key, I asked about the business plan and fee structure and the team provided the following reponse:
I do not take this response as a weakness, more just a point of slight uncertainty. For now the early contributors have to put their faith in the usability of the protocol and anticipate that revenues can be effectively derived with gradual growth and a wider adaptation of the platform amongst the market players. Nevertheless, I will be keen to see further specifics once they are made public – hopefully later this year.
During the AVT token sale there is a hard cap of 6,000,000 AVT and the crowdsale price is fixed at 92 AVT per 1 ETH. Accounting for incentives for pre-sale investors they aim to raise 60,000 ETH, or $20+ million at current exchange rates.
With a total maximum token supply of 10 million AVT, this still only places the initial market cap at approx. $30+ million, which is relatively low considering the scale of the industry. Various online sources estimate the annual online ticketing market to be between $5-10 billion worldwide and this is only projected to grow in the near term future. Revenues of the giants of the industry like StubHub or Ticketmaster are near or well over $1bn each and acquiring market participants of this scale to use the Aventus protocol has the potential to boost their market cap well into the $1bn+ territory in the coming years.
For the full token sale details please visit: https://blog.aventus.io/aventus-token-sale-full-details-383314e36c95
This is a very promising project, I would definitely rank it Top 5 amongst September ICOs.
To sum up, they have a solid team, identifying pressing problems and also proposing viable solutions. They have a proof of concept and are already partnering with companies worldwide, who are adapting their platform. Their ICO market cap is really low, considering their long-term potential. Their future revenue structure is not fully clear yet, however market demand for their protocol is evident.