💡 I. Assessment Analysis and Recommendations

Evaluation Recommendations Summarize the informationfor reporting boss

• Project Overview: XXX is a DePIN project that aims to build a decentralized marketplace for cloud infrastructure services by aggregating compute, storage, and bandwidth resources from idle devices around the world to serve AI, Web3, and enterprise applications.
• Highlights:
  • Track Narrative: DePIN is a popular track, and the project aims to solve the pain points of traditional cloud services such as high cost and resource waste, with a strong narrative.
  • Team Background: Core team members (CEO, CTO, CSO) have backgrounds and entrepreneurial experiences in IPFSMain, Tencent, Protocol Labs and other related industries.
  • Early Progress: Test network has been launched, accumulated considerable node and user data (claimed 650,000+ nodes, 200,000+ users, 15,000+ DAU), and established cooperation with more than 20 enterprise customers such as TikTok, Bilibili, etc. (need to verify the depth and continuity of the cooperation), the test network phase generates MRR (claimed $65,000, growth of 3 times/month, bandwidth estimates $90,000/month - need to verify). ($65k claimed, 3x growth/month, bandwidth estimate $90k/month - need to verify).
  • Investors: Seed round backed by Arrington Capital and other well-known investors in the DePIN space.
• Risks and Concerns:
  • High valuation: Seed round valuation is already $50M, which is high for a DePIN project and current funding stage. Although lower than Filecoin/Render, it is much higher than the current FDV of Akash and other similar computing platforms. Considering that the TGE timeframe is farther away (planned for 2025/06), the market risk is higher.
  • Funding Scale: The currently disclosed seed round ($850K) is insufficient in relation to its ambitious goal (to build an alternative to AWS), and the ability to raise additional funding remains to be seen.
  • Technology and implementation risk: DePIN project technology implementation, network stability and scale-up are difficult, whether it can effectively aggregate and schedule massive heterogeneous resources and ensure service quality is the key. The reliability of enterprise-grade services is extremely high.
  • Sustainability of economic model: Relying on $TNT tokens to incentivize both supply and demand, miners (40%) and teams (20%) account for a relatively high proportion of the long-term value of the tokens to support the need to rely on real business income (80% of the costs allocated to the nodes), we need to continue to observe whether the "flywheel effect" can operate effectively.
  • Community Activity: Although the number of users and nodes is huge, the actual interaction and discussion heat of the community (TG/DC/Twitter) is assessed to be medium-low, so we need to pay attention to the real user stickiness and community driving force.
  • TGE is far away: TGE is planned for June 2025, and there is great uncertainty in the market environment and project progress.
• Recommendation: We recommend paying close attention to the project and holding off on the investment decision.
  • The project narrative and team background is good, supported by early data.
  • However, the valuation of the seed round is on the high side, and the TGE time is far away, so the execution and market risk is higher.
  • We need to keep tracking the progress of the main network development, the authenticity and continuity of the cooperation with enterprise customers, the verifiability of the MRR growth, and the actual operation effect of the token economic model.
  • MEXC Offer will be considered when the project has more substantial progress (e.g. stable mainline operation, significant revenue growth, confirmation of top CEX, etc.) or more reasonable valuation.MEXC Offer will be helpful for early liquidity of the project, but it is not a decisive factor.

1-Market Narrative: Fundamentals + Go-to-market strategy perspective Correspondence: Team + Segmentation & Product & Technology (including legal and compliance risks) ⚠️ Same team or project personnel do almost the same / different types of projects, if more than two projects in a row, need to mark warning, whether the same type of also need to be marked

• Segmentation of industries & products & technologies:
  • Positioned in the DePIN track, providing decentralized cloud services (XXX, Container, pCDN) by aggregating idle device resources (compute, storage, bandwidth), aiming to be a low-cost, community-driven alternative to traditional cloud providers such as AWS. Special emphasis is placed on services for AI, Web3 and emerging markets.
  • Technical features include leveraging traffic arbitrage, software-defined scaling, and DPoS consensus mechanisms (master network plan). The product has a testnet (Testnet 3 & 4) and provides developer documentation and a GitHub repository.
  • Data provided by the project (subject to ongoing validation): 650k+ nodes (145+ countries), 200k+ registered users, 50k+ MAU, 15k+ DAU, 20+ enterprise customers (including TikTok, Bilibili, etc.), Testnet MRR $65k (growing).
  • The main revenue sources of the agreement: cloud service rental fee (80% allocated to the nodes, 20% to the network), enterprise customized deployment fees, chain transaction Gas fee.
  • Token $TNT Usage: Service payment, node pledge, governance voting, reward distribution, ecological incentives.
  • Legal and Compliance Risks: The core team is located in the U.S. and Canada, and the users are all over the world (Asia/Southeast Asia accounts for a high percentage). The project side indicated that there are no historical legal disputes, and the future public offering will follow Cayman legal opinion. The risk of regulatory policies on DePIN and token trading in different regions of the world should be taken into account.
• Team:
  • Remote team of 30, with core members based in the US/Canada, 20 technical and 10 operational.
  • CEO XXX: Former IPFSMain co-founder with experience in DePIN-related startups and operations; IPFSMain is related to Filecoin and is in the same field but not the exact same project, with consistent experience.
  • CTO XXX: Former Head of Operations and Planning at Tencent, with background in AI and web development.
  • CSO XXX: Former Protocol Labs eco-cooperation experience, Tsinghua background, involved in multiple project advisory roles. Most of them are consultants or early participants, not continuously leading similar projects.
  • The team's overall background is a good fit with the DePIN track, including experience in technology, operation and ecological expansion. There are no obvious warning signs.

2-Token Offering: Financing + Token Economy Perspective Correspondence: Funders + Financing History + Token Economy

• Financing:
  • Only Seed round funding of $850K (2024/6/1 - 2024/8/29) was disclosed, with participation from Arrington Capital ($500K), DePINX ($100K), FalaBlock ($250K). No other rounds were disclosed.
  • Seed round valuation $50M, token price $0.025.
• Token Economy:
  • Total: $2 Billion $XXX (XXX).
  • TGE Information:
    • Initial Liquidity: 1.76%.
    • Initial Market Capitalization in Circulation (as per Seed Round Valuation): $50M * 1.76% = $880K.
    • Public Offering Round Valuation (i.e. Seed Round Valuation): $50M (No public offering planned, use this round valuation as a reference).
  • Allocation: Mining (40%), Team (20%), Foundation (10%), Financing (10%), Grants (6%), Eco (5%), Airdrop (4.5%), MM Reserve (4.5%).
  • Unlocked:
    • TGE Release 1.76%.
    • TGE+January Total Release 3.48%.
    • TGE+March Total Release 9.19%.
    • TGE+June total release 14.1%.
    • Early unlocking pressure is relatively manageable, mainly from airdrops, MM reserves and linear releases from some teams/foundations/financing/ecologies.
    • Seed round investor lock-up period 0 months, unlocking period 36 months (TGE release 2.78%).
    • Teams & Foundations lock-in period 0 months, unlock period 48 months.
    • Mining and funding unlock periods up to 120 months.
• Valuation:
  • Seed round valuation ($50M) is on the high side, especially considering the long time horizon of TGE and the current funding of only $850K.
  • Endorsement from a reputable investor (Arrington) is a plus, but top-tier VCs are lacking.
  • Token allocation is high for mining and team (60% total), need to pay attention to long term incentive balance and dumping.
  • Initial liquidity and market capitalization are low, but subsequent unlocking and release is smooth. Token value needs to be strongly dependent on the growth of real demand in the network.

3-Community & marketing: token issuance heatCorrespondence: community heat + operation & marketing highlights + ido platforms/in-chat competitors

• Community heat:
  • Data: Twitter (101.5K), Telegram (42.1K), Discord (40.4K).
  • Assessment: Sizable number of followers/members, but feedback interaction and discussion heat is low to medium. High percentage of Asian users (especially India, Indonesia, China). Need to focus on the real activity and conversion efficiency of the community.
• Operations & Marketing Highlights:
  • KEY PARTNERSHIPS: Established partnerships with Arrington Capital (investment), DePINX (investment + infrastructure support), Filecoin/Protocol Labs (tech partnership), PNUTS.AI (use cases), OrangeDAO (eco-resources) and more.
  • Enterprise Customers: Claimed cost savings from working with 20+ enterprise customers including TikTok, Bilibili, Tencent, and Aqiyi.
  • Growth Plan: The roadmap includes developer incentives (Hackathon, Grant), node recruitment, ambassador program, enterprise expansion, DeFi integration, etc., with clear goals.

💡 I. Evaluation Analysis and Recommendations

1、Assessment Suggestions Summarize the informationfor reporting to the boss