ICOrating

VRTWORLD Rating Review (https://vrt.world/)

ICO dates (14.03.2018 - 30.04.2018)

Web: icorating.com

Email: info@icorating.com

Twitter: @IcoRating

1. Rating 3

2. General Information about the Project and ICO 4

3. Description of the Services and Scope of the Project 7

4. Market Review 9 4.1 Market Analysis 9 4.2 Competitive Analysis 10

5. Team and Stakeholders 14

6. Token Analysis 16

7. Analysis of Factors Affecting the Future Price of the Token 18

8. Investment Risk Analysis 19

1. Rating

We assign the VRT WORLD project a "Positive" rating. The VRT (Virtual Reality Technologies) platform is a tool for creating VR content and a decentralized marketplace. The growth rates of the VR market will contribute to the successful development of the project. Among the factors contributing to the rapid development of the project, it should be noted that the network of private and open franchise parks will be a first for customers of VR-content, creating a demand for similar products on the marketplace. In addition, we believe that the use of the Vrchain sidechain will provide a unique solution for working with franchise businesses. This solution was designed when creating a franchise of the Z8 virtual reality parks. According to the financial model presented by the team, the project expects the growth rates in the first year to be significantly higher than on average in the market, due to the low base effect. For the future, the project gives more conservative estimates of the growth rates, which shows the long-term viability of the project. We gave this rating to the project due to a combination of the facts mentioned above, as well as the analysis of the market, the competitive environment and the potential risks of both the sphere and the project itself.

2. General Information about the Project and ICO

VRT WORLD — is a platform on the Ethereum blockchain, intended for the creation and monetization of VR-content. The project will be developed in two directions:

1. A decentralized marketplace with a toolkit (special SDK and API) for creating VR-content.

2. Virtual reality parks offering services for gamers.

Website Whitepaper Github Smart Contract Platform: Ethereum Blockchain Contract Type: ERC20 Token: VRT Soft Cap: US $3,430,000 Hard Cap: US $16,000,000 The total number of the issued tokens will be 100,000,000. There will be no additional issuances. The token distribution is as follows:

At the end of the Token Sale, all unsold tokens will be destroyed.

Tokens intended for the team will be locked for 2 years. The fundraising includes two stages:

Pre-sale: Start Date: 05 December 2017 End Date: 05 January 2018 Bonus: 30% According to the information on the site, during the Pre-sale stage, the project attracted US $721,082 worth of investments. Token Sale: Start Date: March 14, 2018 End Date: April 30, 2018 Bonuses: 20% bonus in the first 3 days. 15% bonus in the period of the 4th–11th days. 10% bonus starting from the 12th day before the end of the sale. Base token exchange rate: 1 VRT = 1 USD. Minimum sum of one transaction: 150 VRT. Maximum sum of one transaction: 1,500,000 VRT. Accepted currencies: BTC, ETH, BCASH, DASH, LTC. The funds raised during the token sale will be distributed as follows:

3. Description of the Services and Scope of the Project

The platform can be of interest to VR developers and investors wishing to open a virtual reality park, to companies intending to use VR technology for their own business solutions, and to gamers with all the necessary devices for home entertainment. At the initial stage, the team will be developing a network of VR-parks. In the next stage it will focus on developing a marketplace for VR content:

1. Virtual reality parks offering services for gamers. 2. Creation of a marketplace based on blockchain technology and smart

contracts. VR-Parks: According to the founders, the parks on their platform are the future of the entertainment industry. AtBy the time of writing of thisthe review, VRT had already opened one fully operating park in Moscow; the park has an area of 120 sq. m., providing gamers with one game for 40 minutes, using the technology of full-body tracking. The company plans the active expansion of parks in various cities throughout of Europe and Asia, and by the end of 2020, it is they planned to have opened parks in at least at 70 locations, mostly, on a franchise basis. Based on the information provided in the documentation there will be 2 types of franchise parks: Z8 (120–150 sq. m.) and Z8 Mini (25–30 sq. m.). Each park will allow gamers to choose from any of the available content (starting from games and ending with educational programs). The VRT team has its own full-body tracking technology, which allows it to track all the movements of the player's body in the room. With this technology, you can predict and calculate the movement of gamers using a small number of markers (sensors). Gamers do not need to wear a special suit, they only have place arrange markers on their hands and their heads. This technology can be purchased for VRT tokens and used within any mind of projects (for example, in training on special simulators, real estate demonstrations, etc.). Developers who will purchase a SDK for full-body tracking will be able to integrate their projects into the VRT infrastructure. This technology gives VRT a great advantage over existing projects, even such as The Void and Zero Latency, whose equipment is starting to become outdated.

Marketplace — this a part of the platform that will allow developers to sell and distribute their games, content and , services among all users of the VRT platform (such as parks or home users), as well as developer materials and B2B solutions. The team is going to provide different types of paid subscriptions, forms of payment, rent, etc. The alpha version of the marketplace wais available at the time of writing the review. According to Roadmap, the full version of the marketplace will be available in the third quarter of 2018. Technically, the platform consists of botha hardware and software parts:

● The Hardware part includes — HMD, motion capture sensors, controllers, etc. ● The Software part is based on the developments of VRT (full body tracking)

and integration with known and popular graphic platforms (Unity, Unreal Engine 4, CryEngine, etc.).

In our opinion, the chosen technology is suitable for the VRT WORLD project. Platform functionality is based on the Ethereum blockchain and Vrchain sidechain, which will reduce transaction costs and increase the speed of data transfers within the platform. Developers should be attracted by the transparency of the Platform, the platform's compliance with copyright, the ease of distribution and the presence of a permanent audience atof VR parks.

4. Market Review

4.1 Market Analysis The virtual reality market can be divided into several segments: production and sale of virtual reality devices, virtual reality attractions, industry solutions and virtual reality application development. In 2016, the Global Virtual Reality Association was founded. They , engaged in the development and popularization of VR-technologies, was founded. The Association includes such major players such as Starvr Corp., Google (Cardboard, Daydream), HTC (Vive), Facebook (Oculus Rift), Samsung (Gear VR) and Sony (PlayStation VR). According to the Zion Market Research report, in 2016 the VR market was estimated at US $2.02 billion bln and according to analysts' forecasts, the VR market size could grow toan US $26.89 billion by 2022, which corresponds to the CAGR of 54% over the 6-year period. Digi-Capital analysts forecast even higher rates of market growth, according to them, the volume of the VR market can amount to US $107 billion by 2021. The European market in the VR gaming segment is one of the largest [Statista]. It is the gaming industry that has influenced the adoption of VR headsets, further growth of software and content development [Virtual Reality and its Potential for Europe]. On the one hand, the demand is driven by gamers and consumers, and on the other hand, by the large manufacturers of equipment, who make significant investments in the development of new VR equipment and are interested in creating quality VR-content. Companies such as Force Field, Rovio, Starbreeze Studios, Dice, CCP Games began their activities in the late 1990s and are now continuing to develop VR games. During 2017, IT companies in this market segment attracted more than $3 billion of investments, according to TechCrunch, who cited a study by Digi-Capital. The number of transactions in the industry in 2017 were less than the year before, but their amount still exceeded the figures of 2016. In this case, more than half of the funds were raised by the four market leaders: Magic Leap ($502 million), Improbable ($502 million), Unity ($400 million) and Niantic ($200 million). There are now more than 1,800 startup companies in this area [AngelList].

Goldman Sachs analysts consider video games to be the most promising area for using VR technologies that are consumer-oriented. However, the potential of new technologies goes beyond the consumer space. Meaning, almost half of the industry's revenues will be generated by the corporate and public sectors, with health and mechanical engineering being the most promising areas for using these technologies. The diagram below shows the projected size of the VR/AR software market for different industries by 2025 [Statista].

The list of industries that are already actively using virtual reality includes: video games, cinema, retail, real estate, education, medicine, military industry, engineering, advertising and many others. The application of virtual reality is limited only by imagination and economic advantage, meaning, for developers their widest possibilities are open, and the market of quality VR of content has huge prospects.

4.2 Competitive Analysis

Since the VRT project plans to develop the business firstly by offering to franchise its parks, let us consider the segment of VR clubs and parks on a global scale. Small VR clubs are now a popular direction for entrepreneurs, and they try to minimize the costs of organizing such clubs by acquiring used equipment. Naturally, clubs created

like this will not be able to be competitive. Over time, the cost of equipment will only decrease, and clubs who do not invest in the development of parks with their own content, will leave the market in the next few years, as the clubs of computer games did in their time. At the moment, the leaders of the market of attractions are virtual reality parks, which provide maximum immersion into a world of new experiences, the main examples of such parks are The Void, IMAX VR. The Void — at the time of writing this review, 4 parks were open, and 5 more parks will open in the near future. The company cooperates with Disney and Lucasfilm, and maintains partnerships with UNITY 3D, Evermore and Optimal Design. On average, 30 minutes of playing is $30. Offers to purchase a franchise. The company plans to open more than 200 parks. IMAX VR — 7 parks are open, offering 15 games with an average price of $9 for a 15-minute game. According to reports, the weekly yield of one park exceeds $15,000 [Business Insider]. IMAX believes that the success of a business depends on the content that is provided to visitors. In this regard, they are taking steps to strengthen their links with content developers. Zero Latency — 18 parks are open in 9 countries around the world. They are actively developing parks in the United States. The company plans to actively build up the network. Its concept is similar to the one of The Void, and the games are self-developed. The price of a game is $40 on average. Virtual Reality Center – 4 parks are open. They offer games with full-body tracking technology for several people, the average price per game per person is $40. Dreamscape Immersive — received $20 million worth of investments from the AMC cinema network for development. At the moment they have 1 park, the cost of visiting is $20. Bandai Namco — their main location is Japan. Currently, Bandai is the third largest manufacturer of games in the world. Both video games and VR are available on its platform. VR WORLD NYC — two floors of the building, about 50 games, movies and impressions. Entrance fee is $39–$49 for the whole day, the ticket provides unlimited access to attractions. VR Park Dubai Mall — the area of the park is about 7000 sq. m. and occupies 2 floors. Most content is provided by Starbreeze Studios, headsets are provided by StarVR that support a view of 210 degrees with a 5k resolution. The entrance to the

VR Park is free, but the cost of the attractions ranges from $4 to $12. You can buy a "Silver Package" for $27 and a "Golden Package" for $54, which will save the gamer up to 40% of their money. Anvio — has one location of 200 sq. m. which is already open. It provides the players with full freedom of movement. The technology used by the team allows them to track the position of all parts of the gamer's body, using wireless equipment. The average price for a ticket is $100–150, the games need booked for 2 weeks ahead, only 2 games are available. This project can be identified as the main competitor in Russia. Arena — is a network of parks. They offer the rental and sale of equipment, with a claimed franchise revenue $6,000-$10,000 per month, launched pre-ICO, planning to enter the European, Asian and American markets. Altair VR — a VR planetarium, entertainment mainly for children; it offers franchises, stating profits from $3,500 per month. The marketplaces offering VR content include the following projects: Unity — is a marketplace for VR development. A popular platform for the developments of VR, hundreds of games were developed on the basis of the platform. Supports all major modern platforms: Oculus Rift, Steam VR/HTC Vive, PlayStation VR, Gear VR, Microsoft HoloLens and Google Daydream View. Unity allows any third-party hardware manufacturer to develop its own plugins and SDKs. Unreal Engine — the second most popular platform for the development of VR projects. Allows you to create games for most operating systems and platforms: Microsoft Windows, Linux, Mac OS; Xbox, PlayStation, Wii, Dreamcast, GameCube, etc., as well as on a variety of portable devices such as Apple devices (iPad, iPhone) and others. There are platforms and projects with partially similar functionality on blockchain or from the VR Sphere: Cappacity – an ecosystem for creating, renting and selling AR/VR/3D content. The second round of the ICO will start on March 18. Mark.Space — an open source platform for creating and selling 3d/VR, sites and objects on blockchain. About $15 million was raised.

Viarium — it’s ICO begins in April, a platform for interaction between companies and consumers and the sale of VR goods and services on blockchain. Voxelus — the platform was founded in 2015 and includes Voxelus Creator, a platform for creating 3d applications. Voxelus Viewer is a tool for launching applications on computers, Oculus Rift and Samsung VR. Voxelus Marketplace is a trading platform where the creators of content and games can sell their work. ImmVRse — a platform where developers of virtual reality content will be able to interact with advertisers, customers and ordinary users. The ICO dates have not yet been announced. Terra Virtua — a marketplace with a monthly subscription. Users and creators of content can buy and sell games, events and services, join groups and play on the platform. The main round of the ICO starts in April. Summing up, we would like to note that the VRT team is entering the fast-growing market of VR technology. The success of the project largely depends on the popularization of devices for VR technology, how the technology will develop (for example, now players have to put special computers on their shoulders), and on the improvement of tracking and movement capturing systems. Small parks will be in demand for gamers as long as the price of equipment and good content remain high, and the fans of VR will not be able to buy everything they need. In the franchise market, the team will have to make a huge effort to compete with the large players who offer many games in large areas. Also, VRT currently is offering only one game. However, if the team can build all the declared functionality of the marketplace, the proposed concept may take a significant share of the market, but new games from third-party developers will begin to appear, most likely, only by the end of 2019.

5. Team and Stakeholders

The project team consists of 15 members, as well as 14 advisors. In 2017, the team created a project called "VR Time Machine" — an educational platform that allows one to learn history in the form of a game with the help of virtual reality technology. The core members of the team are: Konstantin Negachev — CEO (LinkedIn). He has over 7 years of experience in creation, management and coordination of various branches and divisions of the company. Experience of working with VR-products, IT-development and franchising. He has implemented 4 major international projects as CEO. Education — ORT Colleges (2004-2008); Finance University under the Government of the Russian Federation (2008-2013) Dmitry Livshin — CTO ILN Softlab (LinkedIn). He has more than 7 years of experience in the IT industry and startups. He participated in the creation of 4 blockchain projects. Heads the team of developers who created the blockchain-based mechanism of verification for the 2018 Russian presidential election. He is responsible for the technical implementation of VRT. Sevil Baer — COO, Head of PR & Communications (LinkedIn). Professional journalist, editor and director. She managed communications and PR in several startups. Education – Moscow State University (MSU) Alex Ovchinnikov — Blockchain Developer (LinkedIn) Leading developer for several international companies, including News Media Canada. Experienced blockchain developer; in the VRT project he is responsible for the development and adaptation of blockchain solutions. Neema Teymory — Smart contract and solidity consultant (LinkedIn). An expert with 9 years of experience in the development of multiplayer games. Neema Teymory is the Senior Network Engineer at Piranha Games. Project Advisors:

Reuben Godfrey — a co-founder of the Blockchain Association of Ireland, holds a post at NSAI National Mirror Committee. He has worked in sales, business development, finance and operations for large multinational corporations and novice companies in the field of technology, telecommunications and pharmaceuticals worldwide. Yudi Levi — CTO, Bancor Mr. Levi has more than 15 years of experience in entrepreneurial activity in the field of venture technology. He is a co-founder and CTO of Mytopia, Particle Code, AppCoin, as well as a platform engineer and gamer.

Jeonggon Mun — co-founder at Linker Coin/CEO at BlockBank 10 years of experience in the development and analytics of ICO and blockchain development, advises various ICOs around the world. Mr. Mun has successfully staged and completed his own ICO, Linker Coin. Peter Sin — co-founder of Singapore Bitcoin Club. Experienced financial specialist at one of the leading financial consulting firms in Singapore. He is a consultant for corporate and individual clients in risk management solutions and investment strategies. Dr. Marco Sacco — president of EuroVR (Enterprise Engineering and Virtual Application) and senior researcher at ITIA-CHR He coordinated the work of projects such as "DIFAC" and "VFF Virtual Factory". Shehab Ahmed — CTO of HostSailor He has more than 10 years of experience in the field of information security, as well as in the field of technology, marketing and certification. We believe that the team has specialists fully capable of developing this project further. We see the necessary professional background in the implementation of VR-products and IT-developments by the CEO and the CTO of the company. The team has experts with many years of experience in the development of multiplayer games, which, in our opinion, will contribute to the successful promotion of the product line of the project in the early stages.

6. Token Analysis

The project is being developed in Open source mode, and the smart contracts repository is available on Github:

Token name — VRT token Symbol — VRT Decimals — 9 The VRT token is a utility token issued in accordance with the ERC20 Ethereum blockchain standard, intended for use within the platform for the following purposes:

● Rewarding platform participants for various activities, such as: ○ Content testing and authentication. ○ Attracting new users. ○ Provision of their computer facilities for the creation of nodes.

● Payment for service of the platform, as well as payment for VR-content for home use (10% discount when paying in VRT).

● Payment for the franchise of VR-parks for games and modules developed by both VRT WORLD and third-party developers (10% discount when paying in VRT).

● Lump-sum contributions when buying a park franchise (when paying with VRT tokens the buyer will receive a discount of 10% of the amount of the contribution).

● Payment for visiting VR-parks (20% discount when paying in VRT). ● In-app purchases.

● Tokenholders will be able to purchase full-body tracking technology and SDK for its implementation in their own VR projects.

● Payment for streaming services. ● Organization of tournaments with prize funds nominated in VRT.

The platform will be built on the Vrchain blockchain, which is a sidechain to the Ethereum blockchain. The token transfer between blockchains will be implemented using the Symmetric two-way peg solution using an SPV proof of possession [Blockstream.com/sidechains], allowing the use of VRT tokens in both blockchains. The decentralization of the Vrchain will be ensured by the nodes built on the computing capacities of VR-parks, as well as by the nodes created on the computers of ordinary users. In the latter case, the nodes are created in a more complex procedure. Each node owner will receive a monthly reward in VRT. In our opinion, the demand for the VRT token by users can be enhanced by improved terms of payment for content and services, and also with the purchase of a franchise. In addition, the use of the Vrchain sidechain will allow transactions to be faster and cheaper than in the Ethereum network, while ensuring their transparency and reliability, provided by the technology of blockchain, which significantly reduces fraud and the loss of money.

7. Analysis of Factors Affecting the Future Price of the Token

One of the main factors determining the investment attractiveness of VRT token will be the number of gamers and developers on the platform, as well as the number of VR-parks. The growth of these indicators will contribute to a higher demand for VRT tokens. The second significant factor that can affect the value of VRT tokens will be the burning of tokens from a specified list of declared operations. To carry out the ICO and further development of the project the VRT WORLD company is using a Singaporean legal entity and, according to local legislation, it is possible to burn only those tokens which were used for the payment of products and services of the project (it is not possible to buy back tokens from the market to burn them yourself). Thus, VRT will be removed from the circulation as the project further develops. The team of VRT WORLD expects that before the end of 2024 up to half of all the proceeds will be formed in VRT-tokens, and this will eventually allow for the burning of up to 58% of the issued tokens. Also note that 15% of the tokens purchased on the ICO are intended for project founders and management. These tokens will be locked for two years and in the future, after they are unlocked, they could affect the price of VRT. We believe that all of the above factors can have a positive impact on the investment attractiveness of VRT tokens after the ICO in the medium term.

VRT = (A * B * C) / D

A — market capitalization of VR Technologies, B — share of VRT WORLD in the market, C — the number of VRT tokens involved in various transactions on the platform at the current time and D — total number of VRT tokens at the current time.

The mathematical formula, presented by the project, causing the expected price growth of the VRT-token, confirms the factors we have identified. As the VR market evolves, the values of A, B, and C will increase, while the value of D will decrease over time due to the regular burning of VRT tokens. These factors will lead to the fact that the price of the VRT token becomes an increasing function of time, which follows from the formula.

8. Investment Risk Analysis

We note that the VRT WORLD project has the following risks: The VR technology industry is quite young, which predetermines its strong dependence on market conditions. New players are constantly appearing, the existing gaming equipment is being upgraded (technological race is intensifying), new games are being developed and the geography of VR-Parks is expanding. These factors could create additional risks in the long run, meaning VR-parks of the VRT project can be opened with a delay schedule and less than the stated amount. The consequence of this, obviously, will be a significant decrease in the rate of burning of VRT-tokens. According to the information presented in the Whitepaper, the funds received during the ICO will be stored in a diversified portfolio of five cryptocurrencies (BTC, ETH, Bcash, DASH, LTC), which reduces the exchange rate risk, but due to the high volatility of cryptocurrency these risks are still at a high level. We also consider it important to note that the dispersion of cryptocurrency price changes to date can not be simulated by any previously studied diffusion models of evolution, based on the stochastic differential equations which are widely used to simulate the behavior of classical financial assets. In our opinion, this situation considerably complicates the estimation of the mentioned exchange risk at any time interval. The open protocol of the VRT platform implies additional risks associated with the project's information security. Note that the VRT WORLD team will be focused on the global scale and on the opening of VR-parks. This could negatively affect the creation of the necessary volume of content, which in turn could reduce the range of content. We have not identified any other significant risks that could adversely affect the attractiveness of the VRT WORLD project.

The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication. Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud. We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.