Product: Delay in launching new verticals due to Ethereum update
As mentioned in previous updates, Attrace has identified various use cases. The aim is to develop them all, on all main chains, to eventually become a web3 marketing infrastructure play. However this development has been delayed for a couple of months.
We've also been busy updating the oracle to support the Ethereum Shanghai update. The update had implications for the Attrace Protocol, as it required updating the Attrace Oracles responsible for "observing" assets on ETH and "validating" rewards. This task was not easy because:
- The libraries Attrace oracles depend on were not yet supporting the Ethereum Shanghai upgrade
- The libraries contained some bugs.
- The libraries were unable to process both historical and shanghai blocks. To incorporate Shanghai support into a library, it became clear that it is vital to transition to more recent versions, which resulted in breaking changes as new APIs and BN were replaced with BigInt. Which required bigger changes in the oracles.
After conducting research to determine why some blocks were not properly observed by the Attrace Oracles, the Attrace team got to work to fix the problem.
Eventually the Oracle updates have been implemented successfully. Next will be to prepare for other major Ethereum updates, most notably Sharding.
For the Attrace team, there is always a question around what use case or network to prioritise. For now the decision is to keep the Attrace Oracles operational on Ethereum at all times before developing other use cases or chains.
There is some consensus within the Attrace team that there is a significant chance that eventually nearly everything will be consolidated on Ethereum in the future. Yes this sounds radical, but this possibility should be considered given that, as of today, Ethereum still remains the security root of almost all main chains (except Bitcoin). One could argue that once Ethereum has shards, the value proposition of other L1 and L2 chains may become less obvious given that as of today still most value is on the Ethereum network. Of course, optimism still exists around other platforms like Polygon and other chains, particularly in situations where blockchain traffic and usage are not growing exponentially. In such cases, there might be less incentive to engage in Ethereum migration efforts, with projects choosing to stay on other L1 and L2 networks. However even in that case it is likely that Ethereum will still be the leading network. Time will learn.
Token Market: Temporary pause in Attrace listing on Bittrex
As you may be aware, Bittrex operates as two separate exchanges, one for the USA (Bittrex USA) and one for the rest of the world (Bittrex Global). The Attrace token ($ATTR) is listed on Bittrex Global. Recently, Bittrex USA encountered legal difficulties and went bust. While this does not directly impact the listing of the Attrace token on Bittrex Global, recent events should give reason to be cautious. As witnessed in the past year (e.g., the FTX and Circle debacles), it is essential to exercise prudence. The Attrace market maker has advised to temporarily remove $ATTR liquidity from Bittrex Global. Once the situation stabilizes liquidity will be restored. In the event that Bittrex Global also faces challenges, the Attrace team will explore listing $ATTR on another centralized exchange (CEX). However, please note that the Attrace team has a strong preference for decentralized exchanges anyway so the focus on DEXs for $ATTR listings will probably increase regardless. Currently, Attrace is listed on Uniswap and Sushiswap.
Attrace MVP Market and Traction
The altcoin market has experienced a significant decline. Consequently, the marketing of altcoins has also been affected and therefore the usage of the Attrace Protocol. Despite this, Attrace maintains its global SEO authority in web3 referrals, and therefore the Attrace website traffic continues to remain steady. Currently, Attrace still receives an average of 2 new leads per week. However, the marketing budgets of these projects have been greatly reduced, leading to the projection that marketing expenditures for web3 projects in general will remain low for the next 9-18 months. For more information on the Attrace web3 marketing outlook, please refer to this article and this video .
Given the outlook for the altcoin market, Attrace will adapt accordingly. There will always be new referral farms going live, but expectations are that their frequency will increase only when the altcoin market picks up.
Financials
Statements Attrace Holding company has successfully completed the financial statements for 2021 and 2022 in collaboration with Deloitte. The 2021 statements have been registered with companieshouse, and the 2022 numbers will be registered by the end of this year.
New investment completed to assure run rate Attrace has recently concluded another investment round, securing a six-figure amount from current shareholders of Attrace Holding company. This ensures that regardless of future developments, Attrace will continue to operate in web3 for years to come until conditions improve. As emphasized before, Attrace is here to stay. There is a clear vision and the MVP has been developed based on that vision. The MVP functions flawlessly and as expected. The team firmly believes that at some point, the web3 community will recognize the Attrace Protocol as an infrastructure for marketing in a decentralized environment. If anything, simply because there still is no real alternative as of today.
Plan for the Next 12 Months
In addition to ongoing development of the Attrace Oracles, the team has also decided to establish a platform for web3 marketing thought leadership. As previously mentioned, the observation is that there is a lack of knowledge regarding performance-based marketing in the web3 space. Therefore, the aim is to become a comprehensive knowledge database next to the actual referral protocol. Once live, the thought leadership platform will be a stepping stone for the protocol to go mainstream (when the altcoin market picks up).
Overall, the vision and mission has not changed. Again, over the last year, there has not been a single event that changed the perception of what will eventually become important in web3. The Attrace team still believes in a very logical idea:
At some stage, projects that are truly operating in web3 - truly operating in a decentralized environment - will realise they are going to need marketing based on the same web3 principles. This is just a matter of time.
As always, we appreciate your continued input and support!
The Attrace Team.
