Birdchain Launches ICO To Revolutionize B2C SMS Messaging Market

Nov 18, 2017 at 18:50 // News

Each day, more and more of our daily communication with friends and relatives move from SMS to Messenger, Skype, and Viber. Nevertheless, SMS messages remain widely used in the business world. Companies send messages when they want to inform the users about activity on their account, send a temporary password, 2FA confirmation code or notify about the latest promotions/discounts.

First of all, it is worth mentioning that SMS reach is staggering. Statistically, 90% of SMS are read within the first 3 minutes of receiving, when the email reaches only ~ 10-15%. Secondly, SMS offers a much better security. SMS is tied to a phone number, so in order to see its content, users must hold in their hands a phone with a SIM card associated with that particular phone number inserted. E-mail, on the other hand, can be accessed from any PC from anywhere in the world.

Although at first glance, it seems like a meager amount, but imagine how many SMS is sent out by giants like Google, Uber or Amazon, and you'll see a different picture. 

What does Birdchain offer? 

Birdchain offers a solution for companies to reduce the cost of SMS messages while sharing profits with people. Although practically everyone has an unlimited SMS plan, hardly anyone ever spends their "unlimited" SMS messages. Birdchain offers to spend the unused SMS messages as company messages, and that way earn some money. 

he only thing a user has to do is to download the Birdchain app. The rest will be done in the background by the app. According to Birdchain, the app owner, by employing SMS messages which otherwise would not have been used, will earn 30-300 euros a month. 

Market potential 

In their White Paper, Birdchain declares that the global A2P SMS market is currently worth around $60 billion and each year grows by another 4-5%. Although the size of the market is staggering, the breakdown by region and explanation on which regions they are planning to enter first and last is lacking. 

At the same time, the market growth rate is not particularly impressive; it can be said that the market has reached its peak and is currently stagnating. In the future, no growth of the market is expected, so it's unlikely that it will start to grow at a two-digit rate. The SMS technology itself is not new, and the question is how much longer it will last, and whether we will fully migrate to messengers. 

Potential clients 

Birdchain's service is b2b, so their customers are companies that want to send SMS messages. Companies find it difficult and time-consuming to sell their goods to these customers – especially if it's a service or an app. 

Companies like Uber, Amazon, Airbnb, or Google do not purchase such services directly from any A2P SMS service providers; instead, they use auctions. Auctions are based on the principle of a company posting a request – via a platform – to send an X amount of SMS and is willing to pay 0.0X EUR per SMS. All A2P SMS vendors who participate in such a platform offer their prices. 

A vendor offering the lowest price wins and the company uses the vendor's services to send text messages to its clients. What does this mean for Birdchain? 

The companies don't have a close partnership with any A2P SMS service provider and what they care about most is low price, so Birdchain, with the lowest price possible on the market, will be able to collect and service all the SMS traffic of such companies. This is a huge advantage, since it makes it much easier to find customers.


In this case, like in any business, competitors can be divided into two categories: direct and indirect. All the currently active A2P SMS service providers could be considered direct competitors. As the market is old, and there are quite a few A2P companies in there to compete with it, it will certainly not be easy. There is also an almost identical project, with a nearly identical business plan. The main difference is that on Birdchain, anyone with an app can send SMS, and on Smschain, only those who have the appropriate number of Smschain tokens in their account.

This project is still at the stage of ICO. 

Birdchain pre-ICO starts on 01/18/2018. The team expects to raise 500 ether during this period.

The team does not say exact date of ICO start, but discloses that the date of main ICO event will depend on market conditions and successful development of their prototype. Soft cap – 1500 ether and hard cap of Birdchain ICO is 10500 ether.

During ICO the team will sell 441,000,000 BIRD tokens. BIRDs are designed for ordering Birdchain services and making payments to Birdchain app users for their services. Companies that want to us Birdchain platform will have to buy BIRD tokens through the exchange office or directly from the Birdchain site. All transactions within the app will be made using BIRD.

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