FOAM Token Sale Report (PDF)

  • FOAM is an intriguing project attempting to cryptographically prove the locations of entities through its “Proof of Location” protocol.
  • The cryptographic assurance of location is an important element for many smart contract use cases and existing infrastructure is inadequate for many proofs of location.
  • However, we are concerned that the FOAM token initially does not have enough use cases to create a robust two-sided market.
  • At launch and during the initial Static Proof of Location phase, the use cases for FOAM tokens will be limited to staking tokens on a Token Curated Registry or to “signal” the need for beacons.
  • The Dynamic Proof of Location phase is expected to introduce more opportunities for token use cases, but there is no guarantee that the project ever advances to this stage.
  • If FOAM is able to successfully create Dynamic Proof of Location, we believe there is an opportunity for some short to mid-term token appreciation.
  • Additionally, if Zones decide to exclusively accept FOAM as payment for Presence Claims, we believe there is opportunity for a healthier long-term market, but there is again no guarantee that this will occur.