The transport industry has been rocked by wave after wave of innovation in recent years, with platforms such as Uber and Grab heavily disrupting the taxi and ride sharing markets. In traditional taxi systems, taxi drivers use aggregators as a middleman that connects customers and drivers. In simple language, the aggregator deals in the open market on behalf of the driver- the service provider.
In most cases, aggregators aim to provide the customer with the cheapest service possible, while at the same time maximizing profits for the service provider. Due to the centralized nature of aggregators, however, this model is not as efficient as it could be.
Aggregators typically charge middleman fees, which, in turn, increase the cost of transportation for customers. A new blockchain based alternative, however, aims to provide both customers and service providers with a far cheaper option by bringing the personal transportation payment system onto the blockchain.
AGT is an upcoming initial coin offering that plans to replace the current aggregator mechanism with a far more efficient blockchain based system. The AGT platform wants to provide passengers and drivers with a new way to book transportation while delivering the cheapest price point possible.
In order to launch their platform, the minds behind AGT are planning on launching an initial coin offering, the details of which are yet to be released. In this article, we’ll take a look at the AGT platform and find out what it plans to achieve to help you determine whether it’s worth keeping an eye on.
What Is The AGT Token?
AGT is a new platform that wants to replace traditional taxi aggregators and function as the connection point that allows service providers and passengers to connect with each other. AGT can be considered as “Uber on the blockchain”, and aims to provide a better ecosystem for both passengers and drivers.
According to the creators of the AGT platform, the fares offered by the service would potentially be 30% to 40% cheaper than traditional taxi services, as drivers are not required to pay any commission fees or compliance fees.
How AGT Works
In the current paradigm of transportation booking, customers communicate with an aggregator- either a traditional taxi service or an app such as Uber- which then communicates fare and destination information to the driver.
The AGT model proposes a system that eliminates the aggregator as a middleman- customers use the AGT platform to communicate directly with drivers, eliminating fees and other third party fees.
The AGT ICO
While the AGT proposition is promising, there are a number of issues with its presentation that infer that the team behind it are not quite ready for launch. There is currently no information available regarding the launch date of the AGT ICO, nor are there any details regarding the pricing of AGT tokens, how they can be purchased, or the distribution of AGT tokens after the sale.
AGT state on their website that 100 million AGT tokens will be generated during the ICO, which should be sufficient to keep up with demand should 10% of the current market share of taxi users switch to the AGT platform.
AGT also haven’t provided any details regarding the specific blockchain upon which the AGT platform will be constructed, although it’s fairly safe to assume that it will be based on the Ethereum blockchain, based on the frequent references to smart contracts on the AGT website.
This, in turn, raises another issue. The Ethereum network won’t be able to support third party decentralized applications with user base sizes of around 100 million individuals for at least another two years, which raises questions regarding the viability of the AGT project should it succeed in launching its ICO.
AGT is based in Estonia, which doesn’t raise any specific red flags, although it does make the AGT marketing materials somewhat difficult to decipher due to poor English translation. The biggest issue with the AGT ICO, however, is that there is currently no white paper available, even though the site states that the AGT business model and white paper have been vetted by law houses and attorneys.
Lastly, AGT don’t provide any information regarding the roadmap of development for their platform. This lack of information is understandable, however, given that AGT is not asking for investors to purchase tokens at this point in time. While the site does claim that it’s possible to contribute today, given the developmental state of the platform, it’s unlikely that the AGT tokens have been minted yet.
AGT Token Conclusion
The AGT platform is certainly a promising platform, but has perhaps “jumped the gun” on the launch of their website. We’re looking forward to viewing a complete white paper and further information regarding the blockchain upon which the AGT platform will be developed.
If you’re interested in keeping abreast of developments in the AGT project, it’s possible to sign up for email updates via the AGT website.