What Is VRA Crypto: Best Explanation for Verasity

Published: March 7, 2024 | Last Updated: March 6, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this post, I explain how Verasity works and what its VRA crypto token does. After that, I will assess whether I would want to invest in this token or not by looking at the following dimensions: team, product, tokenomics, and momentum. 

What is Verasity? 

Verasity is a company that has developed its own technology to fight video ad fraud which it promoted via its platform called VeraViews. There are many ad fraud prevention companies out there but Verasity is the only one to bundle a blockchain into its offering. Its VRA token is used as a currency to pay for their service.

What’s ad fraud? 

Ad fraud occurs when advertisers end up paying for useless fake video views, clicks, and other engagement metrics for digital content. 

Say you are Coca-Cola and have a digital advertising budget for your new product Crypto-Cola targeting the crypto community. You allocate a budget of $10Mn. Veracity’s PR person claims1 that up to 40% of that budget could end up being wasted on fraudulent views or clicks. 

Online ad fraud is a big problem. Juniper Research estimates it cost advertisers $84Bn in 2023

Now if you are funneling your ad spend through the big guys (Google, Meta, Amazon, etc) they have their own machine-learning technology to prevent fraudulent traffic. 

But why? Don’t additional fraudulent clicks/views deliver more revenue to these platforms?

In the very short term yes. But these players know that the more they increase the overall performance of their advertiser’s budget the more the advertiser will spend with them. 

E.g. your budget is 10K. You acquire 1000 customers.

The cost to acquire the customer. is going to be $100. Say your profit margin is 3%.

Next quarter you reduce the budget cause you only made $3 profit per customer.

Now imagine you remove fraud from the picture. You spend $6k and get 1000 customers.

Your cost per customer is $60. You have just earned $40 extra dollars in margin.

Next quarter you increase your budget to $50K.

But Verasity is not focused on the giants of the ad tech industry.

Instead, it is partnering with publishers and advertisers that belong to smaller networks (comparatively).

The value proposition to advertisers is that if you use a network that uses our technology you don’t get spam views.

Similarly, the value proposition for video publishers is that if you use our technology you will attract more advertisers because they will know that the views are real.

Why does Verasity use a blockchain? 

The Verasity platform posts the data about which views it estimates were real/not real on a blockchain.

VeraChain is a sidechain on the Ethereum blockchain network and has its own token called VRA.

This way anyone can cross-check that data.

While the crypto community is extremely enthusiastic about this feature I wonder to what extent advertisers give a f*ck.

Having said that, there is a big benefit for publishers.

They usually have to wait for 6 months before they get paid to prove to the advertiser that the view was real while with Verasity proof is instantly available. 

What is Proof of View

Verasity has coined a gimmicky term called Proof Of View.

This is the kind of term that can leave you scratching your head for a while.

To clarify Proof of View has nothing to do with the blockchain’s consensus mechanism.

It just refers to the technology that estimates whether a view is real or not. 

How does Verasity know if a view is real? 

Verasity uses AI and machine learning to distinguish real views from fake views on video platforms.

It collects a bunch of signals like the device, location, and IP, plus some scarier stuff such as whether you are looking at your phone (yes apparently that is a thing).

It then runs all these data points through its prediction model to estimate if the view is valid or not. 

I can’t judge the technology or whether it’s better or worse than other ad fraud solutions out there.

It’s proprietary technology anyway.

But they have formed partnerships with Amazon, Google, and the like which gives them credibility.

Let’s take a look at the core Verasity products:

Verasity ecosystem products at a glance

  1. VeraViews is their ad stack offering and their flagship product. This includes video player technology, a video ad server, and the proof of view platform. 
  2. VeraWallet allows you to buy, store, and stake the native token
  3. VeraAds which is their effort to onboard Web3 publishers onto VeraViews. 

In addition to those core three products they have dabbled in the following product offerings

  • Proof of origin for non-fungible token issuers. For example, how do you know that the Bored Ape you are buying is the original NFT and not copy-pasted a file of the image? Verasity offers a way to fight such NFT fraud. 
  • Custom solutions for Esports video content creators and esports tournaments
  • A Watch & earn incentive scheme that entices users to watch a video and rewards them in VRA.

What is the VRA crypto token?

VRA is a utility token. You need it to pay for the services that VeraViews offers.

To be honest you don’t need VRA to purchase their product because that would scare off the normies.

Instead, you can pay with fiat and the process happens in the background.

But what you need to take away from this is that the mini video economy that Verasity is building is powered by its own digital currency. 

VRA has a fixed supply of about 10Bn.

When you look at CoinmarketCap or CoinGecko it’s supper confusing because the total supply is shown to be closer to 100Bn which makes it look like that circulating supply of vra tokens is much lower in comparison.

The reason for this is that both the VRA and PoV marker tokens live on the same blockchain. We don’t need to understand what the PoV marker token does.

Just accept that it makes the technology work.

It is not a token you can buy or trade so you could ignore it.

Verasity is trying to figure out how to get it off this blockchain and onto another so that it does not confuse first timers but this will take a while.

The only red flag is that there is no guarantee that they won’t be tempted to convert the marker tokens into VRA. 

The VRA Foundation had allocated 10Bn tokens towards a war chest that they planned to use for acquisition.

After an open discussion with the community, they decided to burn the whole amount which put upward pressure on the price. 

VRA Staking

Verawallet users who stake (lock up) their VRA can earn 15% in annual VRA rewards and this has been extended into 2025. 

Is VRA a good investment?

People are super excited about VRA. I scored them on the following metrics.

You can see my weights and adjust them to your liking.

  • Team: 90%
  • Product: 45%
  • Tokenomic: 55%
  • Price momentum: 85%

Verasity Team Score

Team Weight Score
Are the founders legit with related experience? ✔️ Yes, the CEO of Verasity, RJ Mark, is a tech entrepreneur who understands video well. The rest of the Verasity team have strong backgrounds and are well-qualified as well. 65 65
Have they built Web 3 projects before? No though CMO lead Cardano communications 5 0
Did they do an exit? No 5 0
Can you find legit profiles on LinkedIn? ✔️ Yes 5 5
Did they raise funds? ✔️ Raised pre-seed of 180K with Alphabit and others. Public token sale raised just under $50Mn 10 10
How long have they been around? ✔️ Since 2018 5 5
Public appearances through Interviews/podcasts ✔️ Yeah they do AMAs and podcasts 5 5
Overall team score 90% 100 90

Verasity product score

Product Weight Score
Is it easy to understand what they do? No 5 0
What is it? - Video ad fraud prevention solution -
Is there a demand for their product? No one likes ad fraud. Whether people care about the view data being posted on a blockchain remains to be seen 25 0
Is there a use case? ✔️ Yes, use the VeraViews platform for guaranteed real views 25 25
How big is the market? ✔️ It's big. $84Bn in ad fraud last year 5 5
Is it being used? VeraViews has 3000 visits per month according to similar web. That's nice but I don't know if it justifies the market cap. 5 0
Github activity - N/A - -
Has the product launched? ✔️ yes 5 5
Does it have a strategic moat? They are the only ones offering a blockchain. I am not convinced this is important to normies. Remains to be seen. 5 0
Is it focused? No they are doing the NFT authority thing, the view to earn product, exploring eSports 10 0
Is the website easy to understand for non-crypto visitors? You need to spend a couple of days on it. The best read is their whitepaper. It's only when I read that I understood what they were on about 5 0
Do they have a proof of concept? ✔️ Yeah the main product is live 5 5
Is the UX good? ✔️ Yeah ok 5 5
Is it already being done? - There are many ad fraud prevention companies - -
At what stage is the product? - They have launched - -
How does it create value? - Publishers pay a revenue share to ensure there is no fraud in ads - -
How does the project generate revenue? - Sales of VeraView SaaS - -

VRA Tokenomics

Tokenomics Weight Score
Why is the coin valuable? ✔️ VRA is a medium of exchange on the VeraViews platform. People who want to use the ad fraud product need to buy the coin. 20 20
Back of the envelope valuation In a rational world, the market cap should equal Verasity's daily sales volume. Anything on top of that is speculation. There is no data on their revenue. However, $124Mn (their current market cap) in daily sales sounds extremely optimistic. 25 0
Did they do a pre-mine? - Yeah - -
Is supply fixed or inflationary? - Fixed - -
Was it a fair launch - There was a presale for VCs - -
Circulating / total supply Technically 10% but that other 90% is marker tokens that facilitate their blockchain technology solution. Verasity issued the following concerning statement "The intention is they (the marker tokens) not make their way into circulating supply but since they are on the same contract as VRA there can be no assurance that this will not happen over time and Verasity has discretion in this matter." 5 0
Token release schedule Tokens were released yearly until 2023 (provided they met the VRA price when it launched during the ICO price which they did). Overall there is little information on their token distribution. 10 0
Are there incentives to reduce or lock supply? ✔️ Yes, staking. 15 15
How many tokens VRA and PoV marker Tokens which makes it damn confusing 5 0
How much upside is left: market cap vs industry size ✔️ $100-200Mn market capitalization vs billions 20 20
Is it listed on major exchanges - Listed on tier 2 exchanges - -
Overall tokenomics score 55% 100 55

Price Momentum Score

Momentum Weight Score
Is it trending on social media? ✔️ Yes, Lunarcrush shows high engagement. However, it also shows a 90% crash in posts and interactions recently. Were they paying for this engagement? 30 15
Is the market cap low compared to similar projects? ✔️ There are no similar projects 40 40
What is the crypto market like? ✔️ Bullish market conditions 10 10
What is the sentiment for the sector this crypto focuses on ✔️ AI plus blockchain for a mainstream solution are both popular narratives 20 20
Are they marketing heavily? - Maybe - -
Overall momentum score 85% 100 85

What do I plan to do? 

I am hesitant about investing in Verasity and its VRA digital asset.

  • People in the crypto industry are raving about the transparency that Verasity’s blockchain-based project will bring to the ad fraud prevention industry. However, I am not 100% convinced that non-crypto people care about it. 
  • Moreover, I see the 90Bn in marker tokens as a risk. It could be too tempting at some point to try and liquidate some of them.
  • In addition, VRA’s main utility is as a currency to buy the VeraViews product. In a rational world then the market cap would equal daily sales volume. I am not convinced that VeraViews is going to have billions in daily sales volume. 

Of course in a bull market, the fundamentals are thrown out the window. Instead, everyone is focused on pumpamentals.

And at the time of writing people are completely hyped about the VRA token.

VRA social engagement
Lunarcrush shows social media activity (in purple) to be high

Please make sure you do your own research. The analysis above is for entertainment and educational purposes only and I am not a financial advisor. 

Resources and references

  1. Show Me the Crypto interview with Ellio Smith, Comms Director at Verasity
  2. Verasity’s whitepaper
  3. Official website
  4. VeraViews website
  5. Verasity articles on Medium
  6. For those who want to deep dive into VRA tokenomics
Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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