Project Introduction

Myshell is a leading multi-modal robot creation platform based on the opBNB chain, which aims to lead the future. It allows users to easily discover or create various applications based on natural language processing technology, such as voice chat robots, language learning assistants, image generation tools, and more. Myshell uniquely integrates cutting-edge text-to-speech (TTS) technology and a proprietary large language model (LLM), achieving harmonious coexistence of robot creation and consumption through sustainable encrypted economic incentives, empowering individuals to become super creators.

Author

JUMPENG, a senior research analyst at Shilink Investment Research. With a master's degree in finance from Huazhong University of Science and Technology and 7 years of industry experience, he specializes in Layer1, DeFi, NFT, Layer2, Gamefi, and has researched over 2000 projects, producing over 500 in-depth research reports.

1. Research Highlights

1.1. Core Investment Logic

Myshell has enormous market potential as it sits at the intersection of three rapidly growing tracks: artificial intelligence, blockchain, and content creation. It possesses strong technological advantages, community vitality, and partnerships. Its core investment logic is mainly reflected in the following aspects:

Distinct product positioning, capable of meeting language learning needs: Excellent voice interaction is one of MyShell's core competitive strengths. Its voice recognition and understanding capabilities are at an industry-leading level, and its emotionally rich voice responses greatly enhance user experience, which is crucial for a voice interaction product. Additionally, MyShell supports highly personalized customization, allowing users to customize dialogue styles, interaction methods, etc., making it very suitable for educational scenarios. It can be tailored into language, math, and other educational aids, meeting the needs of the education industry. The user-friendly experience reduces the barrier to entry for MyShell, enabling non-professionals to easily use it. This will help it cover and serve a broader non-technical user base. The open technical architecture provides MyShell with the potential for continuous evolution. It can quickly adapt to new scenarios and demands through training with new data, such as new teaching modules. MyShell has already demonstrated strong community appeal and network effects. The participation of a large number of users helps generate richer data, scenario applications, and feedback, aiding MyShell in continuous optimization and improvement. Its future scalability is enormous, and the education market demand is strong but requires further development. MyShell can gain a first-mover advantage in this blue ocean market and continue to lead. Overall, with its voice interaction technology advantages and personalized capabilities, MyShell is well-positioned to meet the demands of the education market and continuously optimize, making it a highly promising investment direction as an educational assistance SaaS product.

MyShell's core technology and open business model are important investment logics for its sustainable development. MyShell possesses leading voice recognition and interaction core technology, which is a crucial source of its product competitiveness. Voice technology has a high threshold, requiring a large amount of data and algorithm iteration support, and MyShell has accumulated valuable advantages in this area. This will help MyShell continuously optimize its products and user experience, solidifying its competitive position. Meanwhile, MyShell adopts an open business model, co-building an open platform ecosystem with developers. This not only aligns with the network effect characteristics of voice interaction products, facilitating rapid user acquisition and enriching application scenarios, but also enriches voice content and data resources through developers' participation, further enhancing core technological strength. The open model reduces MyShell's user and resource acquisition costs, facilitating scalable operations, and the synergistic effects of the platform ecosystem can form overall strategic advantages. At the same time, this also makes it easier to obtain support from the capital market, aiding business expansion. Based on the dual drive of core technology and openness, MyShell will maintain a leading position and sustainable development capability in the field of voice interaction, laying a solid foundation for it as an important investment candidate.

1.2. Valuation

As of October 16, 2023, Myshell's latest seed round financing of $5.6 million resulted in a project valuation of $57 million.

1.3. Project Risks

The project risks of Myshell mainly lie in aspects such as the team's background, including insufficient technical and product experience, limited user base, low visibility, and the need for time to build the ecosystem, and rapid follow-ups by competitors leading to sluggish user growth, as detailed in the SWOT analysis section of the report.

2. Project Overview

2.1. Project Introduction

Myshell is an open AI native application platform. It empowers users to highly customize various AI applications, such as chatbots, language learning assistants, and image generation, through simple natural language descriptions. Myshell provides a comprehensive and user-friendly set of creation tools, supporting users to configure robot functions, appearance, voice, and connect external knowledge bases, enhancing the performance of AI applications. It also features an auto-suggest function, allowing robot definition writing with extremely short descriptions. Additionally, users can quickly find inspiration in Myshell's rich community content, and it also supports multi-modal AI technologies such as image, voice, and video.

Myshell is committed to building a fair and open AI content ecosystem. It leverages generative AI technologies such as large models and stable diffusion to empower individuals to become super creators. MyShell's ultimate vision is to gradually realize a fair and open AI creation ecosystem through a practical token economic model, sharing AI capabilities, data, and computing resources in a decentralized manner.

Source: Myshell Official Website Homepage

2.2. Team Situation

2.2.1. Overall Situation

MyShell's team is led by two co-founders, Rick and Ethan, both of whom have rich backgrounds in AI and computer graphics. They previously worked in the robot department of a unicorn AI company and have a strong interest in robots. After witnessing the powerful capabilities of large models such as GPT-4, they decided to start a no-code robot creation platform. They launched the first demo in March of this year, quickly attracting a large number of users and community contributors. Currently, MyShell's team consists of around 10 people, mainly divided into technology, product, operations, and marketing departments. The research team is composed of experienced AI entrepreneurs and renowned AI researchers from prestigious institutions such as MIT, Princeton University, and Oxford University. They have developed various algorithms and proprietary AI models, achieving state-of-the-art performance, which brings greater creative freedom and unique user experiences.

2.2.2. Core Members

Rick: Rick is one of the co-founders of Myshell. He has rich entrepreneurial and management experience in the AI and robot fields. In 2013, Rick founded a computer graphics and AR technology company, developing an AR SDK, which was his first entrepreneurial venture. Rick is a serial entrepreneur who has been dedicated to the AI and robot industry for over 10 years. Before founding Myshell, Rick worked with Ethan Sun at a unicorn AI company, leading the robot product department, laying the foundation for Myshell's establishment. Rick is mainly responsible for product design and team management at Myshell. He emphasizes intuitive user experience and excels at implementing technology into products. Rick is highly attentive to cutting-edge technologies and was the first to recognize the opportunities brought by GPT-3, driving the establishment of Myshell. He advocates for Myshell to adopt an open mindset, closely monitoring technological and market trends to maintain product advantages, while also attaching great importance to community building, aiming to attract user participation in product development. Overall, Rick has extensive experience in product design and team management, and his decisions have a significant impact on Myshell's development direction.

Ethan Sun: Ethan Sun is another co-founder of Myshell. He holds a Ph.D. in computer science and was a postdoctoral researcher at Oxford University. Ethan Sun has rich experience in entrepreneurship and research and development. In 2013, Ethan Sun joined the graphics and image company founded by Rick, responsible for core algorithm development. After graduation, Ethan Sun founded a VR startup, mainly addressing spatial shooting and roaming issues in VR environments, which was later acquired by Beike. Ethan Sun has always focused on AI algorithm innovation and commercial applications. Before founding Myshell, he and Rick joined a unicorn AI company together, responsible for robot-related R&D. At Myshell, Ethan Sun is responsible for technical architecture design and core algorithm innovation. He has devoted a lot of effort to developing TTS voice synthesis technology, achieving high-quality synthesis of personalized voices. He also places great emphasis on the development of multi-modal technology, hoping that Myshell can integrate various perceptions such as voice and vision to create truly intelligent interactive robots. He believes in the momentum of open-source communities, planning to optimize models through open-source algorithms and proprietary data and build a decentralized ecosystem using the Web3 model. Overall, Ethan Sun is an expert in AI and voice technology, and his contributions have greatly strengthened Myshell's technological capabilities, bringing forward-looking strategic vision to Myshell.

2.3. Financing Situation

In September 2023, Myshell was selected as one of the 12 projects in the sixth season incubation program of Binance Labs. On October 16, 2023, it secured a $5.6 million seed round financing led by INCE Capital, with participation from Hashkey Capital, Folius Ventures, SevenX Ventures, OP Crypto, and others. Co-founder Ethan Sun stated that this was a round of equity with token warrants, bringing MyShell's valuation to $57 million. Earlier this year, MyShell also raised $200,000 in pre-seed financing from friends and the crypto community.

Source: ROOTDATA

2.4. Past Development and Roadmap

2.4.1. Past Development

Date

Event

2023-03-06

• Launched a voice chat robot Samantha based on Telegram.

March 11, 2022

Announced the project launch and revealed the airdrop plan.

March 15, 2022

MyShell.ai officially launched its website.

March 19, 2022

Announced the launch of the WEB3 version, which can be connected using a wallet.

May 7, 2023

Launched: Supports name, avatar, profile, and TTS.

September 21, 2023

Selected for the sixth season incubation project of Binance Labs.

September 29, 2023

Announced a partnership with blockchain security company Salus.

October 16, 2023

Announced the receipt of a $5.6 million seed round investment led by INCE Capital.

2.4.2. Development Plan and Roadmap

Based on its development stage, Myshell divides its roadmap into three parts:

• Phase One: Establish a thriving AI native application ecosystem, providing AI application services to over 100 million users. In this phase, Myshell will launch its native token $SHELL and distribute $SHELL tokens to active community and product participants through various mechanisms. At the same time, Myshell will migrate its platform to the opBNB network.

• Phase Two: Achieve decentralized storage of AI native applications, AI models, and user data. In this phase, Myshell will use decentralized storage technologies such as IPFS to store user data on the blockchain, allowing users to decide whether to allow models to access their data. If authorized, users can receive token rewards.

• Phase Three: Achieve decentralized computing resources for AI model inference and training. In this phase, Myshell will use technologies such as Truebit and Golem to distribute computing tasks to decentralized nodes, allowing users to provide or use computing resources and receive token rewards.

2.5. Social Media Data

As of November 2, 2023, Myshell has shown high visibility on social media platforms. The main operating channels for the project are Twitter, Discord, and Telegram. From the current situation on social media, the project has performed well in product operations, and a good community atmosphere is crucial in the early stages of the project. Currently, Myshell's Twitter account has attracted over 32,585 followers, with frequent updates and interactions, making it the primary promotional channel and one of the most popular channels. Discord also has over 25,125 fans, with intense discussions in some sections. The specific data for each platform is as follows:

Media Channel

Twitter

Discord

Telegram

Medium

Followers

32,585

25,125

1,328

\

Online/Active

Frequent updates

996

72

\

3. Project Analysis

3.1. Project Background

With the advancement of generative artificial intelligence technology, individual users can easily create various AI applications. Previously, this required professional developers to spend weeks coding, but now an innovator can complete it in just a few minutes. Representative generative technologies include large language models, stable diffusion, and voice cloning, which have opened the door for ordinary users to participate in AI creation.

However, the current AI landscape has some problems, such as centralized operations and data privacy leaks. In order to create a fair and open AI creation ecosystem, Myshell has conceived an economic model for creators. Users can express their creativity on Myshell, create unique AI products that can freely circulate, and authors can also profit from economic incentives.

Different from the traditional robot development model that requires a lot of programming, Myshell lowers the barrier to creation. From concept to product, it only takes a few minutes, allowing users to not only use existing AI products but also truly participate in the creation process, becoming "super creators" in the AI era. This creator economy brings more possibilities for the development of AI.

3.2. Project Principle

As a no-code robot creation platform, MyShell's core is to enable ordinary users to participate in the creation of AI content, not just use existing products. MyShell provides templates and tools that allow users with no programming background to create their own AI robots or tools through simple configurations, lowering the barrier to creation. Additionally, the AI works created by users belong to them and can be published and used on the platform, generating economic returns for other users, providing incentives for user creation. Users can not only create their own AI content but also earn profits by investing in other excellent creators, forming an open creator ecosystem. Importantly, MyShell combines text, voice, and image modalities, making AI content more diverse and enriching the user experience, setting it apart from other platforms. Through token incentive mechanisms, MyShell can sustain the continuous operation of this innovative ecosystem, fostering positive interaction and value transfer among different user roles.

In simple terms, Myshell divides the roles on the platform into model providers, robot creators, and users. As a no-code AI creation platform, it eliminates creation barriers and establishes a sustainable economic model to foster organic collaboration among them.

Source: Myshell Official Website

3.3. Project Features

3.3.1. Exploration

In addition to integrating the widely used GPT3.5 and GPT4, MyShell platform also features various popular user-created role robots, each with unique personalities and response methods. Leveraging MyShell's powerful prompt structure and TTS technology, creating any type of robot becomes very simple.

Source: Myshell Official Website

1) Voice Interaction

Using advanced voice synthesis technology, users can customize the voice style of the robot. It supports voice chat, language learning, and provides an immersive voice experience, such as the Emma robot:

A. Emma is designed for English beginners, aiming to provide a thoughtful language companion. It can also serve as a virtual girlfriend for users.

B. Users can experience Emma's daily companionship through messaging and calls, sharing their life experiences. During the English learning process, Emma provides warm feedback and encouragement, helping users improve their language skills in a relaxed and enjoyable manner.

C. Engaging in immersive conversations with Emma allows users to feel her warm companionship and improve their English skills through interaction. This is the personalized language learning experience that Myshell aims to achieve.

Source: Myshell Official Website Emma's immersive chat interface

2) Video Interaction

Integrating real-time voice-to-text and avatar technology to enable video chat functionality, with customizable virtual images for robots, enriching the video interaction experience. For example, the Shizuku robot:

A. Shizuku is the first original character in Myshell and the first virtual character with Live2D functionality. Shizuku is designed as a Japanese-style pop idol, with a cute and lively appearance.

B. Shizuku is equipped with a high-precision voice recognition model and a powerful Live2D animation engine, allowing users to interact deeply with Shizuku through video chat, such as video calling her and observing her exquisite Live2D facial expressions.

C. Additionally, due to the use of voice recognition technology, users only need to provide simple voice commands, and Shizuku can provide complete and smooth feedback, greatly reducing the latency of voice interaction.

In summary, Shizuku appears with a vivid and realistic image, allowing users to enjoy a visual and voice interaction experience with a virtual idol.

Source: Myshell Official Website Shizuku video chat interface

3) Image Generation

Provides text-based image generation functionality, allowing users to generate images through language descriptions, with support for multiple generation model schedules to ensure quality. For example, the Avatar Magician robot:

A. The Avatar Magician robot is an AI assistant that helps users quickly create beautiful avatars. It leverages Myshell's in-house image generation capabilities, allowing users to generate desired avatar images through natural language interaction without setting cumbersome prompt parameters.

B. Additionally, Myshell's image generation robot series supports the integration of different AI models. For example, it can combine image recognition models for intelligent recognition or combine voice models to enhance the interaction experience.

C. Furthermore, Myshell's multi-modal linking technology allows seamless integration of images with other modalities. This makes the avatar design process extremely convenient, as users only need to interact through simple text.

Compared to similar products, the Avatar Magician robot significantly improves the efficiency and experience of image creation, making it a major highlight of Myshell in AI products.

Source: Myshell Official Website High-quality images generated through natural language

3.3.2. Create Exclusive AI

On the MyShell platform, any user can easily create their own exclusive AI robot.

1) Defining Core

When creating exclusive AI, in order to achieve the expected performance of AI robots, users usually need to: 1) understand the capabilities of different large language models; 2) master advanced prompt techniques; 3) choose different prompt methods based on the characteristics of the language model; 4) have over 10 hours of prompt debugging experience.

However, in MyShell, ordinary users do not need such high skill requirements to create excellent robots. The platform provides a powerful "auto-define" feature, which only requires a minimal description to automatically generate complete prompt configurations within a minute. In addition, MyShell provides a large number of high-quality open-source prompts for users to learn from, and an active community for all users to provide problem-solving and experience sharing. Therefore, beginners can quickly get started and create their own robots by standing on the shoulders of giants.

In short, MyShell greatly reduces the difficulty of robot definition, allowing more ordinary users to participate in AI creation and embark on their robot journey.

Source: Myshell Official Website

2) Customizing Appearance

Users can upload avatars for robots, add personalized tags, write robot introductions, and enrich their external image. Customizing robot appearance, the "profile" module allows users to customize based on the information generated after the first prompt is saved. This includes:

A. Avatar Setting: Upload images in jpg/png format of less than 1MB as the robot's avatar.

B. Tag Configuration: Myshell categorizes robots into learning and character types, and users can automatically learn the type based on the prompt and modify it as needed. Any modifications need to be approved and synchronized to public robots.

C. Introduction Writing: Briefly introduce the robot's usage or leave contact information as an important reference for other users to understand the robot for the first time.

D. Greeting Design: The first message automatically sent by the robot upon entering a conversation or clearing memory, with the option to disable this function.

Through the settings in the profile module, users can easily give the robot a personalized appearance and introduction, greatly enhancing the robot's affinity and recognition with users. Additionally, modifications to robot details will be synchronized in real-time to ensure consistency between private and public robot information.

Source: Myshell Official Website

3) Voice Cloning

The platform provides a massive library of preset voices. Users can also upload a 20-second audio sample, and the system can clone a unique voice for the robot. MyShell's voice setting feature allows users to choose their preferred voice for voice interaction with the robot. This feature is enabled by default, but users can also disable it if they prefer text communication.

A. MyShell's most impressive feature is the voice cloning function, where users only need to upload a 20-second to 3-minute audio sample, and the system can accurately clone the style of that voice. Currently, this function supports cloning English voices, and future enhancements will include optimizations for accents, speech rate, intonation, and support for more languages.

B. To achieve the most natural and realistic voice cloning, the quality of the audio sample is crucial, requiring minimal background noise, stable pitch and speech rate, and no mixing of multiple sound sources. After uploading the audio, users can listen to the cloned effect on the page. If unsatisfied with the result, users can submit feedback at any time, and the MyShell team will continuously improve the algorithm to enhance the quality of cloned voices.

C. In addition to uploading their own audio, MyShell also includes a variety of standard voice libraries for different languages, allowing users to directly choose and use their preferred voices. In summary, MyShell provides users with a variety of choices to create a unique personalized robot voice.

Source: Myshell Official Website

4) Expansion Capability

MyShell allows users to deploy their created robots on third-party platforms, such as Telegram, to expand the robot's influence and commercial value.

A. Specifically, users only need to create a new Bot on Telegram through simple steps, set permissions, and then bind the robot account on MyShell to the Telegram account. This allows all the functions of the MyShell robot to be used on Telegram and gain more exposure, as Telegram robots can join various group chats. The specific operation process can be found on the project's official website.

B. Additionally, if the Telegram robot attracts new users and helps them successfully register for a MyShell account, it can provide more benefits for creators. Users can also customize personalized greetings and usage instructions for the robot on Telegram.

The entire binding and deployment process is quick and convenient, requiring only a few settings to complete. This provides an effective promotion channel for MyShell's robot creators, and the increased user base will also become a source of profit for creators. By deploying on third-party platforms, it can achieve a win-win situation for the robot's influence and commercial value.

Source: Myshell Official Website

5) Advanced Personalization

If users want the robot to better meet their expectations and needs, they can perform advanced personalization for the robot in the "advanced settings" section. This includes choosing different models, parameters, enhanced prompts, and knowledge bases to enhance the robot's intelligence and professionalism.

A. In model configuration, creators can choose different pre-trained models as the basis for the robot, such as the general ChatGPT-3.5 or the more intelligent ChatGPT-4. The platform will also introduce various new models in the future to meet different creative needs.

B. Additionally, creators can adjust parameters such as temperature to achieve different conversation styles for the robot. The higher the temperature, the stronger the randomness, making it more suitable for creative conversations; the lower the temperature, the stronger the determinism, making it more practical.

C. Another powerful customization feature is enhanced prompts. It can significantly improve the long-term conversation quality of the robot, avoiding off-topic discussions and declining understanding. Creators can automatically generate or manually edit enhanced prompts to guide the robot to maintain the expected conversation style and functionality.

Source: Myshell Gitbook

D. MyShell provides a "knowledge base" feature, which can be seen as adding an external brain to the robot, enabling it to have knowledge in specific domains to enhance its chat performance. The knowledge base is like an external database, storing various text information. Users can import GitBook, Docusaurus, and other knowledge base links for the robot, or directly link to text-rich web pages, and the platform will automatically parse the web page content and extract the pure text portion as the knowledge base. This is an important tool provided by MyShell for advanced users to create truly personalized professional robots.

Source: Myshell Gitbook

By comprehensively using these advanced personalization features, creators can create truly unique AI robots, giving them customized elements such as voice, personality, and knowledge, to provide users with an excellent interactive experience.

In summary, based on the features of Myshell, it has advantages in voice and multimodal AI capabilities, and its customizable community ecosystem also has unique charm, supporting Myshell to become an emerging AI content creation platform.

3.4. Technical Features

3.4.1. MyShell LLM

In the AGI (Artificial General Intelligence) technology that has become popular this year, the Large Language Model (LLM) plays an absolute leading role. The Large Language Model (LLM) is like a versatile artistic master, capable of creating various amazing works based on different prompts. You can imagine it as a magic brush that can turn any concept into an image. By providing clear prompts to the large language model, it can generate answers, creative content, and various outputs. Just as artists can adjust styles to create different paintings, the large language model can also be fine-tuned through carefully designed prompts to obtain various capabilities. OpenAI's powerful model GPT-4 can accomplish many complex tasks, but due to its universality, such models are more adept at common roles. However, AI role-playing requires the model to continuously understand and embody fictional characters, placing higher demands on the model's language comprehension. Therefore, designing specialized role-playing models is an important direction for the future.

MyShell has trained a specialized large language model using a large amount of private data from novels, movies, anime, etc., to make the role-playing experience more humanized. MyShell's language model can provide a more engaging, sympathetic, and interactive conversational experience. In short, prompt design is the "magic brush" that determines the level of language model creation and application. MyShell provides a more humanized interaction by training a specialized role-playing language model, which is an important direction for AI content creation.

3.4.2. Voice Cloning/TTS

Speech synthesis and voice cloning technology can accelerate the personalization of AI products. Speech synthesis technology can convert text content into natural speech, allowing users to receive information in audio format. Voice cloning can restore unique voice attributes based on a small amount of voice samples. However, traditional speech synthesis technology is costly, inefficient, and difficult to customize, while voice cloning requires a large amount of voice data, making it extremely challenging for individuals. These technological limitations make personalized interaction products face significant challenges, with most only able to use a single default voice, lacking vivid personality.

MyShell Development Breakthrough

The MyShell R&D team has made a significant breakthrough in this field. It has reduced the cost of speech synthesis by 99% and achieved voice cloning in just 1 minute. This allows individual creators to give AI characters unique and vivid voices with minimal voice materials, greatly lowering the barrier to creation. It empowers individuals to create personalized voice AI products, providing a new development direction for the AI content industry. Through technological means, it liberates personalized creative ideas and propels AI applications into a new stage.

Source: Official Twitter

3.4.3. AI Agent

AI Agent is an intelligent entity that performs automated tasks using advanced machine learning algorithms. It can adaptively learn and make decisions based on user intent, assisting or replacing humans in various tasks. In simple terms, AI Agent is a computer program that uses a large amount of data and complex algorithms to simulate human thinking and decision-making processes to execute various tasks and interactions, such as autonomous driving, speech recognition, and game strategies. Outstanding creators on MyShell design various AI content, including companion characters and tools for various industries. These AI works collectively form a network system, where users can request solutions from personal AI assistants. The AI content is modular and composable, facilitating seamless integration. MyShell's ultimate goal is to create an intelligent assistant ecosystem with a fully customizable interface. By integrating a wide range of high-quality content and service modules, the assistant will have unlimited potential. It uses AI technology to reshape human-machine interactions, providing users with a one-stop intelligent solution. It also enables more creators to enter the AI industry, collectively unleashing unlimited value. This will become a powerful mechanism for empowering the public with intelligent living and creating an open and active innovative ecosystem.

Source: Abacus.ai

3.5. Project Data

A. Number of Registered Users: Within 3-4 weeks after the early Demo was launched, the number of registered users exceeded 8,000. With active community support in March and April, the number of registered users grew rapidly, reaching 30,000 by the end of the month. MyShell has now surpassed 100,000 registered users, demonstrating strong user growth momentum. A large number of users have provided rich product feedback and optimization ideas, forming a substantial community base.

B. Number of Voice AIs: The platform has gathered over 60 voice AI robots, covering various application scenarios to provide users with diverse voice interaction experiences. The abundance of voice AI robots also demonstrates MyShell's innovation and technical strength in the field of voice interaction.

C. Customized Voice AIs: The platform has gathered over 100 personalized voice AI products, reflecting the user-friendly nature of MyShell tools and the creative vitality of the community. The number of customized voice AIs indicates MyShell's unlimited potential for the future.

Overall, MyShell has demonstrated strong vitality in attracting users, enriching platform content, and inspiring user creativity. Early data proves the effectiveness of its business model and community operations. As functionality continues to expand, MyShell's user base and product matrix continue to grow. The unprecedented user growth rate fully demonstrates the enormous market potential of MyShell in the new application scenario of AI voice interaction. Its community-driven development model is widely recognized, and if the growth momentum continues, its long-term development potential is promising.

Source: Myshell Official Website

4. Track Space and Potential

4.1. Track Overview

4.1.1. Track Positioning

Myshell can be classified as a decentralized AI-native application platform that combines WEB3 and generative AI technology, allowing users to easily discover or create various applications based on natural language processing technology. Projects of this type fall under the AI track in the WEB3 field and the generative AI track in the AI industry.

4.1.2. Track Scale

1) Web3+AI Track

The AI track in WEB3 is an emerging and rapidly developing field aimed at using blockchain technology to address some of the challenges and issues in the AI industry, such as data privacy, resource scarcity, and incentive mechanisms. According to Coingecko's data, there are currently over 80 blockchain projects related to AI in the market, with a total market value of approximately $3.2 billion. These projects cover various application scenarios and functions, such as data markets, computing markets, model markets, knowledge graphs, smart contracts, prediction markets, and more. The most representative projects include SingularityNET, Ocean Protocol, Fetch.ai, Numeraire, and others.

Source: Coingecko

2) Generative AI Track

The generative AI track in the AI industry has made remarkable progress and achievements, demonstrating strong technological capabilities and business potential. Different technologies have different advantages and characteristics, and are applicable to various application scenarios and functions. On one hand, generative AI technology provides users with rich and diverse content, such as text, images, audio, video, and more. On the other hand, generative AI technology also faces some issues and challenges, such as unstable quality, poor interpretability, ethical controversies, and more. Therefore, the generative AI track in the AI industry needs continuous improvement and enhancement to achieve higher quality and credibility.

4.2. Competitive Analysis

4.2.1. Core Competitive Factors

1) Web3+AI Track

In the Web3+AI track, the core competitive factors among competitors mainly include the following aspects:

A. Conversation Quality: Conversation quality depends not only on model design but also on training data quality, interaction design, and subsequent optimization. Quality monitoring needs to be established throughout the entire process to ensure high-quality conversation experiences in different scenarios.

B. Personalized Customization: Personalized customization includes not only appearance and voice elements but can also extend to personalized response content, emotional styles, and more. Increasing the dimensions and depth of customization to support users in shaping unique personalities is an important means of enhancing user stickiness.

C. Application Scenarios: Expanding support for various scenarios requires identifying user demands in different vertical domains, developing targeted functionalities, and creating scenario-based solutions. Covering more domains will effectively enhance the product's usability and impact.

D. Open Source Level: Open sourcing key module code can lower the developer barrier and enrich the ecosystem application. However, comprehensive considerations are needed in terms of security, protection of commercially sensitive information, and controlling the boundaries and extent of open sourcing.

E. Customization Threshold: Simplifying the customization process through visual programming, user guidance, preset templates, and other methods can lower the user learning curve. At the same time, retaining an open custom space balances convenience and flexibility.

2) Generative AI Track

In the generative AI track in the AI industry, the core competitive factors among competitors mainly include the following aspects:

A. Model Superiority: Excellent generative models determine product quality. Competitors need to enhance model capacity, training scale, generation effects, and diversity to bring more exciting experiences to content creation.

B. Application Scenarios: A wide range of applications brings product lock-in. This includes but is not limited to creative outputs such as literary works, game plots, news scripts, film and television scripts, and more, hitting user demand points.

C. Customization Capability: Powerful personalized features enhance product versatility. Supporting customized output styles, themes, formats, etc., to explore hidden potential and open APIs to drive community collaboration.

D. Content Diversity: The richness of the material library determines the quality of the output. Supporting multi-modal outputs such as text, images, voice, and video, with content updates and iterations to maintain vitality.

E. User Experience: Designing a user-centric interface to enhance user engagement. Optimizing task flows to lower barriers and enhance a sense of achievement and immersion.

The above are the core competitive dimensions for evaluation. These factors, when considered comprehensively, have significant reference value for assessing a product's market competitiveness. Based on these dimensions and the current track landscape, a competitive analysis of MyShell will be conducted.

4.2.2. Competitive Projects

After analyzing the track landscape, it is evident that MyShell, as a decentralized AI-native application platform, faces competition in both the AI track in WEB3 and the generative AI track in the AI industry. For the purpose of this analysis, we will focus on the outstanding projects related to the Web3+AI track (It is important to note that from the perspective of a "web3 multimodal AI creation platform," MyShell does not have direct competitors). The following are some projects that have a certain degree of competition with MyShell:

A. SingularityNET: SingularityNET is a decentralized AI service marketplace that allows users to buy or sell various AI services, such as image recognition, natural language processing, machine learning, using its native token AGI. The main difference between SingularityNET and MyShell is that SingularityNET focuses more on providing general and professional AI services, while MyShell focuses more on providing fun and creative AI applications.

B. Ocean Protocol: Ocean Protocol is a decentralized data marketplace that allows users to buy or sell various data resources, such as text, images, audio, video, using its native token OCEAN. The main difference between Ocean Protocol and MyShell is that Ocean Protocol focuses more on providing data trading and sharing, while MyShell focuses more on providing data generation and usage.

C. Fetch.ai: Fetch.ai is a decentralized smart contract platform that allows users to create or use various smart contracts, such as prediction markets, optimization algorithms, coordination mechanisms, using its native token FET. The main difference between Fetch.ai and MyShell is that Fetch.ai focuses more on providing smart contracts and computing resources, while MyShell focuses more on providing natural language processing and content generation.

4.2.3. Competitive Advantages

From the previous analysis, the main advantages of MyShell are: 1) providing a complete conversation creation process to lower user barriers; 2) supporting rich natural language description customization systems; 3) providing an open-source model customization mechanism; 4) active support from the open-source community; 5) covering multiple capabilities such as voice and image programming. Starting from the core competitive factors of SingularityNET, Ocean Protocol, and Fetch.ai, the following are the competitive advantages of MyShell:

A. Superior and Vivid Voice Effects: MyShell applies state-of-the-art algorithms in speech synthesis, achieving highly realistic voice interaction effects, maintaining high-quality voice experiences even in complex scenarios. This is superior to the current voice interaction capabilities of SingularityNET and Ocean Protocol.

B. Support for Highly Personalized Customization: MyShell has opened up various personalized ways for users to freely adjust voice styles, conversation styles, appearance, and more. While other competitors have limited personalized space, MyShell's customization capabilities are superior.

C. User-Friendly Experience, Lowering the Barrier to AI Use: MyShell adopts a low-code approach, integrating various generative AI technologies, allowing users to develop robots without an AI background. In comparison, other competitors have higher requirements for user programming skills, resulting in greater barriers to use.

D. More Open Ecosystem: MyShell is building an open AI ecosystem, encouraging developers to create various applications and enrich platform content. The ecosystem development of other competitors is still in its early stages, but MyShell has a stronger presence in the ecosystem.

E. Superior Learning Ability: The conversation model trained by MyShell has strong learning capabilities and can continuously assimilate new information. In comparison, the learning capabilities of models from other competitors are limited, making MyShell's application scenarios more extensive.

In summary, MyShell has significant advantages in interaction experience, ease of creation, and open ecosystem, and is expected to take a leading position in the field of AI products.

4.3. Token Economic Model Analysis

4.3.1. Total Token Supply and Distribution

The $SHELL token is used for user incentives, governance, and in-app utilities.

The total supply of $SHELL is 1,000,000,000.

Source: Myshell Whitepaper

From the table, it is observed that the vesting schedule ensures long-term alignment between token holders and project success, and a significant portion allocated for community incentive measures will help drive platform adoption and participation.

4.3.2. Token Value Capture

$SHELL will capture value through the following means:

A. Governance: $SHELL holders can participate in platform governance by voting on key decisions. Governance incentives encourage long-term token holding.

B. User Incentives: Users can earn $SHELL through content creation, recommendations, and participation in seasons. This encourages usage and retention.

C. Creator Monetization: Creators can charge $SHELL fees for access to exclusive content. Direct monetization drives content creation.

D. In-App Purchases: $SHELL can be used for subscriptions, season tickets, and content promotions. Increased utility drives token demand.

E. Liquidity Mining: $SHELL will be distributed as rewards for providing liquidity on DEXs such as Uniswap. This enhances token liquidity.

F. Staking: $SHELL holders can stake their tokens to earn staking rewards. This incentivizes long-term token holding.

4.3.3. Core Demand for Tokens

A. Users: Platform users need $SHELL to access advanced features, season tickets, in-app purchases, and to participate in voting, and more users mean higher token demand.

B. Creators: Creators need $SHELL for monetization and content promotion. More creators joining will attract more users.

C. Investors: Speculators and project supporters will purchase $SHELL to earn staking rewards, governance rights, and potential price appreciation.

D. Developers: Participation in future ecosystem development and revenue sharing.

As MyShell expands its user and creator base, builds in-app utilities, and executes DeFi integrations, the demand for $SHELL should steadily increase. With increasing demand, the fixed token supply ensures scarcity.

In summary, looking at the entire token economic model of MyShell: MyShell's token economic structure is well-designed, with targeted token application scenarios for different roles, attracting various parties to join and building a closed-loop token economy. This can provide long-term value for $SHELL holders, and the diverse utility and incentive mechanisms will drive continued platform usage and token demand. As MyShell expands its ecosystem, $SHELL seems prepared to accumulate value.

5. Preliminary Valuation Assessment

To conduct a preliminary valuation assessment of MyShell, we can analyze based on the following questions:

5.1. Core Questions

At which stage of operation is the project? Is it in the mature stage or in the early to mid-stage of development?

MyShell, as a pioneer in the field of voice AI interaction platforms, has significant room for imagination. However, it is still in the early stage, with key metrics yet to be validated, and token application scenarios need further expansion. It is recommended to track the team's execution and platform data, and monitor the overall development trends in the field of voice AI.

What are the main variable factors in the project's operation? Are these factors easy to quantify and measure?

A. User Scale and Activity: This directly reflects the project's popularity and community development. Quantifiable metrics include daily active users, monthly active users, user retention rates, and more.

B. Content Quality and Richness: This reflects the project's core value. Quantifiable metrics include the number of user-generated content, content engagement interactions, and more.

C. Commercialization and Monetization Effectiveness: This relates to the project's long-term sustainable development. Quantifiable metrics include the number of paying users, revenue from paid content, and other business indicators.

D. Technical Iteration Efficiency: This relates to the project's technological leadership. Quantifiable metrics include the frequency of new feature launches, the effectiveness of model iteration optimizations, and more.

E. Ecosystem Development: Measuring the maturity and activity level of the developer ecosystem, the richness of third-party applications, and more.

F. Scale Effect Manifestation: Whether the growth of users and content translates into commercial value effectively.

In summary, the key variable factors for MyShell are mainly concentrated in multiple dimensions such as users, content, commercialization, and technology, most of which can be designed with quantifiable indicators for measurement and assessment. Qualitative assessment indicators should also be considered.

What is the project's management and governance approach?

Currently, MyShell's management and governance approach follows a more traditional centralized development decision-making model. In the future, it may consider moving towards a decentralized direction, but this would need to be based on the maturity of technology and the ecosystem. The project's daily operations and product iterations are managed and decided by the core development team. Additionally, the product roadmap and technical direction are periodically announced after being deliberated by the development team. In the future, a DAO may be established for token holders to participate in some governance decisions.

5.2. SWOT Analysis

5.2.1. Project Strengths

The project's strengths are detailed in section 1.1 Core Investment Logic.

• Clear product positioning to meet language learning needs

• MyShell's core technology and open business model are important investment logics for its sustainable development

5.2.2. Project Weaknesses

Team Background, Including Technical and Product Experience, Is Not Sufficient: AI and voice technology require a significant amount of research and development investment, and the team's experience in this area is still lacking. So far, MyShell's data and cases in commercial operations are relatively limited, and further validation is needed for its sustainability and operational capabilities to support scalable business growth. The AI product and voice technology face a rapidly iterating market environment, and the MyShell team needs to demonstrate sufficient product optimization capabilities, agility, and the ability to adapt quickly to market changes, which requires long-term observation. Additionally, while MyShell's community development is fast, it is still in its early stages, and its product stickiness and long-term user retention capabilities still need to be validated. A decline in user and developer engagement could affect sustained operations. As a startup, MyShell's financial strength also needs to be tested, and whether it has enough resources for continuous investment in research and development and business expansion needs continuous attention. Insufficient funds may restrict growth. As a voice AI product that relies on trust and security, MyShell's security, compliance, and privacy protection mechanisms also need to be tested in commercial operations, as security incidents could severely damage its reputation. Overall, MyShell's team background and commercial operational capabilities still need to be validated, and this is one of the important risk factors it faces, requiring investors to remain cautious and continuously monitor its subsequent execution.

Limited User Scale, Low Visibility, and Ecosystem Development Takes Time: Despite MyShell's significant technological advantages, as a nascent project, its current user scale and activity are still relatively limited. A small user base means that MyShell has limited user data and feedback to draw from, and a small number of users also limits the generation of network effects, which is not conducive to rapid word-of-mouth spread for MyShell. Additionally, ecosystem support capabilities still need to be validated. A limited ecosystem cannot generate enough content, scenarios, and interaction patterns, which are crucial for product improvement. Voice interaction products require a large amount of actual user feedback for rapid iteration and upgrades. User stickiness also needs to be considered, as early users mainly gather in the trial phase, but whether they can retain "loyal fans" who actively participate in product improvement in the long term needs to be tracked over the long term. On the other hand, niche user groups need to be expanded. MyShell's current user base is targeted at individual users, but whether it can attract more enterprise and industry application clients requires further product optimization and business model validation. Overall, the limited user base and influence are another important hidden concern for MyShell at present, which needs to be addressed through various activities in the later stages.

5.2.3. Project Opportunities

Voice Interaction Demand in New Scenarios such as the Metaverse: The Metaverse, as an emerging technological concept, is thriving and creating new application scenarios and user demands, which presents new opportunities for voice AI products like MyShell. In the Metaverse, users interact through virtual reality or augmented reality devices, which requires a natural, language-compliant voice interaction method to reduce learning costs and enhance immersion. MyShell's technological advantages in voice interaction effects and personalized customization are very suitable for building natural voice interaction experiences in the Metaverse, and the user base in the Metaverse is expected to grow rapidly, providing a huge new market for MyShell. Additionally, these user groups have higher demands for personalized experiences. MyShell's open and flexible technical architecture is conducive to its rapid adaptation to new voice interaction demands in the Metaverse and rapid iteration. Successfully entering the Metaverse field will help MyShell further enrich voice interaction scenarios, accumulate more data and use cases, and generate synergies with the Metaverse, potentially leading to greater than expected results. For example, cultivating personalized digital personalities and conducting virtual world tours. Overall, the rise and development of the Metaverse provide important strategic opportunities for MyShell, facilitating product innovation, business growth, and technological upgrades, which is worth the active attention of investors.

Hot Track Dividends, Industry and Capital's Favor for Similar Solutions: As a hot track, generative AI is receiving widespread attention from the capital market and a large influx of funds. The industry and capital's favor for startups and technical solutions related to voice interaction is beneficial for MyShell to gain resource recognition more quickly. Additionally, the market education and user cultivation effects brought about by the hot track will also help MyShell gain higher brand awareness and user recognition. The industry's enthusiasm for competition will help drive continuous product and technological innovation, and MyShell will also gain improvement in the competition. The high attention from capital and the industry will effectively promote the rapid maturity and prosperity of the entire voice interaction ecosystem, and will also accelerate the practical application and implementation of voice interaction technology in various scenarios, providing a favorable external environment for MyShell's future expansion of application scenarios. The increased concentration of talent in the industry also provides a good foundation for MyShell's team building and talent reserves. The increased opportunities for communication and cooperation with industry capital and technology companies will help MyShell gain more key resources. The attention and support from the industry and capital increase the likelihood of MyShell's future success and reduce investment risks. Overall, this hot track and industry attention have improved the external environment for MyShell's development, bringing important strategic opportunities.

5.2.4. Project Threats

Rapid Follow-up by Competitors, Weak User Growth: As the concept of AI customized products continues to be validated, MyShell inevitably faces the threat of being caught up or surpassed by competitors. Traditional industry giants and similar projects will accelerate their pace, weakening MyShell's first-mover advantage. Some competitors have significant advantages in terms of funding and channel strength, and in the short term, they may surpass MyShell through efficient customer acquisition models, for example, using a larger user base and resources for more effective promotion. Additionally, while MyShell's early user growth momentum is strong, it is difficult to maintain super-linear growth as the market gradually saturates and competition intensifies, which will affect its ability to obtain sufficient financial support. On the other hand, as competition continues to intensify, it will be difficult for MyShell to maintain its leading edge in core AI technology and ecosystem versions. It will be difficult to form an advantage brought about by critical technology and ecosystem maturity.

5.3. Project Development Considerations

As AI technology continues to advance, conversational AI products are facing a major opportunity period. MyShell needs to seize the following opportunities to improve itself and lead industry development:

1) Conversation Quality: Continuously optimize conversation models and knowledge systems to improve semantic understanding and logical quality, providing users with a more lifelike conversation experience.

2) Virtual Characters: Build a distinctive line of virtual assistant products to expand user choices and application scenarios, adding fun and immersive experiences to usage scenarios.

3) Web3 Applications: Keep up with the latest developments in Web3 and use new technologies to build products and application scenarios. For example, actively explore new Web3 scenarios such as Metaverse and NFTs, extending the service form and commercial value of AI products to keep the product dynamic and trendy.

4) Open Collaboration: Initiate a conversational AI industry alliance, become an industry backbone on major issues such as security and interpretation, and attract more institutions to participate in product refinement and standard setting.

In conclusion, MyShell needs to seize the opportunities of the times, adhere to technological iteration and open collaboration, continuously optimize product application, and lead the industry on a new trajectory of development. This will ensure that AI technology truly serves humanity and benefits society, ensuring the sustainable development of its business.

6. References

https://myshell.ai/ Myshell Project Official Website

https://twitter.com/myshell_ai Myshell Official Twitter

https://docs.myshell.ai/ Myshell Official Gitbook

https://www.panewslab.com/zh/articledetails/ui681d1u.html Interpretation of Myshell, a Project Shortlisted for the Binance Incubator Program: The Android Operating System of Web3

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