Increase of Signal Tokens value will be tied to platform growth (and whole VR industry).
This is why I asked the team to respond. Not a bounty hunter.
Why?
Why are they going to increase in value? Where is the revenue going to come from?
Adverts. That's it.
That's the answer the CEO gave in the YouTube interview I watched. (and linked to a couple of pages back)
And when the site launches, how many advertisers will it have? Zero. So, in effect, it will be worthless.
So, besides ignorant speculation (such as with Numeraire), where is value going to be added to the token without any money going into the business?
As I keep saying, I'm a VR enthusiast and early adopter. I actually WANT to like this project. But as a business venture, it leaves a lot to be desired.
The token itself has little to do with VR. And could be applied to other sites/ventures. (Again, straight from the CEO interview. His words, not mine.)
We have no problem answering all your questions, at least it shows that you are interested in knowing what this project has to offer. I am going to address your questions in sections because they see to be about two main points: Revenue and Token Value.
1. Revenue
As you have mentioned, the main source of revenue for this project will be advertising revenue, as is the case with almost all other streaming platforms. Achieving this revenue is very reliant on bringing advertisers to the platform, which in the initial stages of the company is very difficult. We are working to get started on this process though; we have a meeting on Tuesday with another VR start-up called Immersv. Immersv is a start-up that works to connect advertisers to virtual reality platforms and apps, and they have received significant financial backing to do this. We hope to work with Immersv as a partner who can help us drive advertising revenue and grow that revenue as the platform grows. As a note, when we mention $100K in the whitepaper, it is not because we expect to receive that much money, it is just a nice clean number to use in an example. Do not take these examples as literal projections.
With everything mentioned above, one point that needs to be addressed is in regards to what our initial focus is. As counter-intuitive as it sounds, not all business are focused on revenue and profit (initially at least - long-term it is the goal). Companies such as Youtube, Snapchat, Facebook, Twitch all focused on growing their user-base in the early stages, even though it meant operating at a loss. When it comes to a streaming platform, such as Spectiv, our initial focus is not necessarily on being profitable, but is instead on achieving mass user adoption. Although we won't be profitable, we will be growing the overall value of our company and our token (explained in the next section). As we grow our user base, we will be able to drive advertising revenue to our platform at an exponential growth rate.
2. Token Value
In regards to how we plan to grow the value of Signal Tokens, that is not based on whether or not Spectiv is profitable, but based on whether or not content curation is profitable. Consider this, as VR grows and the Spectiv platform grows, curators will be able to drive more traffic to the Spectiv platform. The more traffic that a curator drives, the more money that they earn for generating a signal.
For example, let's say that during year 1 of operation a good content curator is able to profit $1 for every $.50 that they spends on generating signals. During that first year, the curator triples his fan base and in return now makes $3 for every $.50 that he spends on generating signals. Now the cost of generating a signal is significantly lower than the potential revenue for doing it, so the potential value of a signal token is theoretically higher. The market will naturally adjust to this new defined value of a Signal Token and over time, a Signal Token will grow in value until the potential profit and the cost are in a reasonable equilibrium.
There are a couple other points that will factor into the value of Signal Tokens, such as the number of curators that are on the platform and the "minimum" threshold of followers a curator needs to have in order to profitably generate signals. I won't get into that right now because it is all theoretical at this point, but at the end of day, the value of Signal tokens will naturally adjust to be in line with the potential revenue of generating a signal.
3. Conclusion
- Main source of revenue will be advertising, and we are working on setting up the initial infrastructure for that.
- Our initial focus as a streaming platform is not profitability. Instead, it is exponentially expanding our user base.
- If we are able to grow our user base in correlation with the growth of VR, then we will be able to start driving significant advertising revenue.
- As a company, we will need significant early funding to provide us a 2-3 year runway of funds.
- The value of Signal Tokens is not based on Spectiv profitability, but is based on signal generation profitability.
- As the VR industry and the Spectiv platform grow, the value of generating a signal will grow at a similar rate.
If you have any further questions, feel free to post them in here or email us.
Thanks for clearing this up, especially the revenue part. The most important goal in the initial stage of platform is getting userbase.