The Rise Of Decentralized Social Media Ecosystems and Growing Pains of A New Dawn

in social-ecosystems •  last year

Shattered Records

It’s literally no longer eye-popping. For the past few weeks, ICOs after ICOs keep breaking records that it has eventually become a norm for an ICO to raise millions of dollars within hours or minutes. What’s even more surprising are the complaints of several other intending ICO participants who scramble and hustle to get into these juicy ICOs. All without no success.

Status IM ICO


24 hours ago, Status IM raised over $44million in a few hours making its’ market cap over $270 million. Massive money for a coin with only an alpha product! Dayum!

Status is an open source messaging platform and mobile browser to interact with decentralized applications that run on the Ethereum Network.

Allegations of Scam and Centralization

A common notion among the recent record-breaking ICOs is the mass allegation of scam and centralized allocation.
A few days ago, Bancor ICO recorded about $150m making the largest crowd sale ever in human history. Amidst this record breaking moment was several outcries of scam. In fact, a notable blockchain enthusiast wrote thousands of words debunking the business model of the coin. Other crytpoheads alleged that true decentralization didn’t take place as only a few whales got majority of the initial coin offerings.

Status IM wasn’t without these allegations too. Ethereum rising gas prices also contributed to the fact that several intending transactions were returned. Many Reddit users decried the fact a few addresses got millions of the SNT tokens leaving out thousands of others.

Beyond The Negatives - The New Dawn


However, it’s important that despite all scam, bubble/bust and centralization contentions, we must not lose the fact that a new chapter in human history has been opened. Never have we seen the public exert such huge control over their finances without restrictions ( at least for now) in recent times.

The CEO of popular social media messenger app, Kik put this beautifully when he was questioned as to why his company was going through the ICO route as opposed to the VC fundraising.

“What’s exciting about cryptocurrency is for us it’s been very hard to monetize in the western world,”
“The broader motivation is that it is really hard for independent developers to compete with huge companies,”
“On one side, you see digital services, on the other, they are being owned and controlled by fewer companies because they are the only ones to monetize at scale using advertising. You try to sell things but you are trying to sell to consumers who think everything should be free.
Slowly, established creatives are realizing the power of cryptocurrencies.

Kik and Status IM - Rise of Decentralized Social Behemoths

Status IM in its whitepaper aims to evolve beyond just being a messaging platform for Ethereum apps. Gradually, it hopes to become a social all-in-one ecosystem allowing micropayments between users, instant peer-to-peer messaging and marketplace for goods paid with newly minted ERC20 tokens. It also aims to build an inbuilt browser that will help users navigate the blockchain.

In the centralized world, a social media app that has entirely encapsulated this idea is WeChat in China. Although Facebook is slowly getting there, WeChat is just more than a chat app for its billion users. Users can order for foods through chat bots, book an Uber ride, share dinner payments with friends and so much more. Their success in doing this has made them an unstoppable force in China. A business model other western social apps are trying hard to emulate.

Kik is also trying to get this done. Already popular in North America, Kik aims to, through their soon-to-be-launched coin called Kin, build a social ecosystem that will help developers tap into in a profitable way without having to rely on ever decreasing ad revenue.
The video below beautifully describes this:

Beyond An Alpha – Steem’s Massive Potential


One of the prominent criticisms of Status IM was why so much money was being raised for an alpha product.

Reading these criticisms made me realize the huge potential of Steem. Despite the several successful use cases, Steem is mostly known for Steemit - a social media that pays. On further introspection, Steem can and is being used for more than that.

Already, it’s already being used for donations/crowdfunding for humanitarian causes. Authors are already making huge returns from their books exclusively published on Steemit and several other use cases.

A little more effort in use cases like @thisisbenbrick’s SteemSongs or Peerhub or Steemgigs and we’re game. Slap in the ability to create tokens for special apps like @jesta has conceptualized and we can turn Steem to a coin that backs a huge social ecosystem. Rivaling the likes of Etheruem and IOTA.
Amazingly, unlike all its other competitors, it has got a successful test case, faster transaction rates with no fees and an enormous community using its tokens.

Conclusion

The way I see it. The rise of one or all of these aspiring social ecosystems is a win-win situation for all. It’s gradually time to put power back into the hands of the people and usher in another revolutionizing innovation.

For critics of the recent ICO craze and proponents of an impending crypto bubble, Kik’s CEO final remark during an interview a couple of months ago is an apt reply.

“The way I think about ICOs is it’s very similar to the dot-com era. There was a bunch of excitement, people made a bunch of money, people lost a bunch of money but Amazon and Google came out of it.”

Sources:
12345

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Really excellent breakdown. Thanks for putting in the time.

·

Thanks for the compliment. Makes me glad someone thought it was a good read.

·
·

I believe the ico adrenalinrush is over, people became more aware that most of them are bs. Its like when you remember back 2013. There was btc, ltc, 5other crapcoins like namecoin, peer, infinite. Everybody got excited when a new coin came out. Now there are 800on cmc and maybe 10k total.

Loading...

Exactly. The craze with ICOs is going insane. Good for anyone wanting to ride the hype train with the vision of insane wealth created in a blink of an eye.

I'm not saying all ICOs are bad, but huge majority of them don't really need ICOs at all. It takes portion of the risk out of entrepreneurship (by securing the devs way more money than they need) and therefore IMHO undermines the natural push for the product to be the best, so it can thrive on the market. This way you already have the money, so why should someone care?

I'm staying away & investing there, where progress has already been made. There are many projects/coins, that are alive 2+ years, living off themselves and small donations from the community. And guess what – they are still alive; they don't need $100m. Just saying.

·

I completely agree with you. Its saddening that some are overhyped but it comes with attendant FOMO by newbies armed with lotta money.

Its always nice to for what works for you. Nice POV. Thanks for.dropping by.

I could not agree more with you evaluation of Steem's abilities. We are already processing more transactions per day than Bitcoin at a fraction the of the time, with no fee. We have a community of 200K and growing daily. I believe that we are on to something huge and every time I get a knot in my stomach thinking about what could go wrong, I remind myself of what could go write. Such an exciting time to be alive. Truly blessed we are!

·

I'm wondering if everyone is jumping on the latest craze these days due to the fear of losing out.

·
·

I wonder the same thing.

·
·
·

Yeah but why not throw a little (time, effort, $) at it any way. Some people took a long shot on Microsoft and Wal-Mart in their infancy too at one itme.

·
·

The FOMO is too real these days.

·

I just joined steem today and absolutely love it. I'm really looking forward to see how it all unfolds and improves over the next couple of years.

I have no idea what I'm doing on here yet. :D

·
·

Welcome! Its gonna be such an exciting ride. Trust me ;)

·

Succinct! Its interesting to imagine the.massive potential Steem has. Funnily, I get those knots too as the.crypto.sphere.is so uncertain. Soon, steem will dine with the big market.cap boys too

·

i want to know about bitcoin more and more so upvote me and give information thats i am happy ..tnx

·
·

I upvoted you! Now your soul belongs to me! Now you have to upvote me everywhere!

Or not. Your choice. :P

·
·
·

upvote u friend..

Thanks for the information! If Steem can really thrive in other environments/projects in addition to Steemit, think of how strong the whole ecosystem would be; Steemit would get stronger too!

·

ICOs?

·
·

Lol. Its alreading happening. See mycelium.

·

Yeah. The possiblities are.endless. The way I see it, Steemit is just a small slice of the cake.

The rise of these ICOs gives the crypto community a bad reputation. The public sees these record setting ICOs and assume that all cryptos aside bitcoin ate scam.

There even an ICO in which the coin creator explicitly said to the public that his coin the Ponzi coin's proceeds is to be used to buy his Tesla.

The greed in ICOs will quickly.lead to broken promises and stolen money. This will make a perfect excuse for governments to regulate cryptocurrencies.

·

Hire a Tech Geek, make millions. A new bubble in the technology sector. ICO

·

I do agree with you. But the scenario you described is typical to all booms. During the 2000s, anyone could slap a .com suffix to their.startup and sell it for millions.

SOmething amazing is surely coming out of this craze.

The summary is spot on. There will be a bubble and it will get over hyped (getting there now). There will be bust in which people will lose money. But when the dusts settles, those left standing will be the future!!

·

Exactly!

Steem is the most undervalued coin right now. Steemit even provides it's own economy plus a bridge with the FIAT and Crypto world. As soon as the hype dies out from all the under-delivering ICO's, investestors are going to turn to the things that work.

A small shake up in the crypto ecosystem will make Steemit anti-fragile.

·

Totally agree, just bought more couple hours ago :)

·

Exactly. Only a few.coins have been able to.create.a self sustaining economy. It would be.interesting to see Steem go back to dining with the big boys

·
·

it will. I am sure of it

good post man :D.

And yea I also think this is just the beginning of the adoption of the blockchain technology, people who are in now and exploring the possibilities of this new tech are the lucky ones in my opinion :)

·

Thanks.
Yup. I do agree with you we all are early adopters. It would be cool to see how the next few years pan out.for.cryptos.

Amazon and Google....I hope we are aiming a little higher than that. They are no exactly virtuous. Perhaps he is judging the crypto space by old standards?

·

Haha. I think he was trying to give a similitude of how big things are going to be.. and yes, they are not virtuous at all

I believe we will see a sharp decline in ICO activity or at least people will start to scrutinize them. I for one try to stick with more established crypto. But hey this is just starting to really pick up but I can see a lot of people getting burned by ICO's that don't know what they're doing.

Yes and thank you for this positive message

Yes and thank you for this message

Good post. We should all be aware that scammers are using the popularity of crypto and these blockchain technologies to create scam ICO´s so better do a good due dilligence before investing. Steem will do very great however need to grow its ecosystem gradually, a win win for all. Great post indeed, upvoted. Mentioned you in @infovore my latest post...success

·

Thanks for dropping. And you are right, literally every idea is being slapped with an ICO. As usual, one shouldnt invest what he cant lose.

·
·

I agree, good point. However, before investing, a comprehsnsive DD should be done

This train is moving and it's moving fast. I like how you broke this up to "drive it in" that even though it's basically the WILD WILD WEST right now, the power is definitely being put back into the hands of the ppl. We gotta keep reminding ourselves of this. That's why alot of us are even here. Personally, the cha-ching is just another awesome benefit. Look at all these ppl coming together --like from everywhere. Wrapping this phenomenon up with a new type of social eco-system on top of everything else...well -- kinda makes me wanna say, "to the moon ppl!" Thanks for the post! 👆

·

Interesting perspective. Its an amazing experience..interacting with people all over the world from all spares of life.

That last quote is exactly how I view ICO's today - good for a quick profit but if you go long then you'll end up a bag holder!

·

Yeah. Always take a.profit. in the long run you can amass massive profit.or gain nothing

Thanks for this great post. I do believe that Steemit is in an undervalued stage, just because it's still young (almost 1year). But lately more and more new users are join in, and so much people are spreading the word. So I'm pretty sure that within 2 or 3 years, with some new features, Steemit will beat those traditional social media! 😏

This is a great article.. What for EOS to launch on June 26th. Can they be the first ONE BILLION ICO, I think they can. Thoughts :)

·

Thanks. I agree its got that potential but I see no reason why its eth only

ICO's remind me of the 1990's internet boom, big bubble will follow. Im scared to invest in ico for same reason.. but again it is very profatable

·

Yup. Many people invest in ICOs for.a.quick flip. Only a few.are worth investing for their.solid tech

·
·

Yea thatss true! @infovore

The ICO situation is maddening. I have had my criticisms of Steem in the past but today I powered up if that tells you anything.

·

Interesting to see an early Steemian renew his.belief.in Steem

Really well researched and presented, soooo much information I kinda had to give it a flick through... I'll come back for the in depth read later tonight.

Good to see you source your work too.

·

Thanks for the compliment. Appreciate.

Nice article. Decentralization of the economy (at least parts of it) is imminent. I wonder what other products or services will get bootstrapped. Dollar/Euro to BTC/LTC, Facebook/Reddit to Steem.

Great article, I find the Ted Livingston quote really interesting. I'd like more insight into what he sees as the relationship between crypto and making a service more salable.

New dawn for sure! I wish I know which ICOs do best! What are the best forums to do research?

100% up here

·

OMFG lol

Sad how more people don't accept cryptocurrency with open arms...
Kinda like how Hitler f**ked up the toothbrush mustache....
https://steemit.com/funny/@splatterhaus/why-the-hell-did-hitler-have-to-go-and-ruin-the-toothbrush-mustache

Thank you for the great post...upvoted

follow me pls and upvote ...i am new member and a student...promote me pls ...

Absolutely crazy in the crypto world

. ice info @infovore
Learnt a lot. However lucrative we have to also understand the risks involved in such entire venture & do a thorough due diligence. All that glitters is not gold

Thanks for the infor. I don't know much about this. But your work has made me to have an idea. Thanks

i am keen to learn more and appreciate the value of steem -- i will grow here and that will do me

Excellent post

This platform has the potential to take a big piece of the pie from Facebook and Reddit. Nothing makes a community evolve quicker like being their own banks. TO THE MOON, BABY!

Good work man keep it up!

Great Information... Thanks ...aspiring social ecosystems is a win-win situation for all

hello guys

please i am new in steemit

please i have upvoted and followed you

please visit my profile and do same do same

thanks

One of the most EASIEST ways of becoming a millionaire.. even easier than crypto - trading.. is ICO FLIPPING .. FLIP it .. till you ZIP IT

Thanks for the important information buddy

Thanks for the knowledge, man..

Sorry to spoil the optimism, I think there are still important questions to answer. https://steemit.com/steem/@lightproject/did-last-hf-just-prove-steemit-is-regulated-not-decentralized

·

Hmmm... But the HF only affected how new coins are created. Or did they affect the ability to hold and spend coins too? No idea...

No doubt steem will beat the odds.

Thanks for the information it seemed so nice and great ..thank you once again ..it helped me alot @infovore

The cream always rises to the top, so choose wisely.

Yep, this what @krystle and @ausbitbank have been telling me about for almost a year. Now just a week or so in I can see proof of concept for myself and am excited to see just how far we can all take this.

I am putting some of my savings into upcoming Tezos ICO. Looks very promising. Chech it out yo! Read it carefully before you decide!(this is not investment advice) https://tezos.com/

A decentralized Earth of Social Networks.

Obama said no.

Trump said yes.

Bob the Builder, yes we can.

Yes we are, yes we do.

Quite informative !!

Yes I agree with this post. It conveys lot of information from your post. Thanx for sharing. Upvoted and Resteem.

Really super topic i like it

I noticed a thread on reddit about people actually starting to form a boycott of status.. I think maybe it's time for a union of altcoin non-whales to fight back against the whales whoring all the action in ICO's. The easiest way for the ICO would be just have a cap on buy-in and make everyone send some sort of verification to be allowed in so they can't just use multiple accounts.... It would be the fairest way to divy up shares. Something small to like 5,000 USD worth max. Not small to some, but not 10 mill either... - - that way they also get a lot of diehard enthusiasts around their platform, and not just a bunch of whales who hope it takes off...

nice video, nice posting
thank you for sharing

Thanks for sharing your informed analysis!

Upvoted and followed you, looking forward for more posts like this!

These social ecosystems are so exciting and such a intelligent idea! I have not been this excited with anything related in a long time!! =) Up vote if you agree, comment if you love Steemit ;)

great information

Synereo , symbol AMP , social platform is launching June 30

I agree with Kik's CEO: There will one or few big players emerge which will change the game.


You are being followed by a coin puppet!

Please follow it back ;)

My only concern is that when all of these ico's decide to convert to cash for fundamental expenses we will see massive swings in the price of coins that funded the ico's. What happens when we repeat the same capital flight from fiat, but on a massive scale of everyone trying to cash out their paper millionaire shares of this ico token or that.
At some point the music will stop, and good luck on finding a chair.

Great post :)

great information...my friend...

All of that has recently caught my interest. Super thanks for sharing.

Great explanation and really made me to consider to invest in ICO. Good job :)

You are spot on! It is such an amazing time to be alive and participate in especially at my age and not my less than fore-thinking grunge loving college kid in the 90's.

All this is great news! Web 3.0 is approaching us!

Its often scam and easy money, a lot of people will land on their butt. Still its alright to invesat 1 or 2% in an ico youre convinced off. You just have to sell it off it doesnt turn out what it promised to be. For example BAT (basic attention token). Their browser is quite awesome so they delivered content before the ico, so i invested in. Its still 5x more than the ico offering. To avoid scam as good as you can, 2 advices:
Take a look at the developer team and do some research
Community, is there community? how is the public reaction.
In every niche, where there is a lot of money, scammers follow.
Gl

Great post, worth reading it.

Can someone explain to me or point out where I can find an explanation on how to self publish a book or ebook on steemit? That would be lovely :)

Love your writing style !

Very interesting article - just had to read it a second time ;)

If your interested I'm starting a new BTC trading challenge soon ... should be fun.. with lots of trading insight .. you can follow here https://steemit.com/introduceyourself/@wannerbet/hello-eur100-000-steem-powered-trading-challenge

“What’s exciting about cryptocurrency is for us it’s been very hard to monetize in the western world,”
“The broader motivation is that it is really hard for independent developers to compete with huge companies,”
“On one side, you see digital services, on the other, they are being owned and controlled by fewer companies because they are the only ones to monetize at scale using advertising. You try to sell things but you are trying to sell to consumers who think everything should be free.
Slowly, established creatives are realizing the power of cryptocurrencies.

Thanx for this post Cheers buddy

Thanks for such a well explained breakdown .

kik thru the coin kin will be awesome for Steemit. Steemit is so positioned to benefit from this. The potential is phenomenol. So excited for me and the Steemit platform. Go Steemit.

Great piece of work my friend. Definitely agree about the ICOs right now.
Steem has a lot of potential!!!

Congratulations @infovore!
Your post was mentioned in my hit parade in the following categories:

  • Upvotes - Ranked 6 with 656 upvotes
  • Pending payout - Ranked 7 with $ 1410,54

thanks for the info

Who else is trying to give a cool comment in way to take some upvotes :D ?

Steem will be the popularst blockchain in future but please dont let steem fall on a level like Facebook (mainstream)!!!!

quality content are rare to find, I follow.

Cool article! Followed!

Great article @infovore. Very happy that I have expanded into the decentralized crypto world. I have learned so much since joining steemit.

I just wanted to thank you about the steemfest ticket you gave away last year to me. Because of that I have expanded and invested into steemit & the crypto world. Now I have more more money in steemit than I have every had in my life. So thank you @infovore & @steem-mag for helping motivate me to expand into something new and profitable! Will you be going to steemfest this year?

Congratulations @infovore
You took 6 place in my Top 100 of posts

It is a great post. Thank you for sharing with us. Keep posting.

Good post, upvote.