PROPS 🤳🏼 | The next gen crypto-economy powered video social media platform | Detailed review
Hey everyone, just to be upfront with you all from the get-go, this review was sponsored by the PROPS team, however part of the condition of doing this review was I reserved the right to be unbiased and objective. This review follows my typical SWOT methodology, where we examine the strengths, weaknesses, opportunities and threats.
So, whats is PROPS? Well, PROPS is a blockchain based crypto ecosystem for live social video media. The PROPS ecosystem has been designed to allow developers and content creators to build there own custom video experiences and apps for there audiences, powered by cryptocurrency.
Strengths 💪🏼
The PROPS platform has many, many strengths. Given its backed by YouNow, a well established company with an enormous userbase, really positions PROPS at a significant advantage above most other crypto businesses. These are the strengths I found.
• Props is a subsidiary of its parent company, YouNow. YouNow is a company that has been established since 2011, and has a successful video social media platform that rewards content creators through micro-transactions between the host and the audience. YouNow has over 40 million registered users and has generated over $50 Million in sales since 2011, having an annual sales growth of ~40% year on year.
• Props aims to be the crypto-economic next stage for YouNow by creating the decentralized eco-system built on the Ethereum network. YouNow have taken all the lessons learned through there previous app and applied them to the Props eco system.
• The ecosystem has been designed to incentivise content creators, developers, and the participants to grow the Props network. Using a two currency model, users can purchase ‘Coins’ through app stores, with the revenue being used to purchase Props tokens to distribute to creators and users who help to grow the network. See page 26 of the whitepaper.
• The ecosystem is being designed in a way where users don’t really need to know anything about cryptocurrency. When new users start using the platform, they will start to earn the Props token, which will be stored on there online wallet. See page 14 of the whitepaper.
• The first app to be launched on the Props eco system is called Rize, and will be launched on parallel to the token distribution. Rize is defined as a ‘many to many interactive video platform’. Where users can speak, like, give virtual goods and interact with other users. See page 24 white paper.
• Because of YouNows huge user base, they plan to seed the rize platform with this user base, giving Rize an enormous head start from the get go. If this shos success, YouNow plans on integrating PROPS into the existing YouNow app, further building the eco system. See page 36 of the whitepaper.
• Rize Developers can create ‘stages’, customise the user interface by offering voting options or card games, or some form of custom video platform where users can watch someone perform together. Developers can even produce their own digital goods. Page 32/33 of the whitepaper.
• Strong team of 40 people, many of which have been a part of the YouNow team since 2011. See website.
• Ambitious roadmap, with the Rize platform code to go open source in 2018, allowing developers to add functionality and play with different use cases within the app.
• Backed by big investment firms, Union Square Ventures, Venrock, Comcast Ventures, Oren Zeev and Chris Dixon. All these investors also backed YouNow. Union square ventures and Comcast specialise in vesting in social networks, global media and technology, so you would assume they would know what to invest in, in this area. Interestingly, Chris Dixon sits on the board of Coinbase, and Oculus VR.
• Detailed, well written, transparent, and thoroughly researched whitepaper.
Weaknesses 💣
To be honest, it was hard to find weaknesses on this platform. They have really put the work in refining the entire business model, and that shows in many small details across the platform and white paper. These are what I found.
• The token is named the same as the platform itself. Which is a little confusing. This may become irrelevant over time.
• PROPS will begin as a centralized model, btu It notes in the white paper that PROPS intend on moving to a decentralized platform, and even mention Aragon as a potential candidate.
Opportunities 👌🏼
The user base on YouNow and the fact that Rize has been developed to be seamless and easy for people with no experience in cryptocurrency is truly amazing. I see Rize as being one of the platforms out there that helps to bring cryptocurrencies to the masses, which is what we need! These are my main points.
• Be the first mainstream platform and crypto-economy in video based social media.
• Bring cryptocurrency to the mainstream by integrating an existing and widely used social media platform with a new crypto-economic business model.
Threats ☠️
When looking at the threats, it was interesting to find that there are quite a few other social media platforms out there. The closest threat is LivePeer, but in all honesty these guys are miles away from coming close to PROPS. These are my main points.
• There are quite a few blockchain based social media platforms currently in development, such as Kik, and Flixxo, but the only real threat is in the form of LivePeer, which is an decentralized video broadcasting platform.
• LivePeer aims to build a business model with cryptocurrency incentivised live video, much like PROPS, however they are only in the early stages of development, and appear to be some time away from their token sale and platform release.
The token 💎
The token itself and the way it will be used in the economy is found quite unique. They have basically taken the current YouNow platform, improved and refined it, and added cryptocurrency into it as a better system of distributing revenue among all the end-users. These are the main points.
• The token is called PROPS, the same as the platform itself.
• ERC-20 token based on the Ethereum platform.
• The token itself will be used as a ‘status’ symbol, giving users access to advanced functionality and permissions, incentivising long term holding.
• The token will also be used for premium experiences or game plat, status signalling, influence and curation, rewards for content creators and promoting creators own content.
• The PROPS token will be rewarded through a daily reward system that looks at users time spent and likes. Page 33 of whitepaper.
• The token distribution will be 20% in the token distribution event, 4% for advisers, 26% for employees, and 50% for the Props foundation, which has been created as a non profit entity to facilitate the growth of the Props ecosystem through distributing tokens to partners to help incentivise the Props ecosystem. Page 39 of white paper.
Summary 📃
The PROPS ecosystem and business model has been thoroughly thought out, researched, and planned. Taking the lessons learned from YouNow and applying it to a crypto-economic business model, uniquely positions PROPS in the future of monetised social media and gaming platforms.
Links;
https://www.usv.com/
https://www.venrock.com/
https://en.wikipedia.org/wiki/Chris_Dixon
https://kin.kik.com/
https://www.flixxo.com/
https://livepeer.org/
https://github.com/livepeer/wiki/wiki/Project-Overview
https://medium.com/livepeer-blog/livepeer-network-phases-b196ab42264b