GIFTO ICO Overview – The digital gifting platform aiming to help smaller content creators
Disclaimer: This is a sponsored post. However, we have reversed the right to offer a 100% honest review of this project. This is not financial advice; please always do your own research.
YOU WILL LEARN:
What Is GIFTO?
How Does GIFTO Work?
Who’s Behind The GIFTO Project?
What Are GIFTO Tokens Used For?
- What Is GIFTO?
- How Does GIFTO Work?
- Are GIFTO Solving Real Market Problems?
- What Is The GIFTO Token Used For?
- Team & Roadmap
- Selling Points
- GIFTO Token Sale
- Follow Future Posts
1. WHAT IS GIFTO?
In Their Words
GIFTO Protocol allows for the creation and exchange of virtual gifts, built on smart contracts and blockchain technology, that in turn will create a decentralized consumer-driven virtual economic system.
In Our Words
GIFTO will allow people to give virtual gifts to their favourite social media content creators. These gifts will have a monetary value attached to them.
2. HOW DOES GIFTO WORK?
Below is a diagram illustrating the entire GIFTO ecosystem, we will highlight each individual process involved and the people required for these to work.
GIFTO say that their Gift Creators are usually visual artists but in reality, anyone could be a Gift Creator; the process just involves the design of an image or animation.
Gift Curation involves the review of all created gifts to ensure they are of a high enough quality and inoffensive, while also highlighting any potential legal violations or Intellectual Property violations. They then place the gift into the correct category before determining an appropriate pricing point.
Curators can choose to skip a gift if they are unsure about its ability to pass the above criteria; GIFTO aim to ensure curators only judge gifts they have domain knowledge in.
A user will first purchase GIFTO tokens, these will be held in their GIFTO Wallet and they can use these tokens to purchase virtual gifts from the gift store. These can then be given to content creators on platforms such as Uplive, YouTube etc. The content creator receives the gift and can either hold it in their inventory or convert it into GIFTO and then fiat or other cryptocurrency.
Content Creators are also able to design a ‘wishlist’ to highlight the gifts they would prefer to receive from their fans.
GIFTO of course do not expect people to perform these tasks for free so when a fan purchases a gift with GIFTO tokens, the revenue is shared between all parties involved. The percentage share is as follows:
- 80% – Content Creator
- 5% – Gift Creator
- 2% – Gift Curator
- 10% – GIFTO Protocol – Essentially a transaction fee for operational support and maintenance of the ecosystem
- 3% – Reward Pool – This is accumulated into a rewards pool to be paid out periodically to all viewers/fans as bonuses or as lucky draw prizes to reinforce the element of fun and gamification.
3. ARE GIFTO SOLVING REAL MARKET PROBLEMS?
This strikes us an incredibly pertinent point based on both our position and recent responses to some of our content but one the GIFTO project really aims to solve.
The main problem content creators face is that the majority of their income comes from advertising revenue; in the current systems, the incentive models which drive them are largely centralized and often dominated by either the platform or the paying advertisers. This is often at the expense of content producers and consumers.
Since advertisers place greater value on reaching as broad an audience as possible, this current system often ends up disproportionately favouring the most popular 1% of content creators with the largest fan base, hits, subscribers etc.
This can mean that a number of smaller channels are unable to command a reliable income stream under the present incentive scheme, even if they produce high-quality content and as a result they cease to operate. This of course bad for content creators but also for the platforms they operate on as the diversity and quality of their content they can offer suffers.
The GIFTO protocol will allow fans to contribute to their favourite channels while receiving something in return; the hope is that with another potential form of income, smaller content creators will be able to maintain content production helping both themselves and the platforms they produce on.
4. WHAT IS THE GIFTO TOKEN USED FOR?
The Gifto token will be used as the in-app currency for the Uplive platform, replacing their existing currency.
As such, the token will be at the heart of the project and thus demand for the token should rise if the platform is successful.
5. THE GIFTO TEAM & ROADMAP
The GIFTO Team
As our regular readers will know, we often preach that you should “invest in people, not ideas”; the thought being that you could have the greatest idea in the world but without proper execution, it is unlikely to succeed.
The company behind the GIFTO project are Asia Innovations Group Ltd (AIG), they are a mobile interactive entertainment company based in Asia with over 300 employees across 8 offices.
The GIFTO team are led by Group CEO Andy Tian, before co-founding AIG he was the General Manager of Zynga China where he spearheaded Zynga’s expansion in China and personally oversaw the inception and creation of many global top 10 games. He also previously co-founded one of the world’s earliest social app companies (XPD Media) in 2008, which was sold to Zynga in 2010 to become Zynga China. The GIFTO project is clearly in good hands.
The project also possesses a number of interesting advisors including: Loi Luu, CEO and Co-Founder of Kyber Network; Chris Miess, Ex CFO of TenX and Hitters Xu, Founder of NEO.
There are a number of other interesting people involved in the GIFTO project, both on the team and involved as advisors but as this is just a brief project overview, we encourage you to read their whitepaper if you wish to learn more.
The GIFTO Roadmap
Phase One – January 2018
- Alpha version of the protocol will be available in external content platforms (YouTube, Facebook, Instagram etc)
Phase Two – Q1 2018
- Beta version of the protocol will be deployed on the blockchain, available for external uses outside of Uplive
- First set of Smart Virtual Gifts will be deployed
Phase Three – Q3 2018
- Commercial version 1 of the protocol will be launched
- Full push to attract global content creators to GIFTO
Ongoing iterations and expansions
6. SELLING POINTS
The GIFTO protocol is already being tested on the Uplive platform, this is a social media app prominent in Eastern Asia with a reach to over 70 million users, the instant reach GIFTO will possess is beyond substantial.
The only drawback here is that Uplive currently uses Diamonds as there in app currency, so migration to GIFTO would be required, however the incentives offered by GIFTO should more than encourage this successfully. This is an issue covered in the GIFTO whitepaper so we encourage you to check their response out.
There is the potential for the GIFTO protocol to be adopted on a number of other platforms too; Facebook, Instagram, Twitter and YouTube to name a few. The potential reach if just one of these brands were to adopt the protocol would be huge.
This idea would also work when it comes to gift creation; if the platform takes off then big companies may want to create or endorse the use of sponsored gifts. An example could be a BMW car as a gift, or gifting a creator a bottle of Coca Cola.
The project has already received support from a number of institutional investors including KPCB and Wicklow Capital. This can only be seen a positive for GIFTO as it proves that the idea has passed a fair deal of scrutiny from a number of people in the know.
In our reviews, we often discuss inflation and the negative effects that a high inflation rate can have on token prices. In the case of GIFTO, we are a big fan of the project – particularly due to their incorporation with Uplive – however, the relatively low percentage of circulating tokens is a concern for us.
With only 15.7% of tokens in circulating supply, we could see more tokens dropped on the market which could devalue tokens.
8. TOKEN SALE
9. THE CRYPTOGURUS CONCLUSION
Overall, we believe that this will be a successful project and could present a good investment opportunity at the current market cap of $80 Million.
However, the potential inflation rate is a concern for us and could represent an issue for investors if more tokens begin to enter the market.
10. FOLLOW FUTURE POSTS
Come join us to follow future articles and personally chat with us: