Gems Presale Launches to Take Crypto Mainstream

Journalist:
Josiah Wilmoth @Y3llowb1ackbird
December 1, 2014
Gems wants to disrupt social networking like Bitcoin revolutionized the definition of currency.

Gems is a forthcoming social platform that wants to become the “Bitcoin of social networks.” Gems plans to achieve this revolution by distributing advertising revenue to users rather than centralized corporations. Moreover, Gems offers users the ability to encrypt their messages to ensure they remain private. Gems launched its cryptocurrency crowdsale on December 1.

Also read: Nxtty Releases Encrypted Messaging App for Android Phones

Gems Presale Launches with Goal of Taking Crypto Mainstream

During the presale, investors can purchase XGEMs, the native currency of Gems. Half of the 100,000,000 XGEMs will be distributed during the presale (32,000,000 of the remaining coins will be used for an airdrop, and other giveaways and the other 8,000,000 will go to developers). Gems’ developers will burn any presale coins left over at the end of the sale. According to Peled, developers will use the presale money to fund development, market Gems, and create a legal contingency fund.

Similar to Nxtty, users can send and receive XGEMs from within the Gems app. What sets Gems apart is that advertisers must pay for advertisements using the XGEMs currency. Users who receive sponsored messages from advertisers will earn the XGEMs used to purchase the ad. However, it is not clear what value XGEMs will have aside from the necessity to use them to pay for in-app ads.

High Hopes

Nevertheless, Gems CEO Daniel Peled has high hopes for the presale:

We expect Gems to take off at the point of being adopted by the first significant autonomous community containing at least 10K daily active members. We work hard to position this bootstrap community to be the cryptocurrency community by conducting a crowdfund. Since cryptocurrency activists are more attuned to the Gems compensation model, they form the perfect candidates to induce viral growth to the outskirts of this community at first and then to the general population. Educating about bitcoin and blockchain technology is something many of us take part in, the bottleneck are the tools we currently use in order to bring mainstream users to the ecosystem.

What do you think about Gems? Comment below!

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Images from Gems and Shutterstock.

Last modified (UTC): December 1, 2014 16:13

Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.