Synereo Collapse? Wanted to Raise 4 700 Bitcoins, 173 Bitcoins Raised So Far

Journalist:
April 7, 2015

Synereo, which calls itself the world’s first fully-decentralized social network, recently launched a crowdfunding campaign to raise 4 700 bitcoins ($1.2 million). The goal is to have the technology and resources to build a decentralized network and provide a better social network experience. Synereo will reward contributors in AMPs – the network’s own currency which can be used to amplify messages within the social network. The crowdsale began March 23 and will end on April 22.

“The $1.2 million will be what allows us to create a fully distributed application that’s up to the standards of modern, cutting-edge mainstream services in terms of the user experience – and that we expect would allow us to reach our first million users,” Dor Konforty, CEO and co-founder, told CCN.

Users can amplify their presence on the network by investing AMPs to increase the amount of views their post can receive. Hence, anyone on the network can purchase user attention. When other users see “AMPed” content in their streams, they in turn receive a portion of the AMPs as compensation for their attention.

Only 8 102 419 AMPs has been sold during the crowdsale. $1 is 183 AMPs which means Synereo only has sold AMPs worth 173 bitcoins or 44 275 USD during the first 15 days. Will they reach 4 700 bitcoins?

https://crowdsale.synereo.com/

Resources needed to actualize vision

Konforty said the crowdsale would allow Synereo to invest in resources that will allow it to actualize its vision.

“We have a very crude UI (user interface) at the moment, meant to provide simple access for the Synereo developers. This is one of our most important goals for Synereo. We are aware of the fact that mainstream adoption of the platform hinges on its front-end and user experience.”

As more people contribute to the crowdsale, the price of AMPs will increase.

“AMPs can be converted to any other currency. They will be traded on respected and established exchanges when the crowdsale ends,” Konforty said.

How proceeds will be distributed

The Synereo website explains the AMPs will be distributed as follows: 18.5 percent will be sold in the initial crowdsale; 10 percent will be used to compensate users as they join the network, invite others, and contribute to it; 7.5 percent will go to content creators who begin operating on the network; 10 percent to the founders of Synereo, vested over a period of 30 months; 11.5 percent for bounties to be awarded to contributors and developers; 42.5 percent for future funding rounds.

The Omni Foundation is supervising the crowdsale. The foundation has access to all transactional information, with their executives serving in the role of trustees for the AMP tokens.

“As we are an existing legal entity and as our identities are fully disclosed, any misconduct in the sale will have harsh legal implications for the Synereo founders,” Konforty said.

“However, we wanted to provide our backers with extra assurances with regards to the clean conduct of the crowdsale and with regards to the security of all funds handled. Real-time transparency and supervision are better than post-factum legal enforcement.”

Synereo assures users complete privacy, total identity ownership and data control, and even anonymity if they seek it. The network has no single point of failure and is resilient to take-down attempts since it allows any two or more peers to communicate directly.

[divider]CCN[/divider]

A unique social network

Konforty claims all leading social media platforms, such as Facebook, Twitter and Youtube, are for-profit entities. Hence, the service they provide to users must generate revenue for the company and its shareholders.

“Features that would benefit the users but would hurt the company’s revenue stream simply cannot be implemented,” he said.

“In fact, user experience in these services is often degraded due to these considerations. Recent examples include Twitter’s annihilation of the third-party client ecosystem for the sake of creating a single Twitter client that can show ads, and Facebook’s reduction of organic page reach to increase spend by businesses. This profit-driven user experience model simply doesn’t exist in the Synereo decentralized network. With Synereo, it’s all about the user; literally nothing else matters.”

“We will bring the Synereo user experience up to par with the industry standard,” Konforty told CCN. “Without a UI and an experience that users are comfortable and happy with, no modern application has a future.”

Tags: crowdsale
Lester Coleman

Lester Coleman is a media relations consultant for the payments and automated retailing industries.