FunTech (not to be confused with FinTech!) usually means non-gaming entertainment apps and services. Even now this is a huge market, and it’s set to swell up to $34 billion by 2022. One should consider that this segment includes not only services with funny videos and memes – it has everything that brings emotions and fun to users: datings, AR-entertainment, music apps, funny messengers, FoodTech services, media products etc.
Blockchain as a technology has almost unbounded number of application ways, which, as practice shows, are capable of changing the rules and principles on various markets.
FunTech is not an exception. From my perspective, blockchain is able to bring up a new round of evolvement, which is going to be built around two major shifts: using data transparency and publicity for simplifying business operations and user experience + new ways of monetization for companies (to recap, most of the revenue comes from ad traffic at the moment).
For example, in the content space the distributed ledger can solve problems of authorship and ownership rights – content makers can always be sure that each member of the network complies with initital copyrights. Also there’s a window of opportunity for incentivizing users for content generation using tokens or cryptocurrency.
And blockchain in dating – the open ledger may allow users to create their own “dating pools”, earn public rating points and go through transparent identification processes (e.g., using Civic or Identifi). Instead of traditional ads or in-app features, one can earn cryptocurrency with matchmaking: useful recommendations of the soulmate will keep you rich and morally satisfied.
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Using blockchain in Eristica challenges helps to solve the problem of trust, fair prize transfers and the absence of video editing (e.g. using a technology which allows to verify it via file’s hash). Content makers and other members of the network can earn cryptocurrency with their own talents by winning challenges, and observes – by participating in decentralized votings and other in-app features.
This is the first ICO in FunTech. And it’s only the beginning.
From my point of view, there are two reasons for that.
First, the ICO is a major leap to the new economy, to a free world of cryptocurrencies, where there’re new technological and monetizational ways. As for today, the major revenue stake for content-based projects comes from ads and its’ possible derivatives. In the new economy I see many options to use tokens and cryptocurrency for project monetization. This is the moment when online ratings, points and achievements become much more than toys — proper revenue items in P&L statements.
Second (and founders definitely know that), venture financing for FunTech projects is a slippery slope and a tough time, and not so many CEOs get to the end. Bringing one major investor on board of a content project is much harder than conquering the love and attention of users and a community. In this context ICO is a good crowdfunding opportunity in FunTech: this is the way to get little amounts of crypto from your end-users which are truly incentivized in getting the most from your platform + you can always treat them with bonuses :)
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