ASKfm announced ASKfm2.0 with the intent to monetize their question and answer feature which is similar to the US-based Quora site. ASKfm has 215m registered users and hosts 600m questions a month, claiming to be the largest Q&A social network in the world. More than 28% of the site’s traffic comes from Russia.
The blockchain solution will appeal to many enthusiasts because it targets the ‘new economy’. The intent to compensate contributors contrasts with the mainstream model where the likes of Facebook gain the economic benefit.
Maxym Tsaryk, CEO at ASKfm said: “Blockchain opens a path to democratic environments, to self-regulating economic models governed by market laws and mechanisms. We do not see the future for ASKfm, technologies and social networks without blockchain.”
Current ASKfm users will be asked to convert to ASKfm2.0, and create a wallet to receive tokens. The company plans an ICO to raise up to $100m but is currently targeting investors who can commit more than $1m.
Other social networks
Last year Kik was the first large social network to ICO. They raised $100m.
The secure chat app Telegram recently raised $1.7 billion based on a whitepaper. Their ICO only targeted accredited investors, and they shelved the public ICO for now.
Telegram has 200m monthly active users. Note that ASKfm talks about 215m registered users as opposed to active users. Nonetheless, ASKfm’s 600m questions a month is significant.
The ASKfm differentiator is that it has an obvious use case. It remains to be seen how many people will be willing to pay to have questions answered. Provided the transactions can be low cost, it’s feasible to offer tiny amounts to have questions answered.
Earn.com is targeting a similar idea. In their case, people receive payment for responding to emails with plans to roll it out to other activities. Coinbase acquired the company for a reported $100m which raised some eyebrows.
Facebook recently created a team to explore blockchain opportunities.