There are plenty of social media projects on the blockchain, including those designed to support the monetization of platforms in one way or another. Chatello, whose token sale got under way today, is targeting social media influencers who the startup says can generate revenues from their presence on social mediate sites. Chatello has several celebs signed up on its platform already, and the app will eventually launch on Android and iOS systems.
The Chatello ICO is targeting USD 10 million from the sale of its ERC20 CHA tokens across the ICO pre-sale and crowdsale, through which the startup is promising eventual dividends, buybacks and price appreciation. They are selling the CHA tokens at a rate of USD 2 per CHA token via smart contracts on the Ethereum blockchain.
If they've not registered the CHA tokens with regulators, they may want to consider doing so -- particularly if they're open to US investors -- as this upcoming ICO has features that resemble an equity security. According to the white paper, Chatello is "under formation in the US" but the corporate headquarters are in Australia.
Upcoming ICO: Celebrity Influencers
The Chatello platform is comprised of two types of users, including influencers and followers. Followers pay a nominal fee to gain access to the influencers, which can be individuals (celebs, athletes, etc.) or businesses, for instance. The influencers then provide feedback on a single-comment basis, but they will be available on an ongoing basis.
Chatello uses Twitter, Snapchat and Instagram as examples where influencers might currently chat with their followers for free and publicly. The problem Chatello is looking to solve is a lack of monetization for those exchanges; the solution is to reward influencers for their "time and effort."
Rabie Fares, founder and chief executive of Associare, the company behind the app, said in a press release: "While the celebrities with 20 million followers or more have found ways to monetize their influence, those with followers of 100K – 20M have not been able to effectively monetize their sizeable social media presence, until now. Followers would happily pay a reasonable fee to be able to communicate with the people they follow and admire, and until Chatello, there has been no social media platform that enables this."
While members may very well be willing to pay a reasonable fee for access to a celebrity, it's unclear what Fares is basing this theory on. There most certainly could be demand for getting an audience with an influencer, particularly if it's someone a follower admires. But who exactly the startup is able to sign on its platform will largely determine the level of success they will experience. And it's unclear which way the public-perception pendulum will swing once it's known that famous individuals are profiting from their fan interactions.
Chatello is only just beginning app development with a planned launch in April 2018.