ICO Analysis: Social (Nexus)
Reader, be suspicious of anything that tells you it will establish a “new social network.” The establishment of social networks is semi-organic and requires a massive effort. Have a look at Minds.com, which is a great idea that integrates Bitcoin for promotion. It’s still growing. The author has been there from the beginning. So don’t take this statement the wrong way – the author would love to see the social network monopolies of Twitter and Facebook broken, he just isn’t overly confident that it will happen anytime soon, and here are presented with an investment that hinges on the building of a social network.
That just seems like a bad idea off the top, though we’ll look a little further into it. Any social networking play would involve integrating with existing social networks. That would be the way to approach such a thing.
Nexus is a new generation of social network. All data and uploads will exist on the blockchain instead of centralized servers. Nexus is a feature rich platform that allows you to communicate with friends and family in multiple different and unique ways, while providing state-of-the-art security and privacy.
This all sounds great, but none of it means it will take off. You need tens of millions to even begin to compete with any other social networking effort.
It doesn’t matter if you decentralize the data. It doesn’t matter what you do. To build a social network, you need a social magnet. You need a lot of things that Facebook doesn’t have. People may post on Facebook that they are concerned about being monitored and their data not being private, but it’s not the case that they will necessarily leave the social network right away.
Did you know an alternative software to Twitter has existed for the entire time that Twitter has existed? The software that Identi.ca is based on is open source – anyone can implement it. For that purpose, it’s decentralized. The networks can be integrated through Oauth and other means. It’s really incredible by comparison to Twitter, especially for businesses that want to operate social networks – but as it turns out, the network effect is real in social networking. To build a social network, you need a lot. A lot more than a great idea. A lot more than good technology.
MySpace allowed anyone to create a page, make it look however they wanted, and display music. This was great. Facebook came along and took all of these features away – and still flourished. Facebook focused on being exclusive at first, which expanded its network effect, which is an ironic reality.
By decentralizing and encrypting all data and uploads, Nexus hopes to eliminate all invasion of privacy that large corporations are currently performing. End-to-endmessageencryption ensures only you and the person you’re communicating with can read what is sent, and nobody in between, not even Nexus. Imagine a full decentralized social network where all data and multimedia is stored on the blockchain instead of centralized servers.
Again, this sounds great, but for all intents and purposes – no one actually cares. People want to be where they can be accessed. LinkedIn has managed to flourish as a place to find people in business, and yet the new generation are largely dispensing with it. It would have made more sense for LinkedIn to have released the equivalent of Workplace, but Facebook beat them to that, too. Facebook may not have an eternal grip on social marketing, but it presents a tremendous obstacle to anyone trying to build alternatives. Minds.com, again, is a great alternative to other social media platforms – people have to pay for the privilege to get their posts out there, and there’s an internal currency which manages to integrate Bitcoin. It’s a great project as well, but it will be a long time before it is large enough to matter. This is the simple reality of the matter. ‘
The token sale for this ICO is ongoing. The token will have a purpose, to be used on the platform for advertising and the purchase of goods and services. This is enticing on the face – at least they’re forcing the use of the token for something. But overall, who cares, really? We have to depend on them to build a massive social network, and this much seems unlikely. You can build all the buzz around the thing you want, although they haven’t, really.
One thing you can say for them is that they are doing the right thing with the tokens they are issuing, which there will be a maximum of 50 million. Out of those, 47.5 million will be for sale to the general public. It would be nice if more profitable, better ideas would also do similar with their tokens. Retaining tokens from the public while at the same time profiting during an ICO handsomely is strictly a red flag. It makes one wonder what ICOs intend to do with those tokens. So it’s a plus to see that they’re not doing that here, but again, this thing is probably going nowhere due to its actual mission.
We don’t see any future in things which want our money to start competitors to well-established social networks.
Such a prospect as building a successful social network can take decades to achieve. -4
For short-term investments, it’s nice to see so many tokens being put on the market. This is unusual and should not be under-credited – +4.5.
We reach a numerical disposition of .5 on this token. We figure if you do invest, you’d better dump quickly.
The ICO for the Nexus social tokens is ongoing. Visit https://ico.nexus.social/. Currently, they are offering a 40% bonus (another red flag) – 700 tokens per Ether. Please invest with caution.