Why Investors Should Be Paying Attention to Everipedia
Wikipedia is one of the first crowd-sourced or decentralized companies to ever develop, yet most users don’t see it that way. Instead, to them, it is a free resource with a high level of utility. But what if the principles were taken further and some of the most critical issues were fixed?
Everipedia aims to reach that goal, and unlike a lot of other blockchain companies that have minimal reason to be decentralized, they already have a strong proof-of-concept. The fact is, Wikipedia works, but it could be a lot better. Critical issues like posts being deleted or tampered with, as well as the inability to finance the project long-term are what make Wikipedia a threatened project. Everipedia seems like the natural evolution that solves these issues using blockchain technology.
The Importance of Narrative
Controlling the narrative is something the press, government, and many other institutions aim to do. Perhaps this is why Wikipedia attracts such a strange form of controversy in the “deletionism” and editing of articles. History can be edited, and this is why you don’t want the victor (or the defeated) to control what history says. Thus, a perfect case for a decentralized network with no single locus of power.
The IQ tokens are referred to as “brainpower” and are part of a unique network management system, where users stake tokens in order to write articles. If the community approves of the content, their tokens are returned to them. If not, the tokens are lost. Editors and writers are thus incentivized to write well-researched articles that have minimal bias.
This is a unique form of tokenomics that has users “putting their money where their mouth is”, but it helps avoid the frequent errors that may result from riskless article writing. For every incentive there is a disincentive, which makes the long-term outlook for the platform particularly strong.
And just like other cryptocurrencies, Everipedia is censorship resistant. No central authority can determine what an article will say and it is democratically decide upon whether that content stays.
The content expansion plan is looking strong for IQ, as their Twitter page constantly posts links to new articles. Additionally, batch imports of new content may occur soon. This would have no fees paid out and be much more scalable.
Everipedia just went through a massive spike of almost 75% in the last day (with $16.3 million of daily volume), but there is no news out (on official company channels or the forums) to explain why. This could be nothing, or it could be some news that has leaked, but it is what originally brought IQ to my attention.
What is interesting from a business perspective is the long-term viability of something like Wikipedia. We all take it for granted, but most of us visit it at least once a day and depend upon it for reliable information. Currently ranked at 145 in terms of market capitalization, and going after the ability to manage a whole society’s narrative, it seems like IQ has much higher to go. Perhaps wait for the price to settle down after this irrational spike, and then get in, because the use case is definitely justified here.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.