Established in 2016, indaHash is a service that connects social media influencers and brands, to utilize influencers’ exposure and the impact they have on their followers. The company quickly grew in a relatively short period of time, to become the biggest player in this specific market and to serve more than 400 brands by connecting them to over 300,000 influencers. In general, the company’s clients are fortune 500 brands such as Mastercard, Coca-Cola, McDonald’s and many more.
indaHash wishes to implement a token in their system, which will allow the service to come over many logistical obstacles and will unveil an array of new features.
In this article we will be examining their existing product, the way they want to tokenize it and their upcoming token pre-sale, planned to begin on November 8th, 2017.
The current service, offers an app for social media influencers where after registration, they can get notifications about new campaigns. If an influencer chooses to “advertise” a brand from a campaign, by including it in a post somehow, he will earn money from it. Each post must be approved by a moderator. After approval, the influencer starts earning money, the rate is based on their post’s reach and on their followers’ engagement level.
According to the project’s whitepaper, the influencers market is projected to be a $5-10 billion market, by 2020. In addition, the paper states that “People nowadays only trust other people’s recommendations on social media”.
Having a unique token, solves major payment issues for indaHash, as currently, payments to influencers are done using bank transfers. Using a cryptocurrency will allow the following:
- Payment to influencers without a bank account in their country. Currently, indaHash holds 30 bank accounts worldwide. This will remove regional limitations and allow indaHash to cooperate with influencers from all around the world.
- Significantly shorten the time for money to be received from brands and to be sent to influencers.
Using bank transfers can cause influencers to receive their money with a delay of up to 60 days.
- Increase influencers’ privacy, as they won’t have to provide personal information, like they usually do with bank transfers.
- Remove minimum or maximum payment limits.
- The use of advanced payment automations.
In addition to solving payment issues, indaHash aims to create an economy within their service.
Each player (a brand, an influencer and even followers/audiences) has its own use-cases for using the token.
To begin with, brands can use the token to pay for campaigns, while influencers can get paid in it and sell it to indaHash (or trade via an exchange). indaHash aims to use fiat payments from brands in order to buy more tokens, which will be used to further pay influencers.
As not every big company is eager to start using cryptocurrencies instead of fiat money, we have asked Karolina Parysz, a junior UX designer at indaHash, what their plans are for incentivizing brands to use their coin, she explained that “The implementation of the indaHash coin will be divided into stages. The brands will still be able to pay with the fiat currency. However, by implementing the buy-back programme we assume a conversion of the fiat currency into the indaHash Coin (we will be buying our own IDH Coins from the market for payments with the influencers). Our ecosystem of the indaHash Coin assumes a circulation of the tokens between the brands, influencers and their fans. The brands which directly use the indaHash Coin in their payments will be granted discounts for the campaigns, a prior visibility before other brands, and the possibility of using the Pay-With-Fame functionality. That means enabling early access to products and services for the influencers with discounts.”
Influencers can also use the tokens to buy prestigious / early-access products and services from brands. These products can be used for additional campaigns as well. This service will be called “Pay-with-Fame”, and it aims to automate the purchase of these goods from brands by influencers. Each influencer will have their own “indaHash Score”, an internal rate which will be determined in a qualitative manner according to each influencer’s performance with his followers and community. The higher an influencer’s indaHash score is, the less he would pay for goods purchased with indaHash coins from brands. This process is planned to be automated by a widget, indaHash gave an example for a use-case, where a professional gamer purchases a game from a company, without having to be in direct communication with its developers.
indaHash also allows influencers to spend indaHash coins in order to create their own unique tokens! These tokens will be used for rewarding a given influencer’s audience, for activities such as subscribing, sharing content, commenting, liking, tagging, participating in activities and more.
Fans will be able to exchange these tokens with their creators, for personalized and exclusive interactions with them, such as personally signed gadgets, meetings, social activities, public mentions of top contributing fans, early access to products and appearances on posts.
indaHash’s future plan, is to make their token a global currency for the social media influencer industry, which will allow brands and influencers to develop a direct relationship between them.
Token Value and Infrastructure
indaHash Token (IDH), is an ERC20-compliant token on the Ethereum blockchain. As the future of the network, in terms of scalability, is still vague, and indaHash is aiming for mass token adoption and usage, a few plans are outlined in the project’s whitepaper. Among the possible scalability solutions, are Raiden (which is the most natural candidate), Tezos, Plasma, EOS and Exonum.
In terms of value, the whitepaper provides examples for supply decreasing and demand increasing factors. Among the supply decreasing factors, are a fixed supply of 400,000,000 tokens and the fact that influencers with a higher balance of tokens, will receive more tokens for campaigns they participate in.
Some examples for demand increasing factors, are the vast use-cases and users of the token (brands, influencers and audiences), the growing numbers in the influencers market and the company’s plan to use fiat currencies received by brands to constantly purchase more indaHash tokens.
Behind this project, one can find a very big and solid team of executive managers. By looking at the whitepaper, company website and additional materials such as videos, I personally find the team very impressive, it projects freshness, power and a very happy and cooperative vibe.
The company’s CEO, Barbara Soltysinska, is an experienced entrepreneur, who was part of LifeTube, the biggest YouTube MCN in central and eastern Europe. She was part of the EY Entrepreneurial Winning Women Europe Class of 2016 and was the first woman to receive the “Man of the Year” award by the MIXX awards of the IAB in 2015. All in all, she looks like a strong and impressive pick.
Alongside the CEO, are Darek Zielinski, the company’s COO, with experience working in several projects and companies in the media industry since 2008, Daniel Wroblewski, the Chief Software Architect, is in charge of the whole technological aspect and Dmitry Khovratovich, acts as blockchain advisor, holding a vast experience as a blockchain, security and cryptography researcher. I would strongly urge readers to read more about the team on indaHash’s ICO website and whitepaper for more information.
Below is the project’s roadmap, which starts with the token pre-sale in November 2017, followed by an ICO and integration with large exchanges in January 2018. During March 2018, it’s planned for the indaHash Coin to be integrated into the indaHash app for influencers and in May for brands payments. The influencer tokenization program is currently scheduled to be introduced in July of the same year.
In the crypto space, there are currently no direct competitors to indaHash’s coin, as it attacks the very specific niche of influencer marketing.
In general, the internet is SWARMING with many different solutions and ways to connect between influencers and brands. From “boutique” agencies to marketplaces for the masses. indaHash claims to be currently the leading provider in this market.
We have asked Karolina for her view on who their main competitors are. She replied that “Influencer marketing is currently the fastest growing sector in the field of digital marketing. We can observe new entities appearing on the market every day, which create various solutions for delivering campaigns, search-engines for the influencers, and analytics. We are the sole influencer marketing platform working globally and have delivered campaigns on more than 70 markets. We do not concentrate on the local market, but instead focus on international campaigns for big brands and agencies. As far as the competition within the crypto space is concerned, we have not seen any other solutions yet which would connect influencers, brands and their fans using blockchain technology. We are convinced that our solution is unique and fully original.”
Pros and Cons
- The company is working in a viral marketing oriented environment, this fact can contribute greatly to their fundraising campaign’s exposure and further success along the way.
- Mainly, influence marketers are young people, who are typically more drawn to the cryptocurrencies market, when compared to older people.
- A well-established company with 160 employees and more than 400 clients.
- Big team, already experienced in working together while possessing a proven history of success.
- Mixed reviews for the app on Apple’s App Store and Google Play.
- High token volatility can repel influencers from using a tokenized service.
- A relatively big ICO that can reach to raising more than $10,000,000. A fact that can make a smaller investors’ share smaller.
indaHash is a very strong in the market of connecting between brands and influencers. They wish at first to tokenize their platform, in order to solve payment related issues and in order to create an economy between the groups of brands, influencers and audiences. In the future, they wish to become the global form of value which will be transferred between all players within the influencers market, they hope that this form of value will allow more direct relationships between the players.
There is no doubt that using cryptocurrencies, a unique token and even allowing the option of creating a token for leading influencers, are very relevant for indaHash’s business, and might give them the leap forward along the way to becoming a marketing platform giant.
Pre-sale and ICO Details
Maximum fixed supply: 400,000,000 IDH
Minimum Goal: 40,000,000 IDH
The smart contract behind the sale will allow reclaiming the tokens for ETH in case the minimum goal will not be met.
Hard Cap: 320,000,000 IDH
Token Sale Value: Week 1 – 1 ETH = 3,840 IDH (20% bonus) Week 2 – 1 ETH = 3,520 IDH (10% bonus) Week 3 – 1 ETH = 3,200 IDH (base rate)
No tokens will be distributed to the team members at indaHash. Below is the complete token distribution for all of the fixed supply:
We wanted to understand better, how the 72,000,000 IDH for influencers & market education activities will be distributed. Karolina elaborated on this subject and said that “72,000,000 IDH Coins will be dedicated to the adaptation and education of the new as well as current influencers of indaHash. They will not be sent to the base of our users at once. We have worked out a model, in which we will reward active influencers with IDH Coins within the next 24 months after the ICO. We will grant them certain amounts of tokens for their activities such as completed campaigns, increased engagement rates or outstanding activity of the followers on their profiles. We will simultaneously educate the influencers about the possible ways they may choose to spend their tokens and how they will benefit from that. The information will be delivered in videos and webinars, so that it is simple and appealing to all recipients.”