- Calaxy raises $ 26M for a social token that will reward content creators.
- The key fundraising round was co-led by the HBAR Foundation and Animoca Brands, and the $26 million received would go into product development, marketing, and expanding the workforce.
- A Web3 social marketplace application developed by Dallas Mavericks guard Spencer Dinwiddie
Calaxy aims to “revamp the creative economy” by enabling celebrities, influencers, and content producers to develop more direct connections with their most ardent followers (think: the top 10%) and monetize those relationships more fairly than existing Web 2.0 platforms allow.
Solo Ceesay, a co-founder of Calaxy, stated:
There has been a dearth of investment in technologies that boost creators’ ability to capture part of the wealth they generate.
Artists, influencers, and content producers with huge social media followings have traditionally monetized their followings through indirect brand agreements. However, this is a defective paradigm. “In that sort of environment, [the process of organizing brand transactions is] incredibly inefficient, and the brands and centralized organizations themselves keep a lot of power.
Creators have frequently been rewarded with a small proportion of the value they generate.
Web2 social platform economic infrastructures such as Instagram, TikTok, and Twitter inherently favor huge businesses over creators. Because these platforms rely on ad revenue for the majority of their revenue, they’ve evolved into customer acquisition gateways for companies rather than the playground for artists that they were designed to be.
According to Ceesay, Web2 solutions have drawbacks.
To augment their income, these producers used sites like Cameo, Patreon, and Only Fans, which decreased their dependency on centralized social networks that may change their algorithms at any time.
Calaxy set out to create a real creator’s paradise. The platform includes features similar to those found on Twitter, Instagram, and TikTok, as well as the ability for creators to deliver familiar creator economy experiences like video calls, video messages, live streams, and exclusive content, as well as customize offerings specific to their audience (think: a famous athlete giving super fans a chance to buy an hour of private training). The software practically eliminates the limitations of fan connectivity and direct monetization.
Fans will utilize social tokens—personalized cryptocurrencies designed to serve as the backbone of a creator’s own economy—to pay for the items and experiences that they may either buy or get as gifts. The Calaxy software, which is set to launch later this summer, was created with the goal of allowing even a Web3 newbie to produce a fungible (or non-fungible) token.