Bitcoin Global News (BGN)
September 06, 2018 -- ADVFN Crypto NewsWire -- In that they are
faced with a stagnant market, the Crypto firm called Civic has been
faced with a growing problem.
As you may know, Civic is at its
core, a Blockchain network that is built to store and verify
identities at scale, as well as transfer them between parties who
need to be involved in this verification process.
According to the company’s founder,
Vinny Lingham, this difficulty that the company is experiencing is
not due to any sort of technical weaknesses of the platform.
Lingham’s opinion is that Civic’s struggles all are due to the fact
that they cannot seem to reach a critical mass of users.
To address this problem, Civic has
proposed what some might consider to be a unique solution. In a
nutshell, they plan to pay users to join and use their platform in
order to finally reach a level of users that suggests that they are
here to stay.
The central problem is that only
Civic knows what number this is, so we are then left with the
question of when this incentivized form of growth will
end.
Fortunately, in an interview with
Coindesk, Lingham explained that this will continue until 333
million tokens, or roughly $43 million is used up, over the course
of the process.
In explaining why the company chose
to do this in the first place, Lingham added that this entire
strategy is intended to drive network effects, which is in line
with the reasoning that we have already mentioned. Given that the
majority of the the value of a technology company is usually
created by network effects as we have seen time and time again with
companies like Ebay, Amazon, and PayPal, it is not hard to see why
Lingham and his team have chosen this strategy.
As of now, the only remaining
question is: will Civic become one with the greats or will it
continue to stagnate?
By: BGN Editorial Staff
News:
Civic