Metaverse. Web3. Cryptocurrency. Blockchain. NFTs.
Peer has it all.
The new Seattle-based startup, which runs on all the latest technology trends, recently raised $ 14 million to pursue an ambitious plan for a blockchain-based social network.
Peer was founded about a year ago and offers similar features to Facebook, where people can interact with user-generated content, but are completely built on the blockchain. This means that content creators will be able to own and monetize their posts as non-fungible tokens, or NFTs. The company says it is in beta testing and has about 20,000 users.
The startup plans to make money through a subscription to the app. It also offers its own cryptocurrency, Peer Metaverse Coin, which allows users to trade NFTs on the platform and reward content creators. The coin is currently worth one US dollar, and its total supply will be limited to 2.1 billion.
Peer will start by launching his social network, moving on to building hardware and eventually developing artificial intelligence, according to his “master plan”.
There are a number of large technology companies that invest heavily in the so-called metaverse, which describes an immersive and interactive virtual world. Meta, for example, changed its name from Facebook in part to signal its great efforts in space. Microsoft has also announced its own metaverse feature, Mesh for Teams, which allows users to navigate virtual work environments like an avatar.
But crypto-related startups, which rely on blockchain technology, have proven to be a risky venture for investors in the midst of the larger economic downturn. Luna, for example, lost $ 40 billion in a sudden merger in May. The troubled cryptocurrency lender BlockFi is reportedly being sold for good during its latest private valuation. Novi, Meta’s pilot project for digital wallets, will be discontinued in September. And crypto broker Voyager Digital filed for bankruptcy.
Asked about the recent negative sentiment around crypto-related companies, Peer CEO Tony Tran claimed that there has not yet been a “utility case” like Peer, where blockchain is useful.
“This blockchain technology, if we can add a user experience on top of it, and we let people use it, then you’ll be able to create all kinds of new media,” he said. He added that using a blockchain on a social network will allow users to fill their digital content with “scarcity” and “immutability”, which means it will be immutable.
Tran, who grew up in Vietnam, previously worked as an engineer at Microsoft, where he focused on developing user experience and design features. He was also creative director and UX designer at Nurego, a startup that was acquired by General Electric Digital. Before starting Peer, he founded two other companies, both of which are closing.
His first start-up, Alfa, was a blockchain project based on the movie In Time. It raised more than $ 4 million, according to PitchBook, but was eventually shut down because it ran out of money. His second start-up, Third & Loom, was a platform for women’s clothing. He started the company with his wife, but they eventually liquidated the assets of foreign companies and closed the business.
Through Peer, Tran is joined by COO Heath Abbate, Chief Design Officer Kyle Hay and Chief Science Officer Thomas Nguyen. The start-up has more than 60 employees.
There are a number of startups that build a social network using blockchain technology. Bitclout, for example, allows users to bet on the popularity of certain celebrities and influencers by buying or selling stocks related to their profile.
Peer users will be able to raise money for their own crypto projects using the platform. They will be able to sell shares in the company through an initial currency exchange, or ICX, on Peer. This is similar to a so-called introductory coin offering, where a startup sells shares in its company via digital tokens as a way to raise capital.
The start-up says that the ICX function will be safer for investors than an ICO, which has gained a reputation for being a tool for fraudsters. It says it has worked with regulators to ensure the safety and security of the process, adding that only “established companies” can qualify to do an ICX on the Peer network.
It has been difficult for some entrepreneurs in the blockchain area to raise capital. Corporate crypto investors make up 65% of the contract volume in private crypto companies, The Information reported, and the venture arms of Coinbase and OpenSea have “stepped on the brakes” to invest in such startups.
In an attempt to raise funds, Peer has sold its own tokens and equity to investors. However, it has not yet identified any of these supporters.
Tran said venture capitalists have not been keen on investing in startups like his, which he described as “experimental”.
“As capital becomes more and more entrenched, [VCs] betting less and less on the crazy ones, ”he said. “And I think the wrong thing is what the future of the world is.”
Peer plans to release an alpha version of his app in August.
