Cryptocurrency crowdfunder Koinify has announced the launch of its first project, GEMS, a social messaging app that rewards its users with cryptocurrency.
Koinify’s stated aim is to stimulate the decentralized economy through Decentralized Applications (DApps), Smart Corporations and Crypto Infrastructure. Entrusted funds are stored with an arbitrator in multisig wallets, released to a project’s founders in accordance with milestones achieved.
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GEMS will be launching as a mobile app, first for iOS, followed by Android. In addition to encrypted messaging, users can send bitcoin and its native currency XGEM to each other. Users are also rewarded for bringing additional users into the network, and during “airdrop giveaways”. The startup notes how its model recognizes the value each user brings to a social network, drawing comparison to the $19 billion paid by Facebook for WhatsApp’s 400 million users. Said GEMS founder Daniel Peled:
“At the moment, the masses lack a strong incentive to enter the Bitcoin ecosystem. GEMS solves this problem by ingeniously taking the most adopted form of online communication—mobile social messaging—and introducing a value-reward system built on top of Bitcoin. Users familiar with Bitcoin will enjoy a convenient method to send Bitcoin to their contacts without having to type in long addresses because our system works with the users’ screen names. People new to the space will appreciate GEMS’ interface that is easy to understand and use.”
GEMS will also be holding a 14-day pre-sale of its private token to “select value-added partners in the Bitcoin sector”, which will then be opened up to the public starting December 1.