Social app startup Reveal has raised $1.5 million in funding, led by Mike Hirshland of Resolute Ventures, Barry Silbert’s Digital Currency Group and Boost VC’s Adam Draper.
Reveal’s mobile-only app encourages users to ask questions by text, to be answered by 15-second video posts, often of an amusing nature.
One of the app’s highlights is its native digital currency, ‘Reveal Coins’ (RVL), a 1,000 of which will be distributed to members who join the network in the first year. They will receive an additional 10,000 RVL for each friend referred to the network, and another 100 for each ‘like’ received for their posts. The hope is that a positive cycle will be generated by the incentives, attracting more users and adding value for advertisers.
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Advertisers must first acquire RVL with dollars, the exchange rate being set by the app. When they advertise, their RVL is permanently burnt, removing it from circulation.
The app’s managers are keeping 75% of the coins, of which a finite quantity will be produced. The coins are not designed based on cryptography, and at this point, the app has no involvement with Bitcoin. However, co-founder and CTO Josh Beal does draw a parallel:
“In the same way that bitcoin mining pools have a vested interest in avoiding a 51% attack, we have a vested interest in making Reveal Coin a secure and fair system, since it increases the value of the network for both us and our users.”
The app bears some resemblance to GetGems, a social messaging app launched during the past year that seeks to promote the use of bitcoin. GetGems has also produced a native currency used to incentivize membership and monetize advertising.