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July 29 2017

ICO Alert Report: Soma

ICO Alert Report: Soma

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PRE-SALE PERIOD

The pre-sale has begun and will end August 11, 2017. ETH is the only accepted form of funding.

Currently, there is a 15% bonus. You will receive 517.5 SCT (Soma Community Tokens) per ETH contributed. This bonus decreases by 5% every week until the end of the pre-sale.

There is a hard cap of 8,000 ETH. If this cap is reached, the pre-sale will end immediately.

View https://soma.co/presale/ for the most updated information. Select the number of ETH you wish to contribute. From here you must agree to terms and input an email. You will be given a contract address to send the ETH to, as well as other important details, like the minimum gas limit.

CROWDSALE

The crowdsale date, time and details will be announced shortly by the team.

TOKEN DISTRIBUTION INFORMATION

There is a fixed limit of 60,000,000 SCT, with 54,000,000 of that total being sold during the pre-sale and crowdsale.

The minimum fundraising goal is 8,000 ETH and the maximum is 120,000 ETH. Every 1,500 ETH raised, a new geographic region will be launched in the Soma campaign.

Further information applicable to the crowdsale will be announced shortly by the team. The contribution terms state that the contribution period will end September 14, 2017, so we are assuming it will begin some time before that date.

ALLOCATION

35% will go towards marketing and new area launches.

20% will go towards product development and technology.

20% will go towards legal issues and patents.

15% will go towards the operational team.

10% will go towards the Community reward (Soma will reward the ambassadors and marketers of the community).

TOKEN PRICE & LOCKOUT PERIOD

Crowdsale token price will be announced shortly by the Soma team. The lockout period for the team is 24 months from the end of the crowdsale.

TEAM(2)

Arto Joensuu: Arto has experience in the gaming, telecommunications and mobile service industries. He served as COO of Golf Gamebook and CEO of dubizzle.com.

Jukka (Last name not listed): Jukka has experience in business development and in startups. We were unable to find more information because a last name was not listed on the website.

Jose (Last name not listed): Jose has experience in sales and marketing, and has worked in the fintech industry as a consultant. We were unable to find more information because a last name was not listed on the website.

Sami (Last name not listed): Sami has experience raising capital for startups and small to medium sized enterprises. We were unable to find more information because a last name was not listed on the website.

Marcin Zduniak: Marcin has experience as a software development consultant in the blockchain industry, specifically surrounding Bitcoin and Ethereum. Marcin previously founded Colubris Consulting and was a software architect for Intelligent Payments Group Ltd.

SOCIAL MEDIA(4)

Slack: https://still-temple-33600.herokuapp.com/

Twitter: https://twitter.com/SomaToken

Facebook: https://www.facebook.com/socialmarketapp/

Github: https://github.com/Soma-co

Bitcointalk: https://bitcointalk.org/index.php?topic=2029648.0

All ICO information can be found in the Soma whitepaper(1) and ICO Specs document(2)

What is Soma?(1)

Soma (re: Social Market) is a blockchain based social market that incorporates traditional social media concepts (liking, sharing, following) into trade between two or more people. Soma believes that the social interaction component of trading has disappeared. The Soma team is aiming to bring back the social interaction aspect of trading by incentivizing users to engage in the marketplace. The community is rewarded via Soma Community Tokens (SCT) when they participate on the platform. Essentially, Soma is leveraging what is called ‘social capital’ (value/power of social media) to facilitate trade between users.

How does it work?(1)

Users list items for sale on what Soma calls an “Interactive Item Card” (IIC). This patent pending product listing allows users to sell products via this posting. IIC information like owner history, product condition, or restoration history will all be stored on the blockchain. The key innovation is that each IIC can increase in social value as it achieves more “social capital” (more likes, shares, etc.). While the physical listing price will not change, the overall social value of the IIC post can greatly increase as more users engage with that IIC post.

Those users that like and share other IIC posts are rewarded in SCT because they are adding value to the community and each specific IIC/user they interact with. Furthermore, the amount of “social capital” one user holds will also determine the proportional amount of reward received. For example, if a famous artist shared a lesser known artist’s post, they would greatly increase the value of that IIC post and thus would be rewarded more SCT. As users continue to interact with the community and other users, they develop a reputation through an inherent rating system in the Soma platform. The stronger the reputation/rating, the more leverage a user has in promoting other IIC posts.

Soma will allow for zero transaction fees when using their native Soma Community Token, but also plan to incorporate Bitcoin, other major altcoins and fiat money into their market. Users will be able to deposit fiat money via debit/credit card, wire transfer or paypal, but withdrawal will need to be done with accepted forms of cryptocurrency. Bitcoin and other major altcoins will be accepted for deposit, withdrawal and payment between users. Multiple options for payment is a plus for the ecosystem, but the Soma team believes the SCT will be used the most due to zero transaction fees and a network effect surrounding the token.

Escrow services will be used to facilitate fair payment processes between users. “Arbiters” are users that act as escrow agents and receive fees for helping escrow transactions between users. If a buyer does not pay a seller for the products purchased, the seller will receive the escrow payment from the arbiter. In the same way, if the buyer pays the seller for the product, but the seller does not ship the product, the arbiter will be able to refund the buyer his/her payment. Upon successful completion of payment and delivery, the arbiter will complete the transaction. Soma believes this will help reduce bad actors as all parties are incentivized to use arbiters and build a reputation system in the ecosystem.

Next Steps

As adoption for Soma grows, so does the free market concept that Soma aims to develop. Theoretically, as more users join the ecosystem there will be an emerging free market effect forming where the accepted price for a specific item is determined using the social media components present in the Soma platform. If a product is listed at a low price, it’s assumed that this will be shared and promoted more than a product that is listed at a price higher than it’s inherent value.

Currently, the platform is in “advanced stage development” having just closed an Alpha version (testnet). Soma plans to incorporate the blockchain features, and believes this will be the revolutionary part of the platform. The team aims to revitalize trade and social interaction, and believe they can be the world’s largest marketplace.

View the Soma website: http://soma.co/

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Disclaimer: This report is intended to provide market intelligence. This is not investment advice and does not constitute any solicitation or endorsement of any investment. Any investment you make is done at your own risk and at your full and absolute discretion. The contents of this report are the property of ICO Alert. All rights reserved.

References

(1) Whitepaper, Soma, (2017) https://soma.co/wp-content/uploads/2017/07/Soma_whitepaper_v_3_2.pdf

(2) ICO Specs, Soma, (2017) https://soma.co/wp-content/uploads/2017/07/ICO_Specs.pdf

(3) Soma Team, Soma, (2017) https://soma.co/#team

(4) Soma Website, Soma, (2017) https://soma.co/

Topics: Blockchain, Social Media, Soma, Marketplaces, Trade