What Is Snip Network?
Snip Network is a decentralized news network aggregating contributions from news creators and optimizing content by AI. Users pay in Snip Coin to receive curated news content. Advertisers can also use Snip Coin to promote products or content. Content creators receive rewards, again in Snip Coin.
- Ticker: TM-SNP
- ICO Dates: September 29- October 28
- Hard Cap: $8,000,000.00
- Industry: News, Media, Advertisement
- Funds accepted: Ethereum
- My Rating: 2/5
Snip Network Social Media and Links
- Snip Official Site
- Snip White Paper Download
- Located in: Israel- Tel Aviv
Snip Network Overview
The Snip team believes the news market is broken, too centralized and controlled by major entities. According to the white paper,
“News is broken. A small group of corporations decides which information is worthy of print, promoting clickbait and biased articles, and people who create great content are rarely rewarded for their hard efforts. No wonder that trust in the media is at an all-time low.”
The Snip Network promises to solve those problems by several routes. One is to hand over news creation to registered users, without editorial oversight. The second approach is to curate news, either by bots or by encouraging rewards in Snip Coin. Presumably, quality content would receive up-votes, the author would receive rewards and users would get personalized, curated content in their feeds.
Snip Network sets out to compete with the Facebook news selection algorithms. With this, the project hopes to encourage diversity of content, which is not created to merely please the sharing algorithms of social networks. And while Snip Network would use AI to link users to their favorite topics, the community of writers and readers would also help to verify and distribute the news snips- short stories written by diverse reporters.
The Snip team believes the current state of the Internet relies on gatekeepers such as Google and Facebook, and that this constrains the creation of content.
The Snip Network Team
Snip Network is headed by Ran Reichman, co-founder and CEO. He brings developer and project management experience to Snip. Reichman, as well as lead developer Rani Horev, are alumni of the elite Talpiot program of the Israeli special forces. The story of the project is that they met and invented the decentralized news network. The advisors to the team listed on the home page include angel investors and economists, but no names from the world of media or journalism.
The marketing of Snip Network is the task of Ofir Avigad, co-founder of Credex and growth director of jolt.us.
Snip Network lists Bancor as one of its most prominent partners. Thus, Snip Coin would have access to an already operational token trading platform.
There is no information on hiring additional helpers, developers and content creators- although the token distribution chart shows that Snip Network wants to build an in-house team of writers.
About Snip Coin
Snip Coin is in fact not a coin, but technically a token. The asset is an Ethereum-network based token of the ERC-20 standard. This means it is compatible with MyEtherWallet and may be easily distributed after the sale. The ease of holding a coin is crucial to its adoption.
SnipCoin is pre-mined, with a total supply of 10 billion coins. Some of the coins were distributed in a pre-sale, and the current crowd sale will distribute another 28% of the tokens. A future sale of 30% more tokens is still in the works. The biggest problem with so many tokens outstanding is, once Snip Coin begins trading, its price could be permanently depressed by oversupply.
On the positive side, the token would have in-app uses and this elevates it above tokens that merely exist to be exchanged for Ethereum. But buyers still need to be wary- with nearly a third of tokens kept for writers and developers, Snip Coin may see selling pressure if the token holders decide to liquidate their rewards.
On the other hand, the team and contributors may believe enough in the project to hold the coin with the hope of future growth- not just of the temporary exchange price, but also
Investing in Snip Coin: The Pros
Snip Network has a clear idea and a working prototype, putting it ahead of many ICOs that are clearly not equipped to develop their software idea as fast as modern standards require. There is a live news site with some content uploaded.
The team is made up of skilled developers who seem keen on building and launching the product. There is a reasonable roadmap, planning the beta release for next summer. A test network would start operating before the end of 2017.
The project has been well-publicized by major cryptocurrency-related outlets, so there is enough knowledge to ensure a widespread token distribution. Snip Network is enjoying good publicity, and this means it may be added to a mainstream cryptocurrency exchange at some point after the ICO.
In addition, AdEx is partnering with the Snip Network team, which means Snip Coin will have access to the decentralized blockchain-based exchange. So in case investors or users want to revert to Ethereum, they will have a chance.
Snip Network offers a way to monetize content that does not rely on advertising and does not require cash payments. So far, paywalls and micro-subscriptions have only irritated online news readers, so a platform that uses tokens may be more easily accepted.
The Risk of Snip Network
The worsening ICO climate around the globe may dampen the enthusiasm for the crowdsale. As more financial regulators watch token sales closer, buyers are becoming savvier. There is a risk that the token sale may not be successful.
The large supply of tokens, especially large sums held in treasury or as developer compensation, may be dumped onto markets in the future and lower the price permanently, due to loss of confidence.
And while the Snip Project is promising, it is still operating in an overheated, oversaturated news market where there is no scarcity of information or entertainment. Snip Network will meet with fierce competition, especially for the attention of screen-fatigued users. And meanwhile, several other apps will demand the use of tokens.
Monetizing content by tokens will need to be smooth and intuitive, and avoid technical glitches and losses. Since Snip Coin will run on the Ethereum network, it will rely on the network's transaction speed. This may create minor annoyances to users, leading them to abandon it.
Last but not least, ICO participants may not care for the Snip Network product, and just wait to dump their tokens. Currently, the social media channels of the project show a rather low activity- the fan base is limited compared to better-publicized token sales.
And Snip Coin is not offering any improved security or anonymity or speed features- it is a standard token of the type that anyone can create on the Ethereum blockchain. It has no added features, except to be moved around. And while Bancor may help with price discovery, how would an article be valued with an asset that constantly changes in price?
There is also the risk that Snip Network would be preaching to the choir, acquiring only a community of cryptocurrency enthusiasts. For others, even learning to use MyEtherWallet properly to acquire tokens would be a major hassle. So Snip Network may never become mainstream.
There are other red flags around the publicity of the project, with a Forbes contributor article that repeats the language of the white paper.
Final Thoughts on Snip Network/Snip Coin
So who would need to wait for more than half a year for an operational blockchain-based content project when they can find one immediately. The Steemit platform has been doing for months what Snip Network only promises to do. There is a robust community around Steemit, the token is traded on many exchanges, but its price still fluctuates with the general sentiment of Bitcoin and other major cryptocoins.
And Snip comes at a time when Steemit is expanding, offering media creators to even build proprietary tokens. So Snip Coin may not really be able to stand out.
Still, there is no telling which project or platform would take off. It is possible that a small investment in Snip Network may get returns in the future.
Last but not least, always verify the Ethereum address when participating in a token sale. When the Snip Coin event opened, the team warned in a blog post about potential fraud and alternative wallet addresses. Transactions to an Ethereum address cannot be refunded, and some large ICOs have seen funds sent to malicious hacker accounts.
Therefore, our verdict for the project is 2/5. While there is little risk of outright losing your Ethereum, there are too many uncertainties even to achieve a medium-term return on investment. Media projects are notoriously hard for blockchain companies, as they struggle to find enough content creators- but still, Snip Network stands in a niche with not too many competitors, as most projects are geared toward gaming, finance or blockchain infrastructure. But it is hard to tell what advantage Snip has even in a sparsely-populated niche of the ICO world.
Should YOU Invest?
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