Tired of fake news? Tired of poor revenue streams dependent on the online advertising model? Well, if you are a consumer of news, here is how you can support platforms that give you credible news, as well as take part in it and earn some cryptocurrency.
If you are an investigative journalist who feels tied down because of ‘advertising revenue’ pressure from the bosses above, here’s something that will allow you the freedom to express yourself without worrying on whether some advertiser is going to pull the plug on a campaign.
There’s a new cryptocurrency token, which is being offered in an initial coin offering (ICO), that promises to change how digital media works. It’s called PressCoin. If you are already familiar with cryptocurrencies – keep a look out for NEWS tokens on cryptocurrency exchanges.
What Is PressCoin?
To understand PressCoin, you first must get a grip on what Bitcoin is and how fiat currencies (paper money) function. If you have heard of Bitcoin, you would be aware of the cryptocurrency craze that has caught the fancy of anyone remotely connected to the Internet. The way it has been surging in value in recent months has got many first-time investors looking to make a quick buck interested.
Click here for more information on what Bitcoin is.
PressCoin is an ecosystem in which NEWS tokens will be used as the primary currency. It consists of many media companies together on a single platform, and as the collective worth of the companies on the platform increases, the value of NEWS tokens will also increase.
NEWS tokens are like the shares of a company and they are being offered to public investors right now through an ICO – Initial Coin Offering, which is similar to an Initial Public Offering (IPO) in the stock market.
How Is PressCoin Different From Bitcoin?
PressCoin is a cryptocurrency based on the ‘ether’ blockchain (bundles of code, similar to what Bitcoin looks like), but that’s where its similarity to Bitcoin or other cryptocurrencies end. PressCoin is asset-backed just like the traditional shares in a company, unlike other cryptocurrencies that are only traded, basis the blockchain they are built on. It is backed by a registered company – PressCoin Plc – based in the UK.
PressCoin is issuing 100,000,000 NEWS tokens at a value of $1 each, theoretically raising $100 million in capital. This is about 40 percent of the company. The ICO is in progress right now and will end on 8 January 2018.
We have created a public limited company out of the UK, that is issuing stock and this is an equity-backed token. You have to get to the assets that produce value. Our tokens are structured to provide dividends.Amit Rathore, Co-Founder, PressCoin
How Does PressCoin Work?
PressCoin is a platform itself. It will play host to a number of media companies that want to join the platform and explore alternate means of revenue generation. Currently, it has some startup brands like NextElection (an elections monitoring platform), ChickenSoup News (alternative news) and Insurge Intelligence on it. The platform is based on the Quintype software (which The Quint also uses).
The various revenue streams of these companies on the platform come together to increase the collective worth. It’s a revenue-sharing arrangement and as the reputation of these individual companies grows, the overall worth of the platform increases. Similar to how a share increases in value, the value of the NEWS tokens will also grow.
These NEWS tokens can then be traded on any crypto-exchange for other currencies or transferred to a fiat currency. At the moment, it is being offered on the Swiss-bank based CointypeX cryptocurrency exchange. One can purchase NEWS tokens either with fiat money such as Indian rupees or US dollars.
Think of Presscoin like an alternative asset fund (or mutual fund) with a difference. Here the companies are part of the ecosystem, and not just invested in, like a fund would do. So if any of the companies in the ecosystem grow, the collective worth of NEWS tokens grow.
How Does PressCoin Stem Fake News?
PressCoin claims to be able to stem the flow of fake news. It can afford to do this, because it is not dependent on advertising as a source of revenue only or having to depend on certain political leanings for their earnings.
The company claims to have a decentralised chain of moderators and journalists who screen every bit of news that flows through the platform. This filter will prevent fake news and propaganda from infiltrating the news flow. It is not an automated process.
How Do Readers Participate In The Revenue Share?
Journalists who are using the PressCoin platform will begin to earn NEWS tokens for their stories. They will also get additional tokens depending on the level of participation in the system, and how strong their reputation score is.
Even regular readers following the sites in the PressCoin ecosystem can earn a reputation score for the level of engagement they have. If their reputation score increases, they will earn NEWS tokens and at some point, may even be invited to join the platform.
Various news outlets are being shut down because they don’t have enough funding. These are the areas where we will see community participation. Readers will recognise value in these platforms and want to get involved. They will want to participate and will back this with their money.Nafees Ahmed, Co-founder, PressCoin
Revenue monetisation is provided as a SAS (software as a service) service. For $999 a month, you get a simple, flat cloud-based portal, powered by a community. It’s a straightforward franchise model. You could be the platform in that local space. And there is straightforward revenue sharing. It’s a decentralised ecosystem.Amit Rathore, Co-Founder, PressCoin
How Does One Invest In PressCoin?
To invest in PressCoin, one needs to first set up an Ether wallet (a cryptocurrency wallet). Since NEWS tokens are based on the Ether blockchain, which also backs the Ethereum cryptocurrency, one needs this Ether wallet. It can be set up on the CointypeX exchange or at MyEtherWallet.com. There are step-by-step instructions on these sites on how to set up the wallet.
Next, one needs to invest a minimum of Rs 10,000 in the ICO that is in progress. This can be done in Indian rupees, by transferring money to a Bangalore-based bank account or in US dollars if you are not based in India. Once the ICO ends, the NEWS tokens issued will be transferred to the Ether Wallet, from where it can be traded for other currencies or bought and sold like shares on the CointypeX exchange.
Here’s an animated video that PressCoin shared explaining how the process works.
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