Inferno analysis: FUNK/SONIQ
Cypherfunks, an old 2014 crypto project, is being digitally remastered as Soniq: a turbocharged Ethereum-based music industry exchange. This is a great indie project and we’re really liking the mood music coming from these guys.
The music industry has been on notice ever since the late 90s, when Napster came along and informed them that their business model was fatally flawed. The territory has shifted a lot since then, especially with the rise of YouTube and social media, but the industry is still stuffed with gatekeepers and middle management. Does anyone know what half these people actually do, or what value the other half even offer? Most of the time their role appears to be preventing new talent from fulfilling their dreams and potential.
That’s why blockchain and crypto — inherently grassroots, democratising technologies — are a natural fit for the problems that hamstring up-and-coming artists.
Cypherfunks (FUNK) is one of the older crypto projects still in existence. When it started back in 2014, it was conceived as a currency with which to crowdfund a global band. Since that time, the project has evolved and so has the tech: with the rise of smart contracts, it’s now possible to build something very much more sophisticated: a decentralised exchange for music skills, and an ecosystem that rewards and incentivises all those who take part in it, from performers and producers to distributors and fans. That’s what Soniqis. As the website explains:
‘So what is our ultimate goal? To create a powerful blockchain-based platform that brings together everyone who cares about music. And what is our motivation? To allow matchmaking and talent-exchanging opportunities for everyone involved in the music creation process, and to help musicians get paid adequately and transparently without being robbed by middlemen… Do you need a producer that specializes in your genre(s)? We offer to connect you with the proper professional. Need a session sax player for recording a solo on a song? We’ve got you covered! Can’t deal with songwriting? Here’s someone who can! Want to hire a DJ to play your venue? Say no more! Looking for a matching band to play a gig or tour with you? We’re looking forward to your mutual collaboration!’
FUNK to Soniq
The development of new tech and a new approach prompted the decision to move to Ethereum, which is also an opportunity to breathe new life into the new community (most of the original Cypherfunks having gone their separate ways over the last four years).
The team behind Soniq didn’t want to hold an ICO for various reasons. This is meant to be a grassroots project, and they wanted to support the existing community wherever possible, so the plan is to swap the original FUNK for Soniq. FUNK has a supply of approximately 50 billion, and there will be a total of 50 million Soniq, of which 10% will be reserved to fund the project. The remaining 90% will be distributed proportionally in return for burned FUNK (so if a total of 10 billion FUNK are burned, and you burn 10 million, you’ll receive 0.1% of the 45 million Soniq that are distributed, or 45,000 Soniq).
If you want to get hold of FUNK, it currently trades against LTC on Cryptopiabecause its unit cost is too low to allow satoshi values (one LTC will currently buy you 2–3 million FUNK). In the couple of weeks before the swap began it was trading around 24–25 litoshis, and the coin had a total market cap of just $1.5 million.
Schedule and Team
The swap will take place for the next two months, after which the new Soniq tokens will be distributed to their new Ethereum addresses. Meanwhile development continues. The plan is to release an MVP for the skills trading platform in Q3, as well as listing Soniq on new exchanges and bringing in new talent to push the initiative forwards.
There are several things that make this an attractive project, but one of the most important is that it’s created by musicians who know code, who saw a problem in the music industry and decided to build a solution themselves. This isn’t another massive ICO by a bunch of people with a ‘good idea’ but little more, who will collect money and then figure what they should make — if anything. It’s not going to collect millions in funding, but the swap and distribution model means there should be enough to make it all happen.
The white paperis well worth a read (which should go without saying for any crypto project, but we know how it works in practice…). It’s not tech heavy, and it’s not written in the classic, overly-formal style that makes you think the team are trying to convince themselves as much as everyone else of their ability to deliver. It’s laid back but coherent and gives a pretty good vibe about the kind of project they’re trying to build. The same goes for the articles on their Medium blog. Plus there’s a Discordwhere you can ask questions (or on bitcointalk), and you should pretty quickly be able to get a sense of whether this is the kind of crypto project for you.
If you have FUNK and want to swap it for Soniq, you’ll need to go through the following steps. You can deposit FUNK to the swap site from Cryptopiaas well as a Cypherfunk wallet. Deposited FUNK are burned.
1. Go to https://soniqproject.com/
2. Click ‘Get Soniq’ at the top of the website or underneath the countdown on the website.
3. Create an account, or log in if you already have one. You’ll need to confirm account creation with the email link.
4. You can now register an Ethereum address. Use an account over which you have full control, NOT an exchange account. MyEtherWallet is a good option for creating an Ethereum account if you don’t have one already. (Watch out for phishing sites — always check the URL and type it in directly. Don’t follow links.)
5. You will then be given an address to which you can send your FUNK. It’s a unique address and will be used to allocate your Soniq after the swap ends.
This is an extremely interesting project, which is promising on many levels. From a community point of view, it’s an enthusiasts’ initiative, driven by musicians who code. Inferno is a big fan of grassroots crypto efforts. There are also some solid names in the team, who turn up in other roles across the crypto world, and many have established their reputation in crypto over the course of several years.
From an investment perspective, there’s a high return to risk ratio here. The market cap of FUNK is very low — in fact, in today’s climate of multi-million-dollar ICOs, there are very few crypto projects it’s possible to invest in on the scale of $1.5 million (current market cap). The potential upside is substantial.
Soniq is one of those rare finds we’ve been lucky enough to stumble upon. There is room to get involved and be a part of something cool, and to make a good return. The market cap is small enough that your investment and effort cap make a direct contribution. As a whole, it ticks many boxes and getting involved in one capacity or another is a no-brainer.
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