Difference between buying shares of a startup vs. participating in ICO
Some people have, without any apparent research, decided that the ongoing Somnium Space crowd-invest campaign is something similar to a crytpo company Initial Coin Offering (ICO). We are setting the record straight by saying: buying stock, (actual shares in a real company) is very different from offering a new crypto coin.
The difference is that one gives you a company share while the other gives you a certain number of coins of an unknown new crypto coin which you can then use to buy certain goods or services from that company — buy you do not own a success or any underlying value.
Let us be clear, investing in startup companies has certain risks. However, these risks are significantly less than the risks associated with initial coin offerings. The current hype regarding blockchain or crypto, drives the price very quickly (same high speed is then applied to a downside fall). For example a recent VR startup selling virtual real estate and recording transactions on the Ethereum blockchain raised over $32,000,000.00 US in three minutes!Another startup was claiming that after Initial Token Sale their price will go 1400% up! You get the point.
In contrast Somnium Space shares are available to anyone who has £ 16 to invest.
The confusion comes, because if one buys 15 shares or more one has access to “real estate” that exists on Somnium’s servers. These digital assets are part of the Somnium Space business model. However digital land isn’t what you are buying when you jump in during this initial round of crowdfunding. You are buying a share of a dynamic, mission driven startup that’s passionate about creating a truly open and pervasive metaverse.
On the subject of digital land. There will be a public land auction later in the summer at which time folks can buy digital land hosted on Somnium servers and thus have complete control, (ownership) of this server space and the digital land held on it.
Of course, you might be skeptical about buying land that exists in immersive computing network (read: VR server). For better or for worse, we believe that this form of land ownership based in the cloud will become more and more common as time goes on.
Remember, currently you do not own your Facebook profile, your Twitter profile, or your Google plus account. These are the property of companies whose business model depends on dissecting, digesting, and saving forever your personally identifiable information then selling it to the highest better.
Somnium Space on the other hand, has baked security of users personal data in at a fundamental level. Because you are buying space on a server you have complete ownership of this server space and in return it you can do whatever you want with it. (as long as it abides by the End User License Agreement).
This type of freedom from corporate spying is vital to the growth of the metaverse. And is in stark contrast to the business methods of the companies previously mentioned. Also when one buys these plots of digital land from Somnium one is able to quickly monetize in a very unobtrusive and non user identifiable manner. Simply by placing contextually appropriate digital objects within your environment (that you own). Whenever a user or visitor interacts, or even looks for more than a few seconds, at any of these objects you will get paid. And no one is tracked or spied on!
The currency used in Somnium will to be a crypto coin called Somnium Cube and it will have interchangeability with other immersive worlds through the Virtual Reality Blockchain Alliance [VRBA]. Because of this, soon you will be able to take avatars, accessories, weapons and vehicles with you when you go between VR worlds just like Ready Player One! Already today, you can freely and simply teleport from Somnium Space to High Fidelity with one click.
But what does this crowd-invest campaign mean to you? The user, the player, the Metaverse citizen? Simply this: if you put down cash and buy a share of Somnium Space you now own real voting shares of a real company. As well (if you buy 15 shares or more) a plot of digital land that this real bricks and mortar company controls. By ownership of this share of the server you have the opportunity to make money as Somnium Space grows.
While no one can predict the future, when Google, Apple, Microsoft, HTC, Amazon, Alibaba, Sony, and Facebook have all shown deep commitment to virtual reality and = we believe this is a paradigm shift away from the information age and into the experiential age.
Because of this, if you weren’t there, at the live event you will never experience the event. Many of these experiences will simply not be saved. Think of the rise of concerts versus CD sales, the rise of Twitch.com as a medium, and the rise of live streaming versus podcasting or Vlogging. These technologies are all experiential age ways of sharing embodied experience. All of which can be contained within virtual reality and augmented reality when these two sides of the same coin are contained in a single light weight comfortable and stylish set of glasses.
Thus, we encourage anyone who believes in the metaverse, in virtual reality’s ability to enhance, enrich or augment certain parts of our daily life, to join us in creating it today. Go to: www.SeedingVR.co.uk and pick up your shares and join us in building the developing metaverse of our dreams.
In case you have any additional questions, please reach out to us directly via twitter @SomniumSpace or via our official Telegram channel https://t.me/somniumspace or contact Sasha our community manager for private tours and events schedule!
Thank you for your time and see you on the other side!
Somnium Space team.