ICO Start-ups: Meet The Founders of SOMA
MLG Blockchain Consulting is committed to supporting unique and upcoming ICOs on their journey towards successfully integrating their blockchain technology. And we know many of you are curious to dive deep in the minds behind these novel blockchain startups.
That’s why we decided to kickstart ICO Startups — Meet the Founders Series. In this series, we aim to support your learning progression of upcoming and current ICOs by asking insightful questions to the founders themselves! Today, we are kickstarting our series with Soma — The Social Market founders, Jukka Hilmola and Joseph al Sharif.
When did you first get involved in the blockchain industry?
I first heard about blockchain in 2012 when one of my clients began investing in and talking about Bitcoin. At that point I didn’t bother to investigate the concept any further. Blockchain really sparked my interest when I began hearing about its applications across industries and situations. That was when I actually began learning about the intricacies of blockchain and looking into the wealth of possibilities for improving industries with this technology.
What problem is your ICO targeting?
With Soma, we are trying to fill a hole in the online-trading marketplace. Currently, platforms such as eBay lack the features that facilitate social interactions. Soma’s platform will unite safe trading and social interaction to facilitate peer-to-peer transactions. We believe that rewarding social contributions on the platform, such as product promotion, will encourage the development of a community of traders, which in turn will improve the overall experience.
What inspired the idea of your ICO, was it spontaneous?
In Soma’s first two rounds of funding, we opted for angel investors whose funds allowed us to deliver an Alpha version of the platform. However, as we were evaluating our options for the third round of funding scheduled for late 2017, we hesitated between venture capitalists and ICOs. After weighing them against each other, we concluded that as a blockchain startup an ICO would be our best avenue. Many startups have quickly and successfully raised money this way, and an ICO attracts international attention as opposed to venture capitalists.
Where is your ICO registered?
We’re registered in Helsinki, Finland. It’s pretty exciting, actually, because Soma is Finland’s first blockchain startup to have raised money during its ICO launch!
Who are you current non-blockchain competitors?
Our most widely known non-blockchain competitors are eBay and Craigslist, as well as Wallapop, Shpock, and Mercari. Our biggest challenge lies in our differentiation, but we always keep in mind the importance of bringing something new to the market whether it be through our incorporation of the social interaction platform or our take on the consumer-to-consumer market.
What are the most important points of an ICO evaluation?
When evaluating an ICO, I think it is important for investors to apply the same principles of due diligence that would be used by venture capitalists and angel investors. I think my top three tips for potential ICO funders would be that they:
1. Research the team and evaluate their competence for executing the business plan,
2. Read and understand the company’s white paper,
3. Conduct research on the markets that the ICO is trying to disrupt and analyse whether or not the white paper is
consistent with your market-based research.
Overall, I guess the most important takeaway is to understand both the market’s and the ICO’s implications before investing.
What are some red flags to spot when reading an ICO White Paper?
My advice would be to watch for inconsistencies in the conclusion. Just like in a research paper, an white paper’s conclusion should evaluate the quality of the paper. So, if a White Paper’s conclusion doesn’t make sense because of inconsistencies in the paper, it is unlikely that the business itself will make sense.
The last point I would like to make is best practices for white papers. I believe that these documents should always include the company’s mission and thoughtful considerations of the company’s future post-ICO. This can allow potential investors to gain a deeper understanding of the company’s long-term goals.
Why do you think that there was an ICO ban in China?
I can really only speculate about China’s ban as it is hard to know what motivated such a response. But, my impression is that the ban was introduced because the government wants to make sure that ICOs aren’t breaking any laws. I also think that they wanted to give themselves time to consider the implications and to create regulation for this young industry.
Do you believe ICOs will bounce back in China in the near future?
I like to be optimistic and I really believe that the ban in China will be short-lived. Honestly, I completely understand the government’s decision, and I even think it is a reasonable measure to take while they are trying to determine how to best regulate ICOs.
At the moment, the ICO market is experiencing a surge of excitement and it is in contributors’ best interest to weed out the bad apples with decent regulation. That being said, ICO regulation should protect investors without hindering legitimate, promising startups from raising capital.
How will the ICO ban in China affect Soma?
Well, based on the lack of clarity around the situation in China, we have decided to disallow Chinese contributions to our ICO.
Do you think other countries will impose a ban on ICOs?
Though it is possible that countries will respond with bans, I think that would be quite aggressive. The more likely scenario would be for governments to begin introducing regulation, and that is probably what will happen.
What is your favourite blockchain-based platform? Do you use it?
There are many platforms coming out with good ideas, but at the moment my favourite one would have to be Bitquence, which is creating a universal wallet that will make cryptocurrencies more accessible to non-techies. Though Bitquence has not yet gone live, I have personally invested in the technology and will surely use it once it becomes available.
If you had the opportunity to meet the mysterious Satoshi Nakatomo, what would you most want to ask him?
I guess what I have always wondered is whether or not they anticipated the magnitude of the effect that blockchain would have, and if Satoshi Nakamoto would have wanted their technology to follow this path.
Follow Soma Token Sale: https://soma.co/
Follow Soma Twitter: @SomaToken
Follow Soma Facebook: https://www.facebook.com/socialmarketapp/
