Today, we read about Tianya Club, one of China’s oldest social networks, which is launching its own cryptocurrency in early August. While all of us at Token News are avid followers of the latest ICOs, sometimes you have to wonder why an ICO is happening at all.
Tianya Club is also a valuable lesson in weighing up whether an ICO is a valid investment or just a cash grab. After all, it’s something that seems all too common in the blockchain space right now and, while Tianya Club may be one of the most popular sites in China, we just had to look into the hype surrounding its ICO.
First, let’s look at Tianya Club. Tianya Club is an internet forum — and a popular one — which launched in 1999; it’s sort of like China’s answer to Reddit. Visitors to the site have been declining over recent years and this may well be one of the reasons they introduced a cryptocurrency. But — and we must emphasise this — it’s still one of China’s most popular sites.
The Tianya platform is launching its own currency, Tianyan Token (TYT), whose main purpose appears to be to reward original content creators. As well as being a medium of exchange, of course. But is this reason enough to launch a cryptocurrency or is it just a cheap ploy?
Whenever we approach an ICO we always ask ourselves one question: does the project have real world value? We always take the time to weigh up the merits of every project we come across. A good place to start is — as always — the white paper. Generally, it gives you a glimpse into the technical aspects of the technology being built, the team and their ability to make the project a reality. As well as the vision for the company going forward.
When we look at Tianya Club, they definitely have the team and audience to be an amazing project, but our big question is this: Why did they choose to create their own token over, say, using an existing coin? If their purpose is rewarding content creators, that’s pretty transactional and there are many currencies that would work for this already.
Tianya Club do say that they will add “more use cases in the future”, but that’s not exactly a satisfactory answer, at least not for us. It sounds like Tianya Club haven’t quite thought the project through. And when we’re looking at a project, we want to see that a bit more has gone into a project than this.
Especially when they’re hoping to raise millions of dollars.
Please remember, this isn’t investment advice it’s just our opinion about the state of the crypto space right now. With that said, we’re going to be watching the Tianya Club with slightly sceptical eyes. But what do you think?
Until next time!
The Token News Team.