- Project Name: Musiconomi
- Token ticker: MCI
- Website: https://musiconomi.com/
- Whitepaper: https://cofound.it/en/projects/musiconomi/
- Hard cap: US$6 million ETH (ICO contributors own 25% of total token supply if hard cap is reached)
- Soft Cap: US$3 million
- Conversion rate: Not fixed until shortly before the ICO begins
- Maximum market cap at ICO: US$24 million
- Bonus structure: None
- Pre-sale or whitelist available: Musiconomi is a cofound.it project, so by having a cofound.it priority pass, you can have priority access to the ICO before the public. More information here.
- ERC20 token: Yes
- Timeline: Pre-sale starts on August 29th at 5PM CEST and public crowdsale on August 31st at 5PM CEST (please refer to Musiconomi’s website for most up-to-date information)
- Token distribution date: Within a month after crowdsale ends
Watch our video summary (video is 8:45 long)
What does the company/project do?
Musiconomi wants to disrupt the broken music industry and incentivize value creation, starting with the musician but extending to the bloggers, promoters, fans, labels and others that help make a thriving music economy possible.
The project is a distributed platform that connects users to the other 99% of music artists that they don’t hear on mainstream radio stations. It gives listeners a way to enjoy music knowing that their money will go to the artist and not middlemen. The platform will connect musicians, independent labels and users, no matter their location.
The platform will offer:
- Tools for content creators/owners to publish their content and directly control the disbursement of payments to co-creators (e.g. band members, song writers, producers, editors).
- Tools for content promoters to promote great content and be rewarded for their effort.
- Tools for content consumers (listeners, readers, etc) to find, share, and enjoy new content and become promoters and creators themselves.
A few of the sample use cases:
- Listeners will be able to use MCI tokens to generate a referral link that can be shared on social media, on their own website, or in a blog post. The referral link will be presented in an embedded player (similar to SoundCloud).
- Bloggers will have the option to lock up MCI to activate a premium content option, where readers will pay a micro payment in MCI in exchange for full access to exclusive content.
- Bloggers will also be able to lockup MCI to activate a paid subscription service, allowing users to pay recurring monthly payments in MCI in exchange for access to all articles in a series.
Below is a Q&A session if you want to learn more about the project (video is 43:19 long):
How advanced is the project?
Musiconomi is the successor of Musicoin, which was a project working on the music pay-per-play model.
Within the next 18-24 months, the team would like to achieve the following:
- Open Musiconomi office in a strategic market center
- Launch advanced Blockchain-based music streaming application 2.0
- Build and support basic sharing features
- Develop playlist feature
- Develop playlist sharing features-
- Develop mobile app
- 20 artist ambassadors
- 50 strategic partners
In July 2017, Musiconomi announced the partnership with Substream, a Swedish electro/pop label with 450 artists.
What are the tokens used for and how can token holders make money?
MCI is intended to perform the key function of settlement between parties including creators, users, and other platform participants. MCI will be the currency of payment and reward for all value exchange on the platform.
It will also be used as a “staking” mechanism whereby token holders are able to access tools and features of the platform which may enable further opportunities to add value and earn rewards.
As MCI is used 1) as the currency on the platform and 2) to enable different functions on the platform, the more usage the Musiconomi has, the more valuable MCI tokens should be.
Musiconomi has a team of 6 and all of whom have relevant experience in their respective field. The team members have worked together over 2016 and 2017 in the Musicoin project.
Below are the bio of the key members:
Dan Phifer, co-founder, CTO – nearly 20 years of experience in software development. Previously worked at Johns Hopkins Applied Physics Lab, and Amazon. Also a co-founder and primary developer at Musicoin.
Brian Byrne, co-founder, Chief Musician Ambassador – the former vocalist for I Mother Earth, a Canadian alternative rock band. Also the founder and curator of several charity music projects, including Surf, Sing, Change, Arizona Project and close work with Unison Benevolent Fund.
Elio Di Iorio, Co-founder, Chief Organizer – held elected public office as well as the position of International Secretary and Spokesperson for a major political party in Canada. Pioneered the use of the internet for Canadian political campaigns in 1997.
David Werba, Co-founder, Chief Marketing Officer – serial entrepreneur, founded two startups including Music Forte, Inc. (2003 - 2012). Joined Nexstar Broadcasting Group as a marketing strategist, web developer, and producer of both local and national TV shows for FOX and NBC.
The project also has a strong team of advisors, including Daniel Zakrisson, co-founder of cofound.it, and Anthony Di Iorio, CEO & Founder at Jaxx & Decentral.
- Musiconomi is one of the first cofound.it projects and went through the rigorous vetting process employed by cofound.it.
- Team is competent with people from the music industry, technology and blockchain side. The team’s previous experience in the Musicoin project also provides them valuable experience.
- The project has already secured partnership with a music label, putting it ahead of its competitors.
- Network effect is present. The more promoters / musicians on board with the platform, the more valuable the platform is.
- The project is trying to solve a genuine problem that needs to be fixed. If Musiconomi is successful in its mission, MCI tokens should appreciate substantially.
- I’m not fully convinced that Musiconomi’s model completely fixes the music industry. Independent artists with little budget are still disadvantaged because they don’t have the marketing budget that the bigger players have. Promoters can earn more from promoting musicians with a deep pocket so they are more inclined to promote those with a higher marketing budget.
- The platform would generate many small transactions and the gas price on the Ethereum network would make such transfers cost prohibitive. The team has a few solutions on solving this issue, including creating “wallets” so promoters/users can withdraw only when the balance is large enough. However, the exact mechanism is not confirmed yet.
- There are other blockchain projects tackling the music industry, such as UJO, Voise, and Audiocoin.
- The project does not have a working product yet so technical this is just a “white paper” idea. However, the team demonstrated its execution ability from the Musicoin project which somewhat mitigate this risk.
Overall, I like this ICO for its short-term potential but am neutral about its long-term potential. Our thoughts of the tokens for short term and long term are as follows:
For short-term holding
Good because 1) hard cap of $6 million is very low in today’s standard so there is not much downside, 2) the project is comprised of an experienced team who worked on the Musicoin project.
For long-term holding
Neutral. There have been many attempts from different companies to disrupt the music industry but most have failed. On the other hand, Musiconomi has a small market cap, so if the project becomes a success, MCI tokens should appreciate significantly.
The team is only selling 25% of the tokens this time, with the option to sell another 25% of the total tokens 12 months after the ICO. This gives the team more incentive to deliver results, or else they wouldn’t be able to raise as much funding in the future, which is good for the token holders as the interests for different parties are aligned.
Musiconomi blog: https://medium.com/musiconomi