Decentralized Streaming Platform Stream Raises $5 Million in ICO Pre-Salebr>
Decentralized streaming platform Stream has raised $5 million in an “advisor round” token pre-sale. The public initial coin offering (ICO) will commence on November 3.
The advisor round was led by Pantera Capital. Other notable backers Blockchain Partners Korea, Coinfund, Fenbushi Capital, FBG Capital, Inblockchain and ZhenFund. Individual investors such as Stellar founder Jed McCaleb and TechCrunch founder Michael Arrington also contributed.
Stream’s mission is to fairly reward video content creators for their work, and to create a much better ecosystem for streaming than currently exists with centralized players such as YouTube, Twitch, Periscope, and Netflix. To do this, they’re building the economic infrastructure necessary to make decentralized streaming imminently practical and lucrative.
The company stated that streaming platforms today often take the entirety of the profit generated from content, with 30–60% transaction fees on all revenue earned before costs are taken into account. It’s also extremely difficult to make money directly from content alone right now — one often has to resort to ‘selling out’, which many are either loathe to do or simply don’t have the time for, since professional content creation is already a full-time job. This is the reason the problem exists.
Using blockchain technology, Stream developed a method for video content creators to be paid directly for the content they create, without a direct cost to viewers of that content.
“Pantera Capital thinks extremely highly of the Stream team and their strategies to disrupt existing monopolies in content monetization,” said Paul Veradittakit, a partner at Pantera Capital. “With Stream Tokens, content creators are now incentivized to monetize on a decentralized peer-to-peer platform, saving massive fees.”
Stream CTO Greg Kufera believes the Stream Token is at the heart of the new internet economy and is part of the “larger Silicon Valley movement to fulfill the original intention of the internet: universal access to information” and Stream allows content creators to be rewarded for sharing information without curtailing freedom of expression.