ICO Planned for YouTube Star Investingbr>
Virginia-based Protostarr is planning an initial coin offering (ICO) that will allow investors to fund rising stars on video outlet YouTube and gamer site Twitch.
“YouTubers are today’s celebrities, and they’re making celebrity money from producing great video content,” said Joshua Gilson, CEO of Protostarr. “More are waiting to be discovered, and funding from fans and investors could help them reach the critical mass needed to earn significant income. Protostarr allows everyone involved to benefit when a creator turns celebrity.”
Business Insider detailed just how much YouTubers are making. While it is a substantial amount, they only get 55 percent of gross revenue, a deal reminiscent of the Col. Tom Parker/Elvis Presley contracts. That 45 percent is pre-tax revenue and doesn’t count production costs, which are borne by the YouTube star and can be substantial.
Still, the gross revenue numbers are impressive. Statsheep, a site that generates statistical estimates about YouTube channels, reported that PewDiePie, one of YouTube’s biggest stars (ask your teenager for details) grosses $3.5 million every month.
“We’re changing the model from donations to investment,” said Gilson. “Protostarr gives fans the ability to see a real payoff for their loyalty, while investors looking for new, exciting opportunities could see payouts better than traditional investment avenues.”
The ICO (which does not have a launch date announced) will be an ethereum-based DApp driven by smart contracts. The channel revenue derived will be shared with fans and investors automatically based on agreements made via the smart contracts. The number of periods that the talent agrees to pay fans and investors is negotiable.