In that they are faced with a stagnant market, the Crypto firm called Civic has been faced with a growing problem.
As you may know, Civic is at its core, a Blockchain network that is built to store and verify identities at scale, as well as transfer them between parties who need to be involved in this verification process.
According to the company’s founder, Vinny Lingham, this difficulty that the company is experiencing is not due to any sort of technical weaknesses of the platform. Lingham’s opinion is that Civic’s struggles all are due to the fact that they cannot seem to reach a critical mass of users.
To address this problem, Civic has proposed what some might consider to be a unique solution. In a nutshell, they plan to pay users to join and use their platform in order to finally reach a level of users that suggests that they are here to stay.
The central problem is that only Civic knows what number this is, so we are then left with the question of when this incentivized form of growth will end.
Fortunately, in an interview with Coindesk, Lingham explained that this will continue until 333 million tokens, or roughly $43 million is used up, over the course of the process.
In explaining why the company chose to do this in the first place, Lingham added that this entire strategy is intended to drive network effects, which is in line with the reasoning that we have already mentioned. Given that the majority of the the value of a technology company is usually created by network effects as we have seen time and time again with companies like Ebay, Amazon, and PayPal, it is not hard to see why Lingham and his team have chosen this strategy.
As of now, the only remaining question is: will Civic become one with the greats or will it continue to stagnate?
By: BGN Editorial Staff