Michaël van de Poppe - 27 May 2022
XCAD securing the Watch2Earn market
Social tokens are a very interesting crypto use case as content creators are able to interact with their fanbase in a whole new way through tokenization. There are quite a few projects on the market right now focusing on this matter and each with its own approach. The most well-known example of this are the fan tokens for football clubs. The platform Chiliz is a good example of this. It had a lot of success in 2021 due to partnerships with some highly popular clubs, like Barcelona and Juventus. But while this is the most well-known example of fan tokens, new opportunities and thus projects are created.
XCAD creator tokens
XCAD is looking to do something similar to Chiliz. Only instead of football, its focus will be on Youtube. The goal of XCAD is to enhance Youtubers’ community engagement and loyalty. This will be done through the utilization of creator tokens, XCAD’s version of fan tokens.
Fans of Youtubers will be able to purchase these fan tokens initially on XCAD’s launchpad where they have to lock XCAD tokens which will then be used in the liquidity pool against the creator token. The creator then gets rewarded based on achieving predetermined milestones. So a lot of XCAD liquidity can be drawn from the open market and locked in these liquidity pools as more creators launch their own tokens.
These tokens can then be used in a number of ways, including the purchase of exclusive NFTs sold by the creator (perhaps to be used in the metaverse),, or any other exclusive item/service that the creator can think of to engage its community. The creator then receives a commission on every purchase and resale.
It will also be possible to trade the tokens on the XCAD DEX. All trading pairs are listed against XCAD.
The biggest feature to enhance engagement is probably XCAD’s Watch2Earn feature where users have the ability to earn creator tokens when they watch 80% of a video, a promising way of capturing more attention and loyalty by consumers. These can then use their creator tokens to purchase items and services from the creator.
XCAD has stated that its plug-in does not use the Youtube API and it cannot thus block the app from working on the website.
Creator tokens, the plug-in and the NFT marketplace are expected to go live before the end of Q2. How everything will work together is depicted in the following picture:
Speculation will also play a significant part. The burn rate of the creator tokens will increase along with the subscriber count on Youtube. So as a Youtuber sees its popularity increase, it is likely that scarcity of its fan token increases as well, a bullish development for its creator token. This way, the community has the ability to benefit from the success of their favorite Youtubers, also making it more likely that they will show more engagement and try to help make the channel a success.
Large Youtube backers
XCAD already has a massive number of Youtubers that have either invested in XCAD itself and/or want to launch their creator token. In total, 65 are listed on its influencermarketcap.com, where it will keep track of all the tokens. It is mentioned that this will increase to over 100 soon. These all have to sign non-compete contracts to make it a lot more difficult for future competitors.
Besides this list, some of the backers include large Youtubers like KSI (23 mln subs) and MR Beast (67 mln subs). We can expect all of these names to make a lot of noise once the XCAD plug-in goes live.
XCAD is currently focused on the YouTube realm and has a significant amount of large influencers onboard already which will no doubt drive further adoption. Although the solution is not live yet, they are working on some XCAD branded products that are going to allow these creator tokens to be easily traded and available all in one place. On top of that, we can expect expansion in the near future with NFTs, more platforms (Twitch) and more creators among other things.
We think that this could become a significant market. And as XCAD lets the creators sign non-competes, it is using its first mover advantages to secure its position in the market right away. Since everything is launching in Q2 with a lot of Youtubers with large followings backing it that will push marketing, we expect a lot in terms of adoption for XCAD.
Disclaimer: We are invested in XCAD.