At the end of last week, Social (SCL) went for less than $0.32 apiece. By mid-session on Sunday, the token had risen to $0.68 a share and commanded a market capitalization of more than $11.3 million – a run of more than 112%.
Take a look at the wider cryptocurrency space and it will quickly become clear that this appreciation is very much against the grain in the sense that it goes against the steep collapse seen in many of the coins and tokens traded, both large and small, across the major exchanges.
The action flagged the token as one to watch in the space and suggests that this coin could be a potential winner over the coming 12 months, with this expectation compounded by simultaneous expectations that the wider marketplace is set for a near-term turnaround.
So why is Social attracting so much attention?
For anybody new to this one, let’s kick things off with a quick introduction.
SCL is the token that underpins the Social platform, a technological ecosystem that merges blockchain technology with the concept of a social network.
It initially launched back at the end of 2016 but has since rebranded in line with the above-mentioned Social moniker and has restructured to allow the integration of Ethereum smart-contracts and, in turn, a network-based marketplace. During the third quarter of last year, the company leveraged its Ethereum integration to carry out an initial coin offering (ICO), which completed successfully raising just shy of 23,000 ETH (a little over $20.5 million at current exchange rates).
The ICO was designed to fund the development of a next-generation iteration of this social networking platform and the above summary brings us up-to-date with where Social sits right now.
What makes this platform different to the current leaders in the social networking space?
Well, first, it might be worth highlighting that the core functionality of the Social platform mimics, in many ways, that of the more established social platforms that exist today – Facebook, etc.
People can use the platform to create and share content and users with which the content is shared can respond to it based on their interpretation of what is presented to them.
The key difference, however, is that this is a blockchain based network, which allows for a user’s response to content to be rooted in a distributed ledger token (in this case, the SCL token mentioned above).
But this is really just the beginning of where the SCL token comes into the picture.
During the second quarter of 2018, Social expects to integrate an SCL-based marketplace into its platform, through which users can buy and sell goods in return for the SCL token. Additionally, the company expects to integrate a crowdfunding platform through which SCL can be donated to various user-generated causes.
By the end of the third quarter of this year, the marketplace and the crowdfunding functionality will be expanded to include an advertising platform through which SCL can be traded for advertising and, subsequently, Social will release its Social debit card, which is built on a technology created by blockchain company MoxyOne.
This debit card functionality will allow holders of SCL to spend their tokens in a real-world environment, with the technology that underpins MoxyOne’s platform using a real-time conversion system that negates the necessity for the retailer to interact with cryptocurrency at any point during the transaction process.
So what comes after all of this?
By the end of this year, Social expects to have new native iOS and Android applications in place, which we see as a major factor in long-term user acquisition for the platform, given that mobile device access is increasingly becoming the number one access method to social platforms worldwide.
in terms of SCL, as the new features reach Alpha and demand for the token increases on the back of user acquisition and increased interaction with these features, simple supply and demand economics should lead to an increase in the price of SCL across the major exchanges on which it trades.
The Bottom Line
Bottom line, this is a potentially game-changing application of blockchain technology to a space that can quickly attract hundreds of millions of users and that’s just about to reach an inflection point.
Want to find out more? Check out the company here.