Ambitious Startup Reach
Today, startup Reach announced the rollout of its “fit-for-purpose” protocol, powered by the Ethereum-based REACH token. The platform is exiting its beta phase and is set to launch fully on Monday. The company has also secured $1 million in funding, valuing it at $3 million. Notable investors include pseudonymous Crypto Twitter personalities like Seedphrase, Pranksy, Gmoney, and Zeneca.
“Twitter is the home of the international crypto community, yet the platform, the algorithm, and the millions of fake profiles are a constant source of frustration to people and businesses alike,” said founder Harold Eytan, known as 8an.
Challenges in Crypto Marketing
The company recognized that marketing within the crypto industry has become more challenging than ever before. Whether you’re an artist seeking attention for a new collection or a brand preparing to launch a product, it’s challenging to find trustworthy marketing channels. Recent changes in Twitter’s algorithm have worsened the situation, resulting in users experiencing decreased engagement. Additionally, the issue of bots further complicates the engagement landscape.
With the introduction of its SocialFi protocol, Reach aims to address these challenges by incentivizing quality engagement. SocialFi combines social media platforms and decentralized finance, allowing engagement to be monetized and verified for authenticity.
Through Reach’s platform, users can create and submit “missions” to the community. These missions, such as “Engage with this tweet,” are then entered into a raffle, with the winner receiving Ethereum (ETH) contributed by the mission’s creator. Funds collected for missions are distributed to the community, with 80% going to the mission and 20% to the Reach treasury. Users can also earn “points” based on the quality of their contributions, entitling them to a share of regular crypto distributions from the protocol.
While SocialFi products like Galxe and Rabbithole may seem similar at first glance, Reach distinguishes itself through anti-farming measures and its effort-based relevancy algorithm.
The farming of mission or quest rewards has been a challenge for similar products in the past. To combat this, Reach implements the Reach Score System (RSS) and an effort-based relevancy algorithm. Suspicious accounts filled with retweets, giveaways, and airdrops are given less weight in mission raffles, discouraging farming and promoting authentic engagement. Eytan emphasizes the importance of rewarding users with good standing rather than those who create noise.
An effort-based relevancy algorithm rates submissions, assigning a score based on the thoughtfulness and conversation-driving nature of comments or quote tweets. This helps verify the authenticity of real users and their contributions.
Notable NFT and crypto investor Daniel Maegaard (Seedphrase) praises Reach’s algorithm: “With our algorithm, we’re able to verify that real people are posting and that they’re providing genuine commentary.”
Reach’s monetization plans involve offering the protocol to other crypto communities in the form of a Discord bot that enables users to issue their own missions.
Users on the Reach platform utilize the REACH token to create missions and can earn additional tokens by holding a “minimum threshold” in their wallet. Both the token and protocol are set to launch publicly on Monday, December 18, following a successful beta program that attracted 6,000 users.