Russia’s social media giant, VKontakte, could launch its own crypto coin. The company is among the list of social networking firms which are working on using crypto to monetize their content. Signal and Telegram already have working prototypes, while Facebook is hard at work to get its coin going.
A news report from a Russian local news outlet, RNS, has shared rumors that VKontakte is developing the token. According to the same news report, there has not been a final decision on whether to launch the coin or not.
VKontakte has not issued any statement regarding this issue. Patel Durov, the creator of the site, has not confirmed nor denied the allegations. Mr. Durov is also the creator of Telegram. Telegram is planning to launch its coin in October this year.
100 Million Users
VKontakte boasts an active user base of 100 million users. If the company goes ahead and launches the coin, the users will have access to the coin. It has great potential for finding a ready market.
According to the RNS report, each registered user will have their own crypto wallet. RNS wrote:
… [The project] involves the creation of individual accounts for the accumulation of cryptocurrency to all users of the social network…
Users’ Content Monetization
With the proposed coin, users will be able to make money from what they wrote. The more popular their content is, the more reach it gets, and the more the coins they collect. The RNS report states that readers would share their coins with the content authors.
Reposts will also earn the original authors some royalty. In a translated statement, popular comments might also generate coins to members of the social media site.
More Uses of the Coin
Once users have collected enough coins, they can trade them for goods or services. They could gift other users with the digital money. Alternatively, they can convert it to cash using a service called VK Pay. VK Pay was rolled out last year to help with transferring electronic cash.
If VKontakte is working on the cryptocurrency, it would join Kakao, Telegram, and Facebook, which have not yet launched their coins. These companies are taking time before releasing the tech to mainstream users, mainly because there are unclear regulations in place at the moment.
Russia, for example, has not given the foggiest idea about what it wants market players to do. Nobody knows whether it is legal or not to launch crypto in the country.
In February, President Vladimir Putin instructed the authorities to create a regulatory watchdog by July this year.
Whether the new social media coins will be successful or not remains to be seen.
Do you think a new coin would help VKontakte grow big? Let us know in the comments section below!