blockchain

How Blockchain will take Ambassador Marketing to the Next Level

1. Security Token Offering

With the rising popularity of blockchain technology initial coin offerings (ICOs) have become an increasingly popular means to raise capital in order to promote company growth. ICOs give any business the possibility to get funded by multiple investors that purchase tokens issued by the company which either let the buyer use their tokens on the platform or entitle them to certain benefits similar to buying stocks during a traditional IPO.
For Hypd, we have chosen the latter. Instead of creating a Utility Token, that would be volatile and therefore interesting for investors would be a nightmare for our platform that demands a stable and reliable currency and vice versa, we decided to let investors participate in the company’s success by issuing a Security Token. The HYPD Security Token is designed in a way that every token holder is entitled to receive dividends of all Hypd business operations’ profits. It is similar to a share or stock as opposed to Utility Tokens distributed in most other ICOs. This allows us to attract more investors that care about the project and also leverage their networks 

2. Utility Token

Besides the HYPD Security Token, we will move our entire system to the blockchain, creating a token that is only tradable within the Hypd eco system. The token is in no way to be seen as some sort of an investment but instead this in-app currency. For every successfully performed action the Hypd ambassadors will earn tokens that are unique to each campaign and will be saved to their Hypd wallets. By using smart contracts for the campaigns and actions within the system we will be able to solve the two biggest pitfalls any brand ambassador program has to deal with while making major improvements to user experience that to this day are unparalleled

a. Transparency

One of the biggest obstacles when running brand ambassador programs is asymmetrical information. If the campaign owner doesn’t know what their ambassadors are doing and the ambassador is not sure whether the action they just performed meets the criteria of the brand owner, these insecurities lead to nobody doing anything and thus ultimately to the failure of the program. Luckily we have already developed a system that prevents these drastic consequences from happening. However, moving the system to Blockchain will grant an even greater user experience. As we will set up every campaign and every action within it as a smart contract that will be stored on the blockchain, all information stored in these contacts is public and cannot be changed.

b. Security

In business things often go differently as planned. Ambassador programs are no exception to that. It can happen that sometimes brands do not issue the rewards on time or not at all for whatever reason that may be. For now, the ambassador would of course still posses a claim against the brand owner but it would be incredibly tiring to enforce said claim. We are planning to solve this dilemma through the following logic: When brands sign up they will have to purchase the amount of in app tokens they are planning to issue to their ambassadors for successfully performed actions. There will therefore be a monetary value attributed to each token. This however will not be public but remain between Hypd and the individual brand. Should the brand fail to honour their duties resulting from the smart contract, we can therefore automatically reimburse the ambassador with the equivalent of fiat for the redeemed tokens and fine the brand on top. This way we can easily keep the level of disappointment on the ambassadors side reduced while incentivizing the brand to prioritise the issuance of rewards to their ambassadors without any hassle.
The usage of blockchain technology within the platform therefore also prevents cheating of any kind.

Investing money in general is a tricky business and while ICOs suffer from quite a scammy reputation huge amounts of capital are being raised. Many coin offerings tend to promise exorbitant growth In value of their issued tokens. And in fact, for many investors ICOs have become a very lucrative investement outlet.

Given the current situation of the economy capital needs to be invested instead of being brought to the bank where most places you even lose money instead growing your fortune. ICOs are an extremely great vehicle for investments because they make it easy for both the company raising money as well as for the investors that now have the opportunity to directly invest in a multitude of innovative ideas at a very early stage.

For Hypd we are utilizing the ICO to raise capital in order to accelerate growth while letting our investors / token holders directly benefit from company success. See below why the HYPD token might be the right investment for you.

1. Token design

The HYPD token is an ERC-20 standard dividend paying security token. This means that every token holder is entitled to receive dividends of all Hypd business operations’ profits. It is similar to a share or stock as opposed to utility tokens distributed in most other ICOs. Utility tokens only allow you to use it for a specific service within the DAPP or ecosystem of the issuer. The HYPD security token however is designed specifically to create a passive income stream for its holders and to constantly increase in value. The following token attributes make it an extremely interesting investment opportunity.

a. Passive Income

HYPD token holders will be granted a dividend based on the profits of the company. When the company does well, so do the investors as they receive their dividends biannually based on the number of tokens held. Instead of hodling a coin hoping to sell it one day with a 100x return, investors are already receiving returns while they keep their HYPD tokens stored in their wallets and can still sell it at any given time.

b. Tradability

HYPD tokens will be tradable and are planned to be listed on all major exchanges supporting security tokens. This allows investors to quickly liquefy their investment if needs be. In addition to that, all HYPD tokens can be used to purchase services of the Hypd platform at a discounted rate. The value of the token is backed by the software at a minimum of the regular ICO token value providing a maximum of security for investors.

c. Limited supply

Only a limited number of tokens will be issued during the ICO. All remaining tokens will be destroyed. As no additional tokens will be created or issued post token offering, with the increasing value of the company the token price will rise as well as demand will exceed the supply.

d. Reinvestment Regime

In order to assure a constant and rapid growth of the company, 30% of all profits will be reinjected into the company. By making additional capital available for the company’s growth we accelerate the value increase of the token itself and its dividends as every reinvestment into the company promises to yield exponential returns.

2. Hypd is live!

In contrast to most other ICOs instead of raising money to create an MVP, Hypd already is a working platform that is servicing over 100 customers with an ever-growing data base of 25k ambassadors promoting their favourite brands. Thus the capital raised can be invested almost entirely into growth in order to quickly increase the customer base, revenues and subsequently token value and dividends.

3. High ROI Business Model

As a SAAS there is almost no limit to scalability for the Hypd platform. Hypd charges brands a monthly fee based on the number of ambassadors actively promoting their campaigns as well as commissions on all sales that have been conducted through ambassadors. Ambassadors are being onboarded through the brands resulting in fairly low acquisition costs, as these costs are solely determined by the efforts undertaken to sign the brand for Hypd. Conservatively calculated and disregarding economies of scale, every $ invested into the platform doubles in value annually. A long customer lifetime and platform loyalty therefore allow exponential growth.

4. Timing

Even though every decent marketer knows the benefits of honest recommendations resulting from word-of-mouth marketing, brand ambassador marketing is a novelty that is on the brink of taking over all sorts of markets. Given the untapped potential that lies within the brands’ customer bases and their social networks there is no doubt that marketing budgets spent on ambassadors are going to increase drastically in the near future marking up a large portion of the $270BN annual spendings on digital marketing. There is no better time to invest in word-of-mouth marketing than now.

How to Invest?

Stay informed about all goings on of the HYPD token offering by joining our official Hypd Announcement and Private Presale Telegram channels. Looking forward to changing the future of marketing with you.