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Gifto Coin (GTO) Guide: A New Way To Monetize Digital Content

Many do not know it, but virtual gifting is a business worth $100’s of million’s per year and offers content creators a lucrative alternative to advertising revenues. In our Gifto coin review, we’ll tell you how the project is disrupting this market, how it works and give our thoughts on its chances of success.

The Problem Gifto Coin Is Tackling

Youtube demonetization graphic

Content platforms like YouTube, Facebook, Instagram, and Twitch have allowed anyone to set up an account and build a fanbase. However, when it comes to the monetization of these followers, content creators are highly dependent on ad revenue. The problem is that this places a lot of power in the hands of the platforms and advertisers.

Marketers generally want as wide an audience as possible and the platforms naturally want to keep paying advertisers happy. This results in the vast majority of online revenue going to the most popular content creators and creates a ‘winner takes all’ environment. This system creates a situation where less popular and niche content producers cannot generate a steady income stream, regardless of whether their followers are high value or not.

In short, content published on these platforms needs to have mass appeal to be monetized well. This means that content producers are incentivized to create content that will appeal to the largest number of people possible, rather than just creating great content. The current incentive schemes lead to lots of similar content being produced and act as a significant disincentive for niche content creators to go out there and create. This leads to a lack of diversity of content and that is bad news for both viewers and the platform.

Gifto is creating a system that integrates with different content platforms and allows content creators to generate a revenue stream directly from their fans. This means that niche content producers will no longer be dependent on ad revenues or be incentivized the game the advertising system. Instead, these creatives can just focus on creating great content and growing their fan base in their chosen niche.


What Is GTO Coin?

GTO Coin Logo

The first thing to know is that Gifto coin is commonly called GTO coin as well. The two terms mean the same thing and refer to the cryptocurrency of the Gifto project.

The way of thinking about the Gifto project is that it introduces a new, fun and interactive way of tipping the content creators you love. The idea of tipping has become incredibly popular on platforms like Twitch and even YouTube super chats. However, many producers post their content on many different platforms and currently there is no single system to receive tips from fans across multiple platforms.

The Gifto system allows views to buy virtual gifts in GTO coins and to send the gift to the content creator they like. When content creators receive a virtual gift, they can either keep the gift or convert it into Gifto coins to sell on a cryptocurrency exchange.

Virtual Gifting on Uplive app


What’s Wrong With Current Content Monetization?

It is no secret that content platforms like Facebook, YouTube and Twitch have 100’s of millions of users. The fact that anyone can create and upload content has led to the rise of the social influencer and popular YouTuber’s with millions of views on some of their videos. It may appear that these content creators are ‘living the dream’ and are all making megabucks. However, this is all an illusion.

How hard is it to get one million views on a YouTube video? Well, only 0.33% of all videos actually hit this magical number of views. Put another way, 99.67% of all video content produced fails to attract this sort of audience. Sure a million views sounds a lot and we cannot expect many people to achieve this. However, an astonishing fact is that one million YouTube views translates into just $2,000 in ad revenue. When you consider this, you can appreciate how little money the typical niche content creator makes.

So you now know that the content creators right at the top of the YouTube pyramid earn way less than you thought. Well, things are actually even worse. Advertisers have such power on the platform that they can determine what type of content they want their ads shown on. In 2017, many YouTube videos were demonetized just because advertisers deemed them to be ‘unsafe’.

The result was that popular content producers like H3h3Productions with nearly 6 million subscribers, saw an 85% reduction in YouTube revenue. This just goes to show the power that advertisers have on content platforms and the impact they can have on content creator revenues.

In January 2018, YouTube completely demonetized smaller channels that didn’t meet all the following terms:

  • Over 1,000 subscribers.
  • 4,000 hours watched by viewers within 12 months.

If You Become A YouTube Star: What Are The Rewards?

BigCat youtube channel screenshot

Youtuber BigCat is right at the top of the Youtube totem pole, boasting 100’s of millions of views on his videos and over 11 million unique views a month. What’s the reward for this phenomenal success? Well, around $20,000 per month.

Sure, this is a lot of money. However, just consider that BigCat is a YouTube winner. A content producer that has defied the odds. Also, videos cost money to create, edit and buy props for. Even with all these costs, BigCat is no doubt living a comfortable life. However, the rewards are significantly less than you would imagine.

The truth is that the vast majority of YouTube content creators have little chance of actually making any form of living from content creation. The result is lower quality content, with only a fraction of content creators being able to make a living from their efforts.


Gifto Gives Content Producers Another Way To Make A Living

Virtual gifts are another way of tipping content creators money. However, there is only a single way to give someone $10 and nearly an infinite number of virtual gifts to choose from. The thought behind the gift plays a big role and is more exciting for the content producer.

Gifting is a normal human behavior and it’s been shown that a gift generates a stronger response than just donating cash. Selecting the ‘best’ gift is something that people take seriously and leads to delight on the face of the receiver and appreciation. This creates more interaction between the content producer and their audience, which in turn should lead to more gift giving.

How Gifto cryptocurrency project works

Unlike advertising models, Gifto sees the content broadcaster as the main value producer. There are five different people that need to be rewarded in the Gifto revenue share model:

  • The Platform (10%) – platforms like YouTube generate value and actually host the content.
  • Gift Creator (5%) – Graphic artists need to create the amazing looking gifts in the first place.
  • Gift Reviewer (2%) – Needs to check the gift description, cut out low-quality gifts, categorize gifts, determine pricing and whether the gift violates any intellectual property rights.
  • Rewards Pool (3%) – Gifto intends to use this cut of revenue to rum promotions and lotteries for users to make Gifto even more fun.
  • Content Producer (80%) – The content producer does most of the hard work and therefore takes home the lion’s share of revenue.

How Gifto revenue share works

Whereas platforms like YouTube reward smaller content creators with a significantly lower percentage of revenue share, Gifto is open to everyone; no matter how big or small a content creator they are.


Gifto Coin: Will It Actually Work?

Digital gift giving on Uplive app

The creators of The GTO cryptocurrency project also own and operate Uplive. The Asian app has over 60,00 content creators on it and has over 20 million users. The Uplive app allows content creators to monetize their broadcasts through digital gifts and in 2017 alone $100 million was spent on in-app virtual items.

The Uplive virtual gift sales stats for July 2017 make interesting reading. Over 10 million digital gifts were bought and were priced anywhere between 1.5 cents and $1,471. Incredibly, 71 people thought that the content creator was so great that they dropped nearly $1.5k to buy the most expensive digital gift.

Uplive app virtual gift sales in July 2017

What has been discovered at Uplive is that virtual gifts actually gamify digital content creation. In fact, the characteristics of virtual gifts are very similar to items in computer games.

Limited edition gifts are scarce, gifts can be customized, items must be used within a set time frame, fits can be combined to create special and more valuable items, gifts can be created for special occasions and much more.

Interestingly, Uplive is that they have partnered with brands such as Mercedes to create virtual gifts of their products. For Valentine’s day 2017, a digital red Mercedes SLK was available on the app and was exceptionally popular with gift givers.

Limited edition red Mercedes SLK virtual gift on Uplive app

It is safe to say that given the success of Uplive, that virtual gifts do have a market and that content creators are open to using them to monetize. This is maybe not surprising seeing that the top content producers on Uplive are making over $50,000 per month Vs $20,000 on YouTube. Quite simply, the virtual gift monetization model seems to generate more revenue than the traditional advertising model.


Why Does GTO Coin Need To Be A Crypto?

Although Uplive is exceptionally successful, the team have realized that virtual gifting in the app has a few shortcomings. These are all set to be solved with the Gifto crypto project:

  • For virtual gifting to truly take off, a single system is needed that integrates into all major content platforms. The problem with Uplive is that virtual gifts can only be sent to content creators on the app and cannot be used to reward someone on Youtube. The result is that different islands of digital value are created by platform developers and there is no way to move this from one island to another.
  • Virtual gifts can sometimes be worth over $1,000. This means they must be protected from duplication. Gifto uses blockchain technology to verify the authenticity of every virtual item and records virtual gift transactions on a public ledger.
  • Traditional donation solutions can result in transaction fees of up to 30% for payment processing.
  • There is no framework to manage an extensive virtual gift system. It is unlikely that every platform will want to go through the hassle of creating their own. Though Uplive does have an excellent framework in place, there are problems with centralization.

How does Gifto cryptocurrency work?

Centralization problems range from the time it takes for a curator to assess each gift, to the artist being unsure of how much value their creativity has added and revenue share considerations with brands such as BMW.

A centralized system is hard to grow and scale. This is why a decentralized system which runs on self-governance has value. The challenges faced by the Gifto project is to build a digital gift ecosystem that can run by itself with little to no centralized oversight. As a result, Gifto is a cryptocurrency project and not just another centralized tech venture.


How Is Blockchain Used In Gifto?

Gifto is the digital gift system that straddles multiple content platforms. Each gift created requires data to be recorded e.g. who created it, owner, price etc. Gifto stores this data in the form of a public ledger on the blockchain. Blockchain also protects against the duplication of digital gifts too.

How does GTO coin use blockchain and smart contracts?

Ethereum smart contracts are then used to execute commands such as adding a gift to the Gifto catalog, change of ownership and much more. Effectively, the Gifto system allows smart contract assets to be traded on the likes of Facebook and YouTube.

The really smart thing about the GTO cryptocurrency project is how simple it is to use. The content creator can set up Gifto on pretty much any platform by simply pasting a link. This means that the technical barrier to use Gifto is pretty much non-existent.


The GTO Coin System

The Gifto system is intended to be completely self-sustaining. Content consumers can create their own Gifto wallet and buy GTO coins. The wallet also gives the user access to the Gift store to select their digital gift and pay for it with GTO coins.

Once the gift is sent to a content creator via smart contract, the broadcaster will have the gift added to their Gifto inventory. They can then either keep the gift or convert it into Gift coins to sell on a cryptocurrency exchange for fiat.

So how does Gifto work in real life? Well, it’s super easy and literally takes minutes to setup:

  1. The content producer goes to Gifto.io and selects the gifts they want to display in their store.
    User selecting digital gifts to put in their Gifto store
  2. A link is created. This will show viewers all the gifts in the content producers store.
    Generating Gifto link to use on other platforms
  3. The content maker can then paste the link in their YouTube, Instagram or FB channel.
    Using Gifto link on Youtube
  4. If a viewer clicks on the link they will be sent to the content producers store and they can buy/send gifts.
    Personal Gifto store

The Team

Asia Innovations Group & uplive logo

The team behind the Gifto cryptocurrency project is the Asia Innovations Group (AIG). The company has an amazing track record and their suite of products already includes:

  • Uplive: A live streaming platform with 20 million users.
  • PengPeng: The first gamified social chat app in Asia. The app has over 40 million downloads.
  • Superfans: An app that allows users to follow all the social media posts of their favorite stars. The app already has 10 million users,
  • BigCat: One of the most popular Asian YouTube channels. Gets over 11 millions unique views a month.
  • Over 50 social games with a combined total of 30 million users.

Combined, AIG has over 100 million users and generates yearly revenues in excess of $130 million.

AIG CEO Andy Tian With Gifto App

The star of the show is AIG CEO Andy Tian. He has held positions as deputy Corporate Strategy Manager at Tencent. For those that don’t know, Tencent is one of the largest online businesses in the world. The Asian tech giant has exceeded the valuation of Facebook within the last year. Andy has also held the position of General Manager at the online poker company Zynga and was responsible for the growth of the game in China. Before all that, he was an early member of Google China and was responsible for growing the mobile business. How did Andy get into tech? Well, like most technology entrepreneurs he cut his teeth in a Silicon Valley startup and has been building businesses ever since.

AIG is the fourth startup Andy has founded and based on his previous successes, we believe Gifto has every chance of success.


The Future Of GTO Coin

Uplive has shown that there is a very real market for digital gift giving. We agree that there is a lot of value in having a gift-giving protocol that is compatible with multiple platforms. After all, content creators don’t commit to a single platform, but instead commonly have a presence across multiple platforms like FB, Instagram, and YouTube.

Where Gifto sets itself apart from other cryptocurrency projects, is that it’s created by a team that has tens of millions of users in their portfolio of existing assets. Gifto has already begun to be rolled out to Uplive’s 20 million users and it’s certainly not a stretch to think that AIG will get more of their users using Gifto too.

There is little doubt that the current monetization system of digital content is broken. Gifto simply provides content producers a greater share of the value their content produces. We think this is just too good a proposition for content producers to turn down.

As an investment, it is important to understand the factors that could lead to GTO coin raising in value:

  • As more content creators use Gifto, the demand for GTO coins will increase.
  • GTO coins have a fixed supply. This means as demand increases then this should push the price up.
  • AIG have observed that users on Uplive buy tend to buy digital tokens in round numbers and usually have tokens left over after making a purchase. This naturally creates token holders and should push up the GTO coin price as Gifto is increasingly adopted.

Adoption of Gifto will take time. However, we are confident that the AIG team are more than capable of turning this project into a great success.


The Gifto ICO

The Gifto ICO was held on the 14th December 2017 and raised $30 million in funding. The Gifto coin was sold at ICO at 10 cents each. Since then the cryptocurrency markets have suffered one of the biggest bear markets in history, which means that at the time of writing, you can buy Gifto coins at below their ICO price.


Should I Invest In GTO Coin?

Pros

  • Alternative & more lucrative method for content creators to monetize their work.
  • The market for digital gifts is already worth in excess of $100 million per year.
  • The GTO cryptocurrency project is created by AIG, who already boast revenues in excess of $130 million per year and 100 million users.
  • Uplive automatically gives Gifto 20 million users right off the bat.
  • No cross-platform gifting or donation solution currently exists.
  • Traditional donation solutions have payment fees as high as 30%. With GTO coin, they will be significantly lower and that means more money in content producer’s pockets.
  • Gifto enables small content producers to monetize. In contrast, on platforms like YouTube only larger channels are allowed to monetize.
  • GTO coin allows content makers to be rewarded for content that people actually want to see. No longer will people have to make content to satisfy guidelines made by platforms or advertisers.

Cons:

  • Virtual gifting has been widely accepted in the East. However, it still remains to be seen if it will get significant traction in the West.
  • If Gifto negatively impacts ad revenues, it could get banned by platforms like YouTube.
  • It still remains to be seen if content producers will be willing to sell their virtual gifts and use a cryptocurrency exchange to convert them into cash.
  • The success of Gifto will be determined by the number of content producers that actually use the solution. Before it’s widely used, we cannot be sure that Gifto will be widely adopted.

If you’d like to buy Gifto cryptocurrency, please refer to our how to buy guide

Gifto (GTO) coin price graph from Coinmarketcap


Final Word

With any cryptocurrency project, you want to see a great idea and a first class team capable of executing the vision. We love the idea behind Gifto and how it solves a real-world problem. Most people would agree that content producers should be rewarded more and that content should be made for the viewers and not to satisfy the guidelines of advertisers.

Sure, there is room for content that has mass appeal. However, there are niche topics that many would love to see content on. It’s a shame that the current monetization models disincentivize the creation of this sort of content. Gifto makes it possible for people in these smaller niches to monetize and maybe make a living from their smaller followings. This is great news and should lead to a wider variety of videos and articles for you to choose from.

The TotalCrypto team loves the idea and team behind Gifto coin. However, we are not quite sure if the West is ready to fully adopt virtual gifting. We will be following this crypto project closely and are interested to see how it fares in non-Asian markets.

The GTO cryptocurrency project does have the potential to disrupt current content monetization models. We’ll certainly be following project developments very closely.

Further Reading At TotalCrypto.io
1) Do You Like The Idea Of Content Creators Being Rewarded More? Learn More About Steem – The Reddit Of The Crypto World, Which Rewards Contributors With Crypto.

2) Do You Use BitTorrent For Digital Entertainment? Did You Know That It’s owned By Tron & That They Are Building A Decentralized Entertainment Platform?

3) Have You Heard About Crypto Traders Making A Lot Of Money & Want To Join The Party? Our Beginners Guide Tells You Everything You Need To Start Trading Altcoins.


Resources

Below we’ve listed some key resources relevant to GTO coin.

🔒 Safest GTO Cryptocurrency Wallets

The safest way to store your coins is by using a hardware wallet. The two main brands are Trezor and Ledger and we are happy to recommend both. If you need help choosing between the two just read our Trezor Vs Ledger guide.

👛 Best Free Wallets

As Gift coin is a ERC-20 token, you can use any wallet that is compatible with Ethereum. Find our top two choices below:

📈 Best Crypto Tracking App For GTO Token

Useful Links

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Project Team

Andy Tian CEO of Gifto
Andy TianCEO
Dylan ParkHead of Gifto Korea
Nicholas Ray Gifto team
Nicholas RayHead of Gifto Beijing
Mingling Gifto team
MinglingCTO, AIG
Charles Thach Gifto team
Charles ThachChief Crypto Officer
Daniel YehGM of AIG Taiwan
Minh ThachGM of AIG Vietnam
Sean TaoCommunity Lead
VivienProduct, Gifto Beijing
Kara Gifto Team
KaraProduct, Gifto Beijing
Abigail ArterburnCommunity & Social Media Lead
Anatolii KondiiakovCommunuity Manager
YanArt Director
Kun Gifto Team
KunCommunity Manager
MingJava Engineer
FuqiangH5 Engineer
Huachi Gifto Team
HuachiJava Engineer
Min Gifto Team
MinPHP Engineer
ZhenghaoQA Engineer
WenshuangQA Engineer
MingmingDevOps Engineer

Advisors

Bo ShenGeneral Partner of Fenbushi Capital
Loi LuuCEO of Kyber Network
Danny YangCEO Blockseer
Tom DutermeGoogle, Youtube Executive
Dr. Jin Ho Hur Gifto advisor
Dr. Jin Ho HurCo-founder of EMA Translink
Hitters Xu Gifto Advisor
Hitters XuNebulas & NEO founder
Jae KimICO Expert
Addison HuegelICO Marketing Expert
Justin Sun Tron CEO
Justin SunTron Lab Founder

Want to learn more about the Gifto project? We certainly recommend reading the full project whitepaper.

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