The creator of BitClout has raised $200M to launch a DeSo Network. Known by the pseudonym “Diamondhands”, Nader Al-Naji, announced the launch of the DeSo (Decentralized Social) blockchain project, The Block reports.
Previously, Al-Naji founded the Basis stablecoin project. It closed in 2018 due to regulatory difficulties, returning $133 million to investors.
Despite this, almost all Basis investors and other market participants supported the new project from Al-Naji. They invested a total of $200 million in it. Among them: Andreessen Horowitz, Coinbase Ventures, Sequoia, Polychain Capital, Social Capital, TQ Ventures, Winklevoss Capital, and others.
“I think for most of them it was not only about making money. But it was also about creating a better platform for public discussions,” the creator of BitClout shared his opinion.
Instagram, Facebook and Twitter are centralized platforms that control user conversations. Moreover, platforms make a profit from content that they don’t create themselves, he said. The design of the new project is to make social networks monetizable and accessible to everyone.
The functionality of traditional social networks
DeSo will have the functionality of traditional social networks, including creating profiles and writing posts. As well as new features: social tokens, tips and non-fungible tokens (NFTs). To use the new platform, you will need a native DESO asset.
According to Al-Naji, the demand and, accordingly, the price of the coin will depend on the activity of users:
“As in the case of Ethereum, the more open DeSo network is and independent developers will create the more applications on its basis, the more transactions pass through its blockchain and the more expensive DESO becomes.”
“We created BitClout as an early prototype so that we could test it and use it on the DeSo blockchain before the public launch,” Al-Naji said.
More than 44,000 investors deposited Bitcoins into the project’s wallet
He added that $200 million was raised through a token sale to receive DESO. More than 44,000 investors deposited Bitcoins (BTC) into the project’s wallet.
The token sale lasted from November 2020 to July 11, 2021. The total volume of the offer is 10.8 million DESO.
The new non-profit organization DeSo Foundation will direct funds to the development of the project ecosystem, supporting developers, creators of NFT and other content.
Recall that in March, some members of the crypto community suspected a marketplace of NFT BitClout tokens in the scam, calling it “Bitconnect 2.0”. Shortly after, Radar Relay’s lawyers sent a warning letter to Nadar Al-Naji, threatening him with legal proceedings.