The founders of Sphere set out with a plan to create the world’s first decentralised, user-owned social media platform but subsequently failed miserably in their efforts. More than a year after their ICO, the company has yet to realise any of their promises and now hosts a token that has crashed in value to almost nothing.
They preyed on the controversy created recently by Facebook and their shady data and privacy policies and used it to their advantage to shill investors into funding the ‘development’ of a platform that would never sell your data and offered complete safety and security.
Today, the coin has dropped by over 99% in value and has no significant plans on the horizon.
This class action is accepting class members
In the white paper, Sphere go on to describe visions of grandeur – a bustling, vibrant social media network enriched with a valuable token. They envisioned an ecosystem of interaction that would disrupt the social media data and advertising industry, but failure now peppers their endeavours at every turn.
They promised a “Facebook, but without the Ads”, then directly reference to users having the ability to fund ads through the use of their token, SAT. Furthermore, their WP portrays screenshots of their Sphere “concepts”, in the form of a photoshopped Facebook profile:
Facebook has cornered the social media market and has billions of registered accounts – it would be a very bold claim to say that a company is constructing a platform to rival them at their own game. It took Mark Zuckerberg and his team thirteen years before Facebook was what they truly envisioned. In fact, an article published on LinkedIn confirms the numbers and complexity behind building a social media giant:
Just to give you some perspective, a million lines of code can cost between $20 million and $40 million to write. This is factoring in the salaries of all the programmers you’ll need to hire to write the code; the analysts you’ll need to test it; and the copywriters, designers, and project managers you’ll need to maintain it.
They also went on to claim that they had a “product that is already built”, but this directly goes against claims by the community who say that the existing app is nothing more than a blank UI, overpopulated with cryptospam and fake users who signed up early for bounties and bonuses.
SAT was supposed to be used for the marketplace, ad system and throughout the Sphere network. This is irrelevant, as they could have used any other token that was already well-established. Instead, they drew in mass funding for a token that would eventually be worth nothing. Furthermore, if the network doesn’t exist (due to under-use), then the token is essentially pointless.
Sphere promised the funds would be distributed as follows, post-ICO:
App Dev: 60%
Marketing and Promotion: 15%
Given that the app is severely underdeveloped and underpopulated, it stands to reason that the funds were not directed into the development of the platform and were instead used to line the pockets of the founders.
They also claimed that 17% of the tokens held back from sale would be used to fund a network growth, but Sphere has yet to realise any expansion or significant partnerships that might signify a return to token value.
Yes, Sphere endeavoured SAT to be used to make transactions across a wider network – this would have required blockchain implementation.
No – the token is merely an industry-standard ERC20 token, and an irrelevant, pointless one at that.
Sphere entered the market at the right time with an idea that people were seeking: a truly safe and private social media platform. However, the idea never came to fruition and the investors were left out of pocket by an enormous 15m USD. The project could never have truly worked, as the social media giants such as Facebook are too massive to be overcome: they have billions of users. Comparatively, Sphere had only 47,000 early access users of Sphere at the release of the white paper.
If you have been impacted financially by Sphere’s ICO, please join our class action with confidence.
- MR. ANDREW KHONG
BOARD OF ADVISORS:
- MR. ROB RUKSTALIS
- MS. AMY ROILAND
- MR. MICHAEL ARBACH
Approx. funds raised:
About this ICO:
– 99.6% value lost
– No real product
– Heavy competition
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