Own Shares in This Social Network for as Little as £10

Recently I was invited via email to participate in a private crowdfunding campaign for a new social media platform I have an account with, it’s called Uhive. Uhive is crowdfunding on Seedrs, apparently the UK-based crowdfunding platform is the biggest equity-based platform of its kind in the UK. Soon, the email explained, the crowdfunding campaign would be made available to the public, but as an “early adopter” of the platform I was given priority access to the campaign.

I’ve never invested in the company before, but as a user I understand the benefits and need for a social media network like Uhive and believe their business model has so far proven successful. I did the research and here I’m going to break down what Uhive is, how it works, and what possibly is in store for Uhive in the future.

Information like their financial overview, company size, and monetization strategy are all outlined on Seedrs, all of which is included here with a little more information I was able to find.

About Uhive

Incorporated in February 2018, Uhive is a social network that aims to change what users get out of their social media experience. They do this by rewarding their users with Uhive tokens, an in-app digital currency. The rewards are given out based on activity on the app so things like engaging and posting will earn rewards. I’ve earned about 130,000 tokens since I signed up about a year ago.

Other than the Uhive token digital currency and rewarding users for time spent on the app, Uhive is also different because the app is broken down into interests. There are 26 interests/categories on the app ranging from health and beauty to architecture to automobiles to politics. Users creates spaces (that’s what Uhive calls profiles) within the interests, that way you only have to participate in the interests you like. Because the interests are compartmentalized, your feed is customized so you only see the things you want to see.

Uhive is pretty heavily populated with content already, they claim over 5 million posts and display your feed in chronological order so it doesn’t get boring or repetitive like popularity-based algorithms do. It’s worth mentioning that Seedrs do state in their support pages that all information on a project’s page has been verified by Seedrs themselves.

Lastly and probably most importantly for a social media platform trying to make it in today’s world, Uhive doesn’t data mine. The company plans to monetize its Uhive token like (more on this later) in order to turn a profit instead of collecting and selling user data for targeted advertising.

Although they are not yet profitable, once their Uhive token is introduced to the cryptocurrency market, it appears gains will be immediate (more on that in a minute.)

Uhive Financials

According to Seedrs, Uhive is self-funded to the tune of £3.2 million, with some of those funds being raised through share capital rounds last year. Now they are looking to raise a modest £500K or more, with overfunding available via Seedrs.

Laid out on Seedrs and in the video, Uhive plans to take their Uhive token to a cryptocurrency exchange soon. Once that happens, the Uhive token will have an actual cash-convertible value, making the rewards and tokens worth real money. Right now, there are 1.2 billion tokens in circulation, with many being used on Uhive by users transacting with one-another..

Let’s look at some of the math:

As a user, I’ve earned 130,000 Uhive tokens. If the tokens are introduced to a cryptocurrency exchange at $0.003. This starting price I feel like is pretty modest. When Bitcoin was first introduced, it entered the market at $0.0008, while Ethereum entered the market at $2.74. The dollar value of $0.003 as an entry price is only an estimated guess based on the total supply, and demand as seen on the app. On their Seedrs page (again, vetted information) Uhive states it has sold £350,000 worth of Uhive tokens, with less than 100,000 users. So for the sake of this analysis, let’s take it at $0.003.

My personal tokens, which I have only earned and not bought or traded for (as Uhive lets you do on the platform) would value $390. Not bad for a casual social media user. Considering that with the exclusion of some high performing social media influencers and already wealthy celebrities, regular users just aren’t being rewarded for their time or energy spent scrolling through their feeds on other social media platforms. According to the Seedrs page, the token will grow in value as the platform grows so as users sign up and play on the app, the token will increase in value.

Right now Uhive is valued at £13.1M before listing their token on any crypto exchange and with just over 200,000 users. This valuation is “pre-money” which means after a successful round of funding on Seedrs, the company’s value will immediately go up.

Also on their Seedrs page, they talk about other ways they’ve made some income from the tokens already. I haven’t personally used my tokens this way, but other users have completed over £200K in transactions even though there’s only two products currently available to buy on Uhive’s Marketplace — spaces and space names. Uhive is set up so popular spaces have a prime location in the Uhive universe, so users are incentivized to buy spaces that have better locations.

Further profit scaling plans including earning via super users and influencers. With a built-in currency, influencers can create in-app gated content similar to Patreon and Only Fans (minus the NSFW content). Uhive plans to take a 15% cut. And through targeted advertising sales that reach users based on interests and ad-interaction, not users behavior in-app.

Why Invest?

Social media isn’t a trend anymore, it’s ingrained in almost every aspect of our lives. But over a decade after its introduction, people want a way to participate without giving away their privacy. This is what Uhive promises and so far I can say as a user, it has delivered. Based on numbers, I think other users would agree.

Since it launched beta, Uhive has achieved:

  • Over 200,000 users
  • Over 5 million posts
  • £350K in token sales
  • £211K in-app transactions

And their global launch is still slated for 2021. At the current rate of growth not considering the global launch and as benchmarked by their emails and announcements on their Telegram group, Uhive will reach over one million users in the next 12 months, a timeline that may very well be shortened by the expected marketing and advertising push ahead of the global launch.

Investing through Seedrs is also incentivized just like using the app is. Depending on how much you invest, you’ll receive a percentage of your investment back, at least 10%, in Uhive tokens. Let’s go back to the numbers. Investing $5,000 via Seedrs will earn an immediate 10% return in Uhive tokens and another 15% over two years, earning you a total of 1250 Uhive tokens that will have a fiat currency value once the tokens go to an exchange.

Why Not Invest?

Investing is always a gamble, and my grandpa always told me to invest in what I believe in. I believe in Uhive and the honest to goodness need for social media to become more responsible and treat their users more fairly. There is always the off-chance though, that Uhive gets rolled over by the existing social media monopolies like other apps have in the past. But the social media revolution whispers have already started with certain Netflix documentaries helping everyday users see how the big social media companies are misusing their data.

Profitability depends on user adoption and engagement, but with over 3.81 billion people using social media worldwide, capturing even a half of a percentage of that audience would skyrocket Uhive’s valuation and their value-attached cryptocurrency.

How to Get Started

Right now, if you’re located in the UK, Australia, Ireland or the European Union you can invest through Seedrs. The minimum to invest is £10 for which you’ll receive 10% of your investment back in Uhive tokens. If you’re not located in any of the above territories, Uhive states on their Seedrs page that they are also accepting direct investments. I’m not sure how you would get in touch with them for direct investment enquiries, but they have a tab on their page, where you can start a discussion with the team — so I’d start there.

On the Seedrs information page, Uhive lays out that they will use the current funds raised in the crowdfunding campaign to scale their operations (23%), further enhance the app and token (55%), and marketing (21%), no doubt as part of their global launch. As the app is further developed and more features become available, the valuation of the company will grow. As it will when the company enters a tier-1 exchange in early 2021.

Right now the campaign has reached 52% of its funding goal with under 50 investors, and still in ‘private launch’ which means it’s not visible yet to Seedrs’ 500,000 registered investors. Each investor, no matter how much is invested, will receive a portion of their investment back in Uhive tokens that have the potential to grow in value as well as the equity investors received for their cash.

Watching crypto from the sidelines since 2018.