Q&A With Hypd CEO & Co-Founder Florian M. Eckelmann
What was the inspiration behind starting Hypd?
Before going into tech we founded a very successful event concept that within only for years attracted over 1 million guests in 60 European cities including an Ibiza Residency in the biggest club of the world. We rapidly grew from a local 200 pax show to 10k people events in 16 countries. One of the key factors when entering new markets was that we used ou fanbase to advertise our shows for us. It worked extremely well in terms of ticket sales, management wise it was a total headache however. Insanely huge Excel lists, no tracking of who did what and ridiculous hours spent on repetitive communication explaining the same over and over again had us wishing for a software to scale this awesome means of marketing. After selling the company we immediately started working on Ticketrunner what then became Hypd.
Why do you believe Hypd is different to the other competitors in the tokenized influencer marketing space?
Instead of providing a software solution for brands to manage campaigns with influencers possessing 10s and 100s of thousand followers, Hypd allows to scale marketing through fans, regular people with an average of 300 to 500 friends. A fitting term might be nano influencers. The biggest difference between the average influencer and nano influencers however is not the amount of people they are followed by but the incentive. Instead of reward the ambassadors with money, they earn points for every successfully performed action that can be exchanged for exclusive brand-related rewards. By doing so the genuity of the recommendations remains untouched as they are still intrinsically motivated. Imagine a soccer fan of a specific club. One of the rewards would be a meet and greet with the team’s coach. If one is not a fan of said club, one would surely not even bother thinking about moving a muscle to meet that guy. Whereas for a true fan this might be the greatest day ever. This ensures that only people who truly care also recommend these brands. As opposed to paid word of mouth programs where almost everyone would recommend a product without even knowing what it is if the price is right.
As opposed to other projects addressing recommendation marketing, we specifically decided against offering a utility token. We believe that for our business model the most beneficial means for both our platform as well as the investors raising capital through a security token is by far the best option.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, leverage their networks and tend to their financial needs while providing a reliable and stable currency for our platform users.
Why do you feel we need Hypd at this current moment in time?
There probably has never been a time where we have been bombarded with ads as much as it is the case today. As with most overexposure at some point one either dies or becomes resistant. For ads it’s most likely the latter since I have not seen or heard of anyone dropping dead due to an Instagram feed induced ad overdose. However this resistant as an equally painful effect on marketers. Costs for advertisement are rising and it is getting more and more difficult to stand out with one’s content against the multitude of competitors. Gen Z and Y are basically immune to ads. At the same time Facebook and Instagram have drastically limited the organic reach of business pages; reaching their own fans has become a costly endeavor. The one thing that still works and in comparison it is working better than ever before is recommendations. In fact, one is 400% more likely to make a purchase based on a recommendation by someone one trusts as opposed to an ad. With Hypd we enable brands to streamline and boost recommendations via their fans while making it scalable through our software. We therefore let brands circumvent reach limitations and let their marketing message be told in the most authentic way possible - through the voice of their fans. In a time where paid ads are all over the place an authentic recommendation by someone that truly and deeply cares about a brand is the one thing that stands out more than anything else.
What purpose will the HYPD tokens have?
The HYPD Token is specifically designed to constitute an extremely profitable investment case for its holders. Token holders biannually receive dividends linked to the company’s profits. As a SAAS Hypd generates exponentially growing revenues from monthly subscription fees as well as commissions on sales referred through ambassadors. 70% of all profits will be issued to token holders while 30% will be reinjected into the company to ensure future growth. Apart from the dividends, the HYPD token is limited in supply and is planned to be tradable on all major exchanges listing security tokens. Moreover the HYPD token is backed by the software, meaning that we will always exchange HYPD tokens at the standard Token Offering retail price of $1 for all platform services.
What are the current details of your ICO? We just opened the private sale to selected investors preceding our Security Token Offering. The public sale will most likely go live end of this year. We want to make sure to meet all legal requirements to guarantee the safety and legality of the sale in all key markets for our investors. We are planning to issue a total of 3M tokens at a regular sale price of $1 per token. All tokens
that remain unsold during the STO will be destroyed to increase the value of tokens held by investors. In order to further secure the founders sincerity with Hypd, there will be a 1 year lock down period for all tokens issued to the founding team.
Where do you see the project in one years time?
We are currently in the growth stage. After GAS and NL, we have just entered the Mexican market and are looking forward to rapidly expand into new markets and industries. Depending on the amount of capital we raise we will be able to expedite that process even further. A year from now we see ourselves as the number one ambassador solution for artists, sports and entertainment in Europe and the Americas for world renowned brands with over a million ambassadors.
When will a first version of the platform be available?
Good news, we are live and running for over a year now. Happy customers, revenues - we got it all.
For more information and to whitelist yourself for the pre-sale please visit token.hypd.co