The crypto startup will buy social media network Taringa, which will give the crypto firm access to the platform’s users, says a report by Forbes
Crypto startup RSK will buy Spanish social media network Taringa, which will give the crypto firm access to the platform’s 20 million users, according to a report by Forbes.
RSK is a subsidiary of IOVLabs and describes itself as the “first open-source, smart contract platform secured by the bitcoin network.”
Taringa users will receive cryptocurrency rewards for sharing content, which will be in the form of IOVLabs’ RIF token.
The RIF token was introduced in November of last year and has a market cap of $46 million. The company said it raised 22,000 bitcoins in a private sale in November, which would be worth around $175 million now.
Following the acquisition, RSK will able to try out its products and endeavours through Taringa users.
Based in Argentina, Taringa is a popular social networking site in Latin America and Spain. It is used more often than Snapchat, LinkedIn and Skype and accessed by 28 percent of internet users in Argentina.
RSK is hoping that due to the economic climate in countries like Argentina and Venezuela, where currencies are in flux, the idea of a decentralised currency would be attractive.
In the first world, one needs to explain when talking about bitcoin and decentralised platforms. In Latin America, one does not need to explain why, said IOVLabs CEO Diego Gutierrez Zaldivar. People understand why instantly, so they jump right into the how and who. It’s a different reaction. That’s exactly why they chose this social network, he added.
Zaldivar knows that despite the relative ubiquity of blockchain and bitcoin, it’s by no means a well-stocked industry, with only 40 million bitcoin wallets around the world.
The crypto space has had trouble at times trying to reach audiences outside of its core community of early adopters and visionaries, Zaldivar noted. This is a big opportunity to learn how to turn these communities potentially into shared economies and bring these technologies to the masses.
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