In March 2018, Matthew Iles-head of City, a blockchain-for-journalism startup that stands in a small New York conference room with a few colleagues sitting around it. Dressed in a peach-colored sweater, Iles looked up at the camera as he spoke to many of his colleagues around the world about how the City’s future is looking bright.
“We feel very strongly about the value of our tokens as it relates to the value that we have determined in all the contracts that we have shared with you people so far,” the President said in the internal video recording obtained by Ars. .
Citizens’ intentions to establish the creation, sale, and management of an Ethereum-based crypto-token, known as CVL, are meant to serve as the precursor to a slew of dating websites that have recently been created.
“Compared to the $0.75 price we do with each of them and if we do our jobs right and work the way we want, it looks like we can see X two to four times that amount in time.” This brand sale is over, and I think that’s good for everyone,” Iles continued.
But even the $0.75 price ticks over 789 times what is actually listed in the order filing. The document is labeled as “Restricted Token Agreement” and has been provided to Ars. He cited the “fair market value” of a CVL at “$0.00095 per token.”
Now, months later, in a lengthy phone interview, Iles declined to explain this difference to Ars.
Either way, Civil it doesn’t even get that far. Initial coin offering (ICO) fail, bad In October 2018, ICO City raised $1.4 million of a $8 million goal. The only public investor, ConsenSys, has bought most powerful of the investment: $1.1 of $1.4 million.
Individuals who try to buy CVL tokens have to go through a complex and long series of steps that includes online questions meant to show that investors know what they are getting into. (All money raised as part of the ICO has been refunded, according to City.)
Ups and downs
Now, some within the civil society have raised serious concerns about the entire environment of the building. Essentially, a producer, Daniel Siebergtold Ars that he is significantly disillusioned after he was out of work in July 2018.
“Because they are people who are pretending to be the saviors of the news – everything has reached a point where … to see this continue is ridiculous,” he said, still lamenting the fact that he did not doubt as if it should be. “Did I, at that time, feel that I didn’t know enough about blockchain to the extent that it needed to be evaluated? Yes, I will take this to my grave.”
Jay Cassano, a former reporter at Sludge, a civic-related site, said that reporters are motivated to receive future wages based on this $0.75 price-giving money in favor of more tokens. But when that failed, he quit after five months. Since the ICO failed, the journalists were paid in full in cash.
On top of all that, the City’s first investor, ConsenSys, declare earlier this month that it would be cutting 13 percent of its workforce. How exactly this will affect the City is anyone’s guess—but it can’t be beneficial.
Them Civil Media Companywhich has been around for a year now, has decided its bold plan to “power sustainable journalism” through a “decentralized model based on blockchain and cryptoeconomics.”
Translated into formal English, that means that the company wants to act as an umbrella for several independent online media companies that have been operating since May 2018. The “newsrooms ” those cover a wide range of topics, ranging from local news (Colorado Sun), to national currency and politics (Sludge), to marijuana industry news (CannabisWire), and more.
Few of Civil’s it works actually experience how journalists work—don’t hire journalists. (The newsrooms, however, as a freedom of speech, obviously get reporters and editors.) CEO Matthew Iles own research news but told Ars that he would “not call myself a journalist.”
He admits that Civil’s first stab at creating a blockchain-based solution for journalism was difficult, but he remains confident in the model and blood that Civil will forge ahead.
“It’s complicated, and we’ve gotten very complicated,” he said.
In a lengthy phone interview, Iles explained that he was driven by a passion for the profession of journalism and that he wanted to help develop a new business model to finance and support. He said he wants to help online media outlets break away from the advertising-based model, based on Facebook and Google.
“The reason why the employees and the people who have committed to this project want the tokens is because we put our sweat into this, and we want to grow this network where the value of the network is consistent with the mission us, which is the world’s foundation for sustainability. newspaper,” Iles said.
Access and terms
However, media companies are looking for traditional sources of income — subscriptions, advertising, exclusive content — which can be enough without having to introduce blockchain into this equation.
Therefore, CVL is a scientific vehicle to achieve those goals. The well-thought-out logo is described as “important to the general model of the citizen, as it opens up two important business features for news producers: personal control and permanent storage.”
It is not clear exactly what is meant by “open…self-governing”—all news sites, by definition, are self-governing. All kinds of media companies choose what, when, and how to publish. Some even have public access the code of ethics and other guidance documents.
Civil has also created something similar called civil law, which, in many ways, reads like a conventional designer’s code of ethics. However, the Constitution took a step further by establishing a “Civil Foundation, with the mission of supporting and advocating for the core values defined in the Civil Constitution.”
The foundation was only formally established as a non-profit entity based in Delaware in September 2018. It elects members of the “Board,” the governing body for the entire City Platform. However, the board has never met to discuss any important issues, according to two members who spoke on condition of anonymity through Ars. In fact, by design, the Commission—which is made up mainly of journalism veterans—convenes only when there are disputes, and there haven’t been any.
“I think it is right to ask what happens to the role if the issue is with the City business itself,” said a member. “(That’s) not something that’s obvious to me right now.”
The Constitution cannot be ratified without “Token Holders” ratifying it. Until that happens, your adoption power will appear largely meaningless.
Through “permanent archiving,” supporters bring the history of DNAinfo and Gothamist, short-lived news sites. is separated after their founder was angered by the labor union. But those sites’ archives were quickly restored. (In fact, DNAinfo.com redirects to Block Club Chicagoa city newsroom.)
Indeed, there are numerous websites that have a number of undisturbed annual archives. Ars 20 years of archives, for example, are available for free on our website.
Neither of the City’s two pillars, or “business units,” appear to require a blockchain-based token to address them.
“At one point, I think the model makes sense as a way to foster relationships between readers and reporters directly and cut off the rich funding of newsrooms as the only model for journalism today,” Cassano told Ars. “But over time I realized that the City is a solution in search of a problem, because we don’t need technology to do those things. You look at the City — they got $2.5 million in funding.”
In October 2017, ConsenSys gift $2.5 million in cash to the City, with an additional $2.5 million in donations of internal services, including office space.
“What technology has the City created with that $5 million?” Cassano added. “As of now there are (over) a dozen WordPress websites that have been launched. Do they need $5 million for this?”