From: thepipeline_xyz
KY is a social media betting platform that allows users to bet on the performance of their favorite influencers and creators [01:05:39]. The platform’s design draws inspiration from sports betting, where instead of betting on athletes, users bet on the performance of creators [01:17:19]. For example, users can bet on the number of views a tweet by Donald Trump will receive, with payouts based on the tweet’s popularity [01:28:04].
Inspiration and Market Opportunity
The rise of content creators and social media influencers over the past 10-20 years has led to an increasing demand for products that deepen community engagement [01:52:16]. Social media has seen explosive growth in the last five years, with platforms like TikTok scaling to 1.5 billion users in a few years [02:37:16]. KY aims to build on this “next generation of the attention economy” [02:51:30].
The initial inspiration for KY came from two sources:
- Team’s immersion in social media: The younger generation skew of KY’s team meant they were ingrained in meme-mimic social media applications, observing the world’s direction towards social media engagement [03:17:01].
- Friend.tech’s influence: Friend.tech introduced a novel concept of betting on someone’s popularity by buying and trading “keys” or “shares” [03:39:15]. While Friend.tech focused on chat rooms as utility, KY recognized the stronger potential in the financialization and marketplace aspects [04:01:00]. This led KY to focus fully on the financialization of social media [04:11:32].
Measuring Creator Potential
KY identifies creators and markets for betting based on “tribalism and fandom” [06:35:10]. Examples include:
- Brain rot streamers: Kai Cenat, Aiden Ross, and IShowSpeed, who have massive fan bases consuming all their content across various platforms like Twitter, YouTube, Twitch, and Kick [06:41:00].
- Tech sphere influencers: MKBHD, a prominent tech YouTuber, has a large audience consuming his content [07:07:08].
- US Elections: Figures like Donald Trump and Kamala Harris are popular markets due to intense tribalism [07:16:04].
- Mega creators: Elon Musk, as one of the most followed people on Twitter, generates significant popularity with his tweets [07:30:17].
The platform focuses on the “biggest and best and most popular” creators, similar to how sports betting focuses on major leagues and college games rather than high school games [08:11:00].
Key Pillars for KY’s Success
KY operates at the intersection of crypto gambling and social media, prediction markets, and online betting [08:23:01]. The two most critical factors for KY’s success are social media and online gambling/betting [09:16:00].
Social media’s sheer scale is enormous, with billions of monthly active users on platforms like YouTube, Instagram, and TikTok [09:26:00]. As social media continues to grow, KY believes people will increasingly want to speculate and monetize their knowledge and tribalism related to their hobbies and interests [10:15:00].
Online gambling and prediction markets are also experiencing significant growth. PolyMarket, for instance, has demonstrated the prominence of non-sports betting, particularly with the US election market [10:41:00]. The ability to use crypto for censorship-resistant platforms and secure payouts is seen as crucial for these markets [11:25:00].
Future of Social Media and Technology
Social media trends indicate continuous growth, with 77% of Gen Z using it daily [12:29:00]. The mobile experience and increased time spent online suggest that social media will continue to evolve in content consumption but will not disappear [14:01:00].
Augmented Reality (AR) and Virtual Reality (VR)
While AR/VR technology is still nascent, with past challenges like complex setups and user discomfort [14:38:00], it is expected to have an “iPhone moment” when a company solves the form and function for mass adoption [15:04:00]. AR, in particular, is seen as long-term bullish due to its ability to enhance existing device usage and create more immersive experiences [15:23:00]. Applications like virtual try-ons for clothing in online stores are already improving user engagement by making products feel tangible [15:46:00].
Artificial Intelligence (AI)
AI is expected to impact social media through the rise of non-human creators and influencers [17:01:00]. Some AI influencers already have millions of followers and legitimate sponsors [17:58:00]. As the ability to create convincing AI characters becomes more accessible, it could open up entirely new markets for content creation [18:50:00].
Impact on the Music Industry
The rise of short-form video content on platforms like TikTok, Instagram Reels, and YouTube Shorts has fundamentally shifted the music industry [19:16:00]. Artists now optimize for 30-60 second audio clips that go viral [20:12:00]. Success in selling out live tours is increasingly tied to an artist’s ability to capture attention on social media with viral songs, rather than solely producing hour-long albums [20:26:00].
Impact of Social Media Betting
Social media betting changes user dynamics by increasing emotional investment, similar to sports betting [22:38:00]. When users have money on a creator’s performance, they become more invested and may express frustration if outcomes don’t meet expectations [22:46:00]. This phenomenon is already observed on KY, where users discuss strategies in chats and react strongly to unexpected performance [23:30:00].
The accessibility of online betting makes users care more about outcomes, even with small stakes, due to the desire to root for a specific result [24:57:00]. Companies like DraftKings and ESPN Bet offer significant promotions because they understand the high lifetime value of engaged customers [25:23:29]. A similar dynamic is expected for social media betting platforms like KY, where early engagement can lead to long-term user retention [25:54:00].
KY aims to be a growth-hacking tool for social creators. While supporting small creators with deep liquidity might be challenging [35:42:00], KY can offer revenue or fee sharing to creators who become ambassadors, providing them an alternative income stream without changing their behavior [36:34:00]. Unlike some platforms, KY can stand up markets on anyone, not just those who explicitly sign up [37:35:00].
Comparison to Other Platforms
KY differentiates itself from platforms like Fantasy Top, which is identified as a “first mover” in crypto Twitter influencer betting [28:06:00]. Both Friend.tech and Fantasy Top confirmed that people are excited to financially engage with social media popularity [29:11:00]. Fantasy Top has successfully captured users, created a fun game, and built a strong community [29:30:00].
However, KY’s approach to social media betting aims to stay closer to the core concept, avoiding the complexities introduced by NFTs and card-based fantasy games [30:17:00]. Key differentiators include:
- Scalability: Fantasy Top’s model with NFTs and cards might not scale to broader platforms like YouTube without a complete redesign, potentially devaluing existing NFTs [30:39:00].
- NFTs and long-term value: KY sees the minting of NFTs for long-term value as potentially negative because users expect a continuous return, which can lead to negative sentiment if prize money or asset value decreases [30:55:00].
- Target Audience: Fantasy Top caters to a niche of a few thousand crypto Twitter users interested in fantasy crypto games [32:00:00]. KY, on the other hand, targets the masses by offering markets on globally recognized influencers like Donald Trump, MKBHD, Mr. Beast, and Ronaldo, who have hundreds of millions or even billions of fans [32:19:00]. KY is building social media betting for a generic user base [32:54:00].
Benefits of Building On-Chain
KY chose to build on blockchain rails for several key reasons:
- Global Liquidity and Customer Access: Blockchain provides immediate access to global liquidity and customers [38:16:00]. Building in Web2 would require extensive operational work for banking infrastructure and partnerships in each region [38:27:00]. On-chain, a user simply connects a wallet to access liquidity globally [38:42:00].
- Ideal User Base for New Products: Crypto users are considered the perfect test case for new gambling and speculation products [39:01:00]. They are excited, early adopters motivated to try novel products [39:19:00].
- Liquidity Bootstrapping: Blockchain enables the bootstrapping and scaling of underlying liquidity through DeFi-adjacent products, similar to how GMX or Jupiter’s GLP run liquidity where other people earn yield by providing it [39:32:00]. This mechanism allows KY to scale to millions of users [40:04:00].
Additional benefits of building on-chain include security, transparency, and instant payouts [40:22:00].
Getting Involved with KY
KY has two main community channels:
- Telegram: Currently hosts a few hundred users testing the app and providing feedback before the testnet launch [41:16:00].
- Discord: Recently launched to onboard a new group of testers for the app [41:26:00].
To get involved in the testing phase, interested individuals can join the Discord, open a ticket, and screenshot the podcast to receive a limited amount of roles [41:43:00]. Alternatively, following KY’s social media channels will provide updates on the app’s launch [41:57:00].
Final Alpha: Pursue Your Ideas
“There’s 100,000 reasons to say no, but there’s only one to say yes” [44:27:00].
The speaker emphasizes breaking free from conventional life blueprints (school, college, job, marriage) if they don’t align with personal happiness [43:30:00]. In the age of AI, crypto, and accessible funding, it’s easier than ever to pursue personal ideas and passions [44:17:00]. The speaker’s personal experience of quitting a job to go full-time in Web3 and moving countries on a whim highlights that seemingly impossible decisions often lead to better outcomes [44:43:00]. The advice is to explore interests and try new things, as the worst outcome is returning to the starting point, while not trying can lead to lifelong regret [45:11:00].