$43 Million Budget to Grow Civic (CVC) Userbase

A growth in the platform’s userbase would likely mean further price growth for the token itself.

The founder of Civic, Vinny Lingham, has said that now that the technology is in motion, his main focus is on getting users. And he’s planning on spending $43 million in total to make that happen.

Civic (CVC) is a blockchain product that focuses on secure identity verification. Yet despite having strong developmental progress and an actual product, they have been struggling to make users. A network of users is naturally integral to the long-term success of the Civic product. As per their statement, Civic is planning on allocating a third of its total 1 billion supply towards paying for the costs of its services. The purposes of these funds is to drive network adoption.

The rationale is simple: for every user that is verified on Civic, the process becomes a little bit easier. It becomes more attractive for the next company to use, so said Lingham.

Lingham told Coindesk as per their report today that: “Paypal got it right with the whole $10 free if you invite a friend and it nearly bankrupted the company. They managed to crack the chicken and egg problem doing it that way.” Indeed, Cash App has been working under a similar model and it seems to have worked. This is simply because more users, regardless of how you get them, is always better and brings much-needed exposure.

As of now, Civic is the only real blockchain system that has a working product on KYC procedures. It is paid for using CVC tokens which were created by the Civic project itself. However, this all begs the question: why is Civic deciding to do this now?

The answer is really quite simple. As of now, Civic has been verifying identities on a small scale. One of their biggest and well-known customers is Annheiser-Busch. They also boasts many partnerships within the crypto space itself such as Shapeshift, 0x, and the Chamber of Digital Commerce. However, these are simply not enough.

As Lingam has commented: “We’re at the point now where the product is [ready]… we’ve tested it. A hundred companies have signed up to use it and it’s working.” Yet, the missing link is adoption and a wide user base. All of these small-scale examples compare nothing to the real-world of identity verification. They’ve even gone as far as to acquire the domain for identity.com which will likely serve as a hub between customers and companies for KYC-related services.

Therefore, as is the key for many in the crypto space, the goal is one of disruption. With $43 million in the wings to boost user numbers, it seems that Civic has its sights on a proper target. Whether or not Lingam will be able to accrue those numbers in time and make the mark that the company wants, that’s another question entirely.