A Social Media Week Copenhagen 2013 panel discussion around BitCoin and other Virtual Currencies like Facebook Credits as well as Open Source projects and Social Networks, Shops or Crowdfunding initiatives that support them. Several experts from financial institutions and BitCoin Nordic are expected to participate, but the panel won’t be just among speakers, the audience is welcome to join the discussion and share there experience or where they would like to use such new payment options.

1. #SMWCPH

2. SOCIAL CURRENCIES AND
CROWDFUNDING #SMWSocialMoney
Social Media Week Copenhagen
Werner Keil
Lasse Birk Olesen
Copenhagen, Denmark
22 / 02 / 13

3. Twitter
Werner Keil - Bio @wernerkeil
• Consultant – Coach
• Creative Cosmopolitan
• Open Source Evangelist
• Software Architect
• Java Godfather
• JCP Executive Committee Member
• Eclipse UOMo Project Lead
3 • DevOps Guy

4. Social Currencies

5. Social Trade Organisation (STRO)
The Social Trade Organization was founded
in 1970 based in Utrecht, The Netherlands
Mission:
“to research, experiment and implement
innovative
sustainable economic structures made to suit
local economies.”
5 © 2010-2013 Creative Arts & Technologies and Others

6. Local Money: how does it work?
• Thousands projects worldwide using an own, local
currency
• Can only be used within certain area: neighbourhood,
city, region
• No replacement of national currency, but
complementary
• Some local currencies: no exchange for national
currency
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7. Local Money: paper money or …..
• Other local currencies: exchange for national currency
or goods
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8. Local Money: digital > Cyclos software
• STRO's open source software for the administration
and operation of Transaction Networks
• For the users it functions like online banking software,
allowing transfers between accounts through Web,
cards and SMS
• Provides functions of social networks and online market
places
• Website: http://www.cyclos.org/
8 © 2010-2013 Creative Arts & Technologies and Others

9. Facebook Credits
• Facebook Credits are a virtual currency you can use to
buy virtual goods in any games or apps of the
Facebook platform that accept payments.
You can purchase Facebook Credits directly from
within an app using your credit card, PayPal, mobile
phone and many other local payment methods.
► Hence any such purchase is practically a
conversion,similar to travelling abroad
9 © 2010-2013 Creative Arts & Technologies and Others

10. Facebook Credits (2)
• Facebook’s launch of Facebook Credits, “the safe and
easy way to buy things on Facebook” has grown into a
major source of revenue for Facebook and it’s system
of credits is expanding to other companies such as
Warner Brothers.
• Facebook Credits work by if you spend $5 you
obtain 50 credits, you then can take these
credits and purchase things such as a virtual
bouquet of flowers for birthday postings on
someone’s Facebook wall.
10 © 2010-2013 Creative Arts & Technologies and Others

11. Facebook Credits (3)
• In sum, Facebook’s new credit based economy is
basically a new way of purchasing digital goods.
• What Companies are involved?
- 1. Facebook
- 2. Warner Bros, Miramax, Paramount, other companies
offering digital movies or music.
- 3. PayPal, Visa, other credit card companies
11 © 2010-2013 Creative Arts & Technologies and Others

12. Amazon Coins
• Coming in May 2013, Amazon Coins is a new virtual
currency for purchasing apps, games, and in-app items
on Kindle Fire
• Amazon Coins is an easy way for Kindle Fire
customers to spend money on developers’ apps in the
Amazon Appstore, offering app and game developers
another substantial opportunity to drive traffic,
downloads and increase monetization even further
12 © 2010-2013 Creative Arts & Technologies and Others

13. Game Currencies
• Many popular games use virtual currencies: Gold,
Gems or similar game money, just like the good old
Monopoly currency
13 © 2010-2013 Creative Arts & Technologies and Others

14. Top 10 Video Game Currencies
1. Gold 8. Potch
2. Gil 9. Munny
3. Rupees (not Indian;-) 10.Nuyen
4. Credits
5. Gold Rings
6. Hearts
7. Zenny
14 © 2010-2013 Creative Arts & Technologies and Others

15. Bitcoin
15 Images partly © 2001 - New Line Productions, Inc.

16. Crowd Funding

17. History of Crowd funding
• Subscription Business Model
• Used in the 17th century to finance book prints. Similar to crowd funding a additional
benefit to donators was offered like the mentioning on the title page.
• Statue of Liberty
• In 1884, the American Committee for the Statue of Liberty ran out of
funds for the Statue’s pedestal. Newspaper publisher Joseph Pulitzer
raised over $100,000 in six months. Roughly 125,000 people
contributed to the cause with most donations being $1 or less.
17 © 2010-2013 Creative Arts & Technologies and Others

18. History of Crowd funding (2)
• Hollywood Sign
• In 1978, the Hollywood Chamber of Commerce replaced the severely deteriorated
sign with a more permanent structure. Nine donors, among them Hugh Hefner or
Alice Cooper gave US$27,700 each (totalling US$249,300) to sponsor replacement
letters made of steel, guaranteed to last for many years.
• Marillion
• In 1997, fans underwrote an entire U.S. tour for the British rock group Marillion,
raising $60,000 in donations by means of a fan-based Internet campaign.
18 © 2010-2013 Creative Arts & Technologies and Others

19. Three Types of Crowdfunding
• Donations, Philanthropy and Sponsorship where there
is no expected financial return
• Kickstarter, IndieGoGo, RocketHub, Faithfunder, CharitySub, ChipIn, Catchafire
• Lending/Borrowing
• KIVA, RateSetter, Funding Circle
• Investment in exchange for equity, profit, revenue
sharing or reward
• Profounder, AppBackr, PeerBackers, Quirky, GrowVC
• Investors receive item or service in return for their funds. (e.g. invest in film,
and get cameo role or tickets to the premiere.)
19 © 2010-2013 Creative Arts & Technologies and Others

20. Common Crowdfunding Mistakes
1. Asking for Too Much… or Too Little
2. A Bad Promo Video: too long, not clear on the
benefits, no humour, no excitement
3. No Clear Itemized Budget
4. Lousy or Overpriced Perks
5. Failing to Promote Project to Social Media Network
6. Failing to Inspire- No Good Story or Hook
7. Giving Up Too Early
20 © 2010-2013 Creative Arts & Technologies and Others

21. Crowd Funding – Recent US development
• 5 April 2012, President Obama
signed the JOBS (Jumpstart Our
Business Start-ups) Act. Prior to
this, US legislation prohibited public
solicitation for private companies
raising funds.
• Obama’s own campaign has always been based on Crowd Funding, see here
21 © 2010-2013 Creative Arts & Technologies and Others

22. Crowd Funding – Recent US development (2)
• The JOBS Act was due to come into effect on 1
January 2013 and whilst the main provisions of
the Act took effect promptly, the Securities
Exchange Commission in the US (the “SEC”)
has missed the deadline to repeal the ban on
general solicitation and advertising of private
placements as required by the JOBS Act, and
has not yet proposed a substantive set of rules to
enable Crowd Funding to function effectively.
• The SEC will regulate Crowd Funding in the USA.
22 © 2010-2013 Creative Arts & Technologies and Others

23. Coinbase – Crowd Funded Bitcoin Company
• Brian Armstrong (Previously AirBnB) founded the first
YC backed Bitcoin company. Now, he’s reached an
even bigger milestone. Coinbase (YC S12) is now
officially the first traditionally crowd funded Bitcoin
company (we say traditionally because some Bitcoin
companies have raised funds in Bitcoin via the
GLBSE stock market)..
• This shows that a lot of people believe in Coinbase and, by proxy, Bitcoin.
Some all stars like Y Combinator, Alexis Ohanian (reddit co-founder), Trevor
Blackwell (Anybots, YC co-founder) and IDG Ventures have invested in
Coinbase.
23 © 2010-2013 Creative Arts & Technologies and Others

24. JSR 354 – Money and Currency API for Java
• This standard provides a money and currency API for
Java™, targeted at all users of currencies and
monetary amounts in Java.
• The API will provide support for standard ISO-4217
and Custom (e.g. Virtual) currencies, as well as
representation of a monetary amount.
• It will support currency arithmetic, even across
different currencies, and foreign currency exchange.
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25. JSR 354 – Why is it needed?
• Monetary values are a key feature to many Enterprise
applications. A large portion uses Java
• The existing java.util.Currency class is strictly a
structure used to represent ISO-4217 standard
currencies.
• No standard value type to represent a monetary
amount.
• No support for currency arithmetic or conversion
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26. Discussion
Let’s Talk...
26

27. Twitter
Links #smwsocialmoney
@BitcoinNordic
• Virtual Economy: @JSR354
http://en.wikipedia.org/wiki/Virtual_economy
• Electronic Money:
http://en.wikipedia.org/wiki/Electronic_money
• Bitcoin Wiki:
https://en.bitcoin.it/wiki/Main_Page
• Bitcoin Nordic:
https://bitcoinnordic.com/

28. Twitter
Links #Crowdfunding
@BitcoinNordic
• Crowd Funding: @JSR354
http://en.wikipedia.org/wiki/Crowdfunding
• JSR 354:
http://javamoney.java.net/