Author: Blocking, Climber
Recently, the Web3 short video platform Cheelee announced that it has completed a $10 million financing round. Combined with the $8 million equity financing in November last year, the company has raised a total of $18 million in just seven months. It is worth noting that Cheelee has accumulated $32.75 million in financing to date.
As a start-up company in the Web3 industry, the ability to raise so much capital shows that the project has been deeply recognized by investment institutions. In November last year, when the entire encryption market was in an extremely bearish market, the project founder Roman Alekseev and the Web2 mobile application NUTSon jointly launched a $200 million “encryption winter solidarity fund”, which further reflects the project’s attitude and expectations for the ecological construction of the encryption industry.
Today, Blocking will interpret the basic connotation, operation mechanism, and economic model of Cheelee in detail, and take you to understand the unique features of this short video project.
Cheelee is a short video platform with a Watch to Earn mechanism, that is, token rewards are issued to all users who watch the content, with the mechanism design referring to GameFi. The platform claims that its goal is to allow all users to make money on social networks and jointly obtain income from the attention economy. (Blocking note: The attention economy refers to a special economic model in which companies maximize the attention of users or consumers, cultivate potential consumer groups, and expect to obtain the maximum future commercial benefits.)
After registering and logging in to Cheelee and watching the summary of use, the platform provides each new user with a free “NFT glasses”. The glasses can monitor the viewing time of the video and convert it into corresponding points according to the length of time, and then exchange token rewards.
In addition, users can also use Cheelee’s native tokens to upgrade the glasses’ functions, such as memory, frame, lenses, etc.
Cheelee was founded in 2019 by Roman Alekseev, a serial entrepreneur and venture capitalist with more than 20 years of international market experience, and his co-founders Ruslan Sharov and Yuriy Kardonov. It is reported that Ruslan Sharov is a legal doctor and Web3 expert with more than 20 years of international business construction experience. Yuriy Kardonov is the CEO and founder of CommON, a neurotechnology and virtual reality startup.
As a short video platform that adopts the GameFi mechanism, Cheelee allows its users to convert their attention into money while using the product through the move-2-earn gameplay, in-app NFTs, and tokens, and earn money together with the platform. The implementation steps are also very simple, and only three steps are required:
1. Register on the Cheelee application and get free NFT glasses.
2. Watch the brief and get a box with LEE tokens (in-app tokens). Users will earn LEE from the boxes dropped within 30 minutes after watching the brief.
3. Once tokens drop, users can withdraw or exchange them for real-world currencies such as USD at any time.
In addition, users can increase their income by upgrading their initial NFT glasses. The method is as follows:
1. Use LEE tokens to directly purchase new NFT glasses from the application.
2. Obtain corresponding points according to the level.
3. Allocate points to the NFT glasses module. At the same time, users can use Gems (special NFTs) to upgrade the module. It is worth noting that allocating points will increase user income.
4. Purchase additional NFT glasses to increase the reward time for attention and brief watching. One attention is equivalent to 5 minutes of reward brief watching, which means that more attention means more income.
As mentioned above, Cheelee is a Web3 short video platform that mainly uses the attention economy principle and the GameFi mechanism to help users earn profits while watching videos.
The Cheelee economy is mainly based on two types of tokens:
1. CHEEL: governance token with a total issuance of 1,000,000,000. Through this governance token, the community can vote on important issues related to the development of the platform based on DAO principles to achieve effective governance.
The lock-up time for CHEEL held by early project parties and participants such as investment funds and teams is 24 months. This basically prevents any freely circulating tokens from being available during the active project growth and formation process. At the same time, this also means that CHEEL can be immune to panic selling and pressure from funds and investors.
Currently, the price of CHEEL on the crypto market is $12.89, and the trading volume in the past 24 hours is $5,942,675 at the time of writing.
3. LEE – A utility token with a maximum supply of 7,000,000,000. The difficulty of obtaining new LEE tokens is determined by the algorithm based on the amount of tokens minted: the more tokens minted, the harder it is to obtain new LEE tokens.
All transactions within the app are carried out using this limited supply internal token LEE, which is automatically accumulated in the in-app wallet when users watch videos during reward time.
Furthermore, Cheelee has other token economic mechanisms in place to ensure the smooth and long-term operation of the project.
Mainly to stimulate demand and reduce circulation supply. Cheelee’s tokens mainly use token exchange rates to support the fund’s buyback of funds, and the fund mainly receives 100% of profits from NFT glasses sales as well as transaction fees and 70% of social network advertising revenue.
2. Ensuring supply
Ensuring that supply meets demand. It is formed based on liquidity distribution, and further circulation is achieved to achieve token reuse.
Destroy some of the repurchased CHEEL and LEE tokens to reduce circulation supply and adjust prices.
Although Cheelee was established in 2019, it still needs to rely on the power of the Web2 mobile application NUTSon to build a professional Web3 short video platform. NUTSon is a short video platform that was launched as early as 2021, with 1.5 million users, a participation rate of 33%, and 15,000 original videos per day.
From establishment to development to the present, Cheelee has been recognized by investment institutions and users, and has moved forward step by step according to the established roadmap.
2021: Mainly promote cooperation with NUTSon.
Q1: Complete video access and user file configuration.
Q2: Advance the cooperation process and further deepen the connection.
Q3: Implement new short video mechanisms.
Q4: Optimize the page and deepen the analysis layer technology.
2022: Continue to optimize.
Q1: Continuously expand the video editor function and improve the video quality in the product.
Q2: Improve the video library and activity pages.
Q3: Build internationalization of applications and design in-app advertising.
Q4: Smart contract deployment, NFT glasses, and GameFi mechanisms.
2023: Face the market.
Q1: Application release and token listing, Web market release.
Q2: Provide NFT paths for fiat purchases (P2P and direct).
Q3: Enrich donation, live broadcast, box, and ad cabinet functions.
Q4: Develop NFT avatars, metaverse.
In the digital age, people’s ways of obtaining information and entertainment are increasingly inclined towards online videos, spending their attention and time on this new form of media. However, in the current Web2 network, users have a hard time getting extra income from it. Cheele’s appearance breaks this conventional form and creates new ways for more people to earn money.
Fundamentally, Cheele’s operation mechanism belongs to the “x to earn” model, similar to the previously popular STEPN type. But the difference is that the former clearly fits more people’s lifestyles and behaviors in terms of profit earning. Therefore, if Web3 short video platform Cheele can continue to evolve, it may become the next STEPN to break out.