LD Capital: In-Depth Exploration of the Upcoming Binance CyberConnect Project Status

Communication and Sharing.

Binance has announced the launch of CyberConnect's governance token CYBER on its Launchpool platform. CyberConnect, a decentralized social protocol, aims to offer users enhanced privacy, data ownership, and diversified content economic models. This article provides an overview of CyberConnect's developmental journey and its current status.

Development of CyberConnect

Founded in 2021, CyberConnect set out to create a decentralized social graph that emphasizes data ownership. Its infrastructure focuses on user-centric data flow, utilizing storage mechanisms based on Ceramic and IPFS.

In 2022, CyberConnect introduced the v2 version, deploying a hybrid expansion framework (EVM+Arweave) for social applications. This hybrid approach enables dApps to store more user social data on-chain. V2 also introduced a similar-to-SBT solution, binding social data to W3ST (an ERC-721 standard non-fungible token) to restore users' Web 3 identities. The representative product of CyberConnect v2 is Link3.

On July 14, 2023, CyberConnect announced its v3 version and plans to deploy it on six EVM-compatible networks over the next two months. The core components of v3 aim to transform CyberConnect into a comprehensive cross-chain social protocol. These components include the identity infrastructure CyberAccount (compatible with ERC-4337), the anti-censorship database Cyber Graph for recording user content and social relationships, and the multi-chain solution CyberNetwork.

CyberAccount provides users with a smart contract system that offers web2-like experiences, minimizing migration barriers. Cyber Graph focuses on user identity and linking social data across compatible blockchains, supporting CyberConnect's creator economy. The v3 version enhances the creator economy, and the v2 version improved the standard token, reducing gas fees.

Protocol Data

CyberConnect witnessed a surge in user data in March, June, and late July 2023. These periods correspond to events such as CyberConnect's reduction of Profile creation thresholds, the conclusion of the token public sale on Coinlist, and Binance Launchpool's announcement of CYBER listing.

Currently, CyberConnect has a total of 1.258 million Profiles, with approximately 11,000 daily active users and 82,000 weekly active users—a 45% decrease from the previous week. Following Binance's CYBER listing announcement, short-term on-chain interactions occurred due to token airdrop expectations, leading to a subsequent decline in active user numbers. Long-term daily active users have remained at around 40,000 since March 2023. After the token sale on Coinlist, the long-term active user count decreased to 30,000. Despite intermittent growth resulting from reserved tokens for community rewards, the continuous on-chain active users further decreased to 10,000-20,000, approaching a more accurate user count.

Financing Overview

Total Funding: $30.4 million

In Q3 2021, a $10 million seed round was led by Multicoin and Sky9 Capital, with participation from Animoca Brands, Draper Dragon, Hashed, Zoo Capital, Smrti Lab, and Mask Network.

In Q1 2022, a $15 million Series A round was led by Animoca Brands and Sky9 Capital, with participation from Delphi Digital, Protocol Labs, IOSG Ventures, Tribe Capital, GGV Capital, Spartan Group, Amber Group, Polygon Studios, and SevenX Ventures.

In 2023, a $5.4 million public offering was completed via Coinlist, with tokens unlocking at 25% during the TGE at a price of $1.8 per token. CYBER's price must reach $7.2 at TGE for participants to recoup their costs.

Economic Model

CYBER's total supply is 100,000,000.

Economic Model

CYBER's total supply is 100,000,000.

Token use cases:

1. Payment for all transaction gas fees across EVM-compatible chains within CyberWallet, including Ethereum, Optimism, Arbitrum, BNB Chain, Base, and Polygon networks.
2. Community governance voting;
3. Payment for CyberProfile minting.

Roadmap

Q3 2023: Release v3 version, deploy to more EVM-compatible chains, release a beta version of CyberWallet compatible with ERC-4337 and CyberGraph models, upgrade [.cyber] to omni-chain domain.

Q4 2023: Implement web 2-style login/recovery for CyberWallet, release CyberConnect Grant, involve over 120 ecosystem projects and 1.5 million profiles.

Competition

CyberConnect's primary competitor is Lens Protocol.

Lens Protocol V2 focuses on a composable social network, enabling external smart contract integration and a more open economic model for value sharing among platform roles like users, algorithms, and applications. It also introduces the ERC-6551 token standard, allowing value to link to individual Profile NFTs rather than owner addresses.

In comparison to Lens Protocol, CyberConnect v3 emphasizes user experience and building a multi-chain universal identity network.

In terms of data, Lens Protocol has 360,000 users, a third of CyberConnect's count, with similar volatile user activity styles but sustaining for about a week. Presently, Lens Protocol has around 20,000 daily active users.

Conclusion

CyberConnect garners significant attention in the decentralized social sphere, aiming to gradually integrate web 2 social app experiences into web 3 apps while lowering barriers through reduced interaction costs. However, data indicates that current decentralized social protocol user activity largely stems from token airdrop expectations. Additionally, the challenge persists due to high user stickiness and migration difficulty resulting from traditional social app habits and relationships.

Development Contacts