Sweatcoin is a smartphone application that lets users earn virtual currency while exercising outside or engaging in other sports like running.
Sweatcoin earns money through advertising other brands as well through collaboration with insurance companies as well as other government bodies.
Since its inception in 2015 Sweatcoin has attracted more than 30 million users to its application. Sweatcoin has raised $6 million in funds in the first year.
What is the process behind Sweatcoin Work?
Sweatcoin is an app for mobile devices that lets users earn virtual currency, also known as sweatcoins for walking or doing physical activity.
The app basically tracks the movements of a user throughout the day, and converts the steps to virtual currencies.
For every 1000 steps outdoors you walk, you receive 0.95 sweatcoins. The remainder all going towards the platform in question.
The app makes use of the pedometers present in the majority of modern mobile phones. The data is then checked by its own algorithms, which are specifically designed to identify fraud.
Furthermore, Sweatcoin only counts the steps that users take outside. For example, running on a treadmill , or Zumba classes aren’t considered.
The sweatcoins can be used to spend for goods, services or experiences through the app’s marketplace. Users can, in addition, donate their sweatcoins in partnership with charitable organizations.
Sweatcoin is partnered in partnership with hundreds of other partners like Audible, Harry’s, Skullcandy, Tidal, and more to let you redeem your hard-earned virtual currency.
Additionally, members can choose from a various membership choices to join. The higher the level you choose to join the more money you’ll earn. But, each tier has the monthly fee for membership that comes with them. The fee can be paid using Sweatcoin.
Utilizing the Sweatcoin application is as easy as it can. It’s as easy as downloading the app, sign up for an account, and let Sweatcoin to keep track of your movements using its GPS.
Users can also make friends with whom they can track their progress and compete with them on the leaderboard.
Sweatcoin is accessible via your mobile device (available for Android as well as iOS) and through Apple Watch. Apple Watch.
Sweatcoin Company History
Sweatcoin has its headquarters within London, United Kingdom, was established on the 14th of July 2014, by Russian entrepreneurs Oleg Fomenko, Anton Derlyatka, Danil Perushev as well as Egor Khmelev.
Derlyatka and Fomenko were close acquaintances and had been friends for many years. Together, they both made it to the top of Kilimanjaro. They both Fomenko and Derlyatka had what one might call active lives for the longest duration.
Fomenko prior to the Sweatcoin’s launch, had been working to grow Bloom.fm which was the U.K.-based music service which had more than 1.3 million downloaded. However, the company collapsed when Gazprom Media which is the company’s sole investor, pulled out following the Russian attack on Crimea and then he failed to obtain the funding.
In the between, Derlyatka was working on the idea of launching a fitness company, that, if fate had it, not seen the dawn of the day.
Just after Bloom.fm was sold off, Fomenko went heads deep into research on blockchain technology and possible applications.
After his failure in the past, Fomenko stopped working out completely. The moment of his realization came when Fomenko and Derlyatka ran together.
While Derlyatka was talking about his fitness business, Fomenko began to wonder whether there was a way of combining blockchain technology and cryptocurrency and also exercising.
The idea was further proved by the data. In the year 2000 there was a 62 percent chance that all UK citizens were considered overweight. The country spent over $12 billion every year to reduce the impact of its obese population. This figure was predicted to increase by a third over the next 10 years.
With an intriguing story set in place they began to work on Sweatcoin. They also hired Khmelev and Perushev who were working in a different startup during that time to come on board with their team.
Fortunately, because of the founder’s vast experience the company was successful in raising the seed round of almost $1 million to help get up and running.
In May 2016, following more than a year of dedication they finally introduced Sweatcoin’s cryptocurrency for their British public. However the iPhone application was launched in December. Android was released in April of 2017.Wayback Machine
When it first launched, Sweatcoin had already secured certain partnerships, which included Barefoot footwear from Vivobarefoot stylish sportswear from BOOMBOOMAthletica in addition to fitness wearables for the company wellness expert Fitbug.
In 2017 co-founder Perushev relocated from San Francisco to help the firm establish itself its operations in the United States. However, as per the profile on his LinkedIn account Perushev was forced to leave the firm in November of 2017.
Fortunately for him, he did succeed in establishing the app in the US before his departure. At the end of the end of summer 2017 Sweatcoin was taking off and became the most-used fitness and health application across the United States.
The company’s rapid rise also helped the company to sign profitable partnerships including in the case of Apple, HelloFresh and Fitbit. In the year 2017, Sweatcoin was able to gain over 5 million users across all of its users.
The company’s rapid growth enabled the team to raise a second round of capital. Investors such as Greylock, Seedcamp, or Twitch co-founder Justin Kan invested an amount in the amount of $5.7 millions into the company.
The funds were primarily employed to recruit more employees (particularly data scientists who work on its own algorithms) in addition expanding beyond its home countries of the UK in the UK and US. In March of 2018, after receiving a lot of media coverage regarding the funding round, Sweatcoin was able to acquire more than the 10 million customers.
In April, the company began to expand into Canada. It also announced a distinct application designed for Apple Watch at the same time.
The business gained another boost after researchers from the University of Warwick discovered that Sweatcoin’s app led to users gaining physical exercise by as much as 20 percent. It should be mentioned that the study was funded by Sweatcoin the company itself.
In the next few months, Sweatcoin was able to surpass the milestone of 30 million users.
Despite the app’s phenomenal growth however, it’s also come under criticism for draining users’ battery, as well as the inaccuracy of taking steps. It has frequently led to customers not being given the right amount of tokens due.
Today, nearly 100 people work for Sweatcoin that continues to work from the London headquarters.
What is the process by which Sweatcoin Earn Profit?
The company earns its money by promoting other brands, as well as through partnerships with insurance companies as well as other governmental institutions.
Let’s take a look at the different income streams in the sections below.
A majority money that Sweatcoin earns comes from the promotion of other brands through its application.
Brand Partners include businesses such as Apple, Starbucks, Amazon, Les Mills, H&M and many others.
It is possible that Sweatcoin earns money every time the user redeems his or the tokens to purchase any of the numerous services and products.
These partnerships with brands allow businesses to launch innovative products or services to focused group of customers.
For example, a company that makes sportswear could be assuming that customers on Sweatcoin are, in general more active and therefore become long-term customers.
Because Sweatcoin has more than 30 million users registered Its app can be used to promote one’s brand from the beginning.
Another source of revenue for Sweatcoin is the alliances it has with insurance companies and other organizations.
In September of 2019, Sweatcoin announced a collaboration with Hannover Re in which Sweatcoin supplied the reinsurer with a range of health-related information aspects.
Furthermore, Sweatcoin also partnered with the UK’s National Health Service (NHS) in the piloting of the new kind of change in behavior program. The pilot will introduce those who are at a higher risk for developing Type 2 diabetes to different kinds of physical activities.
The Sweatcoin partners will likely then compensate the company for the duration in the relationship.
Sweatcoin Funding, Revenue and Valuation
As per the Crunchbase, Sweatcoin has raised an amount of $6.3 million over the three phases of venture capital financing.
Some notable investors are Runa Capital, Greylock, Goodwater Capital, Seedcamp, Upscale, RubyLight, and numerous others.
Since it is a private entity, Sweatcoin is not obligated to reveal its earnings or estimates to the public.