Happy to have a stab, evaluate for yourself the benefits or otherwise.
The model they have built out is a direct carrier billing model with multiple telcos in multiple countries. These agreements take a lot of time to put in place, and have an inherant value as s distribution network for multiple products.
Direct carrier billing is where rather than needing to pay each time you ask a q&a question for example, your telco adds to your service bill at the end of the month. This needs to be negotiated and agreed with each telco.
The real rationale I believe behind track acquisition if you review back was the complimentary billing country telco agreements to add to what they already had.
Hence now they have a network reach in (50?) going off memory, countries they are in a position to add new products and services through a distribution network which has massive scale to exploit.
It's this which makes the digital influencer proposition a two way value exchange. The digital influencers have the popularity and following, CM8 has the pipes to exploit this.
You could also consider this model is exceptionately effective in:
1) the teen market who don't have access to credit cards (eg their 'a passion for fashion' app) which then just lands the parents with a bill after the fact.
2) developing countries where people may well have access to a phone and carrier subscription before banking credit.
Disclosure: was holder, exited to pursue another opportunity, will likely be back in next few months depending how it trends from here.
CM8 Price at posting:
20.5¢ Sentiment: Buy Disclosure: Not Held
