The last time we visited EF Hutton (OTCPK:HUTN) they were announcing the development of a social media platform that rewards users.
In light of the mounting criticism of Facebook with data security breaches and advertising changes to your preferences, it’s timely that the Springfield, Ohio firm announced this week a public beta launch of that platform.
It’s called Meggalife, and can be found at meggamigo.com.
Note that a commercial launch is scheduled for July.
Meggalife’s initial offering includes social networking, email, search, news and entertainment services. More than a dozen additional applications are already in development and scheduled for release in the near future, including mobile phone services, music and file sharing, communications, dating and employment tools. There are icons on the website which indicate the forthcoming features.
The main attraction is that Meggalife pays its users for being active on their site. How does it work? Megga spokesperson, Katalina Remusat explained: “Our launch coincides with the growing sentiment of consumers frustrated by big internet companies monetizing personal data on top of the billions in advertising revenue they generate from users' online activity. Now, Meggalife.com enables users to benefit from their online activity, accumulating meggapoints, which will help provide a more secure financial future.”
Net advertising revenue generated from Meggalife’s digital platform is invested in an independent trust which is ultimately shared with all participating Meggalife users. The cash amount a user receives is based upon the number of meggapoints a user accumulates relative to the aggregate points of all other users.
So net advertising revenues is not kept by HUTN; it is shared by users who accumulate points redeemable for cash in the future.
Users join a free investment club sponsored by HUTN called the Beanstalk Club. Club members are the Trust beneficiaries, pro rata. Remusat explains: “In this case, you’re going to go online to use social networks and online services anyway – you may as well get paid for it.” It is, essentially, a form of crowdfunding where everyone gets paid.
Platform marketing touts that Megga is easier to navigate, is more user friendly, less complicated, and does not share user information with anyone.
Just so we’re clear, Megga, Inc is a subsidiary of EF Hutton. Stanley Hutton Rumbough, son of Dina Merrill and grandson of Edward Francis Hutton is a Director of the Hutton firm and heads the Financial Services group.
When my friends and I worked at the original firm in the '80s, it was known as a revolutionary place for innovation and entrepreneurship.
Just maybe, this Ohio reboot might be following in its namesake's footsteps.
It’s timely news, anyway and bears watching. I, for one, would love a viable FB alternative.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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