Web3 Publishing Platform Mirror Sells to Paragraph, Pivots to Social App ‘Kiosk’

As an analyst with a background in the blockchain and tech industry, I see this acquisition as a strategic move by Paragraph to solidify its position in the Web3 creator space. Mirror’s team and user base bring valuable experience and expertise to Paragraph, allowing them to merge strengths and ultimately create a more comprehensive product suite.

In a significant move, publishing platform company Paragraph has announced the acquisition of its primary competitor, Mirror, in the burgeoning Web3 creator marketplace.

As a researcher studying the tech industry, I can share that the Mirror team is set to carry on as an independent entity in the digital landscape. Their primary shift in focus revolves around Web3 social media. Following Mirror, their major endeavor will be the creation of “Kiosk,” which resembles Twitter in its micro-blogging nature but is built upon the Farcaster protocol.

Mirror made headways as one of the trailblazers in the blockchain’s exploration of the creator economy, debuting in 2020. This innovative platform empowers writers to earn from their compositions by tokenizing individual pieces as NFTs. Designed as a more dispersed and censorship-resistant option compared to established Web2 publishing platforms such as Medium.

In the year 2022, Paragraph hit the market with features resembling Mirror, yet it primarily distinguished itself by catering to the needs of newsletter creators and publishers, similar to Substack, as opposed to being limited to individual articles.

Expert: Colin Armstrong, the founder of the paragraph’s subject company, asserts that his product stood out from Mirror primarily by catering to a Web2 audience in its early stages. In addition, Armstrong, who has contributed to tech publications and held engineering positions at Google and Coinbase, emphasized the importance of referral programs and other features to broaden an author’s reach for his product. Meanwhile, Mirror built a robust brand and design language that set it apart.

From my perspective as a crypto investor, both Mirror and Paragraph have progressed and surprisingly converged into comparable offerings. It can be quite confusing for users to decide between the two.

Mirror, meanwhile, has shifted much of its focus to Kiosk, its Web3 social platform.

Mirror founder Denis Nazarov expressed that Kiosk aims to merge social interaction with commercial transactions. However, Nazarov will now serve as an “advisor” for Paragraph, allowing him and his team to dedicate their efforts entirely to developing their new platform.

According to Armstrong, Paragraph’s user base pales in comparison to Mirror’s size, and his team consists of just three individuals, which is less than Mirror’s team of six. The financial details of the acquisition were not disclosed by either party, but Armstrong revealed that the proposal came from Union Square Ventures, a shared investor in both companies.

“Everyone is thrilled about the outcome. Mirror will have the opportunity to develop their new product, while the Mirror product will be in capable hands for continued publication,” Armstrong explained. “This is beneficial for us as it significantly expands our user base and enhances our offerings.”

Based on Armstrong’s statement, the Mirror and Paragraph tools are expected to combine into a singular, more efficient product in the future.

In the near to mid-term, we plan to merge our offerings, but for now, we’ll engage in conversations with the leading innovators of both platforms to identify the beloved features of each.

Welcome, Kiosk

As a blockchain and e-commerce analyst, I can describe the Kiosk project by Mirror as my effort to explore how we can integrate blockchain technology and online shopping experiences more seamlessly into social media platforms.

As a crypto investor using Farcaster, I access this X-like app built on Ethereum using what is referred to as a “client.” These clients, such as Kiosk, function like distinct lenses through which I view Farcaster’s data. Not only do they offer more enriched perspectives of the Farcaster content, but they also introduce additional features and use-cases to the protocol.

As a researcher, I’ve come across an intriguing perspective: the possibility of observing not only people’s words, likes, and followers but also their asset purchases. We believe that owning and collecting assets is more than just a financial transaction; it carries a social significance as well.

When Mirror initially came onto the crypto scene, its sleek interface stood out as a refined standard. Nazarov intends to apply a comparable design approach to Kiosk.

As a crypto investor and early adopter of Mirror, I can attest to their pioneering role in the web3 space. We were among the first to recognize the importance of strong product design, branding, and go-to-market strategies in this ecosystem – qualities that remain uncommon yet potent. Our unique value proposition lies in combining a compelling social narrative with an embedded economic incentive. This powerful approach not only captivates users emotionally but also economically motivates them to engage and contribute.

As a crypto investor and user, I can tell you that Kiosk is designed to simplify the process of integrating digital assets, specifically NFTs (Non-Fungible Tokens), into social media posts. Instead of merely attaching an image of an NFT in a conventional tweet or Facebook post, Kiosk allows for additional blockchain features to be embedded within the image itself. This means that viewers can easily access information such as the NFT’s unique blockchain address, as well as having the option to purchase it directly from the post, enhancing the overall user experience and showcasing the true potential of digital assets on social media.

According to Nazarov, he believes that poor user experience (UX) was a significant factor preventing crypto from expanding its user base beyond the million and 10 million marks. He went on to note the potential of innovations like Farcaster, which prioritize mobile-native experiences and integrate social media with e-commerce in a unified manner.