Dispo launches a test to gauge user interest in selling their photos as NFTs

The photo-sharing app that emulates disposable cameras, Dispo started rolling out a test yesterday that will record user interest in selling photos as NFTs. Some users will now see a sell button on their photos, and when they tap it, they can sign up to be notified when the ability to sell Dispo photos launches.

CEO and co-founder Daniel Liss told TechCrunch that Dispo is still deciding how it will incorporate NFT sales into the app, which is why the platform is piloting a test with its users. Dispo doesn’t know yet what blockchain it would use, if it would partner with an NFT marketplace, or what cut of sales Dispo would take.

“I think it’s safe to say from the test that there will be an experience native to the Dispo app,” Liss said. “There are a number of ways it could look — there could be a native experience within Dispo that then connects through an API to another platform, and in turn, they’re our partner, but to the community, it would look native to the Dispo app.”

Image Credits: Dispo

This marks a new direction for the social media app, which seeks to redefine the photo-sharing experience by only letting users see the photos they took at 9 AM the next morning. From Dispo’s perspective, this gimmick helps users share more authentically, since you take one photo and then you’re done — the app isn’t conducive to taking dozens of selfies and posting the “best” image of yourself. But though it only launched in December 2019, Dispo has already faced both buzzy hype and devastating controversy.

Until about a year ago, the app was called David’s Disposables, named after co-founder and YouTuber David Dobrik. The app was downloaded over a million times in the first week after its release and hit number one on the App Store charts. In March 2021, the app dropped its waitlist and relaunched with social network features, but just weeks later, Insider reported sexual assault allegations against a member of Vlog Squad, Dobrik’s YouTube prank ensemble. In response, Spark Capital severed ties with the company, leading to Dobrik’s departure. Other investors like Seven Seven Six and Unshackled Ventures, who contributed to the company’s $20 million Series A round, announced that they would donate any profits from their investments in Dispo to organizations working with survivors of sexual assault.

Liss told TechCrunch in June, when the company confirmed its Series A, that Dobrik’s role with the company was as a marketing partner — Liss has been CEO since the beginning. In light of the controversy, Liss said the app focused on improving the product itself and took a step back from promotion.

According to data from the app analytics firm SensorTower, Dispo has reached an estimated 4.7 million global installs to date since launch. Though the app saw the most downloads in January 2020, when it was installed over 1 million times, the app’s next best month came in March 2021, when it removed its waitlist — that month, about 616,000 people downloaded Dispo. Between March and the end of August, the app was downloaded around 1.4 million times, which is up 118% year over year compared to the same time frame in 2020 — but it should be expected that this year’s numbers would be higher, since last year, the app’s membership was exclusive.

Image Credits: Dispo

Now, with the announcement that Dispo is pursuing NFTs, Liss hopes that his company won’t just change how people post photos, but what the relationship will be between platforms and the content that users create.

“Why NFTs? The most powerful memories of our lives have value. And they have economic value, because we created them, and the past of social media fails to recognize that,” Liss told TechCrunch. “As a result, the only way that a creator with a big following is compensated is by selling directly to a brand, as opposed to profiting from the content itself.”

Adding NFT sales to the app offers Dispo a way to profit from a cut of user sales, but it stands to question how adding NFT sales could impact the community-focused feel of Dispo.

“I think there is tremendous curiosity and interest,” Liss said. “But these problems and questions are why we need more data.”

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Amid controversy, Dispo confirms Series A funding, high-profile advisors, and investors

It’s only been nine months since Dispo rebranded from David’s Disposables. But the vintage-inspired photo sharing app has experienced a whiplash of ups and downs, mostly due to the brand’s original namesake, YouTuber David Dobrik.

Like Clubhouse, Dispo was one of this year’s most hyped up new social apps, requiring an invite from an existing member to join. On March 9, when the company said “goodbye waitlist” and opened the app up to any iOS user, Dispo looked poised to be a worthy competitor to photo-sharing behemoths like Instagram. But, just one week later, Business Insider reported on sexual assault allegations regarding a member of Vlog Squad, a YouTube prank ensemble headed by Dispo co-founder David Dobrik. Dobrik had posted a now-deleted vlog about the night of the alleged assault, joking, “we’re all going to jail” at the end of the video.

It was only after venture capital firm Spark Capital decided to “sever all ties” with Dispo that Dobrik stepped down from the company board. In a statement made to TechCrunch at the time, Dispo said, “Dispo’s team, product, and most importantly — our community — stand for building a diverse, inclusive and empowering world.”

Dispo capitalizes on Gen Z and young millennial nostalgia for a time before digital photography, when we couldn’t take thirty selfies before choosing which one to post. On Dispo, when you take a photo, you have to wait until 9 AM the following day for the image to “develop,” and only then can you view and share it.

In both February and March of this year, the app hit the top ten of the Photo & Video category in the U.S. App Store. Despite the backlash against Dobrik, which resulted in the app’s product page being bombarded with negative comments, the app still hit the top ten in Germany, Japan, and Brazil, according to their press release. Dispo reportedly has not yet expended any international marketing resources.

Now, early investors in Dispo like Spark Capital, Seven Seven Six, and Unshackled have committed to donate any potential profits from their investment in the app to organizations working with survivors of sexual assault. Though Axios reported the app’s $20M Series A funding news in February, Dispo put out a press release this morning confirming the financing event. Though Seven Seven Six and Unshackled Ventures intend to donate profits from the app, they remain listed as investors, while Spark Capital is not. Other notable names involved in the project include high-profile photographers like Annie Leibovitz and Raven B. Varona, who has worked with artists like Beyoncé and Jay-Z. Actresses Cara Delevingne and Sofía Vergara, as well as NBA superstars Kevin Durant and Andre Iguodala, are also involved with the app as investors or advisors.

Dobrik’s role in the company was largely as a marketer – CEO Daniel Liss co-founded the app with Dobrik and has been leading the team since the beginning. After Dobrik’s departure, the Dispo team – which remains under twenty members strong – took a break from communications and product updates on the app. It’s expected that after today’s funding confirmation, the app will continue to roll out updates.

Dispo is quick to shift focus to the work of their team, which they call “some of the most talented, diverse leaders in consumer tech.” With the capital from this funding round, they hope to hire more staff to become more competitive with major social media apps with expansive teams, like Instagram and TikTok, and to experiment with machine learning. They will also likely have some serious marketing to do, now that their attempt at influencer marketing has failed massively.

Now more than ever, Dispo is promoting the app as a mental health benefit, hoping to shift the tide away from manufactured perfectionism toward more authentic social media experiences.

“A new era of start ups must emerge to end the scourge of big tech’s destruction of our political fabric and willful ignorance of its impact on body dysmorphia and mental health,” CEO Daniel Liss writes in a Substack post titled Dispo 2.0. “Imagine a world where Dispo is the social network of choice for every teen and college student in the world. How different a world would that be?”

But, for an app that propelled to success off the fame of a YouTuber with a history of less than savory behavior, that messaging might fall flat.

According to Sensor Tower, the highest Dispo has ever ranked in the Photo & Video category on the U.S. App Store was in January 2020, when it was still called David’s Disposables. The app ranked No. 1 in that category from January 7 to January 9, and on January 8, it reached No. 1 among all free iPhone apps.

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Early investors in Dispo to donate any profits from the photo-sharing app

After Spark Capital announced it would ‘sever all ties’ with Dispo following allegations around co-creator and famous YouTuber David Dobrik, two of the app’s earliest investors have similarly backed away from the company. Seven Seven Six and Unshackled followed suit this morning, releasing subsequent statements that they plan to donate any profits from investments to organizations working with survivors of sexual assault.

Seven Seven Six, an early-stage venture capital firm founded by Reddit’s Alexis Ohanian, released a statement on Monday morning saying that the allegations against Dobrik are “extremely troubling” and are “directly at odds” with the firm’s core values.

“We have made the decision to donate any profits from our investment in Dispo to an organization working with survivors of sexual assault. We have believed in Dispo’s mission since the beginning and will continue to support the hardworking team bringing it to life,” according to the firm’s statement. Ohanian has retweeted the statement from his personal account but has offered no separate statement.

Unshackled Ventures similarly tells TechCrunch that the firm will donate any profits from the investment in Dispo to organizations focused on survivors of sexual assault.

The firm pointed to Maitri, an organization that supports women survivors, as one place it plans to donate to.

“We are a female majority team that does not take this lightly. We are in full support of their decision to part ways with David,” per the statement. It is unclear how Spark Capital, which similarly is in the process of making sure it doesn’t profit from Dispo, will be handling its financial stake as well. Spark was unable to be reached for clarification.

The company was last valued at $200 million with Spark Capital-led $20 million Series A financing just weeks ago. Dispo released a statement last night stating that Dobrik has stepped down from the board of Dispo and leave the company. It is unclear if Dobrik still has a financial stake in the company through ownership and if he plans to divest.

 

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