Why Entrecard Might Fail

Entrecard is a website, community, service, whatever you want to call it. But it's built around one thing; Entrecard credits, or more commonly ec. And it's because the site relies on them that it might flop.

Entrecard credits are an interesting thing, something I think we are going to see more of in the near future, an online currency. Granted it's limited, and you may argue differently, but when you boil it down that's what it really is.

Why that might be a bad thing.

Like all currencies an online one will have similar problems, the one that comes to mind: Inflation. Think about it, if you're simply getting free ec. for dropping your card, and since those credits aren't being payed to you by anyone else, you have a problem, Inflation.

Over time as more, credits are just made (by dropping) there will be more credits in the system, making the worth of an ec. less. Making the pain of going to a site for just one credit not worth it.

Granted that there will be people who just abandon there accounts leaving credits unused, but as more people sign up for entrecard, this won't balance it out.

How this can be prevented

Thankfully this can all be remedied, but only by Entrecard. If they realize what they need to do, (raise the amount of credits for a drop, raise the drops to advertising cost ratio), and do them, Entrecard will be saved. Saved from an evident flop.

But don't get me wrong...

Now I have nothing against Entrecard, I think it is an awesome service paving the way for more online currency-type services. I just hope Entrecard knows what they have to do to save themselves. And maybe if we are lucky they had this all accounted for already.