In the AI era, information explosion has become a universal challenge. Users not only need to find alpha (high-value information) within this vast amount of information, but also need to discern its authenticity. As Nobel laureate in economics Herbert Simon said, "A wealth of information creates a poverty of attention." This is also the current dilemma in the cryptocurrency world: users cannot efficiently determine whether a project is worth participating in and how to participate. With the endless stream of spam and projects on Twitter and TG, individual screening wastes a significant amount of attention and time. To address this pain point, Backroom has proposed an InfoFi-based solution. What is Backroom? Backroom is an AI-powered InfoFi protocol that captures group information flows, removes the noise, and transforms them into a real-time, tradable information marketplace. Creators launch tokenized rooms, leveraging AI to transform their insights into monetizable content. Users unlock noise-free, high-value intelligence by purchasing on-chain keys tied to each creator's room. Mechanism Analysis and Innovations For creators, simply set up a Room profile, add Backroom's AI bot to a Discord or Telegram group, and set the price for the room, allowing them to focus on their creations. The AI bot removes noise and irrelevant information from the group, identifying alpha and automatically organizing it into rooms. Users, on the other hand, must purchase keys to access these rooms. Both the purchase and trading of keys require $ROOM tokens. At the same time, the project will allocate 25% of its tokens to fuel growth and creator incentives, while $ROOM transaction fees (specific ratio not yet available) plus $ROOM tokens will serve as creator incentives. This will kickstart an economic flywheel: creator incentives attract more outstanding creators, providing more Alpha information → more key demand → more $ROOM demand → higher rewards → more creators and traders → more Alpha. Backroom's greatest innovation lies in its emphasis on extracting "Alpha" from the private sector. In an age of information overload, public platforms like Twitter are rife with noise, while private groups often conceal the earliest discussions. Backroom aims to use AI to monitor these closed spaces in real time, quantify information quality, and provide users with a high-quality, exclusive stream of intelligence. InfoFi (Information Finance) refers to the tokenization of information, transforming it into a tradable asset. InfoFi aims to reduce noise in the market, allowing the market to determine where attention flows, rather than platform-created information cocoons or algorithmic biases. Creators earn airdrops and traffic through their creations, projects seek exposure and attention, and users participate in and learn about truly valuable projects. InfoFi aims to address the inefficiencies and unfairness caused by information overload in the current market (creators only receive a small portion of the revenue from their creations, while users struggle to find alpha despite their time and attention), while making the information flow received by users more intelligent and efficient. InfoFi encompasses all projects that treat information as a commodity: such as Nansen, Dune, and even Polymarket, as well as Kaito and Cookie. Most of InfoFi's revenue opportunities come from direct participation in projects, such as Kaito's Twitter posts to attract traffic, or Backroom's focus on collating alpha information. While Backroom differs from previous InfoFi projects in some ways and offers some innovation, it still faces some challenges. First, the $ROOM token lacks sufficient capabilities. The price of $ROOM's token depends on the trading volume of Keys. If early user growth is slow or high-quality Rooms are scarce, the token's value could continue to decline, which in turn would discourage creators from joining, creating a cycle. Second, Backroom's Rooms are insufficiently differentiated from traditional paid small group models. Backroom's Rooms are similar to private Telegram or WeChat groups, both of which rely on content scarcity to attract users. Furthermore, traditional group models already have a user base, and without innovation, Backroom will struggle to attract new users. Furthermore, Backroom relies on a dedicated AI bot to capture and push key information within the group, a crucial production link in the entire economic flywheel. However, due to insufficient training data or algorithmic bias, AI models can misjudge messages, mistaking irrelevant discussions for alpha or overlooking implicit key information.
Finally: Future Outlook for the InfoFi Sector
Whether it's Backroom, Kaito, or Trends, the core focus of the InfoFi project should be on providing the market with more authentic and effective information, thereby injecting more liquidity into the current market. InfoFi currently faces many issues, such as opaque points calculation rules and a heavy reliance on AI.
The significance of the InfoFi project may lie in encouraging current market users to move beyond "mining, withdrawing, and selling" to a deeper understanding of the project's mechanics and dedicated development. The project should also provide airdrop rewards to truly participating users and creators. When more people begin to produce and provide high-quality, authentic content, and when the market pays more attention to proactive and creative projects, the arrival of a bull market will no longer be determined solely by cycles, but by innovation and value.
(This article is for information sharing only and does not constitute investment advice)
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