Edison Chen, CEO of CUDIS, on Smart Rings Being Better Than Watches, Users Earning From Wellness Data, and Nonsensical Monthly Subscriptions | Ep. 371
data
Investment
Solana
“I think people should have the rights to their assets, and the wellness data is the most important asset,” says CUDIS CEO Edison Chen.
Last updated:
September 20, 2024 11:44 EDT
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September 20, 2024 11:44 EDT
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In an exclusive interview with
Cryptonews Podcast
, host Matt Zahab talked to Edison Chen, the co-founder and CEO of
CUDIS
, the company behind the first Web3 and AI-powered wellness ring.
Chen discussed the CUDIS 001 ring, why rings are better than watches and bands, how vital it is for every person to truly own their data, and how they can financially benefit from it.
He explained why charging monthly fees is a “weird” business model and talked about the $5 million funding round led by Draper Associates.
One Smart Ring to Rule Them All
CUDIS 001
on Solana is “the first AI smart ring that rewards your wellness journey,” its creators said.
Users fully own their data and earn daily rewards, “turning a healthy lifestyle into a new store of on-chain value.”
But why a ring among the many types of wearable products?
Chen explained that based on his experience and the team’s research, rings are primed for growth in the market, which is overwhelmed with watches and bands.
So, there is no reason to build another one of the same product.
“For the smart ring, I think we can build something better than what already exists in the market,” Chen said.
Another key reason is data accuracy. The team argues that products worn on a finger provide more precise data than those worn on the wrist.
Finally, there is the need to fill the gap between the user and the product.
Popular wearable smart product brands are currently using the subscription model.
And while monthly payments may sound like a recipe for sustainable revenue, it’s “actually a bad business model,” Chen remarked.
He gave a simple example: it’s like buying a house, but when you try to input the door passcode, the seller says you haven’t paid the maintenance fee this month, and you can’t enter. “It’s weird.”
Apple is an example of a job well done, Chen said. It sells phones that you can always access. The company charges fees for additional apps, not for using the phone.
Your Data, Your Choice, Your Money
Continuing the above thought, Chen noted that companies should not charge users every month only to remove access to their own data should they fail to pay or the company shut down.
Another problem is that companies don’t make it easy/possible for users to check their data like they would, say, their bank accounts.
And data is valuable! It’s an asset. Yet, those providing it can’t access and earn from it.
That’s one of the things CUDIS wants to change.
The team wants to make it really simple for all users to check their health and wellness data – including the complete history – like they would their wallet transactions.
This will take a bit longer to build, but “hopefully, we can bring this to the user, let’s say the first or second quarter next year,” Chen said.
This will return data ownership to the user, who will decide what to do with it.
Users can also financially benefit from selling the data or sharing it to contribute to building a project.
“I think that’s the region that we are seeking in the future,” Chen added.
The Future is Bright
Wellness data is going to be very important to everybody in the next decade, Chen argued.
People are spending increasingly more time and money on wellness and are more aware of data ownership.
Another welcome use case is that, in the future, users can grant their doctors access to the information gathered by their rings – providing a full insight into their physical stare.
What CUDIS does now is help users track the data and store it on the
IPFS
.
But in the near future, the data will go on-chain. It will stay there forever – meaning that users will own their data forever for the first time in history – and no shuttering company can take away one’s access to it.
This will also allow users to move data to another wearable product application. They are encouraged to do what they’d like with it.
“But we would love to build ourselves into one of the best, and people won’t want to move to other things,” Chen said.
Users will also be able to manage data from multiple places – like Strava, Comms, and SleepCycle – in one app.
“We support people to sync up their data from Apple. We are under reviewing with Google Play with Google Fit part, and they take a little more time,” Chen added.
If You Build It, They Will Come
CUDIS is a startup, Chen said, and it’s important for it to generate funds to survive.
Once a company generates substantial revenue sustainably, it can do more for the end user.
Therefore, CUDIS wants to serve a small group of people first, currently around 8,000 ring buyers.
The next step is to open up the app to other users to get more feedback and grow the business on a larger scale.
As for CUDIS’ business model, the CEO said there is no monthly fee. “You don’t pay for the CUDIS app to check your daily data.”
Later, the company may add premium features.
CUDIS is currently inviting builders to join its builder program. Anything related to wellness, including sleep, supplements, online courses, offline gyms, and much more, is welcomed.
“We have real quality users and can help you to build up the business,” Chen said.
Unlike other companies, CUDIS enables builders to communicate with the users who will help them create and improve the product.
Builders pay for the user’s data, and once they have the product ready, CUDIS helps them promote it in the market.
“It’s really low cost, and we use real users,” said Chen. “The realm of the generating together with CUDIS, we also take like 15% to 20%. So it’s kind of like Apple.”
Additionally, as users are paid, they are essentially co-contributors, Chen remarked. Therefore, they’d probably like to support the product once it launches.
“And if you really can build something to solve a real-world problem, I think someone will pay for that for sure,” he added.
Going After General Consumer Market
Just recently, CUDIS raised
$5 million from Draper Associates, Skybridge
, and other notable investors.
The team will use the funds to expand the supply chain and increase production capacity.
They’ll invest more in R&D, branding, and marketing.
“The next stage for us is to definitely go after the general consumer market,” Chen added.
People will easily understand the ring as the first AI/Web3 wellness product and the first crypto-related consumer product, he remarked.
Therefore, the team aims to work with “a lot of the large brands in the future” to promote its concept.
Lastly, part of the funding will go into offline events and online campaigns to show people they have another option to own and control their data, Chen concluded.
____
That’s not all.
In this interview, Chen also discussed:
his time at UCLA and naturally moving into the health and wellness industry;
starting his first startup in 2015 and selling it in 2016;
discovering Bitcoin, Ethereum, Solana, blockchain, and the crypto industry in general;
CUDIS’ data ecosystem and how the team uses the gathered data;
why CUDIS chose to build on Solana: the founders and the community;
the intersection of wellness, AI, and blockchain technology;
the crucial differences between CUDIS and other wearable product companies.
You can
watch the full episode
here.
__________
About Edison Chen
Edison Chen is the co-founder and CEO of CUDIS, a Web3 startup incentivizing healthy habits.
A UCLA grad and serial entrepreneur, Chen has managed a $200 million fund in a top-tier VC with a background in consumer tech, fashion, and blockchain.
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