InstaGram was a simple idea made by a few app developers. It was a great idea, Instagram was a social network, it allowed users to upload images with cool, hipster photo filters. Surprisingly this app had over 35 million downloads, in a year. And the developers weren't making any profit. They had to use all the money they with ads, and sponsors to maintain there image servers for the app. After a ton of requests from android users, they also made InstaGram for android, which made the Apple users mad, because InstaGram wasn't a closed community anymore(even though anyone with an iPhone,iPod,iPad, could download it before...And it already had 35 million downloads). Few weeks after they made the app for android, InstaGram made a huge unexpected move. They let Facebook buy them, for $1 BILLION. Let this sink in, InstaGram is a free app that is about 550 days old, if $1 billion was spread out across all users of InstaGram, each user would be worth $27. InstaGram is another example of a Boom and Bust business model, that was very successful.
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