Pointed out by John Gruber, this comparison extracted from the New York Times says it all:
Two of Color’s photo-sharing competitors, Instagram and PicPlz, exemplify the lean start-up ethos. They started with $500,000 and $350,000, respectively, and teams of just a few people. As they have introduced successful products and attracted users, they have slowly raised more money and hired engineers.Color, meanwhile, spent $350,000 to buy the Web address color.com, and an additional $75,000 to buy colour.com. It rents a cavernous office in downtown Palo Alto, where 38 employees work in a space with room for 160, amid beanbag chairs, tents for napping and a hand-built half-pipe skateboard ramp.
Color, remember that we are talking about an iPhone app, has raised $41 million from investors and I think its fair to say that the launch of the app has failed: few users and many complaints.
The idea is awesome in my opinion. No more followers and followings but geolocated access to others pictures and as-your-life-go list of friends. The problem is that it is way too much dependent on the network effect.