The problem of getting people on board with digital currency is something every network that is currently operational has to contest with. Similarly, a few years ago, bitcoin was also trying hard to get individuals involved in their operation, first as miners, but soon after as investors.
Today, cryptocurrencies are well-known across the public domain, but the number of actual users remains relatively small, in spite of the fact that the market cap of the entire ecosystem exploded in 2017. However, this is related to the fact that many investors possess multi-million portfolios, which take up the majority of the same market cap. These individuals cover an interesting group of venture capital investors, entrepreneurs from the tech domain and traditional financial players, like hedge fund managers who have sensed a chance for quick and substantial ROI.
Now, as more and more people with exceedingly high-profile careers (and even lives) begin to enter the crypto arena, the market cap is going to rise. However, what does that mean for the prospect of individual networks and will this have any impact on the next anticipated phase of blockchain currency use?
The world of capital and high-end investment is well-acquainted with Marc Cuban. The investor and business owner has managed to accumulate an incredible wealth while at the same time he became a celebrity in his own right. Recently, he characterized the influx of funds into the cryptocurrency domain as a bubble that has the potential to burst at any moment, but now, it looks like he is going to become involved in an ICO (initial coin offering).
Because of this, Cuban is joining other traditional investors who believe in the idea of supporting their capital raising drives through selling their crypto tokens. To show his level of commitment to the idea, his company Unikrn is going to start its own ICO in the immediate future. The process is designed to supplement the capital that the company generated through its traditional investment rounds.
Earlier, many of the more cautious investors refused to take part in token sales directly. Now, Cuban is definitely not among them because he said that he will participate in the actual offering.
Founded back in 2014, Unikrn is a Seattle-based platform that is focused on betting on eSports. This process is something that caught the eye of many in the financial circles, being that is one of the rare natural spots for expansion of the always-lucrative betting domain. In fact, far from the limelight of the publicity, the eSports phenomena have been steadily rising in popularity ever since the late 1990s.
Today, it is a billion-dollar worth domain that has many side branches, from merchandise to event management. Naturally, companies like Unikrn tried to muscle into the market where people are already actively gamble using bitcoin.
To date, Unikrn managed to secure an investment of $10 million with investors like Ashton Kutcher, 500 Startups, and Elisabeth Murdoch. The concept of the platform is to allow its users to bet on eSports using Unikoins, which a digital token created by the company, or to use fiat money if they are residents of the UK or Australia. Since then, the company has moved over 250 million unikoins, but now, the company plans to switch from these coins to a safer cryptographic token.
The company plans to move to the UnikoinGold coin token, which will be made available in a bulk that numbers 1 billion. They will all be calibrated to adhere to the ERC-20 ethereum standard. The full marketing cycle for the coins is expected to begin in August at the latest, which the infrastructure needed for the sale is set to go live at the end of the same month.
Clearly, both the company and Cuban himself have great expectation from this process. It could easily provide it with a huge financial influx if other ICOs from the recent months are anything to go upon.
But, at the same time, the question of the validity of this process lingers above it. What does the same ICO mean if the process is not successful, being that the UnikoinGold coins still have to be minted and placed in circulation? Additionally, if the sale fails, how much does it need to fail to make an impact on the process? As of now, there is a strange sense that the ICO will go great no matter how it actually ends up looking at the end.
Marc Cuban was very vocal about the idea of digital currency boom and potential crash, but it seems that a potential for a similar situation lies in the ICOs currently being thrown around. At the same time, there is a clear psychological dimension to this way of thinking that can be perceived here.
The digital currency markets are controlled by the supply and the demand, along with the hardwired protocols of the blockchain that regulate them. However, the rules of an ICO are established to a certain degree by the company that launches their coins. This would clearly appeal to investors that desire to risk money to a certain level, but also to attain the highest possible degree of control.
However, a bubble is a bubble nonetheless and this process can easily end up being the same. If a coin goes through a bad offering, the results will not be catastrophic. But if a series of ICOs has the same fate, the potential for problems only escalates and does this in a dramatic way.