The blockchain is extremely frictionless, meaning that it’s very easy to transfer stores of value across it. Especially as technology develops and brings down fees. It’s going to allow a whole new bartering and trading economy to appear covering assets which before were illiquid. One of the big sectors to be unlocked with be coupons, points and other rewards. I discussed this a bit in the BlockMason article. They want to give companies the chance to issue their own rewards for customers on the blockchain. What was different about their system was that it was just a protocol token. Companies and other enterprises were given full ownership of the IP they created and their rewards would stay inside what ever ecosystem they created.
There is another possibility, one which Gatcoin is pursuing, where these customer rewards are tradable, fungible objects which have value. If you have 50,000 airline points, why shouldn’t you be able to trade it on the open market if you need cash. There are sure to be other people who need them and they have value. It’s the network which broadens the amount of people who want different items/stores of value and with its growth, there will be more demand for each reward.
The exchange will be interesting. You won’t be able to take the reward tokens off of their platform, but you will be able to trade them for other types. So if you wanted to trade in your air miles for spa points (sign me up), you could try to list them on the open market to see what you could get. While I’m wondering how everything is priced, whether its free float or fixed, I think it’s a cool implementation of frictionless equity transfers.
The beauty of Gatcoin though is their IP. There are a few other companies competing with them, Sandblock for one (I’ll review this later this week), but they stand apart with their Airdrop technology. This allows Gatcoin to send out targeted reward tokens to users based on certain qualifying attributes, race, demographic, age, gender, etc.. I would love (or be a little scared at the lack of anonymity) to be airdropped reward tokens for my favorite restaurant or store.
Again, with any other blockchain startup, adoption rates will matter. Gatcoin is based in Japan and I don’t know if they have plans to move to the US or Europe. I hope that this doesn’t stay in Asia and gets broader appeal. It could be a great way to bring enterprises onto the blockchain.
All in all, I think this token may have legs. Depending on their raise I may try to get in. I don’t think there is much value if they hit hard cap. If they come in at around 10 mil for the raise I’ll be really interested. I could see this as a 40-50 mil coin in the best case and a 20 mil token if they get lower traction. Also, the future distribution will dilute current investments, so there needs to be good growth for them to justify another 60% being released over a three year period. It makes sense for their development timeline.
- Tokens Offered in 2017: 200,000,000 ERC20 GAT Coins
- Min Funding Goal: US$20,000,000
- Hard Cap: US$ 35,870,370
- Total Supply: 1,000,000,000 fixed, non-inflationary
- Founders Share: 10%, for continued development work
- Foundation Share: 10%, for market-maker activities
- Future Distributions: 60% over 3 year period from 2018 – 2021
- When Tradable: Immediately upon conclusion of sale. GAT Coins will be tradable on a number of crypto exchanges. Announcements pending.