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KamaGames, a major European operator of social casino games, said he is moving into blockchain and cryptocurrency with the launch of his own Token KamaGames.
The idea is to make it easier for the company more than 100 million players to buy the gaming currency for social casino games, said Andrey Kuznetsov, CEO of KamaGames, in an interview at GamesBeat.
The KamaGames token will use the existing blockchain technology and the Ethereum cryptocurrency platform. KamaGames expects to sell $ 25 million in chips.
KamaGames tokens will be available as a collection of game chips sold in a mass block at the best possible price. These chips will grow in value every day. Players will be rewarded for leaving their tokens untouched, with an expected growth of 11 times if they do.
However, Kuznetsov made it clear that this is not an investment cryptocurrency. KamaGames tokens can not be cashed at all except the currency of the game. Thus, the launch can be classified as a token sale, not an initial coin offering (ICO).
"This is a way for our players to buy cheaper in-game currency," Kuznetsov said. "We are not trying to raise funds".
Above: Andrey Kuznetsov, CEO of KamaGames.
Image Credit: KamaGames
Kuznetsov said that cryptocurrency is becoming more popular in the areas in which it operates and the players have asked the company to support it as a payment method for some time. He said the token launch will help the company attract new viewers and offer rewards to existing players.
The KamaGames token has the functionality of a standard utility token and can be exchanged with virtual currency (chips) in the game only at any time using an official account of the KamaGames player. Players will use their account to redeem the free tokens allocated daily along with any other discount, bonus or service that the company will make available exclusively to token holders in the future.
The Token KamaGames will deliver 11 times its original purchase value in virtual chips. This number is guaranteed and can be purchased either in local currency, conventional or via Ethereum currency. The exchange rate is guaranteed to be increased by KamaGames at a rate of 25% each month during the first 36 months and at a linear interest rate.
For example:
● When buying, each token equals 7,000,000 chips.
● In six months, the guaranteed value of a token will be – 17.5 million (2.5 times).
● In 12 months – 35,000,000 (five times).
● In 24 months – 56,000,000 (times eight).
● In 36 months – 77,000,000 (times 11).
Holders of a Token KamaGames who have a player account can link their tokens to their account and receive daily bonus chips and any other discounts, bonuses or services that the company
KamaGames started in 2010, has more than 250 staff members and is headquartered in Dublin and has offices in London and Dubai. The company's flagship title is Pokerist, and has been the # 1 box office app in 101 countries on iOS and one of the top five collection apps in 45 countries on Google Play.
In 2017, gross revenue increased 63.4% year-on-year to $ 57.5 million, compared to $ 35.2 million in 2016. The number of daily active users grew 36% with the average revenue per paying user up 30% in the same period.
The first quarter of 2018 saw an increase in sales of 47.9% compared to the first quarter of 2017. More than 530,000 people play daily games at the company. KamaGames finances itself.
Roman Abramenko, chief legal officer of KamaGames, said in an interview with GamesBeat that the company will comply with US regulatory authorities, mainly because it will not allow people to resell their cryptocurrency. It can only be converted into virtual currency within the game, or poker chips.
Kuznetsov said the company will treat revenues from the sale of tokens as deferred revenue and will recognize revenue when tokens are exchanged for game currency. [19659002] "We want to be at the forefront of technology," said Kuznetsov. "We decided to take this first step: if our players love discounts and offers, they can pay in cryptocurrency."
If players connect every day, they may be rewarded with extra currency. Cryptocurrency itself could keep players engaged in social casino games, which could improve both retention and monetization.
"This is another tool to keep players and make them more loyal to the game," Kuznetsov said.
There is a risk that the additional currency granted to players may cause inflation in the game. But the company collects a commission (in virtual currency) or rake, when the players play the games. This helps to drain the currency from the player base and keeps the economy of the game stable.
"In the worst case for us, if all players were token buyers, and keep for 36 months, they redeem all bonuses, and they will get 11 times more chips than they can get on the first day," he said Kuznetsov. "It looks like a huge inflation, but we believe that depending on the way the players play, they will regularly exchange tokens for chips.We will go well and the game economy will be stable.We will publish five new games, including new slots. This will help us remove more chips from the game economy. "
Players can also earn more chips if they encourage their friends to buy tokens.
"We are not targeting investors or people who want a speculative gain," Kuznetsov said. "It has no investment value, I see it as a proxy for chips, an elegant way to memorize it."
