TrustToken, the company behind the TrueUSD stablecoin, has raised $20 million in a strategic funding round from Andreessen Horowitz, BlockTower Capital, Danhua Capital, GGV Capital, and other parties.
CEO Danny An told CNN:
“The most recent round will support the development of the TrustToken asset tokenization platform, for assets that may include currencies, equities, real estate, and more. The funding will also get allocated toward the expansion of TrustToken’s legal, partnership, product, and engineering departments.”
TrueUSD got off to a rocky start on Binance after their May listing which saw the value of the stablecoin jump 40% to trade at $1.40 before stabilizing again, obviously a huge problem for a currency designed to match the dollar.
An stated that trading bots were to blame for the spike, designed to snap up newly-listed currencies regardless of price – because they had not been programmed to ignore the stablecoin they accumulated in bulk even as the price began to climb, despite the lack of incentive to do so. The team was able to regain control of the price before long, although there was a delay in the launch as the issue was investigated.
An told CCN that the team has taken measures to further protect the currency value:
“We’ve begun outreach to inform traders to avoid buying any TrueUSD priced far from $1 dollar. Here’s an of our published content for educating traders. Generally, as awareness for TrueUSD’s redeemability for $1 dollar increases, stability will also increase. It does not make much sense to pay more than $1 for something that is essentially a claim for $1 exactly.”
With things under control, An is describing big plans for the stablecoin, saying that the US dollar is not the only currency TrustToken have their eyes on. “We’ve been focused on TrueUSD since its launch three months ago because there has been strong demand for a trustworthy, fiat-backed stablecoin. In just three months, the market cap of TrueUSD (TUSD) has grown to over $60 million. The next step would be tokenizing other currencies such as the Euro.”
TrueUSD rivals Tether as the only other fiat-backed stablecoin on the market. Both projects claim to reserve $1 USD for every token they issue, and to burn a token for every dollar they return to investors cashing out. By collateralizing the currency with fiat, the team can ensure that investors can always cash out large amounts without impacting the price, allowing traders to preserve the value of their holdings during a market decline and to enter the market without immediate exposure to the price volatility seen in bitcoin and altcoins.
Tether, however, has been mired in since firing their and refusing to release financial statements demonstrating to investors that they really have the collateral to back the coins. If the project has been issuing unbacked tokens, a sudden mass withdrawal could collapse the project entirely as Tether would be unable to cash everyone out, leading to a death spiral in the currency value that would create a shockwave throughout the entire market.
The main difference between TrueUSD and Tether (the only other fiat-backed stablecoin in market) is that TrustToken does not hold any of the funds received when TrueUSD gets purchased. TrustToken works with licensed trust companies that already manage billions of dollars to open up an escrow account on behalf of TrueUSD token holders,” said An.
As skepticism grows over the legitimacy of the Tether project, other stablecoin projects vie to fulfill the role of the number one volatility haven for crypto-traders with different methods such as Havven’s cryptocurrency-backed and which is a stablecoin backed by gold. It remains to be seen if TrueUSD can take the top spot, but in today’s tentative ecosystem, one thing is certain – the cryptomarket needs a reliable stablecoin, and it needs it now.
Twitter search: bitcoin Asia stocks enjoying a (delayed) rally after Lunar New Year holidays. Hong Kong & Taiwan leading way higher on catc… https://t.co/GrjDt4GjSi Holger Zschaepitz @Schuldensuehner Asia stocks enjoying a (delayed) rally after Lunar […]
Esports wagering is a large — and growing — global industry at the intersection between gambling, technology and entertainment. In their , Newzoo found that China and North America will generate $362 million during 2017, or 52 percent of global esports industry’s revenue. If the esports industry continues on the same growth trajectory, the global industry is expected to generate $1.4 billion in 2020.
Unikrn’s blockchain-powered platform is tapping into this growth industry, offering services such as “skill and spectator betting applications, a tournament series, team ownership, a casino group and multimedia content for the esports fanbase.”
Along with launching an initial coin offering (ICO) in mid-September, the company has expanded its offerings to the European Union through a joint venture with RBP, a key player in the online horserace and sports betting market, and plans to launch a new skills-based product.
Expanding across the European Union comes after the platform was granted a much coveted gaming license from the (MGA). As one of the first European Territories to regulate online gambling, Malta has become a staunch regulatory supporter over the past several years. Today, over 100 companies currently hold a license issued by the MGA including software developers, online casinos and Remote iGaming operators.
Though obtaining a gaming license from the MGA took more than a year, for Unikrn, it has provided an opportunity to enhance their reputation as a legitimate esports wagering platform; something critical for their successful expansion and token sale. “They [MGA] are by every measure the gold standard and one of of the most respected authorities for responsible and ethical wagering,” said Unikrn founder and CEO Rahul Sood in a
After creating the VoodooPC in 1991 then selling it to Hewlett-Packard, Sood spent 18 years as an entrepreneur. Next, he joined as general manager of Microsoft Ventures, Microsoft’s international startup accelerator and outreach program. Sood left Microsoft in 2014 to enter the world of live immersive esports betting by co-founding Unikrn.
Why Blockchain?
During its Series A round, Unikrn received funding from several notable investors including Mark Cuban, owner of the Dallas Mavericks, actor Ashton Kutcher’s venture firm, , media executive Elisabeth Murdoch’s venture fund , media executive Shari Redstone’s and the largest betting company in Australia, . The commonality between most of these venture funds is that they typically pick portfolio companies working in a mix of media, technology and entertainment.
Anthony Di Iorio, serial entrepreneur and CEO of Decentral, joined UnikoinGold as an advisory team member because he finds the project both intriguing and well-supported.
“I’m a big believer in the power of decentralized technologies, like blockchains, to empower entrepreneurs and individuals,” he told bitcoin Magazine. “I’m motivated to support the entrepreneurs, the projects, and the communities that are pushing that technology forward by applying it in interesting and exciting ways to existing markets. Unikrn is a bit special.”
Unikrn’s Editor-in-Chief of content, Ryan Jurado, describes the platform’s journey toward the blockchain as a tool for product and community growth. In 2015, Unikrn released Unikoin, a free, internal, non-cryptographic token issued in 2014 that gives users the ability to bet on esports and win prizes in regulated markets where Unikrn is unlicensed to operate. However, Unikoin had no secondary market and customers persistently asked for more value or uses for the token.
Jurado explained that idea for Unikrn to use blockchain technology first came from Mark Cuban in early 2016. After investigating the technology, the team found using a blockchain-based currency would improve compliance and accountability, two activities paramount in bookkeeping.
“The distributed ledger makes Know Your Customer (KYC) and risk management easier and less costly,” Jurado said to bitcoin Magazine. “It saves time and money used for converting currencies, and helps minimize engagement with banks.”
Along with a distributed ledger model, Jurado also pointed out that the blockchain “expands real-time betting, live betting and skill-based products that would be difficult, or impossible, using fiat currency.”
The blockchain’s ability to increase transaction options while decreasing the need for transactional trust was another value Unikrn sought, Jurado explained, resulting in “an Ethereum-based token with an open ledger that can be used to better rate risk and flag potential abuse.”
A gaming platform such as Unikrn which runs vast numbers of transactions per day manages a lot of risk benefits from “an Ethereum-based token with an open ledger that can be used to better rate risk and flag potential abuse.” Furthermore, as Jurado pointed out, “For users, it’s a home-run: Using blockchain is less expensive than using fiat, and less overhead means less expensive products.”
Tale of Two Koins
To run the token sale and crypto platform, Unikrn opened a subsidiary, Unikrn Bermuda Ltd. The token that Jurado hopes will become “the decentralized token of esports and gaming” is called (UKG) and was made available in September.
Di Iorio described UnikoinGold as “the (decentralized) beating heart of the secure and seamless wagering ecosystem Unikrn has pioneered.”
As for the original non-cryptographic token, Unikoin, Sood has stated that Unikrn is undergoing a “forking” of their token system in which there will be two currencies: and UnikoinSilver.
Anybody in the world can buy and use the Ethereum-based UnikoinGold utility token in non-betting applications, including jackpots and experiences, software, hardware, esports, teams and tournaments; however, only users in Unikrn-licensed regions will be able to use it to bet.
Though UnikoinSilver can only be earned, it can be used in most unregulated markets around the world. “The token will allow every non-minor esports and gaming fan to engage in all Unikrn betting products, regardless of where they live. It is a free, non-blockchain token, but will allow fans to unlock real prizes and non-betting operations including editorial, production studios, tournament organization and live broadcasting.” UnikoinSilver also appears to be an alternative “to unregulated skin betting for regions where real-money betting can’t be offered.”
ESPN Meets Esports Meets Vegas
Having already raised $30 million in ether, the UnikoinGold token sale is capped at $100 million. One advantage it has as a token sale is the ease of onboarding users who are already familiar with token transactions. Unikrn’s other advantages come from the fact that they already have an existing platform that is profitable and an online community that is engaged. “This isn’t an investment,” said Sood in a Medium , “It’s a purchase for a product that we developed that has utility on our platform and our users love and demand.”
A clear caveat to UnikoinGold’s success is that its gaming/ICO combination is sure to keep them visible on every regulator’s radar, which is why earning a Maltese gaming license was such a significant step.
Even at such a unique intersection between media, gambling and gaming, Unikrn is not the only player. Other esports betting platforms using blockchain technology include , , and . And it has yet to crack the lists of top esport betting platforms on sites like and .
Sood does not seem surprised by his company’s success, thus far. “UnikoinGold was designed and intended for use by our own esports community. It’s like ESPN meets Esports meets Las Vegas.”
