Gameflip is a new company that is going to ICO in order to raise funds.
ICO’s launch all the time (see ICO reddit thread) but it’s hard to know which are good and which you should avoid.
How does it all work? Well, you probably know that the gaming industry is a huge business.
On their website, Gameflip says that there are over 2 million gamers selling and purchasing gaming items, that they have more than 10 million views monthly, and millions of dollars in transactions monthly.
Their goal as a company is to have a transparent platform for gamers.
The digital market is a huge area but it’s not always he best. Digital goods are often locked into a game. For those who are avid gamers, you probably know how serious this can be. Some gamers will pay hundreds or even thousands of dollars to increase skill levels, purchase weapons, or unlock boxes. In a lot of ways, they live an alternate life.
But what happens when they decide to give that up and go back to reality? What does that person do with the investment that they put into the game and the hours that they spent? Well, if there isn’t a way to make money from their investment, then it’s not worth anything. That means when they decide to shut off their game and cancel their monthly subscription they’ve lost a great deal in the process.
It would certainly be beneficial if they could sell their digital goods or transfer crypto-token to another game and let someone else benefit from their skills.
That’s where Gameflip comes in. There is a huge market for something like this and it has not existed until now. Savvy gamers have, in the past, sold their accounts through public forums, third party sites, and community markets but this system isn’t ideal.
These gamers often face friction and may lose accounts. They also can end up with nothing. Fraud in this area is commonplace which is why some gamers have turned to Steam Community Market. This is more of an official marketplace where gamers make transactions. While fraud is not a huge problem here, it does have the following problems: * No cash provided
* Money earned can only be spent for other games on Steam
* Transaction fees up to 15%
* Zero transparency
* Some associate with illegal gambling
* Only supports Steam digital goods
FLIP is a crypto-token that’s used by Gameflip and can be thought of as a limited supply. It’s easy to understand by its three primary characteristics:
1. Fractionally divisible
2. Units are fungible and transferable
3. FLIP runs through Ethereum blockchain tokens
Gameflip Pricing and Distribution FLIP base rate is: 1 FLIP is equal to 0.005 ETH 1 ETH is equal to 200 FLIPs. ETH = Ethereum (see ethereum.org)
It’s important to understand that FLIP is capped to only have a supply of 100 million. When all of these tokens have been issued, no new ones will be created.
How Does Gameflip Help?
Gameflip is trying to expand the oversight of gaming digital goods. They’re trying to create benefits for both gamers and game publishes by helping gamers to buy, trade, or sell digital goods. One of their methods for doing this is using smart contracts to eliminate fraud. While this could be more of a problem until people adapt to digital currency, gamers will be able to send goods and FLIP to each other if they have Ethereum compatible wallets like Trezor.io
The benefit of using FLIP is that gamers will be able to sell more of their digital goods at a high price, increase the longevity of games, and create new streams of revenue.
After reviewing their website, Gameflip does not appear to be a scam.
They have worked hard to bring together a team of gamers, technology experts, and entrepreneurs.
For those that may be cautious when it comes to investing, it may be beneficial to wait for a while. Since it can take time for businesses to iron out the kinks, it may be a good idea to watch Gameflip and then use their website in the next few months.
Additionally, keep in mind that when you make investments, don’t spend more than you feel as though you can lose.
It’s possible that with limited supply, Gameflip tokens may go up in value but this is certainly not guaranteed.
For more reviews of upcoming ICOs check out The Token Investor