One of Europe’s biggest social casino games, KamaGames has announced it is moving into the world of blockchain and cryptocurrency. The news came this week that they are set to launch their own KamaGames Token that is designed to make life easier for its 100 million + players.
The Kama token will utilise blockchain technology and Ethereum cryptocurrency and KamaGames expects to sell around $25m of tokens. The tokens will be available as in-game chips that are sold as a bulk block at a low price. These chips will then grow in value each day and users will be rewarded for not touching the tokens- if they do this, they can expect them to grow in value up to 11 times.
CEO of KamaGames, Andrey Kuznetsov has stated that it is not an investment in cryptocurrency, but rather an investment in in-game currency as the tokens cannot be phased out. For this reason, the launch is classified as a token sale, not as an initial coin offering (ICO).
Kuznetsov said; “This is a way for our players to buy in-game currency more cheaply. We are not looking to raise funds.”
The company added that cryptocurrency is becoming a lot more popular in the sector and with players, stating that users of their services had been requesting such payment methods for some time.
Utility token concept
These new tokens will work in the same way as a standard utility token and can be exchanged for in-game currency as long as the user has a KamaGames player account. Users are then able to use their account by using their chips, as well as discounts, bonuses and other services that KamaGames will make exclusively for token holders.
Token holders can expect an increase in the value of the tokens, equivalent to 11 times, which is guaranteed. The tokens can be purchased via local fiat currency or with Ether. The exchange rate on the tokens will increase 25% each month during the first 36 months, and at a linear rate after that.
This news just goes to show how cryptocurrency can work wonders in the iGaming and online gaming world. As users of such services are already very used to transacting online, the concept of cryptocurrency does not come as a big adjustment to them and therefore, they are keen to utilise new and improved ways of making payments, as well as being rewarded.
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