LINE Corporation announced today that it has launched its first digital token, LINK (link.network), and its first blockchain chain, LINK Chain, both independently built by LINE. With the launch, LINE becomes one of the largest and most established companies to develop and issue a cryptocurrency.
Unlike other cryptocurrencies or digital tokens, LINK will not make an Initial Coin Offer (ICO), but will use a rewards system that will grant LINK users as compensation for the use of certain services within the LINE ecosystem. For example, a user who has joined and participated in one of the decentralized application services (dApp) related to LINK can receive LINK as an incentive. That LINK can be used as payments or rewards within the services of the dApp that will be launched soon, and for categories of services such as content, commerce, social networks, games, exchange and more within the ecosystem of LINE.
A COMPANY WITH EXTENSIVE IMPLEMENTATION IN JAPAN AND SOUTHEAST ASIA
The extensive know-how in infrastructure of construction platforms and large-scale networks means both stability and minimized waiting times (which, until now, have been a weakness of decentralized blockchains), even for a system with a large number of users. .
To expand and develop the blockchain ecosystem, LINE will encourage and support various dApp services, including those that are not operated by LINE, to participate in the LINE blockchain network. Through the construction of a symbolic economy based on a Win-Win relationship between consumption and rewards, LINE aims to establish itself as a leading digital reward platform.
“Over the past seven years, LINE has been able to become a global service thanks to our users, and now with LINK, we wanted to create an easy-to-use reward system that rewards our users,” said LINE CEO Takeshi Idezawa. ”
“With LINK, we would like to continue developing as a platform based on user participation, one that rewards and shares added value through the introduction of easy-to-use dApps for people’s daily lives.”
A total of 1 billion LINK will be issued, according to the evolution of this ecosystem. Of that amount, 800 million will be allocated for user rewards, while 200 million will be managed by LINE Tech Plus, the LINK issuer, as a reserve.
For residents in Japan, LINK Point will be received as rewards for activities in dApp services instead of LINK. Japanese users can use LINK Point within the dApp services or change it to the LINE points. However, until LINE obtains authorization for the exchange and exchange of cryptocurrencies by the regulatory authorities in Japan, LINK Point can not be deposited, withdrawn, transferred, exchanged or exchanged in cryptocurrency exchanges, including BITBOX.
700 MILLION GLOBAL USERS
Designed for instant communications, LINE currently allows users to exchange texts, images, video and audio, and conduct free VoIP conversations and videoconferences.
With an estimated global reach of 700 million people, LINE enjoys a significant presence in Thailand, Indonesia and parts of Europe and Japan.
The new LINK token will be available to users abroad from the new LINE BITBOX cryptocurrency exchange. However, as BITBOX is currently not an authorized exchange platform in Japan, residents can only receive a temporary LINK Point that will be interchangeable for the complete cryptographic asset once BITBOX obtains full approval from the Financial Services Agency.
The company anticipates that its token will be used for a variety of purposes within its own ecosystem, including:
Content: payment for music, videos and webtoons
Trade: payment of products / services, discounts of benefits and reimbursement
Social: payment systems in the application and transfers between individuals
Games: trade in game and character improvements
Exchange: payment of commissions, discounts of commissions and commerce of cryptocurrencies in BITBOX
NOT ALL ARE GOOD NEWS FOR LINE CORPORATION
However, the LINK platform can not be used even in Japan and the US, the exchange, which only facilitates the relationship between crypto and crypto, still requires the approval of Japan’s financial regulator, known as the Financial Services Agency. Although the agency has approved more than 10 cryptocurrency exchanges, after a devastating hack in an exchange, the FSA tightened its supervision standards and issued “commercial improvement orders” to several trading platforms, which has delayed the approval of the platform. LINE LINK
A similar situation occurs in Taiwan, Thailand and Indonesia, which has yet to be approved by the corresponding regulatory bodies for acceptance of this initiative.
Writer by birth, curious by profession … I learn a little more every day from the cryptocurrency.