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The man behind an initial coin offering (ICO) expected to launch next month has played down the negativity surrounding the use of ICOs and claims his ICO — which aims to tackle legacy issues of trust and fair competition in the gambling sector — will be backed by “trusted” experts.
In a press release today announcing the launch of its pre-ICO to develop an open gaming platform, CEO of Gron Digital Tebogo Makamo said ICOs have recently seen plenty of negative press surrounding them as they’ve been “overdone, overworked and have often under-delivered”.
“However, not all ICO’s are created equal and the one developed by Gron Digital has been crafted by advisors and trusted partners with extensive gaming and betting industry experience,” he said.
These include the founder of an IT company with over 200 developers, a software engineer with banking and gambling sector experience and an entrepreneur behind two licensed sports betting shops in South Africa.
“As a result, the platform is specifically targeted with properties built in to protect consumers, children, addictive personalities, suppliers and more,” said Makamo, who is also CEO of CDP Gaming Technologies and a former head of compliance at the Gauteng Gambling Board.
Gron Digital’s ICO aims to raise equivalent of 57 000 Ethereum coins to develop an opening gambling platform
Makamo said the platform is “designed to reinvigorate flagging player trust through cryptographically verifiable transactions that require no human intervention”.
The startup aims to do so through the use of Smart Contracts that act as autonomous trust agents and govern all transactions. These contracts fulfil sets of predetermined conditions based on coded rules embedded within the Blockchain making them the ideal tool for both the player and the service provider.
Aim to raise 57 000 Ethereum tokens
The platform will make use of the GRO utility token which participants can use in exchange for value and services on offer. All bets, wins, bonuses, incentives and rewards will be paid in GRO.
In the ICO, set for 6 February (see the white paper here) and expected to run for 28 days, the startups aims to raise 570 million GRO tokens, or the equivalent of 57 000 Ethereum coins for an open gaming platform.
In its white paper the startup says the initial ICO will be followed by four further rounds of ICOs with each round lasting for up to 14 days
“After all 4 rounds (or if the ICO ceiling of 570 000 000 tokens is reached) the ICO will close,” it says in the white paper.
Gron Digital claims its platform will protect against a single point of failure, prevent the manipulation of data, protect identities and provide an open arena within which all can safely appreciate the benefits of the gaming and betting industry.
Platform to offer ‘security, synergy’
In its white paper the startup also notes that while regulatory bodies will benefit from participating in the platform, existing regulated businesses may look to move to the blockchain for the security and synergy it provides to the industry in areas such as improved tax collection.
This is because tax can be programmed into the Smart Contract and paid directly to the authorities without the need for manual intervention, costly audits and oversight procedures.
In addition, all significant transactions will be recorded in the unchangeable online ledger offering guaranteed auditability and transparency.
Furthermore digital signatures added to Smart Contracts by regulators can verify operators and their licenses in operators’ applications for added assurance and security for players alongside regulators alike.
Smart Contracts can also have built-in dispute resolution terms, which reduce the need for regulatory intervention when solving disputes.
The tokens raised in the ICO will be allocated to software development, operations, advisors, marketing, legal fees and contingencies. Once the crowdfunding initiative succeeds and the utility tokens are issued, GRO will be listed and traded on major exchanges.
Featured image: Gron Digital CEO Tebogo Makamo (Supplied)