Talk about trendy: An investment group that includes Mark Cuban, Ashton Kutcher, Elisabeth Murdoch, and Shari Redstone is feeling lucky about a business that aims to become a power in betting on eSports with cryptocurrencies.
The A-listers have invested in Unikrn, an eSports betting company. And it says today that beginning September 22 it hopes to persuade consumers to spend $100 million on its own currency, UnikoinGold, which is based on the Ethereum software platform.
The company, founded in 2014, says that its currency will be “accessible around the world and allow users to earn prizes, hardware, and exclusive features.”
The value of the tokens will be determined by “the utility and turnover of the token itself from within the Unikrn platform as well as the value of the token on the free market,” the company adds.
Betting on e-Sports is only legal in a few countries including the U.K., Ireland, and Australia.
Unikrn CEO Rahul Sood says that the company is “in the middle of testing our eSports skill betting platform that will allow [U.S.] customers to use UnikoinGold for betting….Much of this has been in development for the last two years, we will start launching new applications 90 days after our token sale is complete.”
Buyers should beware: Rules and structures governing eSports competitions are still evolving.
And cryptocurrency markets are even more turbulent — although Bitcoins are making news this week with valuations hitting new highs after appreciating 750% over the last year.
The SEC recently found that coin offerings are covered by securities laws, although it’s not clear who’d be covered since valuations are determined by a decentralized market. The IRS is looking into how tax laws apply to cryptocurrencies. And there are lingering concerns that criminals use the computer-based currencies to launder money, sell illegal drugs, or commit fraud.
Sood says the decentralized market for UnikoinGold tokens would give users “more autonomy and opportunity to participate on our platform, with flexibility to trade in a more open marketplace. Our improved eSports betting system is creating a new world of opportunity for cryptocurrency wagering that is legal, safe and fun. Competitive gaming thrives on innovation, risk and reward, and we believe that UnikoinGold is the breakthrough that the eSports world has been waiting for.”