X

799 Views

Twitch CEO Funds Ethereum-based Marketplace Rare Bits

Spread the love
  • 2
    Shares

According to an interview with CNBC, Ammit Mahajan, the co-created of social network game FarmVille and co-founder of Ethereum-based digital asset marketplace Rare Bits has revealed that the latter company managed to raise $6 million in a Series A funding round run by Spark Capital, Twitch CEO Emmett Shear, and founder Justin Kan.

Twitch’s Interest in an Ethereum Marketplace

Digital collectible assets such as CryptoKitties are recorded onto Ethereum’s unchallengeable blockchain protocol as smart contracts, and these contracts can be relocated out its native CryptoKitties app to platforms such as Rare Bits where they can be traded with other Ethereum users.

The gaming industry has always tried to look for efficient ways of simplifying the trading of in-game assets. Platforms such as GameFlip, G2A, and PlayerAuctions have served as mediators and to aid players with buying and selling in-game items.

Twitch, a digital live content video platform, mainly focuses on gamers and streamers unlike other platforms such as YouTube that feature a wider variety of content creators.

The prospect of trading in-game collectibles on the Ethereum blockchain might have driven Twitch CEO and founder Emmett Shear and Justin Kan to invest in the platform, after seeing the successful fundraising round of Rare Bits.

Rare Bits founder Mahajan stated his hopes of seeing in the long-term non-cryptocurrency products on the platform together with digital collectibles, for instance, backstage passes to concerts and second-hand goods.

In the short to mid-term, Mahajan said that the team will concentrate its efforts on getting more people from outside the crypto sphere interested into its platform. For the time being, Rare Bits would be of interest only to cryptocurrency supporters, but to attract regular consumers in the bigger market, Mahajan believes this would require a special incentive structure.

 “The issue with this today is if I have nothing to do with Ethereum, I don’t know anything about it and I’ve never thought about it, why would I ever go out of my way to buy Ethereum and get involved in this ecosystem? Imagine if a celebrity like Beyonce or someone really well known were to release ten backstage passes on the blockchain, how many millions of people do you think would go out of their way to acquire one of those things?” said Mahajan.

Competing with eBay

In the end, Mahajans specified that the Rare Bits’ purpose is to dissociate its platform from the “blockchain” and “Ethereum” labels so it can bridge the gap between the cryptocurrency sector and regular consumers.

“In the final version of our product, we may not even mention the fact that we’re using Ethereum or using the blockchain. In an ideal world, you come to the site, you buy something you want, you exchange it, trade it [or] use it, but you don’t care or even need to know that the underlying technology is crypto-based.”

There is also a risk if the platform is really serious about distancing itself from its niche market to move to a broader market sector and to successfully apply that approach.


You may be interested

Huobi Cloud is Live! Start Creating Your Cryptocurrency Exchange
News
218 views
News
218 views

Huobi Cloud is Live! Start Creating Your Cryptocurrency Exchange

Adriana Midrigan - July 20, 2018

The blockchain financial provider Huobi Group has released a new service dubbed Huobi Cloud, aimed to help users develop crypto exchanges…

Cloudbric: AI Cybersecurity for the Post-Blockchain Age
News
14 views
News
14 views

Cloudbric: AI Cybersecurity for the Post-Blockchain Age

Adriana Midrigan - July 20, 2018

Cybersecurity is not a specialized niche that only the tech-savvy need to worry about anymore. For both large corporations that…

CobinHood Announces New Crypto-Fiat Trading Pairs
News
6769 views
News
6769 views

CobinHood Announces New Crypto-Fiat Trading Pairs

Anca Faget - July 19, 2018

The Cobinhood digital currency exchange has revealed that it will be adding new crypto-fiat pairs in an effort to get…