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The platform has managed to overcome its minimum fundraising goal in minimal time, despite blockchain congestion issues experienced by Ethereum’s network.
An online cryptocurrency platform for gamers, Skincoin, has exceeded its minimum funding goal of 5000 ETH in less than a day of its Initial Coin Offering (ICO) campaign. The company has already sold more than 60 million of its SKIN tokens during its ICO that was launched on June 21, 2017.
According to the terms of the crowdsale, Skincoin planned to raise a minimum of 5000 ETH, which was reached in the first 24 hours, while the maximum goal was set at 100,000 ETH. The ICO will continue for a month until July 21, 2017, during which the platform will offer 600 million tokens with a value of 1 ETH per 6000 SKIN.
The project was launched by Alexey Zakharov and Igor Solomatin, who have both worked in the eSports gaming industry before. Other members of the Skincoin team have also been involved in the online gaming sector, what made them recognize the great potential of using the virtual currency in cybersports.
Under the project, Skincoin developers are creating a new virtual currency for gamers and are planning to launch a trading platform to allow users buy and sell SKINs of popular games, such as Counter-Strike: Global Offensive, Dota 2 or Team Fortress 2 and others. In online games SKIN represents the visual appearance of weapons, heroes, items, and other objects, which can be used to create a unique character. Besides, gamers will be able to use the cryptocurrency to place bets on various eSports events.
The team intends to build an entire cryptocurrency ecosystem connecting gaming platforms, betting services, online gaming stores, and marketplaces. Also, Skincoin will soon introduce APIs to allow third party gaming services to integrate SKIN payments.
According to last year’s estimates, the game skins market is valued at least $5 billion with more than 3 million participants.
Overall, the use of digital currency in the online gaming sector is steadily growing. Although the majority of gambling websites accept only bitcoin, Skincoin can easily replace the digital currency which is losing its popularity in view of the higher fees and transaction delays.
A few days ago, Ethereum faced a major congestion of its network, which resulted in a huge backlog of transactions. The growing popularity of ether, the rising number of ETH orders and a series of ICOs launched on Ethereum this year have caused a congestion which negatively affected the price of the digital currency. After reaching a record of $400 per coin, ETH fell by almost 10% following a bottleneck in its network.
On Wednesday, the price of Ethereum dropped to $13 after a multi-million dollar sell order was placed on GDAX. Although it quickly recovered, the slump triggered a number of stop loss orders on the exchange. GDAX unveiled today that it will compensate its customers who experienced stop-losses that were triggered by the rapid price movements of the digital currency.
Meantime, companies that have raised millions of Ethereum during their ICOs over the last months are left with no choice but to invest their capital into the vintage digital assets like Peercoin, Namecoin, and Reddcoin.