DEFINITION of Unikrn
Unikrn is the operator of an eSports betting platform that uses cryptocurrency tokens. Unikrn’s tokens are called UnikoinGold.
BREAKING DOWN Unikrn
Created in 2014, Unikrn is a Seattle-based company that focuses on the eSports industry. eSports are most commonly associated with video game competitions, and has experienced rapid growth in global popularity. The company’s founders, Rahul Sood and Karl Flores, created a platform where bets can be placed on the outcome of these video game competitions.
Bets are placed through a cryptocurrency token called UnikoinGold. In addition to allowing the tokens to be used to place bets, the company wants the token to be used by tournament organizers when paying out prizes, and to allow spectators to give tips to tournament participants.
UnikoinGold tokens can be exchanged for more well-known and highly-traded currencies such as bitcoin and ethereum, providing UnikoinGold token holders with the opportunity to convert their initial investment back into U.S. dollars. Tokens can also be used on its platform to be on eSports games.
Unikrn uses a token standard called ERC20. This standard outlines the rules that all etherum tokens follow, which allows developers to understand and predict how the token will function since it is a decentralized token on ethereum’s blockchain.
The use of blockchain technology is designed to circumvent the betting laws that required Unikrn’s previous foray into in-game currency, Unikoin, to only be used within the platform itself. This prevented individuals from being able to readily convert their winnings into other cryptocurrencies or physical currencies, such as dollars.
The novel use-case for Unikrn’s tokens – eSports betting – may create further limitations as to its usefulness. Some UnikoinGold holders may consider the token an investment, waiting for it to appreciate before trading the tokens for bitcoins, ethereum, or other cryptocurrencies. The end goal for these individuals is likely a conversion into U.S. dollars.
Those who purchase UnikoinGold tokens in order to places bets on the platform will have to make sure that they are located where Unikrn is licensed to take bets. Unikrn splits these locations into Full Service Jurisdictions, where it can offer all betting services, and Limited Jurisdictions, where it can only offer some betting services.
In addition to UnikoinGold, Unikrn intends to release a more limited-use currency, called UnikoinSilver, that is used for transactions in the platform economy. This cannot be withdrawn for the system, making it much more similar to a casino’s house chips or in-game currencies used in online games. It would most likely be used in Limited Jurisdictions, as these do not allow full betting rights. Because of these limitations, UnikoinSilver would not be considered an investment opportunity the same way that UnikoinGold would. This is because it cannot be traded for other cryptocurrencies in a currency exchange, such as CoinBase.
In 2017, Unikrn announced that it would raise $100 million through an initial coin offering (ICO). The cryptocurrency token sold in the ICO, called UnikoinGold, is a follow-up to an initial round of venture capital that raised $10 million. The initial round of funding made the news because of its association with Mark Cuban, the owner of the Dallas Mavericks, as well as other celebrities.