The Luxembourg startup Crypto.tickets attracts investors to finance a blockchain ticket distribution platform
The blockchain ticket distribution platform for entertainment and sporting events, crypto.tickets, goes on an Initial Coin Offering during which the organizers plan to raise up to $23 million.
In the second quarter of 2017, start-ups raised $797 million in cryptocurrency using a new method of attracting investment, theICO. According to the publication Coindesk, blockchain startups attract three times more money than conventional venture capital financing during an ICO.
As the developers and organizers of crypto.tickets, blockchain technology is capable of producing a revolution in the ticket distribution market , the global volume of which is estimated at $38,9 billion.
In the traditional system of ticket sales, buyers are often faced with a situation where event tickets are bought by dealers on the secondary market, who increase the price several times over. Using the blockchain service, organizers will be able to
control the process of resale and refunds, such a setting price limits, by prescribing all conditions in smart contracts.
The system crypto.tickets will also help to reduce the risk of insufficient ticket sales because of the inefficiency of ticket sellers. In this system viewers will see all tickets on sale across all possible distributors. The price of the tickets will be formed in accordance with a dynamic pricing algorithm, which is already used by transport companies, based on the ticket prices that adjust based on demand.
The Creator of Ethereum, Vitalik Buterin has named several features of the high-quality ICO-project: the experience of a team of creators and the clarity of the business model.
The creators of crypto.tickets already have a successful distribution project called Tickets Cloud, which has been running since 2014. The founder and CEO of crypto.cickets is Egor Egerev, who previously founded Tickets Cloud. The co-founder is Ilya Sergeenko, who also has experience in the event industry. The Tickets Cloud platform offers event organizers and ticket distributors a full range of solutions, such as billing, payment transactions and payment instruments for promotion and sales analysis. The monthly turnover of the platform, which sold over 800 thousand tickets, is $2 million, with the project already cooperating with more than 100 vendors and more than 1,000 organizers. In the customer list of Tickets Cloud is Aliexpress, as well as the Russian rock festival “Nashestvie”.
The crypto.tickets project has raised $1 million in seed capital from a group of private investors, including the Luxembourg Fund 2be.lu Investments. Thus, the project has passed the assessment from venture capital funds and business angels.
Among its consultants, is a partner of an American law firm Greenberg, Whitcombe & Takeuchi, Leonard Gravier, managing Director and founder of the Luxembourg Fund 2be.lu Investments, Alexander Tkachenko, and Julian Zegelman, partner of the law firm Velton Zegelman, specializing in investing in high-tech companies.
Issued by startup tokens, TKT meet the requirements of the SEC, and they are not subject to security laws because they are tokens for internal use in the system (utility tokens).
A prototype of the blockchain solution is ready and available for testing on GitHub. It is based on the Ethereum ecosystem. The launch of the full release is planned for the second half of 2018.
Given a fixed supply of TKT the cost of tokens will grow in line with demand as increasing platform adoption occurs over time. A total of 914,869,281 TKT tokens will be released.
The ICO starts on October 5th and will last for four weeks. The price of the tokens in the framework of the ICO will be $0.04. The startup has already attracted an investment of $1 million from a group of private investors, of which $250 thousand was invested by the Luxembourg Fund 2be.lu Investments.
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