The Japanese messaging app, LINE, was in the news last month, when the company announced that they would be launching their cryptocurrency exchange, Bitbox. At the time, the company had said that they would be supporting cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
On Friday, the exchange announced that they had taken a step forward, and introduced their native cryptocurrency, LINK. According to a press release, Link will exclusively be listed on Bitbox.
Given the uncertainty surrounding Initial Coin Offerings (ICO) the company has instead, devised an alternative way to raise money. LINK will instead, utilize a reward system that gives users tokens as compensation, for using certain services within the LINE ecosystem.
For example, a user who has joined and participated in one of the decentralized app (dApp) services related to LINK can receive the token as incentive. That token can then be used as payments or rewards within the dApp services that will launch soon, and for service categories like contents, commerce, social, gaming, exchange and more within the LINE ecosystem.
Commenting on this development, LINE Chief Executive Officer (CEO) Takeshi Idezawa said, “Over the last seven years, LINE was able to grow into a global service because of our users, and now with LINK, we wanted to build a user-friendly reward system that gives back to our users. With LINK, we would like to continue developing as a user participation-based platform, one that rewards and shares added value through the introduction of easy-to-use dApps for people’s daily lives.”
Currently, the token will work on the LINKChain, which is a blockchain built by Line. The blockchain was reportedly in the works since the launch of Line’s Genesis Block last week.
Currently, around 1 billion LINK tokens will be in circulation, which will be subject to how the ecosystem develops in the coming time. From that, 800 million will be allocated for user rewards, while 200 million will be managed by LINE Tech Plus, the issuer of LINK, as a reserve.
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