Why Japan’s Line created its own crypto?
September 10, 2018 8:14 am,
With more than 200 million active users, Line has created its own cryptocurrency called LINK. Upon announcement, the app has immediately listed LINK on digital asset exchange BitBox, which launched in July last year.
Uniquely, the app has decided not to offer any Initial Coin Offering to raise a significant amount of capital in exchange for the distribution of its token. Instead, it utilized a mechanism called as “airdrop” to give users LINK as compensation for utilizing products within Line ecosystem. Essentially LINK was created to be a token designed to increase adoption of decentralized applications (DApps) deployed by the Development team by incentivizing users based on the activity on the Blockchain network. In the near future, the app is going to release DApps and services related to content, social, gaming and exchange, all of which rely on LINK as the main payment system. LINK is similar to EOS, Ethereum and ADA in the sense that DApps and a wide range of services offered by its network of blockchain platforms.
Story of the app!
The app was released in 2011 in Japan 3 months after it was affected by an earthquake, gathering around 50 million users within 1 year. It was stated that surpassed Facebook in growth rate. The app has continued to lead initiatives to assist families and households affected by the natural disasters.
Initial interest in Crypto and Blockchain technology
They always stated they wanted to accelerate the blockchain technology and the process of creating blockchain based tokenized economy that operates on a specific environment. Its parent company in South Korea Naver, the search engine disclosed that two large blockchain labs in South Korea and Japan, with the intent of collaborating with local blockchain projects in the two countries in order to speed up deployment of a stable blockchain mainnet.
The app strategically offered a partnership with ICON, the largest blockchain in the country, creating a joint venture called Unchain to develop DApps based on LINK blockchain network. The main vision is to create a transparent and secure, tokenized economy that incentivizes users based on their contribution. This will lead to faster adoption of technology by the app ecosystem.
Some investors questioned the practicality and viability of the cryptocurrency by the app LINK. The CEO answered stating, the users will be able to use the LINK to purchase stickers and webtoons on the platform before it becomes the primary use case of token shifts for transactions. The app has a long term strategy to start the blockchain technology platform from scratch designed and structured for the DApps. The entire blockchain will be around scalability and multi chain protocol.