With the number of fantasy sports players in North America heading past 60 million, and the industry said to be worth more than $7 billion, fantasy sports games is a huge market. But also big money translates to big potential for payment fraud.
For a cryptocurrency entrepreneur that means the sector is ripe for blockchain technology, which can guarantee every transaction. Besides, the distributed ledger technology could mean a large reduction in transfer times and fees while affording a more transparent economy. Also issues of foul play and cheating could be practically eradicated.
There are a few startups working in this area, one of them, MyDFS (stands for My Daily Fantasy Sports), is building a blockchain-based fantasy sports platform.
MyDFS CEO Viktor Mangazeev believes the blockchain will make fantasy sports a far more “transparent and user-friendly” market and has recently got a $2 million investment from an investor Frank Fu, a managing director at Meitu, a Chinese photo-sharing platform with 456 million users, and an advisor at MyDFS.
In a comment, Mr. Fu said the union of gaming and blockchain was inevitable because “blockchain guarantees safe storage of all in-game digital assets” and “smart contracts exclude third parties from the payment process and make transactions fast and safe.”
Smart contracts would also allow users to get rewards literally as soon as they win games, instead of having to wait for other sites to verify the games.
The platform will also allow players to invest not just in games and teams, but also other players by earning a share of their winnings by using an in-game cryptocurrency (MyDFS uses ERC-20 Ethereum).
The team plans to offer the service via a mobile app as well as a web platform.
The launch of the app is scheduled for May 15th on both Google Play and the Apple App Store.
The team is running a pre-ICO April 9 through May 6, selling a total of 800 million tokens in two stages, to catch the wave of interest leading up to FIFA 2018, and to attract a lot of users.