Reviews

Why Does WAX Need Blockchain?

The benefits and downsides of WAX platform

Meet our new regular section! Here we will be sharing independent and unbiased reviews on the most interesting and hottest blockchain projects. For a grand opening, we chose WAX platform, a project that received a ton of hype.

What is WAX?

WAX is a decentralized platform which allows users to work with a fully functional virtual marketplace for gaming goods. Developed by OPSkins founders, WAX is aimed primarily at online gamers and the virtual item trading industry.

WAX Tokens are utility tokens that allow virtual goods to be easily tokenized and exchanged for cryptocurrency. The WAX Platform will allow traders to create their own virtual stores on one decentralized platform, providing instant payments, security, and trust services that will bring millions of new participants into a growing ecosystem. Token holders won’t need to invest into security, infrastructure or payment processing to collect, buy or sell virtual assets.

The platform can potentially provide sellers a wider exposure to global audience.

Market

WAX aims to decentralize the multi-billion dollar digital items trading market. At present, gamers are a significant and growing audience worldwide. They are also the main users and purchasers of virtual goods.

More than 400M gamers purchase $50B+ in virtual items per year worldwide. The vast majority of gamers who buy and sell virtual assets today are likely to have their items stolen or pay exorbitant fees through cross-border transactions unless they go to a centralized trading platform. This market friction is the key factor limiting the growth of this $50+ billion market.

Product

Although the WAX team won’t be launching their product until Q4 of 2018, WAX tokens are already implemented as a payment option on OpSkins.

Team

WAX is created by OPSkins, the world’s #1 virtual goods marketplace with over 100 million annual transactions. The project has a trusted team with background at Ethereum, Tether, Mastercoin, Disney, Paypal, idealab, Tether, and Groupon.

Advisors to WAX include ‘Call of Duty’ creator and developer Dave Anthony, Interplay Entertainment and inXile Entertainment Founder Brian Fargo, Kenneth D. Cron, former CEO of Vivendi Universal Games, which included Blizzard Entertainment and Ethereum Co-Founder Anthony Di Iorio.

Token Sale

WAX collected over $80M on the token sale. Not a surprise – over 400M players spend over $50 bln on virtual goods every year. By the way, only 35% of tokens were available in the ICO. Another 65% are split among the team, contributors and advisors and market development.

WAX initially raised 70,000 ETH from the leading blockchain investors on a closed pre-sale. Those included: Pantera Capital, HyperChain Capital, Galaxy Investment Partners, Fenbushi Capital, Kenetic Capital.

Risks

Although the future for WAX looks promising, there could be some questions to their business processes. For example, if they are planning to work with gaming leaders like Microsoft and Sony, how will the revshare work? Also, do they really, really need blockchain for their business?

All official info about WAX tokens is available through:

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