E-Commerce on the Loot Box engine
Coinsloot has created a unique platform incorporating loot boxes and cryptocurrencies. SiGMA’s Kai Dowling sat down with Coinsloot CEO, Luke Ozimski, to find out more about their future aspirations
For the past few years, two industries have entered our world with a bang. The microtransaction industry and crypto have
stamped their authority in their respective areas.
The most popular type of micro-transactions are loot boxes, with gaming companies such as EA Sports banking in a massive $2.8billion just from micro-transactions in 2019. Meanwhile, 2020 saw cryptocurrency, specifically Bitcoin, take off. Bitcoin recorded a number of milestones even breaking the $40,000 barrier and with many influential businessmen, athletes and companies backing the cryptocurrency, it is showing no signs of slowing down.
What is Coinsloot?
Coinsloot is the first ever to fuse these two industries together, creating an innovative and unique platform, giving their users the chance to buy cryptocurrencies, most trending DeFi project, NFTs, and real world items using the loot boxes engine. The main idea behind the concept is to merge fun with investment as users, ranging from beginners to those considered crypto savvy, are able to get high value items with minimum investment. This type of platform will also give those people who wish to enter the crypto market, but do not know where to start, the perfect opportunity to build a nice and sizeable portfolio.
The Process
“This is a decentralised app and people can buy items at Coinsloot using USDC, and have a chance to get a higher value item.” says Luke Ozimski.
However, Coinsloot also offers an ERC20 token which is also known as a “LOOT token”. This type of token leans towards those who wish to invest as it gives the user the chance to perform “staking”. Those who choose staking on Coinsloot will benefit by acquiring dividends/profits on every single transaction when users open Loot Boxes, as 70%-75% of total revenue generated via the loot boxes will be given back to the investors staking Coinsloot’s tokens on smart contracts.
First time users will need to deposit using USDC/USDT coins. Coinsloot resolves the issue of crypto prices fluctuating by using these stable coins, so a user will be able to redeem a loot box by using USD/USDT and end up with Ethereum, Bitcoin or any other prize on offer. Therefore, if you are a crypto-investor or someone who missed out on the opportunity to invest in crypto before its surge – Coinsloot is the perfect solution to build up your portfolio.
Loot Box Regulation
The micro-transaction industry has come under scrutiny over the past few years due to companies, such as EA Sports, exposing children to gambling environments. Coinsloot, in no form, will target young adults through their platform and focus solely on promoting the idea to the adult demographic.
Ozimski goes on to say that, “The banning of loot boxes is focused on young people that play these types of games. This is considered gaming rather than gambling but it’s still not a great idea to target young adults. That is why Coinsloot solely targets adults with a clear and transparent algorithm.”
However, regulations may still be put in place around the world in relation to loot boxes. Countries like Japan, China, Belgium and the Netherlands are all implementing strict restrictions on loot boxes with laws ranging from a player being unable to purchase a loot box with real money to a complete outright ban. A number of countries look to follow this way of thinking with Malta and the US considering bans.
Coinsloot has made it clear that they will abide by any laws set out by governments and will look to amend their product and service to be compliant with certain laws. Moreover, players may raise questions over the algorithm of these loot boxes. Coinsloot prides itself in running an opensource code, which provides transparency since there is no possibility of manipulating the system for a specific user to win a specific prize.
“This type of platform will also give those people who wish to enter the crypto market, but do not know
where to start, the perfect opportunity to build a nice and sizeable portfolio.”
Future Industry Leader
Coinsloot see themselves at the forefront when it comes to ecommerce fully operating on crypto, due to its unique nature and the fact that loot boxes are fun to open. Coinsloot has the opportunity to spearhead the industry in regard to the adoption of crypto by scaling the product on a global level. They are looking to target many countries all over the world and refuse to limit themselves to one specific region or continent, with a specific focus on Asia, Europe, Russia, and the Middle East.
According to Luke, “This product can be translated to any language, its new and our product will be able to spread globally very easily. Asia is our number one target as we have already spoken to partners in Singapore to launch the product there.” Coinsloot has certainly injected some fun into the cryptoworld with this unique platform and they also have more ideas up their sleeves which will help crypto-adoption. Watch this company play a significant role in the crypto industry as they continue to bring their ingenious ideas to the industry.
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