Startup Fortune, May 15, 2020: With the highly-anticipated Bitcoin having event completed, digital assets have once again taken a front stage seat in the global economy. The next few years of the industry will likely see continued adoption and support from both institutional and retail markets.
For the retail community, mass adoption will be dependent on companies, products, and infrastructure that are easy to use and understand. This is why sectors like gaming, commerce, and digital asset management are seeing growing interest and use.
One market that is ripe for disruption is the global gift card market, which is anticipated to reach a staggering $505.9 billion USD by the end of 2020. Despite this growth, the gift card market still suffers from outdated security, trust, and efficiency. For gift card holders looking to sell their gift cards on a secondary market, there is no real winner that provides enough interest to power both sides of the market place.
Decentralization in the Gift Card Industry
Interest is not the problem, but rather a lack of transparency that causes people to remain hesitant when dealing with online gift card secondary markets. This is where one company, Tycoon69, is leveraging its proprietary blockchain technology (Tycoon Chain) to create an economical ecosystem and market.
Using their native token, T69, Tycoon69 is able to facilitate the transactions of gift cards, cashless payments, ecommerce, special deals, cashback, and products that include these transactional elements within their technology stacks. This ultimately gives consumers the transparency and security of transacting their gift cards as blockchain technology is immutable and can’t be hacked or manipulated.
When breaking down the opportunity even further, it is evident that service providers and freelancers could also benefit from this technology as fraud and counter-party risk is eliminated. Additionally, they will be able to transact and accept payments for goods and services using cryptocurrency.
Concept Validation by Major Players
In the past year, large retailers and brands such as Starbucks, Amazon, and Paypal have all explored digitalizing their gift card offerings, including R&D being dedicated to blockchain technology. While this is promising for the industry as a whole, consumers that use digital assets typically like to retain as much control over their transactions as possible. Using a decentralized third-party, like Tycoon69, they will not be handcuffed to the policies of large brands and can transact with more freedom in a P2P fashion.
This was one of the sources of inspiration for Stefan Hostettler, Tycoon69’s Founder and CEO. Hostettler anticipated this trend and was one of the first entrepreneurs to act on it, headquartering the company in Switzerland, which is now Europe’s hub for digital assets.
As Tycoon69 grows, there are plans for major partnerships and integrations into larger platforms. Recently, Coinbase, one of the largest exchanges in the world, has approved a process that will allow users to cash out crypto into gift cards. Once they receive gift cards, Tycoon69 would provide the infrastructure to trade gift cards in a safe marketplace.
What to Expect in 2020-2023
With the future of the economy in a flux, decentralization and digital assets have taken a precedent as a strong hedge against traditional markets. For the more tech savvy crowd, these digital assets offer robust opportunities such as crypto-backed loans, decentralized financial services, and incentivized networks like Tycoon69. This demand will likely grow as the demand for personal control over assets continued to increase.