Gamecredits has existed for three years, but it’s only now that we’ve decided to hold a crowdfund to promote development and marketing. Here’s the background to that decision.
Like bitcoin, gamecredits started as a small, bootstrapped project run by hobbyists. At the time, around three years ago, the ICO craze was just getting warmed up. Different initiatives were collecting hundreds of thousands, sometimes even millions of dollars in investment. Some delivered on their promises and are still around today – Ethereum, funded in the summer of 2014, being the most notable example. Others turned out to be too ambitious, pump-and-dump schemes, or else outright scams.
Gamecredits’ origins as a mined coin meant that it avoided these issues, but also that it didn’t hit the crypto world with a splash. Again like bitcoin, it grew slowly but steadily (by cryptocurrency standards), held mainly by a dedicated core of people who realised the benefits that crypto offered to the gaming sector. Publicity was limited, as were use cases.
Over time, gamecredits was patiently driven forward by this core community, albeit with some turnover. Relationships with partners, exchanges and gaming businesses were forged, perhaps most notably Datcroft. By the beginning of 2017 GAME was well-positioned technically and organisationally to break into an industry that desperately needed better solutions for moving money around. But thanks to its humble origins, what the GameCredits ecosystem did not have was funding for marketing.
Every holder wants to see their currency rise in value, but there is only so far you can go on a donations model. There tends to be a ‘tragedy of the commons’ effect for donation-based campaigns: people choose not to participate on the grounds that they will be giving up the very thing they hope will become more valuable, in the hope that everyone else will donate to the campaign. In any case, a really extensive marketing campaign for GAME will take millions of dollars – a significant fraction of the coin’s total market cap. And it couldn’t be spent without crashing the price.
A separate crowdsale and marketing campaign allows the MobileGo team to raise money to drive GAME adoption and price, without the limitations and inherent tensions of a GAME-only war chest. The creation of a separate MobileGo asset makes it attractive in its own right, since buyers will be rewarded for their investment, whether or not they hold GAME. In fact, for the analytical investor, MobileGo can be completely abstracted from the gamecredits system: returns may be generated from adoption of that currency, but they will flow into MobileGo as fiat money (from commission fees on credit card purchases through the new gamecredits wallet), and be delivered to MGO holders via a series of buybacks. Owning GAME isn’t necessary – though since the purpose of MobileGo is to increase the value of GAME, it’s the obvious currency to hold alongside MGO.
Investment is necessary to increase gamecredits adoption in the gaming industry. The MobileGo does this on a for-profit basis, rather than the (generally unsuccessful) charity basis that other non-funded cryptocurrency communities opt for.