LINE Corporate, the firm behind the popular messaging app, LINE, has announced a new cryptocurrency called LINK that runs on a blockchain network called LINK Chain. The new cryptocurrency will be available exclusively via the BITBOX exchange from September but the primary means of acquiring the asset will be via compensation for using services in the LINE ecosystem.
Writing about the compensation in its announcement, LINE Corp said:
“Unlike other cryptocurrencies or digital tokens, LINK will not make an Initial Coin Offering (ICO), but instead utilizes a reward system that gives users LINK as compensation for using certain services within the LINE ecosystem. For example, a user who has joined and participated in one of the decentralized app (dApp) services related to LINK can receive LINK as incentive. That LINK can then be used as payments or rewards within the dApp services that will launch soon, and for service categories like contents, commerce, social, gaming, exchange and more within the LINE ecosystem.”
By using BITBOX, users will be able to trade their LINK for other digital assets such as Bitcoin or Ethereum. Additionally, LINK holders will get exclusive benefits from the exchange, these will be in the form of payments or discounts on trading fees and promo events.
The genesis block on LINK Chain was mined on August 23. In total, one billion LINK tokens will be issued, 800 million will be allocated for user rewards, while 200 million will be held in reserve by LINK issuer, LINE Tech Plus. Unfortunately for those in Japan, they will receive LINK Points for their activity in dApp services instead of LINK. This is due to regulators in the country who still need to authorise LINE for cryptocurrency trading. Unlike LINK, LINK Points can’t be deposited, withdrawn, transferred, traded or exchanged on exchanges such as BITBOX.