We caught up with Volodymyr Panchenko, the indefatigable Lead for the DMarket project and the following ensued in our chat with hm;
Hello Volodymyr, can you give us a brief overview of DMarket?
To sketch out the project in a few words, DMarket is a global blockchain and smart contract-based marketplace where every gamer from every platform can become a trader. Here every virtual item, such as weapons, crystals, or special skins, can be sold, bought, or exchanged.
Why is it based on blockchain? Because currently insecurity of transactions is one of the main issues that lock the in-game market. For example, you could sell your upgraded in-game account on eBay and your purchaser would pay for it. Then, if you are unlucky, your buyer could contact the payment system and complain that he never received the product, so the payment is reversed. This example is a real story that wouldn’t have happened if blockchain and smart contracts had been used to close the transaction.
When you say turning virtual items into a real commodity, does that mean we will be able to physically touch these virtual items with your platform, or will this value be realized in another form?
The process of turning a virtual thing into a real one is not literal; otherwise, we would be a 3D printing factory, not a marketplace. As with any other trading platform, you are getting rewards from your customers for what you have sold. In our case, you will be paid with DMarket tokens, the native platform currency. Later, you can exchange this currency and turn it into tangible goods, money, whatever.
What inspired the idea for the project?
There are thousands of games where people can potentially trade and exchange digital items, and billions of gamers possess rare, fancy, or memorabilia items—all in high demand, but technologically limited from trading due to the inability of game developers to provide local trading markets for each game. This market gap was obvious to the game community and inspired us to create DMarket.
What is the estimated size of the project’s target market?
For now, only 100 million people generate the annual in-game item turnover that is estimated at $3 billion. Thanks to DMarket, more than 2.2 billion gamers will be able to join the trading. This number of people around the world playing games on different platforms is actually our target audience.
What is your expectation in the game industry augmented by DMarket?
We believe that by 2020, in-game items will be sold on par with real goods on all sorts of online sites, and famous designers will produce capsule collections for GTA or World of Warcraft. The annual turnover of game content will exceed $450 billion in monetary terms. And all thanks to the fact that we’ll unblock the Silk Road of in-game trading.
Can you briefly tell us about your team and how the individuals work together to make the project succeed?
There are four key people who run the project: myself and three more partners. Each of us has strong expertise in different industries, which complete the core of the project organically. My background includes global game distribution and the creation of Skins.Cash, the second biggest virtual item marketplace, which is still not blockchain-based.
My co-founder is Alexander ZeroGravity Kokhanovskyy, the founder of Natus Vincere, one of the most successful cybersports teams in the world.
The blockchain architect of the project is Andrey Khavryuchenko, a leading developer of DASH cryptocurrency.
Do you already have game studios that approved their intention to integrate their products to the platform?
DMarket is already supported by remarkable game development studios such as 4A Games (Metro 2033, Metro: Last Light), GSC Game World (S.T.A.L.K.E.R, Cossacks series), and Tatem Games (Carnivores, Vivisector, Cryostatis).
Are you already in talks with exchanges to trade the tokens, and may we know which exchanges you are talking with?
Yes; in 30-60 days after the end of the second sale phase, DMarket tokens will be listed on one of the top 10 leading crypto exchanges. After that, DMarket tokens will become a full-fledged exchange instrument. DMarket tokens will be the only currency for an in-game economy. The number of DMarket tokens will be strictly limited, though the capitalization rate will rise with every new member or game studio.
Can you give us a summary of how the token sale will be conducted?
We are about to allocate a 25,000,000 token (about $10 million) hard cap for presale, and investors can apply for a whitelist now. The minimum transaction for presale is $50,000. The rest of the 75,000,000 token (around $30 million) hard cap will be available for crowdsale, which will start on November 3rd.
The exchange rate will be 750 tokens for 1 ETH. The minimum transaction amount is 0.1 ETH.
The hard cap of DMarket’s main token sale is 100,000,000 tokens (around $40 million).
Thanks for an awesome session Volodymyr, we wish you all the best.
Thank you too.
For more details, follow the DMarket ICO here.