Will There Be A Demand For Dragon Coin?

in dragoncoins •  7 years ago 

The Dragon ICO is currently underway and $320million USD has already been raised and committed to this project. This represents one of the largest ICO to date. So one of the greatest questions on everyone’s mind is that will there be a demand for the Dragon Coins when it gets listed on the crypto exchanges.  

Will there be junket operators or VIP gamers who want to use the Dragon Coin? Or are investors just speculating on the value of Dragon Coins? These are real questions on everyone’s minds as we approach the mid of the ICO.  
 

To answer that question, first of all we need to look at the target market and whether it makes logical sense for existing players to change their operations to leverage on Dragon. In this case, when I mention players, I mean the junket operators especially the top 4 junket operators in Macau now.

Junket Business

Casino business in Macau is big business and revenue has been growing at a steady pace. In October 2017, gross gaming receipts rose 22.1 percent to $3.3 billion. This is a huge market and analysts forecast 2018 gaming revenue at $36 billion, according to the median estimate in a survey compiled by Bloomberg.  

The junkets account for a large portion of this rising revenue. In Macau, casinos have traditionally work with junket operators to bring in VIP gamers. Many of these wealthy VIP gamers are from overseas and they arrived in Macau for gaming as they are attracted by the luxury travel and accommodation promotions offered by the junket operators. These wealthy gamers account for a large percentage of the revenue for Macau’s casinos.  

Junket operators are a critical component for the Macau casino industry. However there are many hidden costs affecting the junket operators as well as the wealthy gamers. When the these gamers are ready to play at the VIP junket at Macau, the junket operators will prepare the stake money for the gamers. VIP gamers do not bet small and this can amount to millions being forked out by the junket operators, who has to vouch for the gamers. It is typical that the junket operators have to pay about 5% to cover the funding and credit costs.  

After winning at the games, the VIP gamers will require to transfer his winnings back to his country. This transfer of winnings will requires agents to facilitate the cross-border transfers and will cost the gamer about 5% to 7% of his winnings.  

Dragon Coin

Dragon Inc intends to create a platform (known as Dragon Platform) together with a ERC20 Dragon Coin DRG which is interchangeable with fiat and other major cryptocurrencies. This will facilitate the transfer of funds for gaming by the VIP gamers. Dragon Inc also recognized that the value of DRG can fluctuate with the inherent volatility of cryptocurrencies. Hence Dragon Inc will also create a family of utility tokens Dragon Global Chips DGC. The first DGC in the family will be DGC-HK with the value of 1 DGC-HK = HK$1.00. All the DGC created will be pegged to specific fiat currencies so as to facilitate exchange to physical gaming chips at the Dragon Junket or any Dragon affiliated gaming venues.

With the interchangeability of DRG to DRC and back to DRG, as well as the ease of exchange of DRG to fiat and/or other cryptocurrencies, junket operators as well as VIP gamers will be able to reduce their credit and transfer costs. This will push the junket operations even higher as junket operators will be able to afford even better incentives and promotions to attract VIP gamers to Macau.  

Demand For Dragon Coin

So with the above benefits and costs cutting by Dragon, junket operators will naturally want to leverage on Dragon coins. Junket operators will save a lot of money and if they buy into Dragon coins first, they can also enjoy the rise in value while using Dragon coins for their business.

As of now Dragon Inc. has already secured support from 4 key junket partners to join Dragon Inc as Dragon affiliated junkets by end of 2018. These junket operators will attract thousands of wealthy gamers to junkets operated by Dragon or the Dragon affiliated venues. Out of the $400 million, these junket operators have already committed US$265 million to the project, and this forms 53% of the total supply of Dragon Coins.

There is a natural demand for Dragon Coin for this industry. The junket industry is one of those businesses that have a perfect for cryptocurrencies. We will see more and more demand for the usage of Dragon Coin once Dragon gets into full swing into their operations. And one of the indicators of Dragon running on full steam will be the rising demand for their coins on the exchanges. 

BoonsterX

Dragon Website : https://drgtoken.io/
WhitePaper: https://bit.ly/drgtoken

 https://bitcointalk.org/index.php?action=profile;u=1236924 

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