SAN FRANCISCO, Ca. (ESP) – Earlier this week, TradeStars announced the launch of a new governance token on the NASDAQ-equivalent fantasy stocks exchange. The new token, TSX, allows users to monetize their sports knowledge based on the real-time performance of athletes.
In their press release, TradeStars echoed hopes of operating Fantasy Sports in a similar fashion to the NASDAQ or New York Stock Exchange. Each athlete’s performance will be tracked in real time and tokenized on a Fractional Non-Fungible Token (NFT) market that is akin to the liquidity pools seen on conventional stock exchanges. Users have the ability to stake their increase in value of their favorite athlete’s performance estimates.
Instead of the traditional fantasy sports route of simply building a virtual team of players and competing in traditional fantasy sports leagues, TradeStars allows users to build a portfolio of fantasy stocks. The stocks’ price is managed by an automated market making algorithm in each fractional NFT market, based on supply and demand, while the payable dividends yield rate becomes influenced by the athletes’ real-time performance.
TradeStars launched its public ‘sporting stock exchange’ in January 2020 and now boasts a user database of over 30,000. With the introduction of its governance token (TSX), 10% of the TSX supply is being sold to private investors. Another 10% will be released over the next few weeks in a liquidity mining schedule to participating users already on the platform. Founder and CTO of TradeStars, Christian Hentschel, was excited about the innovative technology that TSX can potentially bring;
“TradeStars is the first decentralized trading platform for ‘Fractional NFTs,’ where economic DeFi incentives are connected to real-life statistical data.”
According to Hentschel, this ‘Fractionable NFT’ is a new type of NFT that enables these tokens to be partially owned. The idea came about when using the ERC-20 standard to represent the NFT fractions, and provide the capability for the token (NFT) to set the price and circulating supply of these shares as a function of the market supply and demand.
Hentschel elucidated on this topic, explaining that there are many historical and real-time components that go into the formula as a factor of influence. Similar to the New York Stock Exchange, certain statistical performance metrics would also influence the dividends in the form of TSX, to which supply and demand would validate a whole new price.
TSX will be mined and distributed proportional to a user’s shareholdings performance, creating an incentive on an early opportunity to buy those assets. “Users can stake their deposits in any of the Fractional NFT Markets”, Hentschel says.
“By holding our TSX users will be able to receive a proportional of the platform transaction fees (USDT), unlock new Fractional NFT markets, vote and propose platform changes such as transaction fees, NFT markets’ pricing formula, and so on”, he continued.
When discussing the industry at large, the Fantasy Sports & Gaming Association reports that 70% of fantasy sports players compete in leagues that charge any number of fees, with players often spending up to $653 dollars annually on fees related to the process. In 2018, the global market for all fantasy sports was estimated at around $13.9 billion and is projected to grow to $33.2 billion by 2025.
TradeStars is a Fantasy Stocks Trading Sports platform powered by the Ethereum and Matic layer 2 blockchain, where users can trade digital assets that represent real-life events’ performances. TradeStars provides a new way in which people can express their passion for sports, compete against each other, and show how much their sports knowledge is worth. Users benefit from a true digital ownership, transparency, liquidity, and decentralization. Currently, TradeStars has 30,000 users and more than 45,000 community members. The headquarters are in Buenos Aires, Argentina.