Japanese Line Customers Unable to Use Link Tokens
The Japanese instant text messaging application, Line, declared the start of Link Chain, its new blockchain network. The company already has a huge customer base of over two-hundred million users. The have their shares traded on the TSE and the NYSE, and they have current net-worth of $11 billion. They are a dream to any cryptocurrency startup, and they do not even have an ICO.
However, the customers in the US and Japan will not be able to use the tokens in the beginning because of the licensing terms and conditions. On top of that, the majority of the active users of Line are based in Japan; they amount to over 75 million users, and thus, this can sabotage the advantages of their customer foundation.
The plan is to have the tokens enlisted on Bitbox. Bitbox is Line’s crypto exchange that started back in July in Singapore. The exchange is yet to be approved, though, by the Japanese FSA. It was relatively easy for exchanges to get approval before the hacking incident of a prominent exchange. Link tokens aims to be listed only on Bitbox, and no other exchange will acquire its listing.
On the bright side for Line, Toshihide Endo, the new FSA administrator, has indicated a new perspective towards cryptocurrency. He says that the FSA would rather oversee the growth of the industry in Japan than just make it harder for traders to have their way.
Future geographical expansions for Bitbox are not so clear at the moment. Depending on whether they get the license, they make want to expand their affairs in Taiwan and Thailand, in addition to other regions. A good sign is that Thailand’s SEC permitted Bitbox, along with 6 other exchanges, to continue running.
Once Bitbox is certified, Line will allow users to exchange their Link Points for Link Tokens, which can be used for trading on Bitbox.
As for the nature of the tokens, Line announces that they would be used for rewarding customers. Customers will then be able to trade their Link tokens for discounts and coupons, in-app purchases and purchasing games. They will also be available for use on Line’s new dApps, which are to be launched in September.
As of now, Link tokens do not have any real value that can be tradable for fiat. However, Line has issued 1 billion Link tokens, where 800 millions are dispensed among the users, and they are holding the other 200 million aside with Line Tech Plus. The tokens will be divisible by the millionth.