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WAX Token / Coin – 2018 Review & Guide
Are you interested in crypto and like playing computer games? If so, WAX token combines the two and could be the cryptocurrency investment for you. In our guide, we’ll tell you what WAX coin is, how it works and why it may shake up the computer game industry. Remember, investing in cryptocurrency is high risk and we do encourage you to do your own research.
- 1 What Is WAX Coin?
- 2 Why Use WAX?
- 3 How Does The Worldwide Asset Exchange Add Value?
- 4 How Does It Work?
- 5 How Are WAX Token Used?
- 6 The Platform: Different Types Of Accounts
- 7 The Team
- 8 WAX Crypto: What Does The Future Hold?
- 9 The WAX ICO
- 10 Should I Invest In WAX Tokens?
- 11 How Can I Buy WAX Coin?
- 12 Final Word
- 13 Resources
What Is WAX Coin?
The first thing you need to know is that WAX coin and WAX token are used interchangeably in the cryptocurrency community. They are just different ways to refer to the cryptocurrency of the WAX project. Although WAX is a pretty cool name, it actually stands for Worldwide Asset Exchange. The team describes their project as a “global decentralized marketplace for virtual assets”. Although, this sounds intriguing what do they actually mean by this and how does this tie into the computer game market?
Well, every year gamers over 400 million gamers around the world spend $50 billion on virtual in-game items. Many items are of course acquired in-game after many hours of play. The point is that virtual items in computer games are desirable and have value. After all, that high-level item you got on World of Warcraft might have taken dozens or even hundreds of hours to get. As long as a virtual item is in demand, is scarce and takes a long time to earn, it will always have a monetary value. In other words, these in-game items are actually assets that can be traded.
The idea is that digital in-game items from computer games are listed on the WAX exchange and are bought or sold using WAX tokens. These tokens can then be used to buy other in-game items or be cashed out for real dollars using cryptocurrency exchanges.
Why Use WAX?
100’s of millions of gamers spend billions of real dollars on in-game items or dedicate many hours to earn them. There are times that a gamer might want to cash out their digital assets. This could be because they could do with the money or they simply want to play a new game and wish to transfer value from one game to another. There are centralized marketplaces for trading different virtual items. However, there is a general lack of trust and in-game items are often stolen when a gamer uses these marketplaces. Even if a trade goes well, then high cross-border fees are paid to the likes of PayPal.
The centralized digital asset marketplaces of today also have another problem: They don’t pool items together. This means a gamer might have to look at a dozen or more different marketplaces to either find the item they want or compare prices. This is even more inefficient when you consider that a gamer will also have to research if each digital asset exchange is trustworthy or not.
With such a fragmented marketplace for digital items, it is no wonder that it has not gone mainstream. With the options available today, the truth is that very few gamers are willing to take the risk or dedicate the time to trade their items.
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Where Does WAX Fit In?
The team sees that there is an opportunity to provide a platform and process to make trading digital items easier and cheaper for gamers. WAX also opens up other exciting opportunities for virtual item traders. Marketplaces in other industries have created and have resulted in the rise of companies like Amazon, Airbnb, and Uber. All these platforms have thrived by providing a safe and simple platform for millions of small businesses. They have also solved expensive problems like fraud prevention, cataloging, supply and demand matching, and reviews.
How Does The Worldwide Asset Exchange Add Value?
For gamers that want to buy and sell items, WAX offers an easily accessible and simple platform. From a buyers perspective, they just need to select the item they want from the WAX widget, click the buy button, select a payment method and the item will be credited to them. The important part is that they do not need to understand what the platform is or have any knowledge about WAX tokens. WAX wallet creation and payment processing in cryptocurrency are taken care of automatically and run in the background. The user is also never redirected away from the website they are on. This makes the buying experience as painless and as easy as possible.
WAX also allows anyone to open up their own virtual marketplace. All this without having to bother with setting up security, a settlement process or the necessary infrastructure. Traditionally, all these things would have cost significant amounts of money to do properly and were significant barriers to entry. This means that any small website owner or entrepreneur can run their own virtual asset market and should provide new opportunities for millions for small businesses.
In the past, even if a small website somehow had a lot of money to invest and create a digital marketplace, they wouldn’t have enough items listed for the marketplace to attract many users. Imagine if you came across a marketplace for World of Warcraft and it had five items in it. It wouldn’t be very enticing to use, right? WAX solves this problem by consolidating all the items listed on the platform into a single catalog. This is good news for buyers, sellers, and small businesses.
How Does It Work?
Trust is one of the main obstacles to trading digital items. Quite simply, there needs to be a process to ensure the buyer receives their item and the seller gets paid. A transfer agent is therefore required to ensure the transfer goes smoothly. Fortunately, WAX have developed a smart way of doing this using bots and API’s. All transactions are also secured using blockchain technology as well.
For small businesses like computer game blogs, they can integrate the WAX widget on their site to attract buyers and sellers of digital assets. The blog owner would get a share of the listing fee for any digital asset listed through their widget by their users. If a purchase was made on a blog, the blog owner would get a share of the transaction fee. This means businesses and small entrepreneurs are rewarded for the value they bring to the platform.
Essentially, this means that participation in the digital item marketplace will be open to everyone. In contrast, it used to be the preserve of the very few that had the money to create the necessary infrastructure. Even then, the experience was not particularly good for the actual gamers buying and selling items.
How Are WAX Token Used?
The WAX token is the currency of the WAX platform. In essence, it is the fuel that powers it. The token is used in the following ways:
- WAX tokens are the unit of currency to either buy or sell digital items on the marketplace. For example, if a user lists an item it will have a price displayed in WAX coins. Similarly, if a person wants to buy an item, their regular currency will be automatically converted into WAX tokens to make the purchase.
- WAX tokens are also used for voting. The idea is that each computer game will have a guild that is responsible for signing off completed digital asset transactions. In return for this service, the guild will receive a fee. In short, these guilds are confirming nodes and the platform will start off with 64 elected guilds. WAX token holders can vote for anyone to be elected as a guild, aside from themselves. This is done by pledging tokens, which means they are locked up until the owner pledges them. Whilst tokens are pledged (used for voting) the tokens cannot be sold on a crypto exchange.
- Anyone that pledges tokens for an elected guild will receive a proposition of the guilds profits. This is in proportion to the number of WAX tokens pledged to the guild. This reward mechanism encourages coin owners to continuously pledge their tokens and actively vote in guild elections.
- Proposals can be submitted to the guild to change policies. Proposals can only be submitted by users that own 10 WAX tokens or more.
- There are two main types of transactions on the WAX platform. 1) transferring WAX cryptocurrency 2) creating or interacting with contracts. For any transaction to be processed you will need to pay in WAX tokens.
The Platform: Different Types Of Accounts
There are three types of user account on the platform:
- The first is a user account that allows the person to buy or list items for sale.
- The second is a guild account who are top of the totem pole. These guilds are elected through votes by WAX token holders and are in charge of the platform for a specific game. This means they oversee all digital asset transactions for the game they are in charge of and sign off the transactions as complete. If a guild does a bad job, another guild can be elected by WAX coin holders.
- The third type of account is known as a ‘transaction agent’. These people are in charge of the in-game transfer of items and ensuring the process goes smoothly. The transaction agent communicates with the buyer and seller of the digital item and makes sure the transaction is done properly. In return for this service, the transfer agent earns a fee. Guilds have the power to choose transfer agents or remove them for poor performance.
The WAX cryptocurrency is not just brought to you by any old team. The platform has been created by OPSkins which is already firming established as a leader in the virtual item marketplace industry. The company obviously knows how to complete a digital asset swap, as seen by the over 100 million digital purchases they process every year.
It is evident that the OPSkins team know how to create a massive business in this space. This makes them perhaps the best people to understand the shortcomings of the centralized exchange they have created. The WAX crypto is focused on solving these shortcomings by allowing virtual asset buyers and sellers to trade directly and at a cost centralized marketplaces simply cannot offer.
It is the expertise of the OPSkins team that has so many people excited about the WAX crypto project. The experience, contacts and know how that they have gained since starting their business in 2015, will be invaluable to the project’s success.
What TotalCrypto really like about this project is that OPSkins didn’t need to create the WAX cryptocurrency. After all, they had a very successful business in the niche already. Instead, they have decided to use their experience and technical know how to try and create a much better version of their existing marketplace.
WAX Crypto: What Does The Future Hold?
Right now, WAX coin is built on the Ethereum blockchain and is an ERC-20 token. However, in the future tokens will be moved over to the EOS platform. This is maybe not surprising given that the BitShares consensus algorithm is used by WAX and BitShares was co-founded by Dan Larimer, who went on to create EOS.
Although the project has a strong focus on providing a marketplace for computer game related digital assets, the platform can actually be used to trade any virtual asset. This includes things like cryptocurrency. The exciting thing about WAX is that it actually has advantages over other decentralized exchanges like 0x and Kyber Network:
This means that in the future we could see WAX providing a marketplace for cryptocurrencies. Also, assets continue to be digitalized this opens up additional opportunities for this cryptocurrency project. However, as things stand, the in-game item market for computer games already stands at $50 billion. It is perhaps no wonder that the WAX cryptocurrency is focusing on this market first, before pursuing other opportunities.
The WAX token has the potential to widely adopted and tailor it’s platform to many other niches. Before we get too carried away, the TotalCrypto team certainly want to see the project properly launch and gain market share in the computer game industry. We certainly have high hopes for the project and are confident that the team is in a position to execute.
We’ll let the team outline their own roadmap. But we are excited about getting a proper glimpse of the platform in Q4 of 2018:
The WAX ICO
The WAX ICO was held on the 29th November 2017, raised $9.6 million and tokens were sold at 32 cents each. In total 56,750,000 WAX coins were sold at ICO, which represents 35% of the entire token supply. What happened to the rest of the tokens? Well, they were allocated to the project’s team, advisors and for market development in the proportions shown in the visualization below:
Needless to say, the WAX ICO completely sold out.
Should I Invest In WAX Tokens?
- The project is targeting the highly lucrative in-game item market. With a total market value of $50 billion annually, WAX doesn’t need to win much market share to be a very valuable platform.
- Gamers spend a lot of money or time to get highly valued computer game items. Being able to transfer this value to other games for even for money makes a lot of sense.
- The value proposition of WAX should appeal to both gamers and businesses alike.
- OPSkins have an amazing track record in the industry and have identified all the shortcomings of centralized digital item exchanges though experience. This puts them in a unique position to properly identify the issues and come up with a solution.
- The coin has a real use case and makes a lot of sense when you consider how many different currencies there are and the fees associated with converting them. This problem is particularly apparent when you are trading a digital asset with someone on the other side of the world. Gamers are already accustomed to the idea of hard in-game currencies like gems, so the jump to WAX tokens is not particularly big.
- The platform can be used to trade any digital asset, including cryptocurrencies. WAX is focusing on in-game item exchange first. However, the fact that it could be used to exchange any digital item means there is further potential for growth.
- The cryptocurrency is not yet listed on Binance. This could mean a sharp spike in the WAX token price if it is eventually listed on the exchange.
- The platform has not launched yet and they will have no official working product until Q4 2018.
- The project has other cryptocurrency competitors like Enjin Coin.
- It still remains to be seen if a decentralized marketplace will be more popular than the centralized ones already available.
How Can I Buy WAX Coin?
There is currently no direct way of buying WAX tokens with conventional currency through a single account. Instead, you will have to buy Bitcoin or Ethereum using an exchange like Coinbase and transfer this to an exchange that has WAX traded on it. We show you everything you need to do to buy your WAX coins in our simple how to buy WAX guide.
In short, the WAX project solves a big problem in a massive market. We are sure that there are millions of gamers out there that would love to exchange their in-game items for cash or effectively trade items from one game to another. The problem with the centralized exchanges available right now is lack of trust, a highly fragmented market (which harms adoption) and a high barrier to entry for anyone wanting to participate or add value in the market. WAX is aiming to solve all these problems and it’s brought to us by OPSkins, who have already got a very impressive track record in this area.
The TotalCrypto Team cannot wait to see the WAX platform looks in Q4 of 2018 and look forward to seeing how many games and users it can onboard. 2019 and beyond will certainly be years for the team to focus on increasing market share and possibly even start tailoring the platform to trade other digital assets. We are very interested to see how things go with this project and finding out if WAX can live up to our high expectations.
Below we’ve listed some key resources relevant to WAX coin.
? Safest WAX Wallets
The safest way to store your coins is by using a hardware wallet. The two main brands are Trezor and Ledger and we are happy to recommend both. If you need help choosing between the two just read our Trezor Vs Ledger guide.
? Best Free Wallets
As WAX coin is a ERC-20 token, you can use any wallet that is compatible with Ethereum. Find our top two choices below:
- MyEtherWallet – if you need help getting started we have you covered with our MEW wallet guide.
- The Ethos Universal Wallet – store over 100 cryptocurrencies in one place.
? Best Crypto Tracking App For WAX Token
Interested in doing some further reading on the WAX project? Just jump into their white paper and learn everything you want to know.