A Move to Popularize Blockchain Services
cryptocurrency LINK on BITBOX, a virtual currency exchange it has established in Singapore, on October 16.
Cryptocurrency LINK, which was issued by Naver's Japanese subsidiary LINE, will be listed on cryptocurrency exchange BITBOX on October 16. BITBOX was established by LINE in Singapore in July this year
After being listed, LINK can be purchased with other cryptocurrencies including Bitcoins. The listing of LINK draws attention as LINE has adopted a minimum price guarantee system for LINK as a means of promoting blockchain services.
LINK is a cryptocurrency that can be used for decentralized applications (dApps) launched by LINE. Decentralized applications are applications that run on a P2P network of computers rather than a single computer.
The initial listing price of LINK is US$5. It is common for the price of a listed cryptocurrency to change depending on trading situations. But even if the price of LINK falls below US$5, LINE's dApp services will guarantee the value of one LINK at US$5 or more.
LINE's policy to guarantee the minimum value of LINK is designed to lead users to vitalize a blockchain ecosystem by using LINK in buying various Daap programs provided by LINE, rather than simply trading LINK as an investment instrument, experts say.
"We plan to sell products or services after setting their prices based on actual legal currencies, not based on LINK in LINE’s Dapp services," said Lee Hong-gyu, president of an affiliate of LINE which develops blockchain technology. “A user will be able to pay for a US$5 service with one LINK."
To cite an example, if a webtoon service is provided in the form of a Dapp service, the price of one webtoon will be set at 5,000 won or 10,000 won of real money, not at one LINK, two LINK or others. Users can buy webtoons in a Dapp service with legal currencies or LINK.
"Since LINE guarantees the minimum value of LINK, there can be an increase in the number of users who purchase LINK to utilize it rather than regard the cryptocurrency as an investment means," Lee said. "There will be users who purchase a lot of LINK when its price drops below US$5 on the exchange and use LINK in Dapp services."