TradeStars, a NASDAQ-equivalent fantasy stocks exchange launches its governance ‘TSX’ Token
This decentralized trading platform for ‘Fractional NFTs,’ connects economic DeFi incentives to real-life statistical data.
Want to get paid for your vast fantasy sports knowledge? The NASDAQ-equivalent fantasy stocks exchange, TradeStars, announced today the launch of its new governance token, TSX, which allows users to monetize that knowledge based on athletes’ real-time performance.
With over 30,000 users, TradeStars launched its public “sporting stock exchange” in January 2020. Designed to mirror the NASDAQ or New York Stock Exchange (NYSE), TradeStars measures athletes’ real-life performance, on a Fractionable Non-Fungible Token (NFT) market that can be compared to the liquidity pools seen on conventional decentralized exchanges. Users can stake on the increase in the value of their favorite athletes’ performance estimates.
Unlike traditional fantasy where users build a virtual team and compete against other users, TradeStars instead encourages users to build a portfolio of Fantasy Stocks. The stocks’ price is managed by an automated market-making algorithm in each NFT market, based on the supply and demand, while the payable dividends yield rate is influenced by the tokenized athlete’s real-life performance.
“TradeStars is the first decentralized trading platform for ‘Fractional NFTs,’ where economic DeFi incentives are connected to real-life statistical data,” says Christian Hentschel, the founder, and CTO of TradeStars. The team’s past experience in the fantasy sports and crypto-gaming industries, according to Hentschel, boosted the team to then create a new type of fantasy sports game based on virtual assets that would represent athlete’s real-life performance and DeFi like gamification incentives.
This ‘Fractionable NFT’ according to Hentschel, is a new type of NFT, which enables NFTs to now be partially owned. “We came out with the idea of using the ERC-20 standard to represent the NFT fractions, and provide the capability for the NFT to set the price and circulating supply of these shares as a function of the market supply and demand,” he continued.
“Based on real-time and historic statistics, we’ve added another component to the formula that would be a factor of influence, while determining NFT shares’ final price. Similar to the real-world NYSE, the statistical performance metrics would also influence the dividends in the form of TSX, to which supply and demand would then validate its new price,” Christian concluded.
Talking about the industry at large, the Fantasy Sports & Gaming Association reports that 70% of fantasy sports players compete in leagues that charge a fee, and a player spends an annual average of $653 on fees. 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 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.
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