Izetex IZX is developing a platform that uses augmented and virtual reality games as a tool for advertisement. They are releasing their own ERC-20 cryptocurrency, the IZX token, which businesses use to buy in-game tokens that are awarded to players, entitling them to special discounts or promotions with the businesses.
An early version of their product featuring a single game has already attracted tens of thousands of users in dozens of countries.
About the Izetex IZX ICO
IZX is a young company; it was founded in May 2017, and its whitepaper was published in November of that year. However, the team's LinkedIn pages demonstrate years of experience in software development and marketing.
The development team is relatively large, with over a dozen members working on different facets of the project. IZX has presented their product at several different blockchain-related conferences around the world, and has developed a strong presence on many different social media sites.
IZX's development team is Russian, supported by a team of advisors in Malaysia and the United States. The English version of their whitepaper contains some odd grammar and word choices, but is for the most part well translated. The company aspires to worldwide penetration, though; they claim to already have over 30,000 customers in at least 60 countries, and continue to grow each day.
IZX's main product is a series of virtual and augmented reality games. In the games, users can hunt for tokens which will unlock deals and promotions from real-world businesses. The company hopes that participating businesses will enjoy the low-cost advertising with few middlemen.
Game developers can work as independent contractors, receiving royalties any time a business uses their game; IZX hopes that this prompts programmers to create truly original and engaging products. At time of writing, only a single game is available, with three in development, and several more to come by the end of 2018.
IZX is issuing two different tokens, Drive and ERC-20. The Drive tokens are purchased by advertisers and distributed to customers in games; they are monitored by their own blockchain. The ERC-20 tokens are traded on public exchanges, and are used to purchase Drive tokens.
Like coupons, Drive tokens have no monetary value. It's not clear why the company is opting to separate the currency like this, but it's likely to prevent users from manipulating the ERC-20 token's value by holding onto their winnings. The ERC-20 token is currently offered in a pre-ICO sale.
The IZX platform is designed to benefit all parties involved: game developers, advertisers, and players. Developers receive royalties when advertisers use their software, advertisers are connected to enthusiastic customers, and players are rewarded with IZX tokens that they can use to receive discounts when shopping with the businesses. Depending on the success of the platform, all three parties could find it to be a hugely useful tool.
The IZX token is one of perhaps thousands of nascent ERC-20 currencies being used internally by a single platform, while also being traded on public exchanges. They offer investors an extra dimension of stability over cryptocurrencies not tied to a business, since their value is determined by the platform's popularity rather than solely on speculation.
The Izetex IZX ICO Verdict
The Izetex IZX platform offers an interesting solution for advertisers and game developers, and while its early popularity is promising, it's not clear how widely popular such a platform can become. Both augmented reality and cryptocurrencies have niche appeals, and customers not already enthusiastic about these technologies may be hesitant to adopt them.
If IZX's platform can sustain the attention of a large customer base, it could be a major success, but this depends on the quality of the games, the popularity of participating businesses, and ultimately users' taste for augmented and virtual reality software.
The company also neglects to mention whether it uses any know-your-customer and anti-money laundering measures, which are a major concern for cryptocurrency brokerages and could become a regulatory hurdle that prevents its international expansion. Investors curious about the IZX token should wait for more information about the company's development before buying.