In the latest sign that Bollywood is catching up in the cryptocurrency and blockchain space, a new token - Bollycoin - linked to superstar Salman Khan is available for purchase which can be used to buy non-fungible token on the BollyCoin platform in the future.
The platform has described its objective to be the largest marketplace in the world for Bollywood-related NFTs by tapping into the nearly one billion consumers of Bollywood as an industry and bringing its holders closer to celebrities.
By holding BollyCoin - which is the primary crypto-related token offered by the platform - users can not only transact in Bollywood memorabilia which will the take the form of NFTs, but also get voting rights on the BollyCoin platform. The trading platform for NFTs is scheduled to go live in December 2021.
Currently, 20 million of the 100 million BollyCoin tokens are up for sale, with one BollyCoin costing $0.1 (or 10 cents). Nearly 15.67 million BollyCoins are currently available for purchase.
This matter may seem complicated, but BOOM breaks in down for you.
1. What is an NFT?
Consider unique and one of a kind items like artwork, painting, collectible or trading cards. They are traded in the real world, and they serve as distinctive objects of value to the collectors.
NFTs take this concept digital, and customers online may trade in digital equivalent of collector's items like music, video snippets, domain names, funky artwork and other memorabilia. They are backed by the same technology that drives cryptocurrencies: blockchain.
The blockchain is able to lend an authenticable and verifiable digital signature to an NFT. This makeup enables them to be tokens to represent anything distinguishable, with the signature lending itself to an NFT's genuineness. The most common blockchain backing NFTs is Ethereum, that powers the cryptocurrency ether.
For buyers, an NFT ensures the genuineness of the media or object it carries and certified ownership courtesy the signature provided by the blockchain. For an artist or seller, an NFT is a medium to stamp their brand on authenticity on their creation, and to inhibit its plagiarism or forgery.
While entertainment-linked NFTs are new to India, they are already available overseas. These NFTs include exclusive posts and media from celebrities, iconic snippets from cinematic history and movie-related artwork.
Also Read: Explained: All You Need To Know About NFTs
2. How can you purchase BollyCoin?
Currently, users can purchase BollyCoin from the platform's website using Ethereum, or USDC and BUSD. The latter two mediums are 'stablecoins', or cryptocurrencies of private organisations by whose values are backed by fiat currencies (like the dollar) and have a guaranteed exchange rate (in this case, one USDC or BUSD will cost you exactly one dollar).
You need to purchase any of these cryptocurrency tokens through exchanges like WazirX, CoinCDX or CoinSwitch using rupees and storing them in their respective wallets. From there, a purchase for BollyCoin tokens can be made using these wallets.
3. How do BollyCoins get their value?
BollyCoins have an upper ceiling of 100 million. This means that only 100 million such tokens can ever exist, creating a race to get as many as possible.
All holders of BollyCoin would be part of a larger community on the platform, where they can buy and sell NFTs around Salman Khan and his films.
"The value of a token largely depends on its community and the level of engagement. We at BollyCoin understand the importance our community is going to play, and we believe that our ultimate success is going to be dependent on the community", says the platform.
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4. The BollyCoin rewards system
Another selling point of BollyCoin is its rewards system.
Once an NFT sells on the platform, 10% of its proceeds goes to existing BollyCoin holders in the form on BollyCredits, which can be used further to purchase more NFTs. This would be done proportionately to the BollyCoins held, meaning that holding BollyCoin translates to discounts towards purchasing NFTs.
Another 10% of the proceeds goes to the platform treasury for its development.
The remaining 80% of the proceeds goes to original creator of the NFT.
5. BollyCoin voting rights
BollyCoin also grant their holders rights to vote on the platform on non-regulatory and non-corporate matters. The company states that an example of such a decision would be which NFTs can be next.
These voting rights would be proportionate to the BollyCoin held in members' wallets.
The idea of users holding certain cryptocurrency-linked tokens to gain voting rights as a conduit to engage more personally with a specific community is not new, and for instance, has been adopted by heavyweight clubs in the football world.
A similar platform at the intersection of football, fan outreach and cryptocurrencies called Socios let fans purchase tokens linked to their favorite football clubs like PSG, Arsenal, Barcelona, Juventus and Manchester City. These tokens afforded their holders exclsives from the club and voting rights on certain non-binding issues.
For example, holders of the PSG fan tokens have received personalised video messages from the players, and have been allowed to choose the messages to be displayed in players' dressing rooms, with more such benefits being in the pipeline. The benefits listed by Socios also says that fans would be given access to discounted official merchadise, hunts for more fan tokens and chances for free match access and tours.
The white paper released by the platform can be found here.
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