New utility token will be used by customers for placing bets, paying fees, and earning rewards within ZenSports’ mobile peer-to-peer sports betting app
ZenSports, the mobile peer-to-peer sports betting marketplace where anyone can create and accept sports bets with anyone else in the world without the need for a centralized bookmaker, has just announced the launch of its own cryptocurrency utility token called SPORTS.
The purpose of this new utility token is to streamline the entire betting process for customers within the ZenSports mobile app and to create a rewards and loyalty program for ZenSports’ top tier customers. The latter will be done via a new “SPORTS Rewards Program”, whereby customers will be able to pay discounted betting fees, get cashback for reaching certain betting volumes and earn bonuses for performing other actions within the ZenSports app (such as making infrequent withdrawals).
“We feel it’s critical to reward our most loyal players and to give them an incentive to play within the ZenSports network,” said Co-Founder & CEO Mark Thomas. “We recognize that both casual and big money sports bettors have many options when it comes to betting on sports. While we believe that our product is unique in its own compared to the competition, having a defined loyalty and rewards program in place to reward our customers is important to them and important to us.”
Customers will only earn these discounts and rewards when they use the new SPORTS utility token for placing bets. As part of this launch, customers will be required to use SPORTS to bet with and pay fees for a two week period, in order to help get them acclimated to the concept. Then, as part of the Phase 2 launch later this month, ZenSports will add back in the ability to bet with USD (which was the previous method offered by ZenSports for betting), and will also offer an option for betting with Bitcoin. However, because of the deep discounts and rewards offered by betting with SPORTS, Thomas expects that most customers will gravitate towards the SPORTS betting option.
“We’re going to give customers the flexibility to bet in whatever currency they want, but they’ll only earn discounts and rewards when betting with SPORTS,” said Thomas.
SPORTS utility token is built on the protocol ICON, a blockchain-based in Korea. ICON also runs an accelerator for decentralized apps called ICX Station, which is located near ZenSports’ headquarters in San Francisco. ZenSports went through ICX Station and received an investment from ICON back in 2018.
“The ICON team has been a terrific partner, and we’re thrilled to continue to be working with them in regards to our new utility token,” said Thomas. “In addition to being a great team to work with, ICON’s technology and network are extremely fast compared to other protocols that apps traditionally build on (such as Ethereum). We feel that our utility token is positioned well to grow and scale as the number one sports and betting utility token worldwide.”
Scott Smiley, Co-Founder at ICX Station, added “We at ICX Station have been working with Mark since he came up with the idea to incorporate blockchain into his existing app. It has been an incredible journey to watch ZenSports grow from a white paper and an idea to amazing peer-to-peer sports betting app.”
How It Works
Using SPORTS within the ZenSports betting network is quite simple:
- Customers can use Bitcoin to purchase SPORTS in order to begin placing bets.
- When customers place bets using SPORTS, ZenSports automatically deducts the amount of the bet and the (discounted) betting fee from the customer’s SPORTS wallet / available balance.
- As customers begin to place more bets and reach certain volume thresholds and perform other actions within the ZenSports network, they’ll earn rewards, cashback, and bonuses in SPORTS. All discounts and rewards can be tracked via the SPORTS Rewards Program screen in the app.
- Customers can withdraw SPORTS to their ICONex wallet, or they can exchange it into Bitcoin or USD for withdrawals. Until the Phase 2 launch later this month, exchanging SPORTS into BTC or USD will be free. After the Phase 2 launch, customers will be required to pay a fee to exchange between SPORTS and BTC or USD.
ZenSports’ betting app and SPORTS utility token are currently only available to residents outside the United States (i.e. non-U.S. persons).
SPORTS Utility Token vs. SPORT Security Token
Back in December 2018, ZenSports created its own cryptocurrency security token called SPORT (without an “s”). SPORT is completely different from SPORTS, and Thomas stressed that the two should not be confused with each other. The security token, SPORT, was primarily an investment vehicle for investors to invest in ZenSports last year. The concept of a utility token such as SPORTS had not been conceived by the company at the time the security token was issued in 2018, and no expectation or future consideration in their utility token was ever given to those security token holders when they purchased SPORT. Furthermore, SPORT is not integrated into the ZenSports app in any way shape or form. No deposits, bets, withdrawals, or rewards can take place in their app using SPORT.
SPORTS, on the other hand, is a true utility token, given that it is only used as a mechanism for betting and earning rewards through the ZenSports app and network. SPORTS has not, nor ever will be, sold to investors as a means to generate investment returns.