Event management firm Tixico has announced it is to hold an Initial Coin Offering (ICO) pre-sale as it looks to utilise blockchain to control the primary market.
The firm has developed a platform based on smart contracts and blockchain technology, eliminating the intermediary and any fees tacked onto that.
The Tixico platform has secured partnerships with seven industry leaders prior to its launch to “ensure the success of its ICO”. Those include, SynotTip Virslīga, FK Liepāja, Passport Productions, Austras Balva, Tims Mints, ParaPops and F*ckup Nights Riga.
The partnerships will reportedly support the firm in selling more than 100,000 tickets in the first 12 months, Bitcoinist claims.
A company spokesman said, according to Bitcoinist: “The market structure as it is today allows little to no control over the ticket prices once they are sold at the primary market.
“Such high-end events usually are sold out to ticket scalpers who resell the tickets with high markups. This means that the organisers miss out on additional revenue they could have gained from the secondary market and potential attendees miss the event altogether because of the high markup price.
“There is also a potential for fraud in the secondary market in the form of fake or counterfeit tickets. This can lead to a negative reputation for the organisers of these events.”
Tixico is an event management system that turns tickets into a digital asset, in addition to supporting event organisers in their funding initiatives.
During the pre-sale, early adopters will get a 30 per cent bonus with 13 million TXC tokens for sale. The pre-sale will last three weeks starting on June 4, after which there will a zero per cent bonus and 32 million tokens for sale.
The spokesperson continued: “On the other hand, smaller events have different challenges. Such events usually face high financial risks due to unpredictable demand.
“The barrier to entry for local events to sell tickets is also high. In the end, potential event-goers do not attend the events because they are not relevant to them and the event organisers lose money and stop bringing world-known artists to certain regions.”