LINE messaging app launches own cryptocurrency and blockchain system

Japanese messaging app Line has become one of the largest and most established firms in the world to develop and issue its very own cryptocurrency.

The firm’s cryptocoin is called LINK and will be available exclusively on its digital asset exchange Bitbox in September, Line says in its website.

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“Bitbox will be the platform where users can acquire LINK and trade LINK with other digital assets,” Line states.

“Furthermore, BITBOX will provide exclusive benefits to LINK holders, such payments or discounts on trading fees and many promotional events.”

One billion LINK tokens

The firm also says it will gradually issue a total of one billion LINK tokens. Eight hundred million of those tokens will be allocated for user rewards, and the remaining 200 million will be managed as a reserve by LINE Tech Plus, the issuer of the token.

However, “until LINE gets authorisation for cryptocurrency trading and exchanges by the regulatory authorities in Japan, LINK Point cannot be deposited, withdrawn, transferred, traded or exchanged at cryptocurrency exchanges, including BITBOX”.

LINE developed its own blockchain

LINE Corporation has also launched its first blockchain network called LINK Chain. The token and the underlying technology LINK Chain were both independently developed by the messaging firm.

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“Unlike other cryptocurrencies or digital tokens, LINK will not make an initial coin offering (ICO), but instead utilises a reward system that gives users LINK as compensation for using certain services within the LINE ecosystem,” the firm explains.

How LINK works

The way it works is, for example, LINE users who have participated in one of the decentralised app services (dApps) related to the token will receive LINK as an incentive. The cryptocurrency can then be utilised as payment or rewards within the dApp services that LINE is expected to launch shortly.

LINK can also be used for “service categories like contents, commerce, social, gaming, exchange and more within the LINE ecosystem”, the firm adds.

The messaging app further explains that LINK Chain is a service-oriented blockchain network that enables dApps to be directly applied to the LINE messaging platform.

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LINE assures it has resolved the current stability and wait times issues of most decentralised blockchains with its large scale-out LINK Chain system.

“Over the last seven years, LINE was able to grow into a global service because of our users, and now with LINK, we wanted to build a user-friendly reward system that gives back to our users,” said LINE CEO Takeshi Idezawa.