Now you can learn trading in stocks and commodities in a risk-free environment, with the fun and excitement of an online fantasy game. Tel Aviv, Israel-based FundFantasy has unveiled a blockchain-based platform that allows users to play online fantasy game with investment as the main theme, and they have a crypto token too, named FundToken (FUNDZ).
Financial trading is complex, and especially for small retail investors there are rigged risks. Financial advisors and brokerage houses have often taken inexperienced traders into investments that don’t add any value to the investor, but benefit the broker. If the budding investors can practice building profitable portfolio in an environment without risk, while at the same time enjoying a fun-filled game, then that’s an idea certainly worth exploring.
How FundFantasy works ?
FundFantasy has offered exactly that, with their blockchain-powered platform. Blockchain is a technology that ensures decentralization by design, and computers on the network, called ‘nodes’, maintain a shared and immutable version of truth in a distributed database. Anyone can join a permission-less blockchain, whereas users explicitly trusted by a validating organization only can join a permissioned blockchain. Block records, also called ‘blocks’, are interlinked in a predetermined protocol, and no existing block can be deleted or modified. Adding a new block is the only way to update blockchain. In a permission-less blockchain every node has equal authority, whereas nodes have different authorities based on their roles in a permissioned blockchain. Any node can add a new block in a permission-less blockchain, whereas only the nodes with the required access can add a new block in a permissioned blockchain. Either way, there are more than one node that can add a new block, which makes it imperative to maintain a correct order of transactions, for the sake of data integrity.
Blockchain addresses this with its consensus mechanism. This can use proof of work (POW) algorithm, where a majority of all participating nodes must validate a transaction for it to be recorded in the blockchain. Alternatively, proof of stake (PoS) algorithm has a set of nodes that have staked their crypto tokens for transaction validation, and a majority of them must approve a transaction. Either way, a new block can be added only after solving a complex cryptographic puzzle, by performing massive number-crunching at high-speed. Such rigor makes it economically non-viable to hack blockchain. Relationship between nodes are governed by smart contracts, i.e. pieces of code that allow legal-like functions such as taking control of an entity. There isn’t a need to explicitly trust any entity, information on blockchain is mathematically proven.
FundFantasy‘s platform is built on Ethereum blockchain, and uses smart contracts. The users can open and organize their own contests. They can also invite their friends, and earn a small percentage of the fees charged from the contests prize pool. Users can create portfolio of four kinds of assets, i.e. cryptocurrencies, fiat currencies, commodities, and stocks. They can submit these portfolios. The investing simulator is based on real market data. When a user enters a contest, they allocate virtual US $ 1 million on various asset classes. There isn’t any real ownership of financial assets. Contests can be head-to-head, multipliers, winner-takes-all, or of other types.
Duration of contests vary in duration, and there are free contests too. Portfolios are locked until the contests start, while the funds are stored in smart contracts. Contest details are available for examination upfront, and the users can compare their portfolio against other players. When the contest ends, the portfolios are compared based on relevant metrics such as rate-of-return. Prizes are in FUNDZ, Ether or Bitcoin cryptocurrencies.
FundFantasy was founded by Tal Zander and Daniel Vaisman. FundFantasy‘s Initial Coin Offering (ICO) is currently in progress, and is slated to end on March 25th. They have already launched an alpha version of their product, and they plan to launch their market-ready product in Q3 2018, including a mobile-version.
