How many people use Bitcoin or other altcoins as a form of payment for goods and services? How often does it happen?

While Bank of England (BoE) Governor Mark Carney’s declaration that “Bitcoin has failed as a currency” might be a bit exaggerated, it is hard to argue that the present cryptocurrency market lacks true digital currencies with clearly defined and actual uses.

Despite the growing amount and quality of blockchain-based projects, the cryptocurrency space is still in its early stages and thus remains highly speculative and volatile. At this point, most cryptocurrencies have no real-world applications and are being traded almost exclusively on exchange platforms. Indeed, the vast majority of people buying cryptocurrencies today don’t plan to actually spend them on goods or services. Rather, they buy them as a purely speculative investment, hoping to sell them at a profit to someone who, in turn, would look to do the same.

What happens when prices drop and these investors start doubting their expectations, realizing that they won’t make a profit or might even take a loss? They “panic sell”, and markets start to crash.

However, these crashes won’t stop the rise of the Dragon. I believe that once Dragon Inc. gets their operations underway, including both their own Dragon Junket and the services to be provided through their growing list of junket partners, their new Dragon Coin (DRG) will be resilient against or even immune to strong market pullbacks. Let me explain why.

Who will use DRG?

The main buyers and users of Dragon Coin will not be retail investors or speculators looking to make quick profits, but serious and committed VIP gamers.

Dragon Coin is an ERC20 token that aims to disrupt the casino industry by allowing VIP gamers to seamlessly transfer funds to and from junkets in Macau.

Traditionally, junket operators facilitated the credit that is extended to the gamers who join their VIP rooms. Given that these VIP gamers bring with them a minimum of USD 100,000 to play at the tables, this credit can incur a costly 5% in fees, all of which is ultimately charged to the junket operators. Additionally, VIP gamers will have to pay a 5–7% transaction fee when repatriating their winnings.

The mitigation of these fees is where Dragon Inc.’s new DRG token will bring real and sustainable value to junkets, casinos, and players alike, all of whom will see each of these fees reduced to a mere 0.5%.

Constant buy pressure from junkets, casinos, and players

Although DRG will be in the ICO phase until March 15th, 2018, Dragon Inc. has already signed partnership agreements with four junket operators in Macau; it is also launching its own Dragon Junket, slated to be operational by the end of this February, 2018. USD 320 million has already been raised from both pre-sale transactions and junket operators, to guarantee liquidity for both junkets and casinos.

Unlike many other projects on the cryptocurrency market that have yet to establish a working product, demand for DRG will be immediate, given the tens of thousands of gamers already interested. Dragon expects to achieve a daily turnover of USD 250 million within just a few weeks of launch. Given this, the market can expect a steady and high level of daily buying pressure.

Even if a market crash were to occur, VIP gamers and casinos would likely maintain a strong confidence in and demand for DRG, given its ability to save such gamers both time and money. Even if bearish investors and speculators — small retailers, for example — sell their DRG positions in fear of a market drop, bullish investors — the VIP gamers — will not. They will continue buying DRG, likely to the tune of millions of US dollars, to gamble in Macau’s junkets and casinos, and possibly international markets thereafter. VIP gamers will also use DRG to buy various goods and services within the Dragon Junket marketplace, and from official junket partners and Dragon-affiliated casinos. Ultimately, DRG will be used within the to-be-constructed Dragon Pearl Hotel Casino. What does all of this mean? Simple. Even during a market crash, the Dragon will continue to soar.

Dragon’s “supply burn” and “One Month, One Millionaire” programs

Excited? There is more. Dragon Inc. has two other mechanisms to further immunize DRG from market pullbacks.

The first is what they are calling a “supply burn”, a program set to begin three months after Dragon Junket and its partners are operational. Every month after launch, Dragon Inc. will use part of the profits generated from its gaming venues to buy back DRG tokens on cryptocurrency exchanges and “burn” — in other words destroy — them. This is to continuously reduce the total market supply of DRG, a process that will maintain a certain degree of token scarcity and keep buy pressure high.

While some other cryptocurrencies have planned similar buyback programs, their utility and overall value to the marketplace has been limited compared to DRG; thus, their daily revenue is far below the USD 250 million that DRG is expected to generate within a few weeks of the Dragon Junket’s launch.

The second is called “One Month, One Millionaire”. It is a very unique and exciting feature of Dragon Coin. As an incentive to invest in DRG, 10% of the net monthly income from all Dragon and affiliated junkets will be randomly air-dropped into the digital wallet of a lucky DRG holder, thereby making that investor a potential Dragon VIP gamer!

The “One Month, One Millionaire” program has the potential to attract a significant amount of investment from VIP gamers, in view of the prospective winnings. All such investment will increase the hype around DRG and drive buying pressure higher. With the right incentives in place, all of Dragon Inc.’s programs can work together to make DRG one of the most valuable and lucrative innovations to come out of the casino industry to date.

Learn More About Dragon Coin:

Dragon’s official website

Bitcointalk ANN

Whitepaper

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