Although still an emerging sector, online marketplaces today corner 40% of the $1.3 trillion global e-commerce industry. Dominated by only a handful of giants who have become synonymous with buying and selling online, the likes of Amazon, eBay and Alibaba have found immense success with the low-risk, high-return drop ship based business model.
Attracted by lower prices and convenience, shoppers are now abandoning traditional brick and mortar shops to buy online. With big retail players facing store closures globally, the online marketplace sector offers an opportunity for them to get back into the game.
The current leaders, with the lion’s share of the market, are increasingly catering towards large-scale manufacturers and resellers. However, the lack of competition has means that only those with significant advertising budgets, more sales and greater product diversification are able to fully benefit. Larger companies also have sales teams at their disposal, while independent traders and start-ups are likely to manage their own sales.
As with most centralized models where resources are centered towards economic priority, creativity and innovation usually pioneered by small enterprises are sidelined or remain undiscovered.
Hamster Marketplace to Bring Blockchain and Decentralization to Marketplaces
UK-based start-up Hamster Marketplace has announced plans to develop a blockchain-based solution to disrupt the way online marketplaces operate. It proposes a platform focusing on niche electronics, where customers and innovators are free to discuss and negotiate deals at no additional cost.
Conceptualised Russian entrepreneur and electronics producer Denis Bulavin, Hamster Marketplace will provide unrestricted entry for millions of customers to access a diverse range of unique products from thousands of international vendors previously unavailable to them.
With innovative blockchain-based features such as transparency and decentralization, Hamster Marketplace caters especially to traders on the lower end of the spectrum: small enterprises and startups who struggle to make a name in the currently centralized space.
Blockchain technology’s cryptographic functions will provide a level of security and immutability that guarantees authenticity of all payments and transaction taking place on Hamster Marketplace. Through decentralization, vendors and customers transact directly in, harnessing big data and seamless connections to achieve significantly lower fees and reducing notoriously long delays by eliminating intermediaries and payment processors.
Hamster Marketplace will also feature a unique vendor-controlled market that will prevent crowding out or unfair fee policies.
In order to raise the funds necessary to develop, market and implement this solution, the team behind Hamster Marketplace will launch an Initial Coin Offering (ICO), offering its native digital tokens, HMT, up for sale to the general public.
Hamster Marketplace provides a range of benefits to every stakeholder, from customers and producers, as well as participants of its ICO event.
Buyers and tech enthusiasts can look forward to:
- access to unique gadgets and electronics;
- inventive products for DIY needs; and
- selective offers for authentic products at manufacturer price.
Producers can gain from:
- a large audience with a demand for niche electronics;
- positioning and promoting products at minimum cost; and
- enhanced options of sales and production.
Meanwhile, ICO backers will receive:
- early access to test the platform; and
- discounts from producers.
The Hamster Marketplace ICO is planned for launch in the fourth quarter of the year to seek $28 million in funding. In total, 14,000,000 HMT will be available for purchase at a base rate of $2 per token. Participants will be able to purchase with ETH at an equivalent USD exchange rate. After the ICO concludes, unsold tokens will be destroyed to preserve token value.
Early investors will be the first to get access to platform testing, as well as a number of discounts from the producers. Once confirmed, the ICO launch date will be announced by the end of November 2017. Read the Whitepaper to learn more about Hamster Marketplace or visit https://hmstr.io to subscribe to ICO updates.
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