Crytek partners with new startup to launch cryptocurrency for games

Developer-publisher Crytek has partnered with startup Crycash to launch a new cryptocurrency for video games. 

As reported by VentureBeat, the two want to bring the advantages of cryptocurrency to game purchases, advertising, and rewards. 

Crycash will launch its eponymous currency with a token sale -- or an 'initial coin offering' -- on December 12, and will let users keep tabs on their wallet through a new app called Plink. 

Plink will also let users earn tokens and other rewards by completing certain in-game tasks or watching ads, and is also being pitched as a social hub for Crycash holders. 

Crytek hopes to use the platform as a user acquisition and advertising tool, and plans to implement the currency into the Turkish version of Warface. 

The company will also support the platform in the CryEngine Marketplace, although Crycash won't be exclusively linked to Crytek, and will attempt to find other partners in the games industry. 

In fact, Crycash CEO Wachtang Budagaschwili believes the platform will eventually work its way into the eSports arena, and says it offers developers and publishers an alternative to pricey user acquisition costs.

"You go to a performance marketing agency and pay $5 or $10 per user, and you never know the quality of those users," he explained. "With Crycash, you can set goals for the players to achieve certain milestones in your game before they get the tokens. They fulfill the objective, and their receive their rewards in Crycash.

"I've been in the payments industry for six years trying to solve monetization issues for games, and that led to the Crycash idea. We think this will help game developers solve problems like user acquisition and help gamers." 

Of course, a big caveat of cryptocurrency is its volatile nature, and Steam recently banned Bitcoin as a form of payment due to its ever-fluctuating value and high transaction fee.  

Crycash, however, says it will spend 80 percent of profits on buying back the currency to keep its value somewhat level. The firm's initial coin offering will run through to January, while the Plink app is expected to be made available by the end of December.

Anyone looking for more information, including how to take part in the first token sale, should check out the Crycash website.