Mark Cuban wants to introduce ticketing on blockchain to NBA – GET protocol is already doing it
This is a great endorsemement for ticketing on blockchain. Prior to this Vitalik has endorsed ticketing on blockchain as being great:
Now when it comes to ticketing on blockchain, there's only one project to think of: GET protocol.
In my humble opinion GET protocol is the a very undervalued project when it comes to fundamentals, adoption, tokenomics and potential. Let me explain why:
GET protocol solves an enormous problem: ticket scalping
I think we're all tired of the practices in the ticketing space: bots buy up tickets instantly and then resell them 2x, 5x, 10x or even more the original ticket price. Fans lose, artists lose, venues lose, … while the money ends up in the pocket of scalpers who don't add any value to the process.
GET protocol elminates ticket scalping by linking the ticket to your mobile phone. This means that at entry to a concert, sports game, … you are only permitted entry with your mobile phone.
They have sold over 600k tickets and not one was "scalped"
An example is famous Dutch artist Jochem Myjer who uses GET protocol integrator GUTS tickets:
The ticketing space is one where no one trusts another in terms of how many tickets were issued, what the original price was, … It has been proven that even Ticketmaster themselves are involved in the scalping business. That's why blockchain is vital in all of this. The tickets are all registered on the blockchain as a mean of transparency and accountability. This means that fans can check ticket authenticity whenever they want and make sure that they aren't being taken for a ride.
Besides scalping it offers many more advantages to integrators:
GET protocol has a lot of adoption
As stated above, GUTS has sold 600k tickets using GET protocol. In the meanwhile more ticketing companies have started using it:
Runs fully on the GET protocol and has sold over 600.000 tickets. Has grown into the biggest ticketeer in the Netherlands.
Established in 2009 and sells 2 million tickets/year. Is fully integrated in the GET protocol and will start selling GET-fueled tickets soon.
A new ticketing company in South Korea that will run fully on the GET protocol. They already have deals with kpop stars to sell tickets for.
A Germany based ticketing company that will sell GET fueled tickets with a focus on the sports industry.
The last to join is an Italian ticketing company. Despite being new they have already ticketed the Milano Wine festival in 2020 and will do so in 2021 as well. In 2019 this festival atracted more than 300.000 visitors.
Integrating an existing ticketing company is a low investment move (only the GET token is needed) that offers traditional ticketing companies several benefits. With the whitelabel that has just been released, which makes it easy for any ticketing company to start using GET, I expect many ticketing companies to integrate and GET to scale quickly.
Here are the requests they had received by end of 2019:
The GET tokenomics are built so that for every ticket issued 0,28€ (or 0,34$) worth of GET is needed by the ticketeers. They buy most of this from exchanges and a minority they get subsidized from the User Grotwh Fund. In 2020 around 70% was bought directly from exchanges.
In 2020 ticketing volume in general was down like 90–99% due to corona. Yet GET managed to sell over 236k tickets. Or an increase of 27% compared to 2019.
This is a major indicator of their usecase being needed: despite covid19 they grew a lot and conquered a lot of marketshare from traditional ticketeers.
Tokenomics to push the price
If GUTS was able to sell 236k tickets in a year where ticketing volume is down at least 90% then I think it’s safe to assume that they’ll sell over 3 million tickets/year once everything is allowed again.
Add the new ticketing companies that integrated GET recently (getticket in Korea, Wicket Events in Italy and Tectix in Germany) and you’ll understand that we’ll be seeing millions of tickets processed by the GET protocol.
I’m willing to bet that we’ll see at least 5 million tickets in 2022:
You can imagine what buybacks of 100k $ each month will do to such a smallcap, especialy considering that all this bought GET is burned after usage.
If the price would remain stable we’d see 5 million GET burned, or 25% of the entire supply (SF of 13 million will be burned soon anyway as it isn’t used so I don’t consider that as supply).
Of course the price will not remain stable as with such an increase in buybacks & burns, GET will be recognised as truely deflationary through real world usage.
NFT tickets that will revolutionise ticketing
As of this month all tickets issued by the GET protocol will become NFT’s
Over 120.000 sold tickets (that haven’t ben scanned yet for the event) are being minted as NFT’s this month. This means that tickets, after scanning can become collectables. But so much more:
Here's my take on why GET protocol's smart and blockchain registered tickets becoming NFT's will revolutionize the ticketing industry.
After the DeFi hype we’ve witnessed last year, the next hype in crypto that seems to be developing are NFT’s. In this case it isn’t about riding the hype. Tickets being NFT’s on the blockchain really makes sense and it will change ticketing as we know it. Let me explain…
So what’s a NFT exactly? NFT stands for non fungible token. This is a token that’s unique on the blockchain and not mutually interchangeable. This in contrast to for example Bitcoin where it doesn’t matter which Bitcoin you have (1 BTC = 1 BTC). Every ticket issued by the GET protocol will become a getNFT.
getNFTs are indivisible, meaning that a getNFT can only be held by 1 address at the same time. This ensures that whoever owns a certain NFT will be the only one to decrypt the QR code.
Eventhough GET’s NFT’s will be the most used, bought & traded NFT’s in the crypto space the goal isn’t to ride the hype. Ticketing + NFT = a match made in heaven. And here’s why:
As every ticket on the blockchain will become a NFT and thus unqiue, it will allow non custodial ownership of the ticket asset. This gives many interesting advantages but 2 stand out for me personally: P2P ticket trading & DeFi event financing.
P2P ticket trading
This will be the first and only ticketing system that will allow ticket trading while at the same time making scalping impossible. Regulators have been struggling for a long time to solve this problem and what seemed impossible to achieve will be made possible by smart contracts! The impact of this will be huge and will change the ticketing space for the better.Additionally and not unimportantly it will give the event organizer an extra revenue stream. The money that right now for a large part goes to scalpers (the secondary ticket market is worth $15B) will be tapped into by the event organizers.
The advantage for GET holders is twofold:
Thanks to getNFT tickets you’ll be able to pre-finance events of your choice. You can choose to finance new artists (more risk/more APY) or established kpop stars (less risk/less APY).
This is how it will work:
If the concept seems complicated, here’s what you need to understand about GET’s decentralized financing solution:1.) Event organizers will be able to easily pre-finance their events. (Something they desperately crave.)2.) Investors will be able to invest in events of their choice, at a risk & reward level that they feel comfortable with.3.) The $GET token is an integral part of the financing process, as it is required for ‘skin in the game’ from
The advantage event financing for GET token holders will bring is again twofold:
For a deeper insight I recommend the blog below:
GET protocol will be decentralised
The endgoal of the GET protocol is to become open source and decentralised. There will be a governance model where changes to the protocol will be determined by GET token holders. That’s why I expect ticketing companies to acquire a lot of GET in time as their revenue relies on the direction of the protocol.
So Mark Cuban can acquire a share in the GET protocol simply by buying the tokens. It would probably be a better strategy than building everything from scratch.