Decentralized ethereum prediction market.
USA with an Estonian legal entity.
Ethereum ERC20 token protocol.
17 August 2015 – 1 October 2015.
$5.3 million in bitcoin and ether.
11 million reputation tokens created.
80% sold to investors.
20% retained by the fund-raisers.
Market cap – ICO amount raised per token sold * total number of tokens
Market cap – first listed Oct 2016
Market cap – Feb 2019
RIO since ICO
Per year: 153%
RIO since first listed
Per year: 19%
Reputation tokens are an app-coin used on the platform to reward users for correctly reporting real world events that were the subject of prediction markets. This allows Augur smart contracts to settle prediction market outcomes without a centralized point of failure.
Users are docked reputation tokens for not reporting, or incorrectly reporting, outcomes.
Reputation tokens entitle holders to a portion of Augur’s total market fees. The more reputation tokens users report correctly with, the more in fees they will collect.
If a consensus of reputation token holders report a market as “Unethical” or “Not A Relevant Market” it will be removed from the platform.
Reputation tokens are not used for trading/betting on the markets; ether is used for that.
As the most mature decentralized prediction market project, Augur was highly anticipated in the digital currency community to be a potentially game changing killer app.
The team appear mature and capable with support from respected names in crypto currency and academia.
Augur was an early ICO and its reputation token was the first ethereum based app-coin to be widely traded and liquid in the general crypto marketplace. This was purely based on excitement, potential and speculation as the app itself had not been released.
Lack of real world usage
Like most tokens and platforms connected to gambling ICOs Augur has struggled to gain traction in terms of real world use and users. Given the high value of the token and the low number of monthly users it has been estimated that Augur is valued at 4 million dollars per user!
That sounds like a knock but it compares favorably to many projects in the space that have no working product giving them a value of $∞ per user.