Using NFTs to create a "distribution revolution" with technology and ideas: Exclusive interview with Daisuke Miyashita (Ticket Man) of TicketMe

"TicketMe" is Japan's first marketplace app that allows users to buy and sell NFT tickets, such as event tickets, merchandise exchange vouchers, and memberships.

Its unique feature is that it allows users to buy and sell ownership rights to any object or service, and if a "ticket" is distributed before the rights are used, 10-90% of the profits are returned to the primary seller.

In October 2023, the company also obtained a patent for the technology that controls the buying and selling of NFT tickets. Through this interview, we take a closer look at the mission of TicketMe's Miyashita, who aims to "revolutionize distribution" --

Overcoming current challenges with technology and ideas

Previously, you had implemented a system where 5% was returned to the primary seller for each distribution, but could you tell us about the most recent updates?

Daisuke Miyashita (hereinafter, Miyashita): Previously, the primary seller was given a 5% rebate for each sale. After that, in response to requests from users, we changed the system so that the rebate rate can be selected from the profits.

Specifically, it can be set to any value between 10% and 90%. If an item is initially sold for 20,000 yen and then resold for 80,000 yen, 10% to 90% of the difference (60,000 yen) will be returned to the seller.

Setting this rebate rate can be difficult because lowering the rebate rate increases the possibility of resale, but the rebate amount per sale decreases, and setting the rebate rate higher makes resale less likely, but the rebate rate per sale increases.

The two values ​​are inversely proportional, so we are currently trying to find the rebate rate value (point) that maximizes each of them.

The more data we accumulate, the more we will know the optimal value for each ticket, so we expect that by presenting this value to users, we will be able to create a distribution system that maximizes the return to the people and businesses that create value.

Is the data intended to be presented on the app?

Miyashita: Yes. What we are analyzing now is data such as how many views the sold items received when they were actually sold, and the time it took for them to be offered.

By analyzing various data, we plan to present the optimal figures within the app so that we can maximize the return of value.

Delivering the right value in the right place

Real World Assets (RWA) have been a hot topic since last summer. What do you think are the strengths of RWA?

Miyashita: We believe that among RWAs, there are those that are close to commodities and those that are far from them. Gold and oil are relatively close to commodities.

Conversely, currencies, bonds, and stock indexes are far from commodities. We tokenize the rights to assets that are relatively close to commodities, especially those that are consumed, such as event tickets and vouchers for goods.

From that perspective, we believe that the advantage of RWA is that it "increases liquidity after creating a common inventory."

For example, let's say that 10 seats for an event ticket are sold at play guide A (event ticket sales site), and the next 10 seats are sold at play guide B.

The event ticket sold at play guide A is considered to be of a different standard from the event ticket sold at play guide B.

However, by creating a common inventory, it becomes easier to buy and sell event tickets sold at any play guide. As a result, liquidity increases.

I think the same thing can be said about money, and there are various issues involved in exchanging money on the spot, such as fees and the time it takes to transfer, but by tokenizing it, these issues can be resolved and liquidity can be increased. This is the major advantage of RWA, and by extension, shared inventory.

I believe that increased liquidity has the benefit of expanding product options, but what are the benefits of increased liquidity from the business perspective?

Miyashita: When liquidity is high, products tend to sell at a higher price due to market principles. When considering the balance between supply and demand in a highly liquid market, the supply side generally rarely fluctuates significantly, but the higher the liquidity, the more the demand side increases.

As demand increases, prices rise. Higher liquidity means that there are more participants in the market.

As a result, the price is more likely to rise to the price it should be. This allows people who really want it to be able to purchase it, and as a result, I think there is an advantage for businesses in that sales increase.

One of the current challenges in the entertainment industry is that the price of event tickets cannot be changed for specific seats.

To be more specific, it is common to set prices for seats in block A and block B.

If we could give liquidity to the price of seats in the row between seats A and B, the front seats in the A seats would remain expensive, but the price of seats in the back would be able to be lowered.

I believe that a future will come in which prices will be determined by the market more flexibly than now.