Tracer has launched a new blockchain-based “smart ticket” that helps prevent ticket scalpers from profiting from ticket resales.
By leveraging the blockchain, Tracer enables the artist and event promoter to track the entire journey of a ticket, deciding whether it can be resold and what happens withÂ the profits if it’s resold.
In the $46 billion ticketing industry dominated by monopolistic forces, the company said, artists and promoters have lostÂ control over their own tickets. They don’t have basic access to fan data, and they can’tÂ do anything about skyrocketing prices and fees. They don’t get any revenue fromÂ the $8 billion secondary ticketing market either. Artists and fans are losing out.
Tracer said it can bring order by enabling artists and promoters to define the rules that govern every ticket.
Tracer’s technology also opens up new sales channels, as transactions can happen everywhere and be settled in an automated way. It also provides a central dashboardÂ to engage with ticket and fan data, regardless of where the ticket has been sold orÂ resold.
Tracer used itsÂ Smart Ticket for a live event attended byÂ thousands of people. On June 17, for the first time ever, Tracer’s Smart Ticket wasÂ used at The Cambridge Club Festival (UK) to seamlessly issue and process 9,000Â tickets on the blockchain.
The founding team is a group of former StubHub-Ticketbis employees whoÂ successfully built Ticketbis, a 400-employee secondary ticketing company operatingÂ in 47 markets. Ticketbis was acquired by StubHub in 2016.
Tracer is initially targeting Europe and Latin America, where theÂ secondary industry is more scrutinized than in the U.S.
The rivals are pretty tough.Â In 2010, Live Nation merged with Ticketmaster; the combined company now tickets 80 of the top 100 venues in the U.S., manages over 500 artists, and sold 500 million tickets globally last year.
Tracer’s investors include Grammy-winning artist James Murphy (LCDÂ Soundsystem), well-known record label execs, managers, and music industryÂ insiders, as well as Pillar, a Boston-based venture capital firm. Tracer is also part ofÂ the Techstars Music program 2018.