When CryptoKitties exploded onto the gaming scene in December 2017, the highest selling kittie went for 246.9255 ETH ($117,712 USD). Mere days after the game’s launch, the frantic collecting, breeding, dressing and trading of digital cats clogged up the Ethereum network, and its inability to process the over 30,000 pending transactions exposed its limitations. The Tron Dogs, the kitties’ more masculine counterpart, soared to an astounding $16 billion market cap in early January.
Who needs a real pet when you can create and design a perfect virtual pet and sell it online for a tidy profit?
Blockchain-based cryptocurrencies have undoubtedly penetrated the gaming market, and the paradigm shift is now there are more options and new forms of rewards and upgrades for gamers. The World of Warcraft is the juggernaut of the industry — raking in over $10 billion in revenue. Imagine how much more revenue this multi-player game could earn on in-game purchases with blockchain technology. Blockchain could potentially take gaming from a $108 billion industry to a $trillion industry.
Blockchain-focused venture builder Victory Square Technologies Inc (OTC:VSQTF) (CSE:VST) (FWB:6F6) is gaining traction in the gaming space by innovating virtual economies.
Yesterday, Victory Square Technologies Inc (OTC:VSQTF) (CSE:VST) (FWB:6F6) announced the company has acquired 100 percent of all issued and outstanding shares of Vancouver-based mobile games developer V2 Games Inc. for $2 million CAD.
V2 Games started as a game development and publishing studio, and was the first Canadian Company to license the iconic PAC-MAN IP for a mobile game. The company has an operating history of licensing large IPs, including PAC-MAN, Hello Kitty, the NFL and the NBA. Fueled by its success in the mobile gaming market, V2 Games started investing its returns into other companies in the gaming ecosystem.
V2 Games’ portfolio of companies includes Kung Fu Factory, Immersive Tech and Nyan co. In January, V2 Games launched the Future Fund – a $10 million seed fund for gaming ventures. The fund is for strategic investments into the video game vertical, and targets game ventures, esports, as well as start-ups that have a strong use-case for leveraging blockchain within the gaming ecosystem. While the fund will have a global outlook, 50 percent of the fund will be reserved for investments in Canadian video gaming startups.
“Just as we’ve committed to partnering with high quality entrepreneurs and management teams that drive long-term shareholder value, V2 Games supports top tier teams in the gaming industry with a view to unlocking their potential by providing them with seed capital and the necessary strategic expertise needed to scale their gaming ventures,” said Victory Square CEO Shafin Diamond Tejani.
Tejani added that post-acquisition, Victory Square Technologies will integrate V2 into the company’s growing portfolio of disruptive technology investments.
Sam Chandola, CEO of V2 Games, said the acquisition is in line with the company’s core competency of identifying early investments in gaming assets, and that it also puts V2 ahead of schedule in its pursuit to be a key strategic investment hub.
This merger marks a meeting of great minds, and surely sets the stage for future disruptive investments as this entrepreneurial team sets its goal on discovering the gaming galaxy’s next Cryptokitties and Tron Dogs.