ICO Analysis: Play2Live

The gaming industry crossed the $100 billion revenue mark in 2017, becoming one of the fastest growing industries globally. To give you a perspective on things, games generated nine times more revenue than Hollywood in 2016. The gaming industry has also attracted the widespread attention of the blockchain community, with roughly 30 blockchain-based gaming projects currently in operation.

Play2live targets the gaming and eSports streaming markets to create a decentralized streaming platform competing with Amazon-owned Twitch and Youtube Gaming. Video games are perceived as solitary engagements for the gamers, but the reality is quite different. People like watching other players play which has resulted in the creation of $3.8 billion game streaming industry.

Play2live offers several advantages over existing game streaming platforms, including:

  • Benefits for streamers: Streamers can earn in 11 ways compared to five currently available to them on existing streaming platforms. Streamers are also able to better engage with their audience by organizing games, distributing rewards, and facilitating voting.
  • Benefits for viewers: Viewers are not just limited to being passive observers but can actively interact with their favorite streamers like voting for their future content or watching esports championships in Spectators Mode. Earning opportunities are not just limited to streamers; rather, viewers can earn by watching targeted advertisements, voting or gambling on the outcome of a particular eSports tournament on the platform. Users who actively contribute to the platform are rewarded in the form of the tokens.
  • Organizing eSports tournaments is much easier as the platform provides crowdfunding functionality for organizers.

The play2live platform is being developed on top of a separate blockchain called the Level Up Chain. The Level Up Chain is an application of Graphene Technology (Bitshares is based on this technology). Graphene Technology will allow Level Up Chain to process 50,000 transactions per second.

Play2live is the first platform being developed on Level Up Chain. Going ahead, Level Up Chain will host an ecosystem of gaming-related decentralized applications.

A planned alpha version launch is expected in Q2 2018, along with the broadcast of the first e-sporting event – the World Championship Broadcast of CS: GO.

Token

An ERC20 Level Up Coin (LUC) coin will be distributed during the ICO. Following the release of Level Up Chain, Play2Live anticipates exchanging Level Up Coin for Level Up Chain tokens at the rate of 1 to 1.

The LUC is the only means of transactions on the platform. A cryptocurrency wallet is created on each user’s registration on the platform. The users can convert their fiat or cryptocurrency to LUC using the gateways provided by the platform. Users can then spend their tokens to avail multiple services provided by the Play2live platform like premium subscriptions, gambling and betting, tickets to eSports tournaments, donations to their favorite streamers, etc.

The play2live platform charges small service fees for platform maintenance and rewards.

Team

CEO and Founder Alexey Burdyko has over seven years of experience in eSports and is the founder of one of the largest eSports holdings in Russia, Global Show Media Housing. His team has organized 35 eSports tournaments in total.

COO Dmitry Kochnev also has extensive experience in the gaming ecosystem having held senior positions in multiple gaming organizations in the past decade.

The team is 13 members strong, which includes blockchain experts, marketing managers, developers and a lawyer. There are nine advisors supporting the project.

The team scores well when it comes to domain-specific expertise, which in this case is gaming and blockchain.

Verdict

Play2live can be called one of the most comprehensive blockchain-based gaming projects. The team has been working on the concept since Q4 2016 and has come up with a detailed 70+ page whitepaper. Play2live incorporates service offerings of many individual blockchain-based gaming projects into one single platform. The team seems solid with relevant industry experience. The LUC platform can be used to create any scalable blockchain-based gaming app.

All good things considered, it is important to note that Play2live will be competing with Amazon (Twitch) and Google (Youtube) for market share in its core offering of game streaming.

The team has to do something truly exceptional to be able to achieve their target market share of 10% within the first year of launch.

A functional MVP is available on the platform; you can check it out here.

Risks

  • The biggest risk comes from whether a newcomer will be able to gain traction when two giants like Google and Amazon are fighting it out for market share.
    Both of these companies have economies of scale vastly favoring them. Amazon offers free premium membership of Twitch for its prime users while accessing Google’s gaming ecosystem is much easier due to Youtube’s popularity. If Play2live starts getting traction, it won’t be difficult for someone like Amazon to integrate token economy with Twitch. -3.5
  • After being in operation since 2011, Twitch has not been able to lure even a few major streamers from Youtube despite offering some significant benefits. -1
  • Play2live promises many features. The final product will encompass services that many blockchain-based gaming platforms are providing on a standalone basis. The MVP provided on the platform is very basic, and there will be execution related concerns until the alpha is launched in Q2 2018.  -1

Growth Potential

  • Gamers belong to one of the most tech-savvy groups of people. It won’t be difficult for them to integrate within the token economy. +2.5
  • Play2live offers some significant benefits when compared to the existing applications. All classes of users including streamers, viewers and event organizers get rewarded for using Play2live. Play2live also has multiple offerings integrated into one single platform. +3
  • The team is experienced in organizing eSports events, and they are planning to broadcast some major eSports tournaments as soon as the alpha version launches. +3
  • The eSports market is growing rapidly, with huge numbers of tournament views stemming from broadcasts by the most popular streamers. These numbers already exceed those of the world’s most popular sporting events such as NBA and MLB. +2
  • The LUC blockchain can be used to launch other gaming related applications or centralized gaming platforms who want to integrate with blockchain. +1

Disposition

We arrive at a score of +6 out of 10 for Play2live. Twitch was acquired by Amazon in 2014 for $970 million when it had 50 million monthly active users. Now with today’s 100 million monthly active users, we could say that Twitch is valued at around $2 billion. Assuming Play2live gets 10% of Twitch’s market share, Play2live could be valued at around $200 million, which is significantly higher than the market cap at listing. That being said, a 10% share is a big assumption at this point. Only time will tell whether the company can execute as planned.

Investment Details

  • Token Type: Utility
  • Platform: Ethereum
  • Symbol: LUC
  • Presale: January 25th, 2018
  • Presale bonus: From 25th-30th January 30%, From 31st January-5th February 25%
  • Public sale: 12th February 2018
  • Hard cap: $30 millionMaximum amount of tokens supply: 1 308 800 000 LUC
  • Jurisdictions Barred from Participating: None

Featured image courtesy of Shutterstock. 

Author:
Aakash Kawale is a financial analyst based out of Mumbai, India. He is the lead analyst at a Singapore based organization and has extensive experience of analyzing US and Indian equities. Aakash is a strong advocate of the Blockchain technology and has been analyzing cryptocurrencies since 2015.