The Long-Term Bullish Case for Egretia (EGT)

Egretia

Egretia (EGT) is a cryptocurrency that recently caught our attention. The first reason is because the crypto token burst into the top 30 over the last few days. It continues to soar today. It is actually threatening to knock off USD Coin (USDC) and Dogecoin (DOGE) out of the 29th and 28th spots, respectively.

Egretia Top 30
Egretia pumping hard to get into the top 30 | Source: CoinMarketCap

The second, and more important reason, is that this cryptocurrency offers a one of a kind value proposition. Using the blockchain technology, Egretia looks to disrupt the mobile gaming industry that’s projected to be worth over $174 billion in 2021.

Egretia Looking to Conquer the World of HTML5 Games

Before we dive into the specifics of what Egretia offers, it would be good to have some background on the type of market that it wants to penetrate.

To start off, there are 2.1 billion people playing mobile games and 56% of them play at least ten times per week. The mobile gaming market is huge and almost half of mobile games (47%) are developed using HTML5. Some popular games that are based on HTML5 are Angry Birds, Cut the Rope, Bejeweled, and Candy Crush. To stress the popularity of HTML5 games among mobile gamers, Facebook has a line of HTML5-based games with over 1 billion daily active users.

These figures tell us that there’s a huge demand for HTML5 games. This is where Egretia’s unique value proposition comes into play.

The project touts itself as the “world’s first HTML5 blockchain engine and platform.” It has partnered with Egret Technology, a technology company based in Beijing with over 200,000 developers around the world. The company was founded in 2014. In a four-year window, the tech firm has created a set of tools and workflow that enable developers to quickly create HTML5 games.

For instance, the Egret Engine offers developers the ability to easily create HTML5 games with cross-platform operating capability. This means that game creators can publish games on iOS, Windows, Mac, and Android with a single click. Other Egret tools that make the life of developers easier are the visual editor Egret Wing, game animation creation Dragon Bones, and game accelerator Egret Runtime.

Egretia’s partnership with Egret Technology allows the cryptocurrency to leverage the horde of developers working for the company on top of Egret’s tools, engine, and workflow and migrate them all into the blockchain.

Egretia's Plan
The blueprint of Egretia | Source: Medium

Egretia Profitable Opportunities

Publishing blockchain-based HTML5 games opens a lot of profitable opportunities for both developers and gamers.

For example, Egretia will provide users with an Egreten wallet where they can stash their digital loot. The wallet will allow users to migrate and trade their digital assets in games that run on the Egretia platform. In other words, in-game rewards will not be limited to a single game. Also, users can access the wallet in both desktop and mobile devices.

In addition to that, players can receive rewards in the form of the crypto token Egreten for playing games, sharing ads, inviting friends, and crowdfunding games.

For developers, there’s an incentive to create high quality games. By simply developing games on the Egretia blockchain, developers will receive the crypto token as a reward. They can then use these tokens to advertise their own games. More importantly, developers publish the games on the blockchain. This means that they don’t have to share profits with tech giants such as Apple and Google to sell games on iTunes or the Play Store.

Also, developers can take advantage of Egretia’s advertising platform to simply create ad management systems to earn Egreten.

Accurate ads
Egretia’s advertising platform | Source: Medium

Since user activity is transmitted via the blockchain, gamer data can be leveraged by game developers and advertisers. This means advertisers can place ads that actually appeal to the viewer. Also, users will not be annoyed by the ads because they get to receive the Egreten token as a reward.

Thus, Egretia has created an ecosystem where gamers, developers, and advertisers all benefit.

Bottom Line

Egretia an interesting crypto project because it is penetrating a huge market with the backing of a technology firm that boasts 200,000 loyal developers. The project also has an ecosystem in place where developers and users can both receive Egreten. Also, advertisers can effectively place ads by leveraging the blockchain technology where gamer activity is stored.

All in all, we expect the demand for mobile games to translate into demand for Egreten. As games are developed on the blockchain, the likelihood of publishing hit games increases. This would attract gamers who would be happy to share games to friends to receive rewards. With more people playing on Egreten, advertisers would follow suit. At this point, the cryptocurrency will likely soar in value as advertisers have to buy Egreten to pay for ads.

This is our long-term bullish case for Egretia (EGT).

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

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Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.