Connect with us

Business News

How combining fantasy sports and NFTs led a company to a £4.3 billion valuation



Sorare 1

Fantasy sports is one thing sports lovers have come to really enjoy. The thrill of having the skill required to set the right lineup and maximize points is what fans are really invested in. Combine that with the use of NFTs (Non-Fungible Tokens) and you have a platform that enables users to buy, trade, sell and manage a virtual soccer team using digital player cards.

Step forward, Sorare, which has become one of the most fascinating companies in sports now.  Utilizing blockchain technology, this company was founded by Nicolas Julia and Adrien Montfort, which has led this company to a £4.3bn valuation in just over three years of existence.

When users sign up to Sorare, they are given a set of digital trading ads, which represent teams and players they have IP deals. The user then enters those cards into a fantasy-style competition. The best managers of each competition receive more trading cards and Ethereum.

This article highlights how Sorare became such a valuable company by combining fantasy football with NFTs.

Product-market fit attracted a lot of investors

For a startup, finding product-market fit can be such a herculean task. According to ProductPlan, product-market fit “describes a scenario in which a company’s target customers are buying, using, and telling others about the company’s product in numbers large enough to sustain that product’s growth and profitability.”

Sorare is a France-based startup and has found product-market fit throughout Europe, with an explosion in popularity and value, as it has over 1.5 million registered years. With just 20 employees, it hit more than $300m last year and is expected to cross $1b this year. This of course has attracted a lot of the world’s best investors.

Across four venture capital financing rounds (pre-seed, seed, Series A, and Series B), they have raised over $700m. Softbank led the Series B raise of $680m last year. It has an impressive list of angel investors like Alexis Ohanian and Gary Vaynerchuk.

Why has Sorare been successful?

Digital collectibles and traditional fantasy sports are multi-billion-dollar industries in their own right, and figuring out a way to combine these industries has been a stroke of genius. There are some reasons why they have been so successful in such a short space of time, and some are listed below:

  • Both industries are strong individually

Fantasy play is a very innovative product that gives players control over their favourite teams and players, and also attracts a lot of attention. Digital collectibles have a robust primary & secondary market and are unique as well.

  • Their purchase of premium IP was a stroke of genius

Sorare went ahead to sign 250 of the world’s best players & clubs to digital IP deals. This helped a lot of users to have access to some of their favourite teams and players in their fantasy teams. The contracts they gave to these teams and players also include clauses for them to promote Sorare.

  • You don’t have to understand crypto to play

This is a very huge draw because many people are very confused about onboarding to platforms using crypto. Sorare partnered with a company that allows users to use their credit cards for payment, which in turn is converted to crypto. This has eliminated a potential loss of customers who would have left the platform because of the crypto onboarding.

Not everything has been plain sailing, though

The company has come under a lot of scrutiny in the last few years despite its tremendous growth. Many users have raised allegations that Sorare allows big accounts to pool resources together, which increases their chances of winning.

Others believe the platform should be regulated appropriately because it is an investment product.

... How combining fantasy sports and NFTs led a company to a £4.3 billion valuation Read More on ... Naijaonpoint.



Business News

Top stockbroking firms transact N579 billion worth of shares between Jan-April 2022



1653386109 779 Stock Exchange Stockbrokers

Ten top stockbroking firms in the Nigerian capital market closed the first four months of the year with an exchange of 39.793 billion shares worth N579.450 billion.

Available statistics to the Naijaonpoint showed that the ten stockbrokers were responsible for 64.29% of the total value between January 4, 2022 and April 30, 2022.

Also, the stockbrokers are responsible for 57.82% of the total volume during the period under review.

Analysis of transactions

  • Analysis of the transactions revealed that APT Securities and Funds Limited dominated with 15.96% or N143.847 billion exchanged in 4.537 billion shares.
  • Cardinal Stone Limited followed with a record of N88.042 billion or 9.77% in 13.958 billion shares.
  • Meristem Stockbrokers Limited accounted for N76.650 billion or 8.50% traded in 2.219 billion shares.  Stanbic IBTC Stockbrokers Limited exchanged 73.818 billion or 8.19% exchanged in 1.892 shares.
  • EFG Herms Nigeria Limited traded N50.414 billion or 5.59% in 1.373 shares, while Chapelhill Limited accounted for N39.962 billion or 4.43% in 7.038 billion shares. Cordros Securities Limited traded N36.708 billion or 4.07% in 2.270 billion shares.
  • Rencap Securities Limited traded N27.755 billion or 3.02% while CSL exchanged N26.255 billion or 2.91% in 1.689 billion shares while Morgan Capital Limited traded N15.994 billion or 1.77% in 3.623 billion shares.

What you should know

  • In an effort to stimulate demand and engenders competition in the stockbroking community, the management of the NGX had in September 2011 introduced the ranking of the brokers by transaction value and volume.
  • Nigerian Exchange Limited (NGX) has launched an enhanced broker performance ranking report designed to provide detailed insight into the performance of Trading License Holders across asset classes and improve participation in other exchange products.
  • The new ranking report was launched via a webinar themed, “The New Broker Performance Ranking: An Analytics Approach”.  
  • The new Broker Performance Report, which shows the performance of Brokers ranked by the weighted calculated points in deals, volume, and value across all asset classes, comes in three different levels, distinguished by fields to be displayed.

... Top stockbroking firms transact N579 billion worth of shares between Jan-April 2022 Read More on ... Naijaonpoint.



Continue Reading

Business News

Major Japanese Bank Sumitomo Mitsui Trust to Launch Cryptocurrency Custody Business



shutterstock 1988444771

Sumitomo Mitsui Trust, one of the major banking institutions in Japan, will reportedly enter the cryptocurrency custody business. The company is entering a partnership with Bitbank, a Tokyo-based cryptocurrency exchange, to launch a new company that will focus on offering institutional-grade custody for digital assets and NFTs.

Sumitomo Mitsui Trust Bank, a major financial institution in Japan, has decided to enter the cryptocurrency custody business. The company announced that it will launch a digital assets custody company in partnership with Bitbank, a Tokyo-based cryptocurrency exchange. The company, which will be named Japan Digital Asset Trust — and owned 15% by Sumitomo Mitsui Trust and 85% by Bitbank — will focus on providing custody of crypto and NFTs to institutional customers.

According to local media, the objective behind the move is to capture the local institutional market that still sees the issue of custody as a deterrent to investing in these new products. Sumitomo Mitsui Trust believes that investors will be more comfortable holding digital assets if the custody is provided by recognized institutions in the financial world instead of crypto exchanges, which often don’t face the same scrutiny from the established regulatory bodies.

The capital of the company is reportedly 300 million yen ($2.3 million) at its start, with the two companies expecting other investors to dive into this proposal to reach 10 billion yen ($78 million).

The new company aims to start its operation this year, as others competitors are also rushing to bring these services to the Japanese market. Nomura and Crypto Garage are also launching a joint venture to offer similar services to their customers.

However, the Japan Digital Asset Trust will also be offering a different product. According to reports, the new company has plans to issue a yen-pegged stablecoin, supported by regulations allowing banks to launch this kind of product. There have been no further details on this from any of the players in the partnership.

While the company is entering the crypto sector during a downturn in the market, with bitcoin and other cryptocurrencies losing a large part of their value, the rise of the metaverse and blockchain gaming could power the interest in cryptocurrency during this period. Japan Digital Asset Trust is said to expect demand for stablecoins, which usually don’t suffer the same volatility problems that other cryptocurrencies do, to increase as metaverse worlds rise to prominence.

What do you think about the new custody company that will be launched by Sumitomo Mitsui Trust? Tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons



Continue Reading