UK-based gaming company Veltyco (AIM:VLTY) has gone beyond pivoting into esports or blockchain, a current trend reported by Bloomberg, and has announced plans to step into both markets. A cryptocurrency wallet for Veltyco partners and a partnership with recently rebranded Esports.com.
Despite previously focusing on casino-related games and gaming marketing, Veltyco is transitioning to create a universal platform for the customers of all their partners. The Veltyco cryptocurrency wallet is set to act as a standard for consumers to prevent a need to make multiple deposits across partnered platforms.
Removing friction from the user experience enables Veltyco and partners to ease consumers further into the sales funnel with less required spending required on conversion-focused marketing.
Esports.com recently underwent an ICO in which they raised an estimated $5.8 million. Their goals for the ICO funds include educating members of the esports community through courses and coaching, a “raffle” in which the company pays out a percentage of their total earnings to one lucky individual, and their stretch goal (if they had raised $20 million) was an esports university.
Why the sudden interest in blockchain?
Blockchain hype was at an all-time high during the pre-holiday surge in bitcoin price globally in mid-late December 2017. Veltyco and other small capitalization stocks capitalized on the opportunity to drive interest in their business by pivoting into blockchain.
Blockchain brings the potential for progress to nearly every industry. Increasing efficiency of underlying records and file systems allows businesses to lower their costs of operation and focus more on user experience.
Why so much invested in Esports?
It is rumored that the owner of Esports.com purchased the domain name for seven figures. Why would someone spend millions of dollars on a domain name? It is very memorable, it clearly defines the purpose of the business, and it is both short and easy to spell.
The available traffic for Esports.com is massive. According to DOT Esports, their site reached 11 million users in January and February 2017 alike.
Esports has taken the world by storm over the last decade. Call of duty was added to the X-Games in 2014, DOTA 2 reached a tournament prize pool over $10 million in 2014, and League of legends drew more than 4 million concurrent viewers during LoL Worlds 2015, with each viewer watching for at least one hour on average.
What is Veltyco saying about their recent changes?
Veltyco released a statement, offering the following insight into their decisions:
To underline its commitment to the esports industry and to cement its relationship with Esports.com as a company, Veltyco has subscribed for a minor interest in the share capital of Esports for a nominal consideration. Veltyco will use the Bet90 brand as the platform for the future operations of the partnership and for the marketing of Esports.com’s gaming products.
Following their announcement, VLTY stock value soared on the European AIM growth market, appreciating by roughly 20%.