War Games - Crowdabilitycdn.crowdability.com/events/cfn2018/WarGames.pdf · 2018-09-06 · clear of...

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War Games There’s a war being waged today by some of the biggest technology companies on the planet. But you’re about to learn about a tiny crypto-company that could capture all the spoils of this war — regardless of who wins.

Transcript of War Games - Crowdabilitycdn.crowdability.com/events/cfn2018/WarGames.pdf · 2018-09-06 · clear of...

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War GamesThere’s a war being waged today by some of the biggest technology companies on the planet. But you’re about to learn about a tiny crypto-company that could capture all the spoils of this war — regardless of who wins.

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There’s a war being waged today by some of the biggest and fiercest technology companies on the planet.

These companies include familiar 800-pound gorillas like Apple, Facebook, and Microsoft, as well as a new breed of monsters with names like King, Kabam, and Supercell.

But you’re about to learn about a tiny crypto-company that could capture all the spoils of this war, regardless of who actually wins.

There’s a very good reason this is such an important battleground:

The industry at stake is about twice the size of Personal Computing, and three times the size of Television. Last year, it generated nearly $120 billion, and this year it’s on track to hit $140 billion. To put these figures in perspective, they’re 7x bigger than the movie business and the music business combined.

Can you guess the business these tech titans are waging war over?

Here’s a hint: it’s one of the world’s most popular forms of entertainment, and it attracts all types of people — from teenagers and grown men, to soccer moms and grandmas. Globally, more than 2 billion people take part in it.

The answer: Gaming.

The Gaming industry (in other words, not just playing video games, but creating them, marketing them, and monetizing them) has become gigantic. It’s one of the few types of entertainment that consumers are willing to pay for nowadays, which explains why technology companies are making it one of their primary battlefields.

Over the last decade or so, industry growth has been the result of two major trends:

The first trend was the move from playing games on a console in your living room, to playing games on your mobile device…

And the second trend was the move from solitary “single-player” games, to “social games” you could play with your friends on sites like Facebook.

Fleet-footed startups took advantage of these trends to quickly build huge businesses. For example, in just five years, Zynga (NASDAQ: ZNGA) grew from a tiny startup into an $11 billion publicly-traded company.

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But today, an even bigger trend is on the horizon, and the implications for the industry could be enormous.

The trend I’m referring to comes from a world you’re likely already familiar with: crypto-currencies…

Simply put, the basic building blocks of crypto-currencies (for example, the concept of decentralization, and the ability to track information on a “trustless” digital ledger called the blockchain) are opening up new ways for the Gaming industry to make money — lots of money.

Recently, we identified a crypto company that’s figured out how to make itself an invaluable part of the Gaming industry — not just to the 2 billion players in the world, but to the millions of the game developers that cater to these players.

And by backing this company today at its earliest stages — in other words, during its “Initial Coin Offering,” or “ICO” for short — we believe investors could pocket significant gains. As you learned in the recent presentation you saw from Crowdability, historically, the average return from an ICO has been about 6,500%.

This company’s ICO is taking place very shortly. In fact, by the time you read this, it might already be underway. ICOs can fill up quickly, which is why we’ve created this time-sensitive research report for you.

In the following pages, you’re about to learn three things:

1. What this company does...

2. Why there’s such an enormous need for it; and…

3. How investors like you can profit from it. Let’s dive in.

Far More Than Fun & Games

Of all the reasons that Gaming went from being a niche industry for teenagers, to a mainstream activity for everyone, this is the most important by far: the rise of mobile devices.

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According to Flurry, a mobile monitoring company, in 2017, people spent five hours per day on their mobile device. That’s more time than they spend watching television, and it’s up nearly 70% from the year before.

Some of that time is spent checking the weather, texting, and emailing. But as Flurry recently reported, almost half is spent playing games.

There are two reasons we believe these games are so addictive. We call them the “Two C’s”: Convenience and Competition. Let’s take a look at each one:

Convenience — Worldwide, 5 billion people carry a mobile phone, and since 90% of them keep their phone within reach at all times, it’s become effortless to “get your game on.”

There’s no need for a TV or computer, and no need for a chair in a quiet room. With a mobile phone, you can play anywhere — in bed, at school, on the train on the way to work, even at work.

Competition — This part is key. Modern-day video games are social: they allow you to compete with others. And as it turns out, this competitive dynamic drives intense usage.

You see, the ability to challenge others and compete online — for castles, kingdoms, or just the pride of earning the high score — leads to addictive behavior. It drives players back to their favorite games dozens of times a day.

And here’s what makes this more than just fun and games:

For the developers of these games, this consumer behavior leads to huge revenues.

You see, to compete more effectively (or sometimes, just to have more fun), players spend real money to buy digital currency that can be used inside the game.

These currencies come in the form of digital “coins,” gold,” or “gems,” and can be used to get access to various upgrades to help gamers gain a competitive advantage.

All this activity creates a shocking windfall for game developers. As mentioned earlier, this year, it’ll add up to about $140 billion.

For example, a popular game called “Clash of Clans” currently generates $1.3 million in sales per day…

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A game called “Candy Crush” generates more than $3.9 million per day…

And a game called “Fortnite” generates even more. In the month of May alone, according to SuperData Research, it generated $318 million. That’s more than $10 million per day.

Those are a few of the most popular games right now, but there are thousands of games that people like to play:

On PlayStation 3, there are about 1,500 of them…

On Steam, a popular distribution platform for video games, there are about 15,000 more…

And on iTunes, there are nearly 1 million of them.

After adding up all the factors we’ve mentioned so far — a huge existing market, soaring growth rates, fierce competitors with big aspirations and plenty to lose — we decided to make Gaming a key sector to invest in. Investors like us can make a fortune here.

But that doesn’t mean we invest in every gaming company we come across. On the contrary, if you don’t know what to look for, you could fall into a dangerous trap.

Let me show you one of the scariest of these traps — and then I’ll explain how to avoid it.

“Hits” and “Flops”

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Given the extraordinary revenues a successful game can create (case in point: a single game like Fortnite can bring in $10 million per day), it’s not surprising that so many people and companies are aiming to create the next big hit.

In fact, according to a 2016 post on Quora from an industry insider, there are as many as 2 million game developers worldwide.

But betting on individual game developers is a risky investment strategy, and even companies that develop many games can be risky bets…

These multi-game developers are called “game studios.” One well-known example is Zynga, and others include Supercell, King, Epic Games, and even Tencent. Every few months or so, they launch a new game… and then cross their fingers and hope it’s a “hit.”

Like a movie studio, game studios are counting on their hits to outnumber their flops. In theory, that’s a fine strategy — until the flops start outnumbering the hits. And that’s exactly what happened to Zynga. Once the hits stopped coming, Zynga’s stock crashed from nearly $15, to around $4, where it is today.

With a $3.5 billion market cap, and nearly $1 billion a year in revenues, Zynga still has plenty of fuel for a comeback. But when it comes to our investment dollars, we steer clear of game studios and their hit-driven strategy. Too risky.

Investing In “Picks & Shovels”

Instead, we aim to invest in companies that help game developers of all sizes build better games and better businesses.

Essentially, these are the companies that help developers make their games easier to find, more social, or more profitable.

The crypto-company you’re about to learn about, the one you can invest in today, falls squarely into this category.

This crypto has similarities to the big suppliers and vendors that sold picks and shovels during the California gold rush of the 1850s: while everyone else was going broke mining for gold, these suppliers and vendors got filthy rich.

You see, there are two ways to make money during a “gold rush.” You can mine for

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gold, or you can sell picks and shovels. History has shown that you can make money with either approach — but selling picks and shovels can provide far better returns, with far less risk.

As you’ve already learned today, there’s a “gold rush” happening in the Gaming sector. To profit from it, you could invest in the developers that are “mining for gaming gold” and hope against all odds that they strike it rich…

Or, you could invest in a picks-and-shovels company building the essential tools that all the developers need to succeed.

We’ll leave other investors to invest in the high-risk game developers. They’ll watch their fortunes rise (and mostly fall) as the studios release hits (and mostly flops).

For us, we’ll stick to picks-and-shovels companies that can build stable, sustainable businesses. Why? Because this stability can create enormous value — for the companies themselves, and for their early investors…

Staggering Profits Have Already Been Made

As one example, Japanese gaming giant GREE (a multi-billion-dollar, publicly traded company) acquired a California-based picks-and-shovels gaming startup called OpenFeint for $104 million.

This was a small acquisition by gaming standards, but a staggering sum given OpenFeint’s meager revenues at the time – about $250,000 per year.

But GREE didn’t purchase the company for its revenues. GREE bought it because OpenFeint’s technology could be used to make games more social, more competitive, and more addictive.

This type of technology is difficult to build. It’s time intensive and costly. And since it could make GREE’s games better and more profitable, GREE was willing to shell out $100 million for it.

Another example of a picks-and-shovels acquisition in the Gaming sector is a startup called ngmoco. ngmoco created clever tools to keep players coming back, so game developers could maximize their revenues. That’s why it was acquired for $403 million.

In both these cases, early investors in these companies made fortunes.

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Now we believe we’ve identified the next big picks-and-shovels startup in the Gaming sector.

In fact, because of its ability to help game developers quickly and easily monetize their audience, we believe this company’s value could become far bigger than that of OpenFeint or ngmoco…

We believe it could be worth hundreds of millions of dollars, and perhaps billions.

Solving a Problem Worth Billions

To explain why it could be so valuable, you need to understand one of the most significant problems of the Gaming sector.

You’ve already learned that players spend billions of real dollars to acquire virtual currencies they can use inside their favorite game.

The thing is, each of these games (like Fortnite, Clash of Clans, Poker, Slots, or the hundreds of thousands of others) represent an independent, “siloed” economy. So if you’ve accumulated a big stash of game currency on Fortnite — either by purchasing it with real dollars, or by winning it while playing the game — you can only spend this currency on Fortnite.

If you get bored with it and want to try something new, you’d have to abandon your Fortnite currency and start accumulating a new currency from scratch.

If it’s almost lunch time or dinner time where you are, here’s a different way to think about it:

It would be like only being able to spend your hard-earned money at one restaurant!

If you initially chose an Italian restaurant, you’d be eating Fettuccine Alfredo for the rest of your life. And if you picked a Chinese restaurant, you’d always be eating Kung Pao chicken.

But that’s not how people live their lives. It’s not how human nature works.

In the gaming world, this problem of siloed, “fragmented” economies creates enormous friction, and it’s preventing the industry from reaching its full potential.

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For players, this problem is a pain in the you-know-what. But industry insiders have a more technical name for it:

They call it game-currency fragmentation.

The Reasons for Game-Currency Fragmentation

To explain why this problem of fragmentation exists, let me show you how buying game currencies works inside Apple’s App Store.

The App Store brings in an estimated $58 billion a year. And according to Neil Campling, a senior executive at international bank Mirabaud Securities, 82% of those revenues come from a single source: Gaming.

As Campling has explained, “Gaming is now the biggest vertical within media. It’s a $130 billion industry alone, growing double digits every single year for a 10-year basis. And Apple has become one of the biggest gaming companies in the world…”

You see, Apple takes a 30% cut of all sales from games in its App Store. And to ensure that it remains in control of this massive revenue stream, Apple has set itself up as a “centralized” gate-keeper. If you want to discover and install new games — and if you want to buy gaming currencies that work in these games — you have to go through Apple.

To ensure that developers can’t gain the upper hand in this relationship, Apple intentionally fragments games. That’s why, within the App Store (and within any centralized distribution platform for games today), you’re not able to bring your digital coins from one game to another.

Here’s What a Solution Would Look Like

But now let’s imagine a different world — a world where you could bring the value you accumulated in one game to any game.

For example, as soon as you were bored with Fortnite, you could instantly switch to another game — not just from Apple’s universe, but from Xbox, Facebook, WhatsApp, or anywhere else — and you wouldn’t have to leave your currency behind.

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Essentially, this would be a “decentralized” gaming ecosystem: there would no longer be an all-controlling gatekeeper. And to power this universe, there would be a universal currency that worked in every game.

In the offline world, similar types of solutions already exist.

For example, consider the family entertainment destination and restaurant chain, Chuck E. Cheese’s. When you visit a Chuck E. Cheese’s, you can buy a pack of tokens that work with any of its games. If your kids get tired of one game, they can instantly switch to a new one.

And now — finally — an innovative new company has created the same type of “universal currency” for the global gaming sector…

The company is called “Pocket Full of Quarters,” or “PoQ” for short.

This is the company doing an Initial Coin Offering — the company that’s raising capital right now from investors like you.

Let me tell you about it…

The Next Big “Play” in the Gaming Sector

Simply put, Pocket Full of Quarters has created a universal currency for all games.

And don’t let its cute name fool you…

Its founders and investors include:

• A Ph.D. from Stanford

• The founder of a billion-dollar technology start-up

• One of the leading game designers in the world (his games have been played by 300 million people, and have grossed over $6 billion)

• And the Vice Chairman of a prestigious consulting firm that brings in $2 billion a year.

In short, this is a serious technology company tackling a problem that affects more than

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2 billion people worldwide…

And if it can succeed, it could be worth billions of dollars.

How It Works

Its digital currency is called, simply, “Quarters.”

Players buy Quarters at www.PocketfulOfQuarters.com with “real” money like U.S. dollars.

400 Quarters cost $0.99, or to get volume discounts, you can buy “packages” of them or monthly subscriptions. For example:

Here’s how the Quarters ecosystem works:

1. Game developers add the PoQ technology to their games — it’s quick and easy to do.

2. Players buy Quarters, and use them to play any game in the Quarters ecosystem…

3. Developers collect the Quarters as players spend them… and then, through the power of crypto-currencies, they can convert Quarters to “real” money.

With this solution, billions of players can now move freely from game to game. Now you can take your winnings from Poker, and use it to play Fortnite — or vice versa. As a result, whatever the latest and most popular game or platform is (online users are notoriously fickle nowadays), it can become a place for gaming. For example, you could play:

• Celebrity Trivia on YouTube• Slots on Alexa • Mafia Wars on Snapchat • Poker with Friends on WhatsApp

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In this “decentralized” world, you can take your digital currency from one platform to another, and from one game to another.

Now you’re in control.

A Few Fascinating Details

At face value, this might look like a simple solution.

But behind the scenes, what’s happening is complex and fascinating, and could only be achieved because PoQ is leveraging the unique attributes of crypto-currencies.

For starters, a gaming “token” can only be used to play games. It can’t have true financial value. If it had financial value, using it for games would be considered gambling — and in the U.S. and many other countries, that would be illegal.

The way PoQ solved this problem is by creating two different tokens: The first token is the one you’ve already read about: Quarters (symbol: Q).

Quarters are a “utility token” for games. Their only utility or purpose is for gameplay. By design, they have no financial value, so they’re unsuitable as an investment. Like Chuck E. Cheese’s tokens, Quarters tokens aren’t redeemable outside of a gaming ecosystem.

The second token is called Q2 (symbol: Q2).

Q2s are a “companion” token to Quarters. They’re called a “revenue-sharing” token, and these tokens are suitable for investment. They were specifically designed to attract the initial investment needed to jumpstart the Quarters ecosystem, and to grow in value as the ecosystem grows.

In a moment, I’ll explain how you can profit from all this…

But first, let me show you how the system works for game developers.

How and Why Game Developers Get Involved

As you learned earlier, developers collect Quarters as players spend them.

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Then, through the power of crypto-currencies, the Quarters get converted to a crypto called Ethereum (ETH), which can be converted into U.S. dollars.

Essentially, the more popular a developer’s game is, the more Quarters they can earn… and the more Quarters they earn, the more Ethereum (ETH) they earn.

ETH is a major crypto-currency. After Bitcoin, it’s the most valuable of all cryptos. Its current market value is about $30 billion.

The exact amount of ETH earned by each developer is dependent on a special mathematical equation that PoQ developed. The important thing to understand about the equation is this:

It doesn’t matter if a developer is huge like Tencent or Supercell, or if he or she is a one-person shop — if a developer can create a “fun” game, they can make a fortune by using Quarters. (In fact, developers using Quarters can earn 2x to 3x more money than they would with Google or the App Store.)

Furthermore, PoQ makes it very easy for developers to use its technology: all the developer needs to do is add a tiny snippet of code.

But there are many reasons this solution is so attractive for developers:

• With Quarters, developers can tap into a virtually limitless number of players who’ve already bought game currency — and are looking for somewhere to spend it. (This is like opening a store in a neighborhood where rich tourists are shopping for gifts to bring home to their kids. For the store owner, it’s like stumbling into free money.)

• With Quarters, developers can create games that are playable anywhere: Facebook, Snapchat, Twitter, Alexa, YouTube — you name it.

• Because Quarters are a crypto-currency, all its transactions take place on what’s called a “blockchain.” The blockchain is a tamper-proof digital ledger. This gives developers full transparency to see what’s happening in the Quarters ecosystem.

• Thanks to the PoQ technology, not only can developers make money from new games they develop… but they can make money from their old games, too. This gives them a new source of revenues.

With the Quarters solution, developers can focus on creating the best games possible.

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PoQ handles everything else: the technology behind the currency, overhead, etc.

We believe its unique attributes will make Quarters the preferred game currency for developers of any size — and will make it the perfect picks-and-shovels investment for us.

You see, developers can make money from this ecosystem…

But so can investors.

How Investors Make Money

As mentioned earlier, Q2s are “royalty tokens.”

As players buy Quarters with U.S. dollars, 15% of those dollars get distributed to Q2 owners in Ethereum. (In some ways, this business model is similar to Apple’s: just like Apple takes a 30% cut of all gaming revenue and virtual-currency sales from its App Store, Q2 holders take a 15% cut of all Quarters sold.)

The distribution of Ethereum happens seamlessly through something called a “smart contract,” which is a type of computer code for crypto-currencies that gets triggered automatically.

There’s a fixed supply of 15 million Q2s, and each token earns a proportional share of the Ethereum that gets distributed. The fact that there’s a fixed supply of tokens benefits early investors: by getting in at the lowest possible price, early investors will get the most Q2 tokens per every dollar they invest — and in turn, they’ll receive the largest share of the revenues.

A bit later, we’ll show you how to secure your stake in PoQ, and get access to Q2s at their lowest possible price.

But first, let’s review the company’s progress to date.

PoQ Progress

In January 2018, PoQ started testing an early version (an “alpha” version) of its technology.

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The alpha was a fully working system that PoQ opened up to a limited set of users and partners to gather feedback. This version included:

• The ability to buy Quarters with a credit card

• A “wallet” where players could store their Quarters

• An “API” that game developers could use to incorporate PoQ’s technology

Based on feedback it received, it made a number of changes. For example:

• It moved to a stable exchange rate of 400 Quarters per dollar to make it easier for players to understand.

• It created a single price for Quarters across all platforms, so now it conforms to the policies of major distribution platforms such as Apple, Google, and others.

• It added packages and subscriptions to make it easier for players to budget their spending.

Then, to gauge investor demand and bring in some early working capital, PoQ did a small “pre-sale” of about 111,000 Q2 tokens.

In exchange for one unit of Ethereum (currently worth about $300), investors received 250 Q2s. In total, PoQ raised about 444 Ethereum, or about $120,000 U.S. dollars.

PoQ also made progress in another key area: it caught the attention and imagination of the mainstream press, from Marketwatch and Business Insider to The New York Post.

The way it achieved this publicity reveals PoQ’s ingenuity with marketing, an important consideration for potential investors like us.

You see, the Co-Founder of PoQ is a battle-tested gamer named George Weiksner. But considering that PoQ is an up-and-coming crypto company that could soon be worth billions of dollars, George has an unusual background:

He’s a seventh-grade kid from a Connecticut suburb.

George identified the fragmentation problem in gaming, and brought this problem to his father, Michael. He said, “Why should coins get stuck in games I no longer want to

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play?”

Michael, a venture capitalist with a Ph.D. from Stanford, was smart enough to recognize that this was a major problem worth solving, and smart enough to recognize that the press would fall all over itself to tell the story of a seventh-grade co-founder of a crypto company.

But Michael was smart in another way, too. Remember Tom Hanks as a 12-year-old kid in the movie “Big,” where he helps a major toy company figure out what games to make?

It’s the same story here: George has great instincts about the gaming market because, as a seventh-grader, he knows this world inside and out.

Looking to the Future

Now that its technology is ready, PoQ is ready to start attracting developers and users.

This fall, it will open up its waitlist and let players test the first batch of PoQ games and start telling their friends about it.

It then plans to launch to the public this December. To support this public launch, it’s signing partnerships with various “influencers” (in other words, key members of the gaming community) to play its games and share its content with their followers.

For example, it signed a partnership with a company called Rise9, whose influencers have over 700 million followers in their community.

Leading these distribution and marketing efforts for PoQ are gaming insiders Tim Tello (a veteran of the gaming industry who’s previously signed deals with “AAA” studios like EA, Tilting Point and Perfect World), and Chris Cross (the lead game designer of Medal of Honor and other gaming series that have grossed over $6 billion in revenue).

Their goal is to have players purchase a critical mass of 50 million Quarters. When this scale is reached, the Quarters ecosystem will enjoy the benefits of a “network effect”…

For example, the more players that purchase Quarters, the more developers will want to participate in the ecosystem; and the more developers that create games, the more compelling it will be for players to buy Quarters.

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Here are some of the strategies the company is using to attract players and game developers:

Bonus Quarters — As more and more Quarters are sold, free “Bonus Quarters” will be issued to players. This rewards players to buy Quarters early; encourages players to promote Quarters (since the faster the ecosystem grows, the more Bonus Quarters they receive); and acts as an engagement device (i.e., it encourages gamers to come back and play.)

Community Building — On www.PocketfulOfQuarters.com, players will be able to find new games, purchase quarters, and meet new people. In addition, players will be awarded with Quarters for activities like signing up friends and interacting with other players.

Streamers and Influencers — Quarters will leverage “streamers” (expert gamers who record their game play and “stream” it to others) and influencers to attract a wider audience. For example, to build excitement, it will allow these insiders to give away Quarters for free.

As you can see, PoQ has a lot of irons in the fire right now — which is why it’s built an all-star team.

PoQ’s Team

PoQ has put together an award-winning team with decades of experience in gaming and technology.

In addition to its developers and engineers, here are some of the team’s key members.

Co-Founder & CTO, Michael WeiksnerMichael is George’s dad, as well as a venture capitalist at Rostrum Capital, and a technology entrepreneur who previously founded startups including EndlessTV and E-thePeople.org.

He earned his A.B. in Computer Science from Princeton, and his Ph.D. from Stanford.

Investor & Advisor, Michelle PhanMichelle is an early pioneer on YouTube, where her videos have been viewed more than 1 billion times.

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She’s also the Founder of Ipsy, a technology company focused on beauty and wellness products. Ipsy has over 3 million paid subscribers, and is currently valued at $1 billion.

Executive Game Producer, Chris CrossChris is a gaming legend best known for designing the original Medal of Honor. He’s designed and directed games that have been played by over 300 million players, and have earned in excess of $6 billion in revenue.

Advisor, Devo HarrisDevo is a 3-time Grammy Award winner for his work with Kanye West and John Legend. He’s also collaborated with Britney Spears, Nas, Aretha Franklin, and Common.

Devo is also the Founder & CEO of Adventr.tv, named one of the 100 Most Innovative Companies in the world.

Investor, Ugur KoyluogluUgur is Vice Chairman at international consulting company Oliver Wyman. He steers the firm’s corporate strategy, finance and risk management projects for financial institutions. As an investor, Ugur aims to back innovators who reframe a customer problem and solve it with an unconventional approach. He holds a Ph.D. from Princeton University.

Competition

As you’ve learned from this report, Quarters are an alternative to the currencies of “siloed” games like Clash of Clans and Fortnite.

We believe players will prefer to use Quarters over any siloed currency: they can buy Quarters with confidence, knowing that they’ll always be valuable, no matter which games they want to play in the future.

Furthermore, we believe developers will prefer to use Quarters rather than build their own in-game currency. Using Quarters will enable them to tap into a virtually limitless community of players who can instantly be monetized.

That being said, this is an enormous opportunity — one of the biggest we’ve come across in some time. So it should come as no surprise that other competitors are aiming to jump in.

Here are a few of Quarters’ main competitors:

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Enjin Coin (ENJ)Enjin is a crypto-currency company that offers a simple way for gaming communities to create an online presence. It currently has a market cap of about $35 million.

According to the company, it has 250,000 gaming communities across thousands of games; 19 million registered gamers and 60 million global views per month. Furthermore, across all the Enjin community stores, the company is doing millions of dollars of revenue per month from sales of virtual goods.

Refereum (RFR)Refereum is a “referral marketing platform” for games.

Essentially, influencers can use it to monetize their followings by referring users to games… and players can make money by collecting and selling Refereum.

Refereum is currently functional, and is integrated with APIs published by Twitch Interactive, which provides developer tools for online gaming software. Refereum.com is the central hub where developers can buy Refereum, and players can sell Refereum.

CryCash (CRC)CryCash is a crypto token designed to help developers incentivize users to engage with games. It’s already integrated with WarFace, an online first-person shooter game, as well as several other games within the CryCash network.

Quarters differs from competitors such as these in three fundamental ways:

1. Quarters are designed to be useful to players regardless of what game they choose to play. With other universal currencies like Refereum, developers buy the tokens to provide players a reward for taking an action like referring a friend or watching an ad. This has little to do with the player deciding which game he or she likes best.

These efforts prioritize developers over players. Quarters, on the other hand, prioritize players.

2. In contrast to other gaming currencies like Enjin, Quarters are a “stable value” coin. Players will always be able to buy 100 Quarters for 25 cents. Other gaming coins are “hybrids” — a combination of utility and investment tokens, which, by definition, fluctuate in value.

We believe that having a stable value for gaming coins is critical: that’s what incentivizes player adoption and usage.

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3. To catalyze the adoption of its ecosystem, Quarters will initially be provided to players, and developers will compete to receive Quarters by developing great games.

Other gaming currencies distribute their currency to developers, and like CryCash, prioritize developers. Quarters’ approach creates a broader distribution channel and allows players to start playing their favorite games immediately. In turn, this community of players acts as a “honey pot” to attract developers.

To wrap up this section, we’ll share an insight from a crypto research firm called Radical. Radical has stated that the most important success factor for a game — by far — is how fun the game is to play.

With that in mind, as you’re assessing the potential value of Quarters, ask yourself…

What’s more fun:

Paying for games that you want to play?

Or getting paid to take actions that a developer wants you to take?

If you think it’s more fun to pay for the games that you want to play, we’d encourage you to consider an investment in Quarters’s Initial Coin Offerings (ICO)…

Putting On Our Investor Hat

PoQ just launched its Initial Coin Offering.

This is a chance to get access to its Q2 tokens at a very low price.

You can potentially make money from this investment in two ways:

1. First, as a holder of Q2, you’ll earn Ethereum as Quarters are sold.

Ethereum is very valuable, and we believe it has a bright future ahead of it.

So, as you earn Ethereum, you could instantly convert it to U.S. dollars, or you could hold onto it for the long-term, like a buy-and-hold stock.

2. Second, if Quarters succeeds at becoming the universal gaming currency, this

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company could become highly valuable. Its value could potentially reach into the hundreds of millions or even billions of dollars. And as the company becomes more widely known and increases in value over time, the price of your Q2 tokens will rise higher and higher.

The tokens could rise in price due to “buzz” and excitement about the company. Or, as time goes on, they could rise in price because investors start valuing them based on a financial method called “discounted cash flow.” (This is because each Q2 creates a stream of cash: it entitles the owner to 1/15 millionth of all future dividends from Quarters.)

But remember, as you learned in the recent presentation from Crowdability, historically, the average return from an ICO has been about 6,500%.

The reason for these extraordinary returns is simple: as an investor in an ICO, you’re getting in early — very early.

In investing and life, there are no guarantees. But when we invest in an ICO, we’re aiming for returns of at least 6,500%. And those are the expectations we have with PoQ — after all, gaming is one of the largest and fastest-growing markets on the planet.

But for gaming to reach its full potential, it needs to solve the problem of game currency fragmentation.

PoQ has created a solution to this problem for two billion gamers, and for millions of developers.

This might be the ultimate “picks and shovels” solution.

How to Make Your Investment

This $1.07 million ICO for Pocketful of Quarters is being handled by a high-quality company called Republic.

In the investment world, Republic is what’s called a “funding portal.” It connects investors like you with early-stage companies that are seeking capital.

The minimum investment for the PoQ deal is just $25.

Here are the basic steps for making an investment:

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1. Go to https://republic.co/quarters2. Read through any additional research you’re interested in3. To invest, click on the blue “Invest in Quarters” button at the top right of the page

Please note: ICOs like this tend to be very popular, and could fill up quickly. So if you’re interested, you should make your investment sooner rather than later.

If this is your first time investing on Republic, follow the prompts to register. Then enter your investment amount, decide how to pay (e.g., bank transfer via ACH, credit card or wire transfer), accept the Terms, and click “Confirm Investment.”

If you have any basic questions about the investment process, check out Republic’s FAQs here »

Republic also offers help via chat. To access it, just click here and scroll to the bottom of the page — you’ll see a link that says, “Still have questions? Ask us directly.”

Finally, a reminder that Crowdability has no financial relationship with Republic or PoQ. Crowdability provides independent investment research on alternative investments such as startups and crypto-currencies.

We’re writing about PoQ because we believe it presents an attractive investment opportunity. And that explains why we’ll be investing in it alongside you — at the same time, and on the same terms. For further information about our trading policy, and to see how we ensure that our readers are prioritized over ourselves, click here »

What Happens After You Make Your Investment

After investing in PoQ’s ICO on Republic, you’ll soon receive Q2 royalty tokens.

The more dollars you invest, the more tokens you’ll receive. (Until you receive your tokens, your accrued royalties will be held in escrow. And because of the way “smart contracts” and the blockchain work, your royalties are guaranteed to be paid.)

Now, if PoQ’s business thrives and the value of your Q2 tokens increases, at some point in the future, you’ll likely want to cash out some (or all) of your position.

In order to do that, two things need to occur first:

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1. A “Token Distribution Event” — When you invest in this ICO, you’ll be investing in an instrument known as a DPA (Debt Payable by Assets). A DPA is similar to a loan, but instead of getting paid back in dollars, investors get paid back in crypto-currency.

In this ICO, you’ll get paid back in Q2 tokens. That will happen on PoQ’s “Token Distribution Event,” which is scheduled for January 2019, just a few months from now.

2. Exchange Listing — Just like stocks trade on exchanges like the NYSE or Nasdaq, crypto-currencies trade on exchanges like Binance or Bittrex.

Soon after the Token Distribution Event, it’s expected that Q2 tokens will start trading on a crypto-currency exchange. When a token gets “listed” like this, its price can sometimes go up dramatically. (It’s like a stock “popping” at its IPO.) That being said, some tokens don’t get listed and/or pop immediately — sometimes it can take a bit longer.

When the Q2 tokens get listed, we’ll alert you by email to let you know what’s happening, and we’ll make a recommendation about whether you should sell them, or hold onto them longer.

Factors that could affect our decision include: how much traction the company makes in the coming months; how many developers have started using its technology; and how many Influencers have signed on to help promote Quarters.

We’re Your Boots On the Ground

Identifying the right crypto-currencies to invest in is serious work.

We use the plural “crypto-currencies” instead of the singular “crypto-currency” because we encourage you to start thinking about building a portfolio of cryptos over time. That’s how professional investors do it because, statistically, that’s the path to success.

And that’s why we’re making a long-term commitment to show you the way.

We’re here to help you navigate and profit from this exciting new asset class. We’re your “boots on the ground” to help narrow down thousands of opportunities to just a few.

And don’t feel like you have to invest in every opportunity we show you. We’ll be presenting you with a dozen or so opportunities a year, perhaps more, so it’s ok to “pass” on individual investments.

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But month after month, year after year, we’ll do deep research on each crypto opportunity — not just on its specific attributes, but on the trends impacting its industry — so we can help you identify the ones that could potentially lead to the biggest returns.

We’re already researching a new set of exciting crypto investments, and we’re very excited to share them with you soon.

In the meantime, our promise is that we’ll keep you updated every step of the way.

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Disclaimer:

This document is made available for general information purposes only. This report does not constitute a specific investment recommendation or advice upon which you should rely based upon, or irrespective of, your personal circumstances. Use of this document is not a substitute for obtaining proper investment advice from an authorized investment professional. Actual results may differ significantly from the results described. Potential retail investors are urged to consult their own authorized investment professional before entering into any investment agreement. Past performance of securities is not necessarily a guide to future performance and the value of securities may fall as well as rise. In particular, investments in the technology sector can involve a high degree of risk and investors may not get back the full amount invested.

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About Crowdability

Crowdability provides individual investors with education, information and insight into opportunities in the alternative investing and crowdfunding markets.

Our free website, email newsletter and premium research services aggregate and evaluate opportunities from an ever-expanding universe of alernative investments for individual investors. We aim to save people time and simplify the process of discovering and evaluating these unique opportunities.

Benefits of Joining Crowdability

• Never worry about missing an opportunity - we track them all for you

• Gain access to education and resources that remove the confusion and anxiety about early-stage, private market investing

• Hear from professional venture and angel investors to help you better understand the mechanics of early-stage investing and how to identify the best opportunities

• Crowdability’s goal is to become your primary resource for navigating the private equity markets

Contact Us: Crowdability, Inc.205 Hudson StreetNew York, NY 10013www.crowdability.com [email protected] © 2018 Crowdability, Inc. All rights reserved.