Reemergence In The World Of Digital Collectibles As Animoca Acquires A Quidd Blockchain Startup
CryptoKitties, in their formative days, looked a lot like mere nothings of a quirky game with no value. But years later, the world of digital collectibles is looking all-lucrative with its backers appearing serious in their quest to win big.
Just recently, a certain mobile gaming firm called Animoca parted with about $8 million in exchange with a burgeoning digital collectible startup called Quidd. Animoca, a large company listed at the Aussie Stock Exchange, bought the promising ledger-based memorabilia startup touted as the ‘world’s leading marketplace.’
Animoca, which has already collaborated with Harmony, another Blockchain-based company whose tokens have been listed on Coinbase, is well and truly into Blockchain. Harmony will serve as the mobile gaming company’s strategic technology and financial partner-in-charge of acquiring Quidd.
Quidd is fairly young having been launched in 2017. But it realized $13 million from its Series A crowdfund which also included venture capital giant, Sequoia. After the first round of funding, the startup bought the rights of 325 other brands, acquiring them from notable gaming brands, including Marvel, Disney and HBO.
The startup had the ambition to establish a huge marketplace comprising of unique and tradable digital assets. And slowly, the humble startup grew to be a huge company that reportedly racked in more than $10 million in revenue after hawking off $2.1 billion individually-serialized collectibles.
Quidd was already making profits. However, as Nick White, Harmony’s co-founder, explained, the digital collectible firm was experiencing other exceedingly costly expenses emanating from their strategy. And even though much of the $2.1 billion was raised from ardent comic and film fans who bought them, the owners had no other alternative, but to bow to Animoca’s request.
According to White, Quidd spent quite a fortune appealing to its first clique of users. He said that the digital collectible platform at its peak had well over 800k active users on the mobile app every month. However, the numbers soon started to dwindle because the startup had no firm way of retaining them.
So dramatic was the customer loss rate that by the time Animoca was acquiring it, the monthly active users stood at a paltry 200k. For this, the sale was justified in whichever perspective one looks at it.