TORONTO--(BUSINESS WIRE)--Tokens.com Corp. (NEO Exchange Canada: COIN)(Frankfurt Stock Exchange: 76M) (OTCQB US: SMURF) (“Tokens.com” or “the Company”), a publicly-traded company that invests in web3 assets and builds businesses linked to crypto staking, the metaverse and play-to-earn gaming, is pleased to share an update on its operational business segments.
Staking operations occur within Tokens.com. Metaverse operations occur within a subsidiary called Metaverse Group. Crypto gaming operations occur within a subsidiary called Hulk Labs. All three businesses are tied together by the utilization of blockchain technology and are linked to high-growth macro trends within web3. Through the sharing of resources and infrastructure across these business segments, Tokens.com is able to efficiently incubate these businesses from inception to revenue generation.
“Since the inception of Tokens.com in 2020, we have built three successful and growing business segments that are all revenue positive and self-sustaining,” said Andrew Kiguel, CEO of Tokens.com. “The Company is well capitalized and provides investors with diversified exposure to web3 assets and businesses.”
Staking Highlights
Tokens.com currently owns the following tokens used in its staking operations: Ethereum, Solana, Oasis, Polkadot, NFTX, Mana, Ankr and Shiba Inu. Staking is the environmentally friendly equivalent of crypto mining. Stakers use token ownership to validate blocks on the blockchain andare compensated in the form of additional tokens. The tokens owned by the Company are in liquid markets. and from time to time may be liquidated for corporate overhead or rebalancing purposes.
“Staking represents our original business line. The staking process enables our shareholders to earn revenue through the ownership of some of the largest and most liquid crypto assets in the world, which are linked to web3 applications,” added Andrew Kiguel, CEO, Tokens.com.
Staking operations are wholly owned and operate within the parent company, Tokens.com. The Company’s token balance grows organically daily via the staking process which compensates the Company with payment in additional tokens. This occurs on a daily basis, all year round. A list of the key tokens owned by the Company is below. Tokens.com owns more aggregate tokens by volume than it ever has before in its history. However, Management notes, the values of these tokens have been and expect to remain volatile. The tokens are selected based on their utility in building web3 infrastructure and potential for appreciation over time.
Tokens |
Amount Owned |
Ethereum (Eth) |
3,206.1 |
Solana (Sol) |
18,325.5 |
PolkaDot (Dot) |
286,941.6 |
Oasis (Rose) |
7,232,425.0 |
Mana |
2,000.1 |
Ankr |
3,022,453.0 |
NFTX |
1,355.4 |
Shiba Inu (Shib) |
833,333,333.3 |
Tokens.com marks-to-market the value of its tokens at the end of each reporting period. As a result, its quarterly and annual financial statements are subject to these non-cash impacts depending on if the value of the tokens has increased or decreased.
The current market value of the tokens held by the Company is approximately CAD$11.3 million, at current exchange rates and the listed market value of the tokens.
Metaverse Group Highlights
Tokens.com is the majority owner of Metaverse Group, with approximately 58% ownership. Metaverse Group is a web3 technology company with products and services that bring businesses to life in web3 environments, including metaverses, NFTs and the next iteration of retail, ecomm3. It integrates web3 technology solutions with a web3 marketing agency and virtual real estate development services, so that its clients can own ecomm3, engage new audiences, and be first movers.
Currently, Metaverse Group operates 850+ virtual land parcels across 12 metaverses. Of these parcels, it has the most occupancy in the Decentraland metaverse, which is one of the most active web3 metaverses that are currently live. Within Decentraland, Metaverse Group has 179 parcels occupied by tenants. The subsidiary is also in numerous discussions with other potential clients for additional services, such as the creation of NFT loyalty programs, virtual stores, NFT membership programs, and the planning of metaverse-based events.
Currently, Metaverse Group has approximately 85 clients and 8 employees. Metaverse Group continues to see growing demand for its services and has a pipeline of potential clients. Metaverse Group is also building its service offerings with new Augmented Reality and Virtual Reality capabilities. The team and scale of the business are growing at a fast pace.
“We have seen incredible traction with tier one clients at Metaverse Group who choose our team due to our ability to deliver category-leading experiences that leverage our land portfolio and technology,” said Lorne Sugarman, CEO of Metaverse Group. “As we scale, we are developing new proprietary technology and leveraging the world’s best immersive digital solutions so that we can continue to be world leaders.”
Tokens.com’s management believes that Metaverse Group’s valuation extends beyond its digital land assets, which were last valued in Tokens.com’s quarterly financial statements ending June 30, 2022, at approximately CAD$9.4 million, at current exchange rates. Metaverse Group has successfully leveraged its digital assets through a strong team dedicated to digital land developments, leasing capabilities, and revenue generation.
Hulk Labs Highlights
Tokens.com is the majority owner of Hulk Labs with approximately 94% ownership. Hulk Labs (“Hulk”) is a web3 technology company focused on building tools and systems to generate income from Play-to-Earn (P2E) blockchain games. Hulk Labs builds calculators to evaluate the profit potential and longevity of P2E games. In addition, the company is building a global player network to play games on behalf of asset-holders and is building tools to securely delegate and track in-game NFTs.
Hulk has a team of 6 people overseeing its operations. Since its launch in early 2022, the Hulk team has grown to manage over 1,000 player wallets and has a waitlist of over 2,000 players, primarily in African markets including South Africa, Tanzania, and the Democratic Republic of Congo (DRC). The team has a target of surpassing 10,000 players in its network by the end of 2023. This growing player network is a key strategic advantage for Hulk Labs in generating revenue and is in high demand by P2E game developers seeking additional users and liquidity for their titles.
In addition, in 2023, Hulk Labs plans to begin beta testing proprietary software that will connect its player network to interested investors, similar to how companies such as Uber Technologies Inc. connect passengers to drivers. Hulk’s player network will significantly benefit from the proprietary software under development within Playte, Hulk’s acquisition completed July 2022.
Hulk’s players have spent the majority of their time on two P2E titles, Crabada and Thetan Arena. These titles have enabled our team to generate double digit (10%+) gross monthly returns on our asset base.
Hulk has currently deployed approximately CAD$540k across several P2E and NFT projects. Many of these investments are in projects such as CryptoPunks and NFTX which provide utility to the broader NFT ecosystem.
“The rapid development of the P2E industry and the revenue and traction Hulk Labs has been able to gain since our launch less than a year ago has us on track to win significant market share in the P2E space,” commented Deven Soni, President of Hulk Labs.
In August 2022, Hulk Labs raised approximately CAD$680k of strategic capital at current exchange rates. That transaction was completed at a CAD$10.9 million pre-money valuation which equates to a post-money valuation for Hulk Labs of approximately CAD$11.6 million, at current exchange rates. Since August, the subsidiary has achieved many new milestones and is now revenue positive.
Domain Names
Tokens.com also owns several domain names it believes to have market value. This not only includes the Tokens.com domain, but also tokenstrading.com and tokensart.com. Metaverse Group owns metaversegroup.com. While the value of domain names is not easy to pinpoint and can vary in different sectors and markets, management feels these domains do have a market value, particularly in the crypto and metaverse sectors. Management has received inquiries regarding our desire to sell the Tokens.com domain name, with soft offers in the mid-seven figure range. At this time, Management feels retaining the domain name is its best use, however, reserves the option to reevaluate that decision under different circumstances.
Capitalization
As at the end of the last quarter, Tokens.com and its subsidiaries held CAD$7.8 million in cash, at current exchange rates. In addition, the Company is able to liquidate its digital assets used in the staking operations within a short period of time for additional capital if required. Management at Tokens.com does not believe the current market price for its common shares reflects the inherent value in the Company or the aggregate value of its businesses, digital assets, and cash. As such, on October 27th, Tokens.com announced the launch of a normal course issuer bid program to buy back its shares in the market for cancellation. Tokens.com has 96,926,757 shares issued and outstanding and a public float of 72,377,444.
Tokens.com does not foresee a requirement to raise capital in the near term given its three business segments are revenue positive, its low operating overhead, and its existing cash and token balances.
Our most recent quarterly financial statements, ending June 30th, 2022 and reviewed by the Company’s auditors, had total assets of approximately CAD$31.0 million including a cash balance of approximately CAD$7.8 million, at current exchange rates. This equates to CAD$0.32 per common share in asset values.
Tokens.com’s cash at the last reported quarter ending June 30th, 2022, and its current value of tokens is equal to approximately CAD$19.1 million, or CAD$0.20 per common share at current exchange rates. This value does not include the additional value of the businesses and digital assets contained within Hulk Labs and Metaverse Group described above.
Tokens.com expects to release its audited year-end financial statements for the nine months ended September 30th, in mid-December.
About Tokens.com
Tokens.com Corp is a publicly traded company that invests in web3 assets and builds web3 businesses. The Company focuses on three operating segments: i) crypto staking, ii) the metaverse and, iii) play-to-earn crypto gaming. Tokens.com owns digital assets and operating businesses within each of these three segments.
Staking operations occur within Tokens.com. Metaverse operations occur within a subsidiary called Metaverse Group. Crypto gaming operations occur within a subsidiary called Hulk Labs. All three businesses are tied together by the utilization of blockchain technology and are linked to high-growth macro trends within web3. Through the sharing resources and infrastructure across these business segments, Tokens.com is able to efficiently incubate these businesses from inception to revenue generation.
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About Hulk Labs
Hulk Labs is a web3 technology company focused on building tools and systems to generate income from Play-to-Earn (P2E) blockchain games. Hulk Labs builds calculators to evaluate the profit potential and longevity of P2E games. In addition, the company is building a global player network to play games on behalf of asset-holders and is building tools to securely delegate and track in-game NFTs. Hulk Labs is a subsidiary of Tokens.com, a publicly- traded company that invests in web3 assets and businesses.
For further information please visit https://hulklabs.com.
About Metaverse Group
Metaverse Group is a web3 technology company with products and services that bring businesses to life in web3 environments, including metaverses, NFTs and the next iteration of retail, ecomm3. We integrate web3 technology solutions with a web3 marketing agency and virtual real estate development services, so that our clients can own ecomm3, engage new audiences, and be first movers. The company also holds an eight-figure metaverse real estate portfolio spanning over 10+ metaverses.
Our ownership over 750 parcels of virtual land and relationships with different metaverses and industry players allow us to deliver category leading solutions that have been recognized by CNBC, Forbes, the Economist and the Wall Street Journal. Tokens.com, a publicly- traded company, is the majority owner of Metaverse Group.
For further information please visit https://metaversegroup.com.
Forward-looking Statements
This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of cryptocurrencies, as described in more detail in our securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.
