KamaGames makes crypto move with token sale
KamaGames CEO Andrey Kuznetsov believes the marketing power of the European social mobile poker operator’s $25m token sale, marking a significant step into cryptocurrency, will drive "quality" player acquisitions.
The company announced this (Tuesday) morning the launch of its own KamaGames Token, which will use existing blockchain technology and the Ethereum cryptocurrency platform.
KamaGames Tokens will be available as a collection of in-game chips sold in a bulk block at the best price possible. Over time, players will be able to exchange KamaGames Tokens for more and more chips, with players rewarded with a maximum 11-fold growth for leaving their tokens untouched.
“The token sale is an innovative way to provide players with cheaper chips and a crypto payment option, and is also a huge marketing campaign,” Kuznetsov told iGamingBusiness.com.
“In 2017 we decided to pay more attention to blockchain and crypto and I think it could be a game-changer for some industries. We started to gauge the interest in crypto from players and considered some new channels.”
KamaGames has enjoyed a bumper 2018, doubling the number of active users year-on-year in the six months through to June 30, with gross revenue growing by 53% in the same period.
“We built a top-notch platform to automate the process of acquiring users,” Kuznetsov added.
“We have something to offer to almost any kind of player who is interested in card games and if you personalise campaigns with a proper message and audience, based on the analytics.
“With this token sale, the number of active users will grow with retained and new players.”
The total value of the tokens lined up for sale is estimated at $25m (£20m/€22m), with the exchange rate guaranteed to increase at a rate of 25% every month during the first 36 months.
“We are not worried that we will have uncontrolled inflation, because we’re distributing so many chips,” Kuznetsov said.
“We are aiming to generate $25m at a price of $1 per chip. We can distribute up to six or seven million more chips.
“It’s a fantastic opportunity to not only thank our players, but to also show how KamaGames is passionate about embracing new technologies. In fact, we are the first social casino developer ever to offer a bespoke cryptocurrency to our players.
“We are confident that this launch will continue to raise our profile and help maintain the tremendous momentum that we’ve had this year; 2018 is shaping up to be our strongest year to date for growth, revenue and new game releases.”
Kuznetsov added to iGamingBusiness.com that “three or four” more games will be launched before the end of the year.
“We will launch our games on up to three new platforms,” he added. “Two of those are certain as the games have already been developed and approved and both of those platforms are huge.”
The social poker specialist entered the Eilers & Krejcik top 15 rankings of social casino companies in the last quarter, with revenues up 12.1% q/q or 40.5% y/y.