In March this year, a sporting event in Sydney sold out a 18,000 seater stadium for three days in a row. Not a single ball was thrown, goal was scored or whistle was blown, in an arena that pop stars have struggled to sell out over the last few years. The event was the Intel Extreme Masters, an eSports event that is yet another example of the growing power of global sport’s biggest new player.
As one of the biggest growing markets in the world, eSports are a unique investment proposition. With the potential to be a grand entertainment spectacle, akin to soccer or basketball it has the capability to captivate audiences across the world, with a surging growth of 38% circa, and a market cap expected to go from $650m to $1.5b by 2020. The unique balance of the medium means that both traditional sports investors and tech companies are investing in equal measure. Companies like Google, Sky and Microsoft are developing platforms while figureheads like Stan Kroenke (owner of Arsenal soccer club and the Los Angeles Rams) are creating teams like the Los Angeles Gladiators.
Their reasons for doing so are clear. The sector is seeing huge increases with global market capitalization expected to increase from 650m to 1.5b by 2020, an increase of 230%. To make a comparison, over the next five years Apple is expected to increase earnings by 10.6%, Amazon by 30.20% and Alphabet (Google) by 17.21% while the eSports market is experiencing an annual growth of ca 38% across 130 companies.
Unlike other sports markets this is an industry in its infancy, and as such there are some unique issues. Investors are looking to platforms rather than games as the games themselves change all the time depending on what’s in vogue. The diversity of providers also means there are no central authorities, there is no equivalent of FIFA that can represent the sport. This is very much an open playing field with an opportunity for a company to become the trusted, go-to platform.
We’ve been working since 2016 to be such a platform. In that short time our community has grown to 10,000 gamers and we’ve had a 300% growth rate on revenues. Our team has a direct understanding of the market and our users recognise our commitment to making gaming safer and more interesting. With the total amount of players in the world expected to nearly double from 300m to 500m by 2020 we are one of the best placed companies to take advantage of the following market expansion.
The major issues we see as eSports grow will be in three areas: firstly the speed at which networks will run, secondly the security of gamers and thirdly the implementation of sports betting outside of ‘traditional’ structures. We believe we are on the cusp of the answer to all three of these problems, and the next revolution in this sector. By introducing a secure blockchain system for our users we can usher in a new age of competitive eSports that gamers will be attracted to due to greater financial security, more possibilities for tournaments and greater control. Introducing smart contracts also solves several issues for gamers in terms of eliminating scams, bad sportsmanship and other issues that have plagued dedicated userbases for years.
Steve Borenstein from Activision, one of the major companies in this field, was recently quoted as saying “Game publishers approach their Esport ecosystems in different ways, so it can be best to go with platforms that have consistency and can provide consistent results.” Our approach and our results can be seen in our whitepaper here. So far, our record speaks for itself. The introduction of blockchain tech will be a gamechanger for the entire industry, and the Yamzu team are perfectly poised to implement groundbreaking ideas much faster than the rest of the market.
In this sector, there is no FIFA. There is no official NBA. These kinds of roles can be openly defined, and with that will come great reward. Blockchain tech will have a huge impact on this. For investors, there is an opportunity to join us. On the 25th of July 2018 we will launch an ICO that will mark the start of our implementation of this transformative tech. This is where you can join us, and be part of a sector that is expected to receive $700m in sponsorship deals in the next coming years, and grow faster than Google or Apple in a similar timespan.