As more ASX-listed companies identify the unique revenue opportunity to generate something out of nothing, bike accessories company Cycliq (ASX: CYQ) is joining the party with plans to mint NFT collectibles via a partnership with digital health company OliveX (NSX: OLX).
Known primarily for their safety equipment designed for cyclists such as cameras and lights, Cycliq is making the leap into the Metaverse with the support of their online community of 500,000 members.
The entry into digital assets comes alongside their upcoming Dustland Rider game where Cycliq will transform some of their best selling products into digital collectibles for use in the game. These digital assets will include collectible NFTs, as well as DOSE Tokens, the in-game cryptocurrency that will offer utility for users.
“The Fitness Metaverse provides us with an unparalleled opportunity to extend our brand, partner with global sports companies and reward our ever-growing community of cyclists each time they ride,” said Cycliq Chief Product Officer, Michael Freiberg.
With digital assets not being the domain of Cycliq, the tokenisation and minting of NFTs will be generated and managed by OliveX which has emerged as a digital assets business in the fitness metaverse. Their services enable real-world fitness to merge with the digital universe in order to engage consumers with brands, influencers, and coaches. Notably, OliveX is backed by digital assets juggernaut Animoca Brands which is valued at more than USD $5 billion, having been pioneers in the NFT space.
“Brands like Cycliq are perfect for the Fitness Metaverse,” said OliveX Commercial Director, Andy Hall.
“The focus of this partnership is to encourage more people to exercise and recognise the amazing health benefits cycling can offer.
“By taking the Cycliq brand into the Sandbox and gamifying its products we can help support its messages about safety, health and speak to a brand-new audience.”
No time has been confirmed for the minting of Cycliq’s NFT collection, nor have commercial terms been disclosed. In the event they follow the trend that is emerging amongst ASX-listed companies, OliveX would mint the collections, and send a portion of revenue/cryptocurrency generated from the sale launch back to Cycliq. The two would then share in commissions earned within the secondary sales market of the NFTs.
Founded in 2012, Cycliq have shipped more than 100,000 of their Fly bike cameras around the world.
For the half year ended 31 December 2021, Cycliq reported a 303% increase in revenue to $2.9m with a 119% increase in EBITDA to $294k.
Dustland Rider has been referenced in online forums as a game that allows users to earn in-game rewards through real-life cycling. No public release date has been confirmed.
Minting NFT collections has become notably popular in recent months amongst ASX-listed companies as a new revenue stream, first headlined by Playside Studios (ASX: PLY) generating $8.4m in revenue from thin air in February 2022.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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