Riding the wave of NFT popularity, game development company iCandy Interactive (ASX: ICI) has confirmed their first NFT-based game, League of Super Misfits, will be launched within two months while also boldly declaring the game will generate at least $4 million in revenue.
League of Super Misfits, aka The Misfits, is a collaborative title between iCandy and NFT developer, Froyo Lab. Key to the collaborative approach is the role iCandy is playing in developing the game concepts, artwork and metaverse games while Froyo manages the NFT creation, marketing and tokenomics.
The Misfits is a Web 3.0 game that will be iCandy’s first series of IP and Game Art NFTs where a collection of NFTs will be minted and sold publicly, to then be used within the game either for gameplay or within the in-game marketplace.
Set to launch in two months, Froyo and iCandy will then share in revenues generated from the game and the sale of NFTs where the partners have declared the game will generate a minimum of $4 million for iCandy which will likely include the original sale of the NFT collection.
This follows a similar path as rival gaming company Playside Studios which generated $8.3m from the minting of an NFT collection for their Dumb Ways To Die metaverse game last month.
News of The Misfits impending launch will be welcomed by shareholders who could be in for more NFT-generated revenues with the collaboration between iCandy and Froyo inked for 7 years.
Together, the partners intend to launch a minimum of 9 NFT or Metaverse game titles and a series of 12 NFT collections.
Core to the deal is iCandy’s emphasis that it is Froyo that will create and market the NFTs and then pay back a portion of the proceeds to iCandy as part of the revenue-sharing agreement. Under this agreement, iCandy will not hold any of the NFT digital asset value within their balance sheet which has been the driving force behind the incredible growth of Animoca Brands which was kicked off the ASX in 2019 when they had a market cap of $120 million, but are now valued at more than $5 billion.
The $4m guarantee to iCandy will be paid by Froyo Labs irrespective of the NFT sale’s success where 10,000 NFTs will be listed with a minimum sale price of $800 each.
As per the game League of Super Misfits itself, it is a series of 10,000 unique computer-generated superhero gaming avatars that follows a storyline of strange-looking superheroes that are mischievous and social nonconforming. Further details of the Metaverse game and it’s gameplay will be released in the coming months after the the sale of the NFT collection takes place.
For the 12 months ended 31 December 2021, iCandy reported a 46% decrease in revenue to $1.9m. This resulted in a net loss after tax of -$2.35m but the Company retains a strong balance sheet with $18.5m cash in the bank and several new game titles to be released in 2022.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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