STOX, an Ethereum-based platform that enables users to predict the outcome of a variety of events, has acquired CommoLogic for their valuable gambling licenses; becoming the first regulated ICO prediction marketplace. As the focal point of the acquisition, STOX will take possession of CommoLogic’s U.K. software gaming license, U.K. operating gaming license and a Class 4 B2B license for Malta. The STOX team believes that the licenses will be needed to legally operate “in the near future” and by having them now, the company can focus on developing its platform as opposed to the licensing process. Financial terms of the deal were not released.
Howie Long-Short: STOX now maintains a meaningful differentiator from its 2 main competitors, Augur and Gnosis. However, despite the licenses, the company is worth far less than its rivals. STOX has a market cap of just $21 million, while Augur and Gnosis are worth $195 million and $114 million respectively.
Fan Marino: STOX acquired these licenses under the presumption that at some point cryptocurrency will be regulated. That sounds logical, as it would seem unlikely the ICO market could sustain itself long-term without regulation. I would place my coins on crypto regulation occurring sooner than later.
Stox Acquires CommoLogic and Its Gambling Licenses to Become Fully Regulated
Barcelona star Luis Suarez announced on behalf of Stox, that the prediction marketplace is headed for Alpha testing. The news comes less than 30 days after the company’s $33 million (current market cap is $47 million) ICO and just 2 weeks after the announcement that they had submitted an LOI to purchase a company that holds 2 U.K. gambling licenses. The Stox platform is used for investors to place digital currency tokens on event-based outcomes (i.e. sporting events).
Less Than Month After ICO, Stox Kicks Off Alpha with Luis Suarez
Howie Long-Short: Stox is well positioned in its competition with Augur and Gnosis. Invest.com Group, which is behind Stox, has a large existing client base and has proven successful at driving traffic to similar projects.
Fan Marino: Suarez announced he put his STX tokens on Federer to win the U.S. Open. Not exactly picking the underdog. Roger was the favorite coming in at +175 (OddsShark). He won last night to advance to the quarterfinals.
Invest.com is launching a prediction market product called Stox, with a “token generation event” (STX) on August 2nd, as the company seeks to raise $30 million to build infrastructure and increase its sales & marketing teams. While our focus here at JWS is public equities, this pseudo-ICO is noteworthy for two reasons:
- The platform uses crowd sourced information so that everyday people (like Fan Marino) can predict and trade on, using digital tokens as currency, the outcome of sporting events (+Finance, Politics, Weather etc.).
- Floyd “Money” Mayweather, who has a history of posting gambling tickets after he’s won, has been boasting on Instagram that he’s going to “make a $hit t$n of money … on the Stox.com ICO”.
While some insiders are calling Mayweather getting in on the action “peak ICO”, invest.com is a real company with $50 million in annual revenue and 3 million registered clients, differentiating STX from dozens of unknown companies, that together have raised in excess of $1 billion in ’17.
Floyd Mayweather says he is going to make bank off an ICO
Howie Long-Short opines: What the wise do in the beginning, fools do in the end.
Fan Marino says: If I have to choose between Floyd or Lenny Dykstra for investment advice, I’m going TMT every single time.