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C.PXE, FSE: WH4 - Target Price: Short-Term $2.00 CAD ( 20x Bagger Potential )
Target Price: Long-Term $6.00 CAD ( 60x Bagger Potential )
Introduction: We are ALL IN and here is why
This is a special article on P2earn Inc. (C.PXE), we want to explain in detail why we believe this tech stock will be one of the most successful publicly listed gaming companies. Having evaluated dozens of gaming deals in the last four years, we have decided to go all in exclusive on P2Earn Inc. We and our friends have participated in the current private placement with more than 400.000 CAD. Living in Asia we have experienced first-hand the explosive growth of the Play To Earn Industry. We will follow this deal very closely over the next few months and years, so expect constant updates from our side on the development. If you are interested just subscribe to our newsletter, then we will send you our updates on P2Earn.
Conflict of interest, we are shareholders in C.PXE, and we are not investment advisors, please do your own extensive research. Please read our disclaimer at the bottom of the page.
Ok, let's get started, I recommend that everyone download the company's Investor's Presentation and go through it in order to be able to follow us through this report on P2Earn. I am going to focus mainly on the potential and the business model and not on the other aspects mentioned in the presentation.
Click here to download the P2Earn Investor's Presentation
Join the company's Discord - https://discord.gg/p2earn
Most of you folks reading this article are located in North America & Europe, therefore the Play To Earn concept will still be unknown to you. As we are located in Asia, we experience the immense growth of this industry every day, regardless of where we go. The Web3 and Play To Earn industry will be dominated by Asia, and it is expected to reach $65.7 billion USD by 2027, especially in developing countries.
Why? Let's assume you work at a burger chain in the Philippines. You will be making about $180 USD per month, slaving away for 10 hours a day, 6 days a week, and having to deal with complaints about cold French fries and rude customers at the drive-through. If you are a somewhat decent gamer you can earn $200 - $400 per month and you do not even have to get dressed for work or lose 4 hours of your life being stuck in rush hour traffic at 42 degrees Celsius breathing toxic exhaust pipe fumes. This is what is appealing to these gamers.
Now in order to really make good money playing these Blockchain-based games, these players need something called NFTs (non-fungible tokens), in-game assets, or in-game currency in order to maximize their profits, this is where P2Earn comes into play.
Updated: Canadian Stock Exchanges features P2Earn Inc. (CSE:PXE) w/ Alex Lineton |
Video published by the CSE, published on 20.04.2023
Overview: Business Model, In a Nutshell
P2Earn Inc. is a company that operates a blockchain gaming guild implementing an automated platform which is anticipated to launch by the end of Q2, 2023. A gaming guild is a community of gamers who work together to maximize their earnings while playing play-to-earn games. They do this by sharing information, resources, and strategies. In P2Earn's case, the company manages the guild and provides members with the resources, in the form of NFTs and in-game currency, to increase their earning potential.
P2Earn Inc. Introduction Promo Video
To put it into layman's terms, P2Earn provides these guild members with fully built-up accounts with all the bells and whistles, so they do not have to play these games starting from scratch, therefore increasing their capacity to earn sellable assets in these games. The platform automates this process and also gives preferential treatment to players who earn the most or those who are the most active.
At the end of the day, the players keep 50% of the profits, the other 50% goes to P2Earn. P2Earn's platform automatically sells earned NFTs on major exchanges such as Axie and OpenSea, just these two exchanges alone have a combined annual trading volume of $18.62 Billion USD. The platform then credits what is due to the players' accounts, which they can withdraw immediately. All game accounts and NFT assets are owned by P2Earn. For an in-depth explanation of how the Play To Earn concept works, P2Earn has created a very clear beginner's guide to educate those unfamiliar with the concept.
Download P2Earn's Play-to-Earn Gaming Beginner's Guide
Proof Of Concept: P2Earn Inc. A Cash-Generating Monster In The Making
I spoke to Alex Lineton, the CEO of P2Earn Inc. about where he wants to take this company. He sounded extremely confident and excited about launching their Gamer's Guild Platform at the end of Q2,2023. We wanted to know what made him so confident about their P2Earn business model.
AL: We have worked on this concept for a long time and implemented a proof of concept / Beta Test Version with approximately 300 gamers over an 8-month period, to test every angle and aspect of the Play To Earn business model. We generated approximately $470,000 CAD in EBITDA, it was a big success and that gives us the confidence to scale it up to tens of thousands of gamers in the future.
He also added that during the Beta Test Version, they were handling all aspects of the Guild manually, if we would have had our fully automated platform we could have made a lot more money. Based on his current calculations and projections, he is confident that the average generated revenue per gamer, per day, would come to around $35 CAD per day on average. He believes that Play To Earn is the future of gaming and that we are currently in the infant stages of what is about to come and P2Earn is a pioneer in this emerging industry.
AL: We are 100% convinced that our business strategy is the right one. Through our new fully automated gaming guild platform, we will be able to manage up to 50,000 gamers with little additional staff. The platform is easy to use and fully automated. The players register, select their required NTFs, and game as much as they like and we take a 50% cut of everything they make. It is a no-brainer.
This forecast chart was not created by P2Earn Inc.
Here is how the revenues might look if they would reach 50,000 Gamers on their P2Earn Gaming Guild, using the $35 CAD formula per day, per player. The earning potential is insane. The chart was created by us, not the company.
P2Earn April 14, 2023, Platform Development Update Video
P2Earn Inc owns all the accounts and NFTs, there is no possibility that they can lose assets. All they have to do is to equip the players with NFTs. Alex added that they will require approximately $300 per gamer account, multiply this by 10.000, and the company would need about $3 million dollars to equip those players.
He expects that the P2earn Gaming Guild Platform will be ready for full commercialization at the end of Q2 2023.
Perfect timing for P2Earn to launch
As we said before Play To Earn is in its infant stages and there are strong indicators that this industry is about to explode. Here are a few examples of what has happened recently, which give us a clear indication that C.PXE will be a major jackpot.
Asia Could Dominate 80% of Web3 Gaming
Saudi Arabia Is Investing $38 Billion to Become a Video-Game Hub
Blockchain Gaming Investments Surge, Reaching $739M In Q1 2023
Final Fantasy Parent Square Enix Is Bullish on Blockchain Gaming in 2023
Everyone and their mother, this is why we invested in P2Earn Inc.
As mentioned before we live and work in Asia. We first encountered Play To Earn in our own office during Covid. Our janitor was constantly playing a Play To Earn game called Axie Infinity on his smartphone, neglecting his duties. He informed us that he is making about 90 USD per month, which supplemented his salary working for our building.
It got to a point where we began to express concern about his work performance because he was constantly on his smartphone. Around the same time, we encountered some teenagers hanging around at a local 7-Eleven, who talked to us about getting sponsorship for their Play to Earn team. They offered to pay us back in a couple of weeks. They then explained that acquiring more NFTs and in-game assets would substantially increase their capacity to earn in these games.
We later learned from one of our employees that an entire family living close to our office was making a living just by playing these games. The father, who was a construction worker, and the mother, who did cleaning work, were both on their phones for more than 8 hours a day, playing Play to Earn games. They were able to provide for their 4 children doing this kind of work. Apparently earning more than if they had been stuck working at their regular jobs.
Why No ICO (Initial Coin/Token Offering)?
Over the past few months, we have spoken to several influential Crypto guys in Europe, SE Asia, the United States, and the Middle East. The feedback we received was very positive. They love the business model and were confident that P2Earn's business concept will be well received by the Crypto and Gaming community. However, all of them asked us the same question, why isn't P2Earn Inc. launching its own token?
The answer to that is a clear NO, NEIN, NEVER, EVER. P2Earn does not plan to launch its own token. Alex Lineton made this very clear in our call. Majority of the tokens that have been launched ended up being "shit coins." They were simply scams, with the founders making a fortune, dumped, and then moving to the Bahamas. Everyone else got screwed big time.
Then there is the issue of the high volatility of newly minted coins. It is like putting all your eggs in one basket. Why would you take the perfect business model that potentially is going to generate hundreds of millions of dollars in profits and screw it up? The nice thing about P2Earn's business model is that the platform can select the games that are being played, therefore the company can hedge its risks by only selecting games that have high liquidity and stable cryptocurrencies. This ensures that the profits and assets of the company are protected. All of the Crypto guys we spoke to agree that this approach is the way to go. This is the way !!!!
Investment Highlights:
- Huge Potential and Investor Interest, Expected to reach $65.7 Billion USD by 2027. Blockchain market size is projected to reach 1.4 Trillion by 2030.
- Generated $1 Million CAD Revenue and $470k CAD EBITDA during Platform Beta Testing. P2Earn Gaming Guild Platform anticipated launch Q2,2023.
- First Publicly Listed Company Offering This Type Of Business Model. Revenue-driven concept, no association with ICO, Coins, and Token which will become worthless.
- Full automated Platform which allows with little cost to scale up the number of clients into the tens of thousands. Platform Partner Polygon.
- Tight shareholder structure only 57,5 Million shares outstanding, Listed on CSE and Frankfurt Exchanges.
Our Conclusion:
In our opinion, P2Earn Inc. (C.PXE) will be one of the biggest successes we have seen in many years. The company is light years ahead and has recognized the potential of a changing gaming market and has immediately acted on it. We like the approach that this is the only publicly listed company that we are aware of which is implementing the Play To Earn model without introducing a Token or Coin. P2Earn is also mainly focusing on raking in money from the rapidly growing number of NFT-based games being released and developed. Through its business model, the company is hedging the risks associated with the volatility in Crypto and NFTs.
They have solid proof of concept and the experience to scale their business up, the possibilities are limitless. Guys, if they are able to build up the platform to 10,000 gamers and $35 CAD per player per day is realistic, they will be making more than $60 Million CAD EBITDA in a year, show me a company on the CSE or TSX Venture that can match that.
Their P2E Gaming Guild Platform is scheduled to launch at the end of Q2, 2023. This is not one of those newly listed companies that will have to spend 50 Million dollars on R&D before they deliver a product that doesn't work, P2Earn will be ready to go once the platform is launched and make money.
I am impressed by the CEO, Alex Lineton, a young tech-savvy guy with a strong successful crypto background. He is a visionary and we believe he has the balls to really go for it. The company has recently gone through an RTO, giving it a really tight share structure.
We anticipate that there will be a lot of positive movement and news in the next few months and this will add to the evaluation of the stock. We will keep everyone updated on news associated with this deal.
This is the Way! We have Spoken!
Sources and References:
We urge everyone to do their own thorough research on P2Earn Inc and seek professional investment advice before making any investment decision. We have put together a few sources to help you with your research.
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