There aren’t many small cap ASX stocks which can boast a partner as big as Formula 1.
Earlier this year, Animoca Brands (ASX:AB1) partnered with the world’s richest and most recognisable motorsport brand, Formula 1, to develop ‘F1 Delta Time’, a blockchain-based racing game.
So how, exactly, does a Hong Kong-based $110 million tech company convince a global behemoth that banked $2.6 billion in revenue in the 2018 financial year to partner?
Animoca co-founder Yat Siu says it’s a classic case of not what you know, but who you know.
“Our board of directors, including myself, has a history of dealing with large brands,” he told sister site Stockhead.
“Our mission is to have people adopt blockchain as a technology of the future, and we believe in order to do that we thought we need to get brands on board.
“We have put feelers out to everyone, not just Formula 1, and our directors’ long-standing relationships with large brands around the world helped us out.”
He says Formula 1 is the biggest yet as Animoca tries to make good on that mission, saying it is targeting F1’s “financially savvy” audience.
“What a great way to move people onto the blockchain — talk to the biggest brand out there,” he says. “We have spoken to many brands and F1 definitely proved to be one of the most excited to work with us, and this game proves how forward-thinking Formula 1 is.
“And F1’s audience is super-suited to blockchain. It’s typically an older, more financially savvy audience and it is supported by huge, famous brands such as Rolex.
“All these are the kinds of audiences we want to tap into, consumers with the financial means and understanding of the opportunity.”
F1 Delta Time is based on “non-fungible tokens”. Think of them as the digital version of valuable collectible footy or Pokemon cards you would trade in the schoolyard as kids.
The game, live now across mobile, web and desktop, allows players to trade tokens (masquerading as car parts) to ‘build’ their F1 car and team, with a race game on the blockchain likely to be up and running next year.
“The car parts will be on the marketplace and people will have to trade items to build their F1 car and team, and the scarcity of different car parts over a race and season means they will be valuable. So there are also e-sport implications for this game.”
Delta Time is part of F1 owner Liberty Media’s efforts to broaden the fan engagement and revenue streams of the sport. Liberty acquired Formula 1 from previous owner Delta Topco in 2017 for around $11 billion.
This content is produced by Star Investing in commercial partnership with Animoca Brands. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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