The project from Poznań, which won the competition between startups on 3 continents, is paving the way for an unprecedented hybrid investment model, established in 2017, and the GamerHash.com platform brings together 500,000 users from all over the world. Their computers connected to the GamerHash network form a decentralized supercomputer, the power of which is made available in return for payment. Thanks to blockchain technology, each user receives the most popular cryptocurrency – Bitcoin in exchange for the computing power from the processor or graphics card. The salary is paid daily to the wallet on the GamerHash platform. The user can withdraw Bitcoins (and its parts) to an external wallet or spend in the GamerHash Store on hundreds of products, e.g. premium services Netflix, Spotify, Allegro or Amazon vouchers, GSM top-ups or even (QR) vouchers to be used in 9,000 grocery stores belonging to of the most popular chains in Poland. Rewards can also be obtained in other ways, without using a powerful computer. In the GamerHash application, tasks such as playing games or downloading applications are made available for which partners pay. GamerHash completely changes the form of collection and payment for popular services and products not only for players, but for all computer owners. This is a group of 2.5 billion potential users.
The startup from Poznań is constantly moving forward and achieving further successes. I had the pleasure for FXMAG readers to interview one of the founders – Patryk Pusch and CMO Artur Pszczółkowski on the basis of which this article was written.
Inspiration from the University of California, Berkeley
2.5 years ago, two friends, Radek and Patryk, were inspired by the project [email protected]that combined the power of computers to search for stars. Players have been selected as the main source of computing power in the GamerHash platform because their computers are very powerful. By combining this idea with a blockchain, users have gained an incentive to share the power of their computers. By combining the dots of gaming and blockchain, a concept was created that gave rise to the construction of a self-financing supercomputer in the future. Today, with a base of 500,000 users, it can be clearly stated that this direction was the right one.
From the very beginning, the project was financed from the Tar Heel Capital Pathfinder investment fund from Szczecin. A year later, the founders of I-Systems (currently Merce.com) from Silesia became the next investment partners of GamerHash, who bought the fund together with the founders. In the first 2 years, GamerHash focused primarily on the product, which made the number of registered users even more impressive when the marketing budget was practically zero. The next round of investment took place in 2019. Its aim was to increase the “business capacity”, that is, experience in building scalable, international projects and the amount of work that an organization can do. It was then that a group of investors joined the project, and one of the advisories was the legendary Counter-Strike player, Filip “neo” Kubski. From the very beginning, Patryk emphasized that it was the “Avengers Team”. When the product was ready, it was necessary to take care of PR and marketing and show it globally. Global recognition of GamerHash has increased since the completion of this investment round. Which is crowned with three global awards. During the largest European blockchain conference Malta AI & Blockchain Summit 2019, GamerHash received the highest investor rating in TECH Startup Pitch. A week later, the project was also among the winners at the largest Asian blockchain conference BlockShow 2019. Earlier this year, Artur Pszczółkowski added to his collection a win on another continent during the Miami Blockchain Week 2020. These three victories confirm the huge potential of the GamerHash project on the global market. In February, in a report from dGen GamerHash featured on Cointelegraph, GamerHash was selected as one of the top projects operating in Malta, next to Binance, CoinMarketCap and Chiliz.com. The ongoing activities related to the release of the GHX token and conversations with VC are the result of 2 years of work on the product and 1 year of work on marketing and visibility.
“Polish Blockchain” in Malta with GamerHash after receiving the award for the first place.
The seed investment round is currently underway. GamerHash intends to raise $ 2 million. However, we emphasize that we are not only looking for financing, but for partners who will make this wonderful journey with us. – says Patryk Pusch. – Interviews are conducted with various funds that complement each other. The fund from Poland conducts Due Diligence, conducts an in-depth analysis of the company for the purpose of its valuation. This DD also includes social proof, i.e. checking people related to the project through joint contacts. Asian funds are testing the market demand, confirming there is a niche to fill. The fund from the south of Europe analyzes all activities in terms of technology. It can be said that thanks to this, GamerHash is checked by the VC along and across. Each partner helps in what they feel best in, which opens up a lot of new possibilities. Thus, the plan to triple the number of users to 1,500,000 by the end of 2020 is very realistic. – emphasizes Patryk.
Hybrid financing model It is this combination of two parallel fundraisers that has made GamerHash a pioneer pioneering a new hybrid financing model. Due to the past in the blockchain world, when someone hears about tokens or ICOs, they imagine an empty shell and a scam. It’s hard to disagree if so many projects collected really astronomical amounts with absolutely nothing but an idea or even worse simply made exit scams. While others were organizing ICOs and fundraising in 2017, GamerHash developed its product.
Small investors buying tokens have limited room for action in terms of project analysis. They check the website, whitepaper, onepager, they have no experience or tools that VC funds have. If the company goes through the DD of the fund, the risk on the part of people buying tokens decreases drastically.
GamerHash together with Filip “neo” Kubski on the BlockShow 2019 stage in Singapore
The cryptocurrency adoption will take place through games
The difficulty of mining cryptocurrencies is growing, and the number of registered users with weaker computers is also increasing. To monetize this movement, it was necessary to devise a new way to engage people and pay them for something other than mining. This is how the Play & Earn module was created that rewards users for playing. Gamers, as native users of game items, have a well-established awareness that digital save has a specific value. This is why it is easy for them, as it is easy for anyone else (except the crypto world) to understand the translation of digital value into value in the real world – for years players have been trading in game items paying sometimes thousands of dollars. Players know what tokens are, and people from the cryptocurrency industry see potential in gaming.
Gaming will be big and probably one of the earliest industries to take off in blockchain.
– CZ Binance (@cz_binance) July 31, 2019
Binance Exchange CEO: Gaming will be a large and probably one of the first industries to adopt blockchain.
An additional factor that may influence the adoption of cryptocurrencies is the simple possibility of making everyday purchases with them. GamerHash has created a mobile application for iOS and Android, thanks to which users can easily control their “mining” computers and earnings. In addition, the application allows you to easily purchase food products using cryptocurrencies. Once in the store, the user can exchange his spoil for a voucher of a specific value. Then, on the phone, he shows the barcode at the checkout and in a minute the cryptocurrencies are converted into real-world purchases.
Gaming companies on the WSE Currently, also due to the pandemic and forced stay at home, the gaming industry is recording further growth. We can observe a rash of small game companies, some of them will be attracted to the stock market. After all, the largest Polish company is CDPROJEKT, a game producer. Another good example is the company of Maciej Popowicz, Ten Square Games, which is a world leader in the fishing simulator. Figuratively speaking, TSG sells virtual fishing rods just like KGHM sells copper and silver. The success of CDR is another factor after the pandemic, influencing the development of the gaming industry in Poland.
GamerHash on the stage of AIBC Summit Malta
The overriding goal for the future is expansion to Asia. It is the largest market in the gaming industry that sets global trends. GamerHash also decides to increase the conversion of its users. Currently, a huge number of people are registering on the platform and there are not enough hands to handle this movement. The collections carried out will allow the team to scale along with the traffic scaling, providing the highest-class customer service. Outside of Asia, the Russian and American markets are in the spotlight.
To sum up, few cryptocurrency startups in our country can boast of so many won titles, the number of users and the interest of investors. The question remains open – how will the new financing model be adopted and will future projects follow GamerHash’s footsteps? From the perspective of an individual investor, it is a very attractive model that minimizes risk thanks to an advanced due diligence process carried out by professional VC funds. Currently, there is no adopted name for two parallel fundraisers, maybe Seed + Token or VC + TO (Venture Capital + Token Offering) would be the right one? Write your suggestions or if you have questions on [email protected]