COTI is about to announce who their first private payment network client is and thought I would spend an hour or two researching to see if I can guess who it might be. The first PPN for COTI is a big deal as this showcases the technology they have developed over the last 2 years. This client that they are about to announce is big in gaming and that could mean a few things either gambling or gaming or both combined. The bigger the better as the service fees filter back as APR feeding the investors staked within the Treasury.
The stable coins being created for this unknown gaming client will be in Indian Rupees known as the digital INR token followed by digital currencies in the Chinese Yen, Korean Won, Thai Baht, British Pound and Euro. Just using common sense having 6 stable coins tells you it is a big enterprise and note for now no USD on the list.
COTI's CEO Shahaf Bar-Geffen is also Chairman of Uncaged Studios which is an Israeli based gaming company. This leads us onto who else is involved in Uncaged Studios and that is someone called Raz Friedman who is the co founder and is also the Chief Product Officer. Raz in his previous job title was the CPO for Playtika from the very beginning in 2010 until last year where he went on his own. He was there for over 12 years and his influence and contacts within that company will be second to none.
The tech start ups in Israel will be a small interconnected community with everyone knowing someone who knows someone else. Playtika was sold 4 years ago to a Chinese investment company, but is still based in Tel Aviv under the Chairman and founder Robert Antokol. From my research Playtikka does not have a high turnover of staff and many in senior positions view Raz as a mentor helping them achieve what they have. This is the key as they will listen to his advice and still seek his guidance. Raz is linked with Shahaf Bar Geffin through Uncaged Studios and will understand the PPN COTI has developed knowing how it would benefit a company like Playtika. Being the first PPN COTI would be looking locally and with this moving so quickly from the announcement date till now it has to be with a company thy know
If we look at where Playtika is currently and how they are performing this will give us more information of why I think they need to change things up.
The United States for obvious reasons cannot be included right now in the stable coins for the PPN but all the other regions can and they are Europe and Asia which is the currencies on the list for launch with this PPN.
As you can see total operating expenses is rather high coming in at $1.4 billion and finding ways to cut back is always going to be a priority. The PPN does this by getting rid of FOREX costs by using crypto instead streamlining the payment network removing fees altogether. There will be service for for COTI, but in comparison it would be minimal.
Playtika has struggled to show year-over-year growth. In the third quarter of 2022, year on year growth was only 1.87%, while operational expenditure increased and net profit fell to 15%.
At the end of last year Playtika had to lay off 600 employees globally and was obviously concerned with stagnant revenue growth. This again aligns with cost savings and looking for alternative solutions.
Changing and controlling their PPN would be a first for crypto on this scale with the number of daily users involved.
Losing 200K users daily is a big number and they need to attract those users back and possibly reducing fees and offering special discounts through their controlled PPN would change things up and be different.
This COTI PPN that is close to launching may or may not be Playtika, but I firmly believe it is as it fits the Enterprise profile and userbase. COTI spoke about a soft roll out and you only talk in that way when the numbers are big.
Posted Using InLeo Alpha
Whenever such special updates are made in the project, we see that within a short period of time, the project will have a lot of investor interest and then within the next period of time, the price will go up to us.