In Peter Leeds’s book How to Invest in Penny Stocks, which explains to readers how to participate wisely in investing in small-cap companies, one of the fundamental aspects of making an investment decision is understanding how high a priority , developers deal with the creation of intellectual property. Small capitalization companies are those that, due to their recent listing on the market or that are listed below 2,000 million dollars, have not yet been able to exploit the maximum performance of their potential. Being Sky mavis a company that despite its social success, is still not capable of generating that amount in market capitalization, how useful can the continuity of its development be for the AXS and SLP?
What makes an idea yours and the benefits generated by it?
As defined by Investopedia, the intellectual property is the description that indicates the set of intangible assets, which are owned and legally protected by a company, in order to prevent any external entity from using it without the owner’s authorization of this intangible property. It should be understood that the definition of intangible asset is a form of non-physical product that belongs to a company, which is related to what comes from the human intellect and to which it must be applied, the same rights that base physical property, which are understood as tangible assets. Countries with developed economies They have laws that protect this type of product, since it is understood that it is what sustains the value in a society that is progressing more and more. convert the information and its application into astronomical profitability. Finally, the creation of intellectual property implies an investment of hours of thought made by people with skills considered scarce for its implementation, this means for investors, that while no other company can take the intangible asset of their investment, it will be possible to thus taking care of the amount of money they have in the company.
What are Sky Mavis intangible assets and the basis of their value?
Unlike a conventional company, where the quantity of products can determine the monetary value of the entire conglomerate, such as inventories, entry and exit of merchandise, movable and immovable goods and so on; the intellectual property of Sky Mavis It does not have any other limit determined in value than that which investors and players can establish, this through the purchase and sale of the cryptocurrencies developed by the company. Therefore, it is important to understand that the intellectual property of Sky mavis It is linked to mobile applications, launcher for pc, development of smart contracts in conjunction with all the source language, database, functionality and other implications that are related to its correct operation. All the aforementioned and in much more detail, is protected under copyright laws and trademark laws, under the legislation of the Cayman Islands and International Conventions.
So, does the development and improvement of this intellectual property have any impact on the price?
The Ronin presentation it was the first time the company sought to overcome the high transaction taxes they had to pay for the Ethereum network. When it was announced, the price of the AXS rose $ 1.89 which meant a rise of 20.68%, demonstrating what would successively be successful days for the asset price in relation to the development of intellectual property.
The day the AXS staking was announced, the price managed to move 74% higher and also managed to position the asset towards its last historical maximum. AXS staking allowed developers to be able to recover part of the liquidity that had been offered in the market, generating scarcity for the asset and increasing its price as a result of the supply demand law. Although the staking mode is not exclusive to developers, the AXS is a governance token that has partially the same benefits as the stock of a company listed on the stock market. This movement may have been regarded as a Reverse Split, that seeks to reduce the number of shares in the company.
Recently, with the launch of the decentralized platform Katana, the company wants to offer its users the ability to exchange their cryptocurrencies between the different assets, which are used by the application. The functionality of decentralized exchanges is to allow exchange between different assets, without the need for a bank or any third-party application that implements smart contracts. It is then that Sky mavis Through a new implementation, he wants game-related assets to be received, exchanged and traded from anywhere at any time with his low-cost Ronin network. This movement implied a change of 22% with respect to the previous day since it was announced.
Can the investor generate future profits based on intellectual property?
As mentioned above, unlike tangible assets such as property or objects available for sale, intellectual property can grow over time with virtually no limit. Tangible assets suffer from the passage of time, it is necessary to carry out maintenance and these maintenance generate a tendency for their value to depreciate in the future.
Instead, and as explained in the previous paragraph, the improvement of the intellectual property of Sky Mavis is projected with each new launch in lowering the costs for their transactions, allowing developers to put their focus on continue solving problems perceived by the community. This allows us to anticipate as beneficial the next announcements that will be made by the company, among them we have:
Battles Version 2: It will be a massive update that, according to the developers, will make Axies faster, more fun and easier to play with family and friends who are just starting out. The last announcement that the game mentioned regarding this, they noted that they are balancing the cards, improving the art and animations and an easy-to-use interface.
Land: probably the game mode that generates the most enthusiasm for players, since it will allow Axie to become a game with massive scale and implications that are linked to the development of the metaverse. The intention of this game mode will be to gather resources and build structures and decorations, where players will eventually fight for control of neutral territory and build the experiences of land owners.
Ronin: Despite its short implementation time, it has already managed to become the most widely used auxiliary chain of the Ethereum network, this will allow all new NFT games to be able to use the technology developed by Sky Mavis and create their own game with the developed ecosystem. .
To finalize another of the benefits implied by intangible assets, are the Remuneration obtained for property rights regarding the sale of licenses. This is how the creator of the game Angry Birds, managed to generate 20% of the company’s income just by allowing access to the sale of licensed products.
Then it should be understood that according to the terms and conditions of use of Axie Infinity, Each of the players can generate arts, stories, characters, using the art provided by the company as a base, but this can only be done by generating benefits of up to USD 10,000, which once achieved must be requested by special permission from the company. company, Will we ever see an Axie Infinity movie, animated series or comic that is capable of generating more than that amount of profit?
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