Will HXRO take a bite out of BitMEX?
A fundamental valuation study by Wesley Pryor & Mazin Hamad
Hxro is a player-versus-player crypto gaming platform that intersects trading with skill-based social gaming. The platform gives users an exciting new way to play the nonstop price action of crypto. Players compete for prize pools and status against peers from around the world. It’s a completely new lane that combines elements of trading with skilled and social gameplay.
- The project was seeded with $500,000 in mid-2018, led by investment fund Gordian Block out of Chicago;
- A small token pre-sale in late November 2018 raised approximately $250,000 with a token price of $.02;
- The team is currently raising a second round of funding for $2,000,000, which is ongoing;
- The platform opened its closed beta to 463 initial testers in January 2019 and has a current waitlist of 145,000 unique users;
- Hxro is currently traded on IDEX and Bittrex International with a current price of $.08.
Extreme volatility is the magnet that attracts speculators from all walks of life to the nascent cryptocurrency markets. Each day those participants most entrenched in the space wake up to the possibility of a double-digit swing in either direction. The waves of euphoria and despair can be felt as the relentless volatility shatters one trader and enriches another. It is out of this primal battlefield that some of the most innovative trading products have emerged and flourished. In this report, we:
- Examine Hxro, an innovative product that caters to the heart of a volatility junkie’s desire by offering parimutuel cryptocurrency betting on five-minute price swings;
- Quantify the market opportunity for Hxro, examine the competitive landscape, and review the customer acquisition strategy, management team, and product progress;
- Discuss the market microstructure of current leading cryptocurrency trading venue BitMEX and the pitfalls that lead to market opportunity therein;
- Examine a) the theoretical basis for the supply, demand and velocity mechanics behind a pure payment token, and b) the influence of behavioral consequences and intangible value on network value.