Introduction
One of the early online video gaming pioneers in China, Snail, Inc., a publicly traded American subsidiary, has recently expressed its intentions to venture into the world of digital assets, with plans to launch its own USD-pegged stablecoin.
Plans for Fundraising
Snail, Inc. unveiled its plans in a recent press release, announcing that the company aims to raise funds to support its anticipated exploration into the world of digital assets. The company has signed an agreement with the investment bank H.C. Wainwright & Co. to sell its Class A common stock worth up to $4.5 million in an at-the-market offering.
Supporting Digital Asset Initiatives
The primary purpose of the proceeds generated from the sale would be to bolster the company’s digital asset initiative. This includes the evaluation and potential development of its proprietary U.S. dollar-backed stablecoin. This strategy will put the company at the forefront of the rapidly evolving digital entertainment industry.
Furthermore, part of the funds will also function as reserve assets for the stablecoins that Snail plans to issue. This proactive step will ensure stability in the market offering and lends credibility to their new enterprise.
Market Response
The market responded positively to this news with the company’s shares, trading under the ticker SNAL on the Nasdaq, jumped 6.3% from $0.95 to $1.01. Today, the shares are trading around $0.99, marking a 4.6% rise over the last five days, but showing a nearly 30% fall on the monthly scale.
Going Public and Future Plans
In November 2022, the firm went public via an initial public offering (IPO), a move that was part of a broader innovation roadmap. This roadmap also detailed potential plans about integrating stablecoin infrastructure into the company’s business model and further emphasizes the company’s drive to be a key player in the future of digital entertainment.
However, the company stated that the final decision about integrating stablecoin infrastructures is yet to be made and may require additional capital. This move will likely position them as an early mover within the digital entertainment industry.
About Snail, Inc.
Founded in the year 2000, Snail Inc’s parent company, Suzhou Snail Digital Technology, also known as Snail Digital, is considered one of the largest producers of 3D digital culture entertainment in China. The company mainly specializes in the development of multiplayer online games (MMORPGs), real-time strategy games, and casual games. Snail has an extensive global user base which has grown to over 70 million and shows no signs of slowing down.
Conclusion
Despite its evident growth and success, Snail Inc. continues to innovate and expand its horizons, seeking to capitalize on the digital assets market. The gaming industry has been quick to understand the potential of blockchain and cryptocurrencies, with several gaming companies like Playtron already introducing proprietary stablecoins, and Snail’s recent announcement suggests that this integration between gaming and blockchain technology is only set to grow.
