Hello, there. I’ve got a case of diamonds and gold I no longer need.
Interested?
Full disclosure: these precious metals aren’t real. They’re digital. I earned them from one of my favorite video games.
But they’re still valuable. In fact, to the right buyer, they’re worth a lot.
So today, I’ll show you where I intend to find a buyer.
Furthermore, I’ll explain how the situation I’m writing about today could potentially make you 21x your money — more than enough to buy yourself some real diamonds and gold.
Stats on the Gaming Industry
I love playing video games. So do three billion people worldwide.
In 2023, the industry generated $196 billion in revenue. By 2028, that figure is projected to reach $257 billion.
In the past, companies made money selling physical copies of their games. But nowadays, most games are digital and free, so revenues come from “in-game purchases.”
You see, every game has an objective: defeat an opponent, win a race, tally a high score, etc. But for a small cost, companies offer tools to help players beat an opponent or finish a game faster or more easily. These tools — gems, rubies, weapons — are referred to as in-game purchases, or micro transactions.
Many in-game purchases cost just a few bucks. Their affordability is what makes them so enticing. But these small purchases add up…
Micro Transactions Create a Major Market
In 2023, 82% of U.S. gamers made at least one in-game purchase. Nearly a third of them spent at least $500 that year.
Last year, among video-game consoles like PlayStation and Xbox, micro transactions accounted for nearly a third of all gaming revenue — a whopping $14 billion.
The thing is, after a user has finished playing the game, their unused purchases are worthless. Players are stuck with them.
Or are they?
Introducing Gameflip
Gameflip is an online marketplace for the video-game industry.
Think of it as “eBay for gamers” — a platform that enables users to sell (“flip”) unused in-game purchases to other gamers.
Gameflip works like other digital marketplaces. Users download the app and sort through available assets like gems, tools, coins, and gift cards. When they make a purchase, Gameflip takes a cut of the transaction.
More than three million gamers have downloaded Gameflip. To-date, the platform has featured 80 million product listings, and facilitated $200 million in transactions.
But as the industry grows, Gameflip aims to grow with it. That’s why it’s raising capital. Specifically, it’s raising up to about $4 million from investors like you, with a minimum investment of $300.
Let’s look at some of the pros and cons of an investment.
Pros and Cons
Gameflip has several “pros” going for it. For example:
Fast Growth — Revenue reached $4.1 million in 2024, a 63% increase over 2023.
VC-Backed — Gameflip has raised $10 million from professional investors including Bullpen Capital, GoAhead Ventures, and Lightbank.
21x Profit Potential — Similar re-sale marketplaces like TCGplayer ($295 million) and eBay’s Classified business ($9 billion) were acquired with big price tags. Given its valuation today, a potential billion-dollar acquisition of Gameflip would hand investors roughly 21x their money.
Keep in mind that Gameflip’s success depends largely on consumers continuing to buy in-game purchases. That’s far from guaranteed. And given the size of the opportunity, competitors might come along and try to duplicate its business.
That’s why I’m not recommending that you rush out and blindly invest in Gameflip. Make sure to do plenty of research before you consider pulling the trigger!
But if you’re intrigued by the scale of in-game purchases and Gameflip’s potential, this might be a good one to explore.
You can learn more on Gameflip’s funding page here »
Happy investing,
Please note: Crowdability has no relationship with any of the startups or investment platforms we write about. We're an independent provider of education and research on startups and alternative investments.
Best Regards,
Editor
Crowdability.com
