P.Three, Turning illiquid billion dollar industries into tradable new asset classes.

Massimo Mannoni
5 min readFeb 21, 2019

3. Introducing Infinity Trades.

“Shapps is the app financial marketplace enabling investors, traders & apps developers to list, buy and sell tokens representing a percentage of apps’ future internal revenues”

Apps is the first compartment being released for Infinity Trade and managed by Shapps. We decided to concentrate on Applications, which are common recognizable assets, whose value is easily identifiable, as it is based on real and certified revenue flows and therefore linked to the actual yield.

In short, Assets that incorporate logics of economic performance.

Shapps provides the opportunity to invest in single applications thanks to the combination of a Term Sheet and a Smart Contract securing the contractual rights in the future internal revenues of an App to Investors as opposed to issuing asset backed tokens.

Tokens are issued inside our primary market, and comprise a transferable contractual right entitling token holders to a pro-rata share of Apps’ future revenues.

Benefits of App internal good flows Tokenization

Our goal is to create an ecosystem where users, developers, investors and traders would receive more benefits utilizing our platform capabilities as opposed to remainingself-contained.

Shapps can be used as a leverage for the conversion of Gamers to Investors as they are loyal customers and supporters, improving the bond with the hardcore community. The gamers themselves are then incentivized in the further development of the community because of the possibility to either acquire internal goods in the game or cash out their investment.

The detention of App tokens will be rewarded through a loyalty program. The issuer of the token undertakes the duty to send Ether to the “loyalty distribution” contract, equivalent to the monthly App’s internal goods flows, which is converted into equivalent App tokens, that are then distributed pro-rata among the token holders.

Shapps can also be used by the developers as a pre-sale channel of app’s internal goods, converting a forecast of future flows into a tangible asset. This permits a completely new adoption and retention mechanism.

We are also envisioning a future where the token holder may, at any time, send the tokens in thei rpossession to the designated wallet of the issuer and be credited with the related internal goods and use them according to the Apps internal features. Apps tokens can also be used to buy in-app packages and features, as well as a trading instrument into our platform.

Look and feel

Monetization Clusters

IAPs(In-AppPurchases): In the US the average transaction value for an iOS/Android in-app purchase is $14. Notably, 51% of revenue generated from in-app purchases comes from transactionss of $20 or more(Source:Flurry)

Users are grouped by intensity of«consumption»in three clusters:

Whales, Dolphins and Minnows:

a) Superdata research putsWhales as the top 15% of spending users and Dolphins as the next 35%.

b) Whales generate half of the revenues while Dolphins generate roughly a third. Minnows — users

who spend between $1 and $5 — generate 15% of a games’ revenues.

The top 15% spent exponentially more than the bottom 50%.

It is therefore essential for free-to-playgamesto define theirmarket and to focus on retaining the top spenders via regular updates

According to Chartboost, CPI(costper install) ranges between $0.94(GooglePlay in the UK) and $2.79(iPadin France).Onaverage, CPI on iOS is$1.24 whileon Android it is$1.31.

Taking into prospectivethe CPI andthe Average Revenue Per Paying User(ARPPU)paid user acquisition appears effective.

Thisrevenue model demands a continuous investment in marketing, explaining why new capitals are required to support growth.

4 — Market Participants and benefits

Shapps marketplace introduces a new tradable asset class, allowing investors andissuers to, respectively, leverage on distinctive financial & strategic benefits:

Investors

  • Cash Flows: a dividend-like model
  • Value: one of the fastest growing economy sectors
  • Tradeability: volatile underlying
  • Liquidity: a secondary market

Issuers

  • Fundraising: time-limited revenue-based financing
  • Value: limited equity dilution(ifany)
  • Business Development: customerengagement
  • Liquidity: a secondary market

6 — Investor Side

A new tradable asset class, allowing investors to diversify their investments. With the volatility of a stock and a“dividend model” like a bond, Shapps allows investors to access two digits growing economic sector: the app market.

With more than 80 billion spent on “in app purchase”, apps are the best example of a digital asset based on a real business.

7 — Trader Side

As a derivate of the projected revenues the token price will change based on trading patterns, charts, metrics, news, flows, even over short periods of time.

Both smart traders and scalpers can benefit from stable recurrent flows and volatility respectively.

To be continued.

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