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Home DeFi Web 3

Decrypt: the Reason Behind a Crypto Startup’s Acquisition of a Popular ‘Roblox’ Stock Trading Game

Ryan Gladwin by Ryan Gladwin
August 17, 2024
in Web 3
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Decrypt: the Reason Behind a Crypto Startup’s Acquisition of a Popular ‘Roblox’ Stock Trading Game
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Last week, crypto educational gaming startup
PiP World
announced acquired a Roblox stock-trading game called StockRise, which raised some eyebrows. Why would a crypto company buy a user-created game on a platform largely populated by kids and teens?

Roblox
allows users to create their own games and worlds that anyone can explore and play in. Within the curated “learn and explore” section of the game, StockRise sits as the only financial educational experience. As such, the world has garnered over 7 million visits to date over its three-year lifespan.

In
StockRise
, players are invited to take control of a virtual portfolio as a way to learn how to make money by investing in the stock market. Part of this experience includes being able to simulate the act of trading cryptocurrencies—all without the risk of handling actual tokens.

Now, thanks to PiP World’s move, StockRise will boost its crypto educational efforts with new courses like “How to Not Get Rekt”—a lesson that traders of all ages could benefit from.

Gamers can play “Guess the Price.” Image: StockRise

PiP World
CEO Saad Bachir Al Naja and VP of Partnerships Adam De Cata know the space well, having played other stock trading simulators as kids. In many ways, that experience inspired the creation of the company.

“Founding PiP was all about: How can you gamify trading and investing, and make it fun?” Al Naja explained. “The vast majority of people have no idea how to manage their money, right? You’re not taught in school how to manage your finances.”

In turn, the company was looking to create a
Roblox
world due to the massively popular platform having over
200 million monthly active users
—most of which are
under 18 years of age
.

As PiP World weighed the possibility of creating its own Roblox game and attempting to grow an audience, they stumbled upon StockRise, which was already dominating the sector they wanted to enter. Instead of competing, they simply acquired the game for an undisclosed fee.

“If you get a few things right from [a young age], it changes the trajectory of your life,” Al Naja told
Decrypt
.

Buy or sell Ethereum price
Players can buy and sell virtual Ethereum tokens. Image: StockRise.

PiP views the
Roblox
game as a funnel into the rest of the ecosystem they are building.
PiP Trader
is a mobile app that will be the company’s “core gaming experience,” launching in Q4 of this year. Meanwhile, PiP Academy will utilize AI to provide a richer and more in-depth educational product, launching around Q2/Q3 2025.

👾 PiP Trader is Here, You Legends! 👾

The world’s first arcade-style AA trading game where you compete with your financial know-how 📈

Dive into this 🧵and see how you’ll have a memorable time as you stop sucking at trading 👇 pic.twitter.com/eJZRMduwne

— PiP World (@ThePiPWorld) August 12, 2024

“Roblox is our future generation of users,” said De Cata, while the mobile game will be targeted at users 13 and older.

Once part of the broader ecosystem, users can interact with play-to-earn elements by converting points into real cryptocurrency. In order to interact with this, users must prove that they’re over 18 through a
know your customer
(KYC) process.

De Cata said that much like companies need a presence across multiple social platforms to “derive different audiences,” PiP World sees much the same in the gaming world. Roblox will be just one of many funnels into the ecosystem that the company is building.

“In time, I’d love to see how each and every person ends up downloading the app and what their experience is,” he said. “But ultimately, that’s where that bridge of Web2 to Web3 happens.”



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Tags: acquisitionCryptoDecryptGamePopularReasonRobloxStartupsStockTrading
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