MPL Acquires NFT Marketplace GGX for $12.75 Million
MPL, recognized as Mobile Premier League, has announced its acquisition of the NFT marketplace, Good Game Exchange (GGX), which includes obtaining tokens held by existing investors. As reported by Entrackr, this transaction, valued at $12.75 million based on regulatory filings, was completed through the issuance of 25,19,465 Series E preference shares to the current investors.
Following a prior collaboration between MPL and GGX, which began before the T20 cricket world cup, MPL acquired a 20% stake in GGX. This move was strategic, intending to facilitate digital card trading among players on Striker, MPL’s Web3-based fantasy gaming platform. The collaboration’s NFT component allows for the exchange of digital collectibles. As part of its global gaming expansion, MPL launched its services in Africa earlier this year. However, the online gaming sector faces increased GST burdens and tax evasion issues, prompting some companies to downsize or halt operations. MPL itself had to release 350 employees in August after the announcement of the new GST rate.
Despite the considerable potential of the NFT and Web3-based gaming market, regulatory uncertainties persist. While the sector holds promise, it grapples with challenges such as regulatory constraints and concerns about malicious actors, prompting government interventions. In this landscape, certain Web3-based NFT gaming platforms like Striker continue to thrive, despite facing obstacles such as legal disputes, notably exemplified by the lawsuit filed against Rario.
