Toronto-based cryptocurrency and Web3 firm Tokens.com has put its domain up for sale and entered into an agreement to sell two of its subsidiaries to online social entertainment and gaming platform StoryFire.
Tokens.com is exploring the sale of the Tokens.com domain name with an initial asking price of $8 million USD.
Tokens.com will be selling the assets of Metaverse Group and Hulk Labs in exchange for a 15.3 percent equity interest in StoryFire, valued at $3.5 million USD, and $500,000 USD worth of Storyfire’s in-app currency, Blaze tokens. The sale is expected to close March 1.
UPDATE (03/04/24): Tokens.com closed the sale of Metaverse Group and Hulk Labs to StoryFire as of March 1, 2024.
“This transaction provides Tokens.com shareholders with several benefits, including the continued buildout of Metaverse Group by a strategic acquirer. StoryFire is a successful social media brand with over 2 million users and the capital to expand the growth of these businesses,” Tokens.com CEO Andrew Kiguel said in a statement.
Alongside this sale, Tokens.com said it has retained a third-party broker to explore the sale of the Tokens.com domain name with an initial asking price of $8 million USD.
Tokens.com builds products and acquires businesses in the crypto staking, metaverse, and play-to-earn gaming space. Following the close of this sale, however, Tokens.com will have no active business in metaverse or web3 gaming, except through its ownership in StoryFire.
The company trades publicly on both Cboe Canada (formerly known as Neo Exchange) and the Frankfurt Stock Exchange.
RELATED: Tokens.com slashes headcount by 40 percent in push to cut costs
The sale follows Tokens.com laying off 40 percent of its staff in November 2023 to better withstand market conditions, according to the company, adding it was considering “a full or a partial sale of business segments or [intellectual property] within those segments,” including its Tokens.com domain name.
Tokens.com acquired a 50 percent stake in Metaverse Group in 2021 before nabbing the remaining stake in 2023. Metaverse Group got its start renting “digital land” in the metaverse, making headlines after purchasing one “plot” for a crypto equivalent of $2.4 million USD.
As interest in the metaverse waned over recent years, the subsidiary was impacted by the November 2023 cuts, and Tokens.com management expressed disappointment in Metaverse Group’s ability to generate revenue as it shifted its focus to help clients connect with customers through 3D experiences.
Developers and certain intellectual property from Hulk Labs, its Web3 game developer, will continue to be worked on and shared with StoryFire’s audience, Tokens.com said.
Kiguel said it expects this sale and other cost-cutting measures to result in an annual savings of approximately $1.5 million CAD, while the company holds approximately $3.7 million CAD in cash, $15 million CAD in cryptocurrency tokens, and a portfolio of domain names that are for sale.
Feature image by Alesia Kozik via Pexels.