[Click eStock] "Longtu Korea launches 2 WEMIX NFT-based games... Challenge to MIR4"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 10th that Longtu Korea is expected to release two P2E games based on WEMIX NFT. No investment opinion or target price was provided.

Longtu Korea is a game publishing and development specialist company listed in 2015. It holds Yeolhyeol Gangho as its main intellectual property (IP). Through its subsidiary Lantu Games, it has secured the IPs of Tera, ArcheAge, and Fist of the North Star.

Researcher Jaeyoon Kim of KTB Investment & Securities said, "In mid-2022, the company plans to globally launch Yeolhyeol Gangho as a WEMIX coin-based NFT P2E game in collaboration with Wemade," adding, "Sword and Magic is also expected to be globally launched as a WEMIX NFT P2E game within this year."

Due to the nature of NFTs, the in-game currencies of Yeolhyeol Gangho and Mir4 can be traded using WEMIX coins. It is expected that the user base of Mir4 will flow into Yeolhyeol Gangho through the same currency (WEMIX).

He emphasized, "The rapid increase in Mir4 users in a short period this year is due to the P2E structure that allows cryptocurrency mining within the game," and added, "Yeolhyeol Gangho adopts the same P2E structure, so Mir4 users can naturally transition to Yeolhyeol Gangho."

He explained, "Users of WEMIX NFT-based games will be connected through a currency system using the same base currency," and continued, "In other words, Yeolhyeol Gangho can share users with Mir4, which has about 1 million concurrent users, through WEMIX."

He added, "Since Mir4 and Yeolhyeol Gangho are independent games, Mir4 mining users are likely to simultaneously access both Mir4 and Yeolhyeol Gangho to mine Black Iron and mine within Yeolhyeol Gangho."

Researcher Kim also emphasized that the market capitalization is attractive. He explained, "The number of users entering WEMIX-based games is expected to show little difference between games," and added, "If a similar level of users enter each game, Longtu Korea, which currently has a market capitalization of 185.4 billion KRW, is considered the most attractive."

He further added, "Longtu Korea holds a 10% stake in Wemade Tree, and in the event of a merger between Wemade and Wemade Tree, the value of Wemade shares held by Longtu Korea is estimated to be about 16.8 billion KRW as of now."