FSA COMMITTEE
FINTECH FRIDAYS
16th April 2021
Theta Network - The Innovative Way to Stream
Ever wanted to watch a live stream but your internet could only dish out low quality, skyrocketing data needs and would always buffer? The problem here is that currently most content companies essentially keep all their content centralised in their own network. When a customer asks for specific content, the provider creates a direct connection to their customer, which is most likely always a big download. Mitch Liu and Jieyi Long cofounded Theta Network in 2018, where it combines the power of blockchain with video streaming, significantly reducing the extra data needed to stream directly from its source.
How it works simply is that once you have set up as a user of Theta, if you decided to watch a specific show / live stream on one of Theta’s supported video platforms and your neighbor decides to watch the same thing a few minutes later, chunks of the content from your platform would be transported to your neighbour utilising your extra bandwidth and facilitating smaller chunks of data, than data used if it was from directly from the streaming company. Every user that can rent out their unused bandwidth to facilitate the network will also be provided with Theta Fuel, such that you will also be paid for sharing content, which provides incentive for the whole system to be powered by users only. Currently Theta Fuel is trading at $0.35 USD, which is also ranked 68th on top coins on CoinMarketCap.
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The Theta Network Model
Theta Network’s platform provides both technical and economic solutions to the problems facing the streaming sector, large tech giants such as Samsung, Google, and Sony, have also recognised its potential impact in the future, with all companies running a validator node for Theta. Being a validator is a foundation of a blockchain network, deciding if a transaction is legit and vouching for that transaction. Without it, a decentralised network doesn’t work. Theta in early March also exclusively streamed the SpaceX rocket launch and broadcasted NASA’s Women’s Equality Day.
In addition to this the World Poker Tour, teamed up with Theta to launch the world’s first real-time NFT marketplace, whilst streaming exclusively on Theta TV. With more than 140 million viewers, it not only expands Theta integration allowing leading entertainment and streaming platforms like the World Poker Tour to lower their video delivery CDN costs by 50% or more while increasing user engagement, viewing times, and monetization. The World Poker Tour estimates that once users are fully integrated into Theta, this enables fans to earn as much as $10 to $15 a month by simply watching their content.
Theta, as of the morning of 16th April it is currently trading at around $15.95AUD. With T-Fuel trading at $0.4583AUD.
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Fintech Line of Credit Provider: Propell floats on the ASX
Incorporated in 2016, the young Brisbane-based Propell Holdings Limited operates a digital financing platform for the small to medium business segment in Australia. The fintech’s main product offering is the utilization of a proprietary credit technology to assess and offer businesses a line of credit ranging from A$2,000 to A$100,000. Moreover, Propell also provides their clients with a payment gateway to request payments from customers via various online payment methods as well as real-time actionable insights to manage and optimize cash flow.
Propell went for an IPO on the 14th of April 2021, successfully raising A$5 million at 20 cents per share. The shares climbed 40 per cent higher on debut at 11 am to 28 cents before closing the day at 23 cents per share. While Propell is a relatively young company, founder and CEO, Michael Davidson was quoted saying “We decided on going public because it allows us to raise the capital this time – and our decision has been validated we were six times oversubscribed for this IPO round – but it sets us up for the next phase (of growth".
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Davidson also believes that “There’s a lot of credibility being listed and a recognition from customers and businesses that listed companies are forward which is critical in the finance space where people are trusting you with their money.”
Propell’s current revenue stream stems mainly from their line of credit offerings with 6 month repayment periods. Propell’s customers would be charged fees of between 2 - 9.75 percent on the amount they drew down in the first two months, followed by 1 percent per month for the remaining four months. According to the website, Propell’s future product development plans include offering to buy now pay later services, longer duration loans, and merchant cash advance within the first half of 2021. If the new product offerings are implemented successfully, it would greatly benefit the company by increasing its sources of revenue streams.
Potential investors were told the company had helped more than 1200 customers. However, a quick glance at the company’s financial statements reveals (A$15.2 million) in accumulated losses which leave only A$5.6 million in equity value in contrast to the current A$22 million market cap. Large losses may be the norm for high growth tech companies, however, the stagnant revenue growth rates for FY18, FY19, and FY20 raise more concerns as to whether the underperformance was a result of Covid-19 or could there be other possible reasons for it.
Sources:
https://www.afr.com/street-talk/brisbane-fintech-propell-prepares-for-float-20210223-p57507
https://stockhead.com.au/ipo-watch/ipo-watch-fintech-propell-gains-40-per-cent-on-its-asx-listing/
https://propellholdings.com/wp-content/uploads/2021/02/Propell-Prospectus-Feb-21.pdf
The views expressed within this article are those of the authors and do not represent the views of the Finance Student's Association. All images and references in this article are for fair and educational purposes only. The content in this article is not intended as legal, financial or investment advice and should not be construed or relied on as such.