Snail, Inc., the US subsidiary of one of China's first online video game developers. said it plans to raise funds to explore digital assets, including the launch of its own USD page Stablecoin.
In a press release published Thursday, Snail said he will sell up to $4.5 million worth of Class A common stock on the market offer. He said he had signed a contract with. The company said its revenues will primarily support “digital asset initiatives.” This includes the evaluation and launch of its own US dollar-backed Stablecoin.
Some of the funds will also be issued as reserve assets for Stablecoins' snail plan, according to the press release.
After being announced late last week, the snails trading on the Nasdaq under the ticker SNAL jumped from $0.95 to $1.01 with 6.3%. Today, SNAL has grown by nearly $0.99 over the past five days, up 4.6%, but is down almost 30% over the month. The company was made public via IPO in November 2022.
SNAL 5-day price chart. Source: Google Finance
In a filing with the Securities and Exchange Commission on August 7, the company explained the move, saying “the exploration of Stablecoin Infrastructure could position us as the early initiators of the digital entertainment industry.” The submission also said it still appreciates the company's integration of Stablecoin Infra “as part of a broad innovation roadmap,” but has not yet made a decision.
The company added that “additional capital to support strategic digital asset initiatives” referring to licensing requirements and compliance costs.
Suzhou Snail Digital Technology (also known as Snail Digital), the parent company of Snail Inc., founded in 2000, calls it “one of China's largest 3D digital culture entertainment production companies.” The gaming company focuses primarily on multiplayer online (MMORPGS), real-time strategy and casual gaming. Following the company's LinkedIn profile, its global registered user base has reached over 70 million people.
The rebel reached out to the snail for comment on the digital asset plan, but did not respond by press time.
In May, gaming operating system Pleitron announced the launch of its own Stablecoin, called Game Dollar, based on the SUI blockchain. M0, the company's Stablecoin Infra partner, said the move was to “unlock new economic groups that have been postponed for a long time.”
