Animoca Brands, a blockchain gaming startup, has entered the education space with the acquisition of TinyTap, a Tel Aviv-based edtech company, for approximately $39 million in cash and stock.
Animoca Brands issued 2.3 million ordinary shares for A$4.50 (US $3.1) each, coupled with US $27.2 million in cash, as part of the deal.
The agreement, which offers Animoca an 84 percent ownership in TinyTap, will aid the latter in establishing a new business sector for user-generated content (UGC) on the blockchain for educational content, allowing educators to build their own equity.
TinyTap is a UGC edtech business that offers a no-code platform that allows educators to develop and distribute interactive educational content while receiving a revenue share depending on use.
“Educators number among the most prolific creators and traders of content,” said Animoca Brands co-founder Yat Siu. “Despite the fact that teaching is among the most important professions, educators generally struggle with funding and resources.”
Animoca Brands wants to use blockchain technology to allow schools to tokenize digital content and rent or sell it instead of licensing it on a temporary basis.
Furthermore, blockchain-based assets have the potential to be interoperable, allowing firms to collaborate with one another and content producers to distribute their work across several platforms.
TinyTap provides an alternate money stream for instructors. The subscription profit is shared with content providers when a subscription is purchased or renewed. Individual content providers’ compensation is determined by the amount of interaction their material generates.
