Video games have come a long way since the first Pong game was released in 1972. Now, gaming has become an essential part of modern entertainment culture, attracting millions of players from all over the world.
While gaming is largely driven by the excitement of competition, many gamers also enjoy receiving rewards and recognition for their talents and achievements. This is where Buff comes in – a blockchain-based platform that rewards gamers for playing their favorite games.
In this article, we will take a closer look at the history of Buff, its founders, business model, and expansion into the gaming world. A Short History of Buff:
Buff’s Founders and their Backgrounds:
Buff was founded by three Israeli entrepreneurs: Elay De Beer, Ophir Gertner, and Ophir Sarapi.
All three of them have extensive experience in the tech industry and share a passion for gaming. Elay De Beer previously worked as an engineer at Google, while Ophir Gertner and Ophir Sarapi co-founded the social networking site “ARTtwo50.” The three of them came together in 2017 to create Buff, with the goal of creating a blockchain-based loyalty program for gamers.
Buff’s Original Business Model and Partnership with Overwolf:
Buff’s original business model was based on an initial coin offering (ICO) which raised over $33 million to fund the development of their blockchain-based loyalty program. The company partnered with Overwolf, a platform that enables developers to create game-enhancing apps, to launch its platform.
The Buff loyalty program was designed to reward gamers for playing their favorite games and completing in-game objectives. Users could earn “BUFF coins” which could be redeemed for real-world rewards such as vouchers, gaming hardware, and virtual currency.
Buff’s Transition to a Traditional Fundraising Model:
In 2018, Buff announced a change in its fundraising strategy, moving away from the ICO model and towards traditional fundraising. The company secured investments from Intel, 10th Street Ventures, and Overwolf’s Gaming Fund.
The decision to move away from the ICO model was made to help the company comply with the increasing regulations surrounding the ICO market. Buff’s Beta Launch and Expansion of Supporting Games:
In February 2019, Buff launched its beta platform, which included support for a limited number of games, including Fortnite, League of Legends, and Counter-Strike: Global Offensive.
The platform was met with enthusiasm from the gaming community, and Buff quickly expanded to support additional games, such as Minecraft, Apex Legends, and Overwatch. Buff’s expansion strategy was designed to cater to different gaming communities and provide rewards for a broader range of game genres.
Buff’s Growth in 2020 and IPO Funding:
Despite the challenges presented by the COVID-19 pandemic, Buff continued to grow in 2020. The company reported a 500% increase in monthly active users compared to the previous year.
In December 2020, Buff raised an additional $4 million in funding through an initial public offering (IPO) on the Frankfurt Stock Exchange, enabling the company to expand further and reach more gamers. Conclusion:
Buff has quickly established itself as a leading platform for rewarding gamers for their achievements.
With the support of investors such as Intel and the Overwolf Gaming Fund, Buff has been able to expand quickly and appeal to a wide range of gaming communities. As gaming continues to grow in popularity, Buff is well-positioned to become a significant player in the industry and provide gamers with a new level of recognition for their hard work and dedication.
How Does Buff Make Money? As a blockchain-based platform, Buff operates on a freemium model, where users can access basic features for free or pay a fee to unlock additional features.
In addition, Buff has also diversified its revenue streams through advertising revenue, subscription revenue, and interchange fees from its BuffPay debit card. Advertising Revenue:
One of the ways that Buff generates revenue is through advertising.
The platform offers advertisers the opportunity to reach the highly engaged gaming audience on Buff’s platform. Advertisers have the option to place ads within the Buff app, and Buff receives revenue based on either the number of clicks, impressions, or conversions.
Since the advent of ad-blockers, companies have been faced with decreasing advertising effectiveness, but Buff’s gaming audience is unique. In these case, advertising on Buff is effective since players are less likely to use ad-blockers.
Players usually want to watch ads for certain rewards and feel more connected to the games they are playing. Buff has taken advantage of this flow, and its players watch ads willingly to claim Buff coins.
Subscription Revenue:
Another source of revenue for Buff is through premium subscriptions. While the basic functionality of Buff is free, the platform offers additional premium plans to gamers who want more advanced features.
Subscribers have access to features like a higher earning potential, faster payout processing time, and additional ways to earn BUFF coins. Subscription fees range from $5 to $100 per month.
Interchange Fees from BuffPay Debit Card:
BuffPay is a debit card launched by Buff in 2020. The card is linked to a user’s Buff account, allowing them to instantly access their BUFF coins and use them in real-world transactions, such as purchasing in-game items from partnered gaming stores.
BuffPay users can also earn up to 6% cashback on purchases made with the card. BuffPay makes money through interchange fees, which are the fees paid by merchants for processing a card transaction.
Who Owns Buff? Buff is a privately owned company, with its founders still holding majority ownership stakes.
Elay De Beer, Ophir Gertner, and Ophir Sarapi founded Buff in 2017, and they own a significant share of the company. Buff has also received funding from various sources, including Overwolf’s Gaming Fund and Intel.
These investors received equity in the company in exchange for their investments. Buff’s Funding History:
In 2018, Buff announced that it had raised $1.5 million from investors.
The company also secured investment from Overwolf’s Gaming Fund, which was created to fund gaming startups that leverage the Overwolf platform. Along with that, Intel invested an undisclosed amount in Buff in 2018.
Buff announced in December 2020 that it had raised $4 million through an IPO on the Frankfurt Stock Exchange. The funds will allow Buff to expand its platform and reach more gamers.
Additionally, the IPO will increase the liquidity of Buff shares and provide investors with an opportunity to own a stake in the company. Conclusion:
Buff’s business model is focused on driving engagement and loyalty among gamers, with the goal of rewarding them for their skills and achievements.
By offering advertisers a highly engaged audience and providing users with additional features through premium subscriptions, Buff has diversified its revenue streams. Additionally, Buff has taken advantage of the growing trend of debit cards and launched its BuffPay debit card, which generates revenue through interchange fees.
Through these revenue streams, Buff has been able to generate funding and expand its platform to reach more gamers. In summary, Buff is a blockchain-based platform that rewards gamers for playing their favorite games.
The company was founded in 2017 by Elay De Beer, Ophir Gertner, and Ophir Sarapi and has since expanded to support a wide range of games. Buff generates revenue through advertising, subscription fees, and interchange fees from its BuffPay debit card.
The company has received funding from investors such as Overwolf’s Gaming Fund and Intel, and most recently raised $4 million through an IPO. Buff’s success highlights the growing importance of the gaming industry and the potential for blockchain-based platforms to revolutionize the way gamers are rewarded.
With Buff’s continued growth, the gaming industry is set to become even more exciting and engaging for players worldwide.