Stagnant target market with signs of depression. The opportunity for large corporate players to enter the market.
Decentralization can not lead to a significant jump in the signal quality, since the mining capacities are often geographically tied to specific places, hence, problems with the coverage of some areas are possible. Restrictions on the minimum necessary Internet connection speed for service users play a deterrent role for the project development in less developed markets like LATAM, thus, the service can at some point have problems with scalability, not related to infrastructure. The value proposition level ischallenged due to the fact that the project did not attract the interest of major game developers (activision, EA, ubisoft).
Many aspects of the business model either put the company in an uncomfortable position before the partner publishers, forcing to coordinate each project placed on the platform with them and on their terms and share some of the proceeds, or they force to rely on the miners community with its exclusively speculative motives. Generating part of the revenue in the tokens form , even if the cost of services is fixed in dollars, exposes part of the company's revenues to the risk associated with the courses volatility of the crypto-currencies and the token itself. Mining of tokens can be more risky and less profitable than developers suggest - in particular, it is more discrete - thus, this video streaming channel for users can be unstable. Moreover, this business model element may not in principle take place , because in order to meet the standards of the infrastructure provider for the Playkey ecosystem - that is, the miner - another configuration of the equipment may be required, in other words, a direct transition from crypto-currency mining to PKT mining may not be possible that means additional costs for the miners, as well as the loss of precious time. Due to the chosen model, sales problems may arise because, because according to Playplay experience ,they drive mainly AAA- games with the rights to distribute which are extremely difficult to part by subscription publishers because of a conflict of interest.
The company is too ambitious in assessing its capitalization - an estimation is on the level of $ 150 million puts it on a par with the top ICO on the market - there is a risk of the company's capitalization collapse if its decision "does not shoot properly". There is no refund mechanism in case of ICO fails - collected funds leave the company, unrealized tokens are destroyed. Playkey allocates a significant tokens share - up to 18 million - for pre-sale, characterized by a significant (up to 35%) discount and 20% bonus which makes it attractive for investors to exit the secondary market for tokens. That infringes the interests of investors who entered the project later, given the volume of sales at the Pre Sale stage, the risk of negative impact of such speculation on the token rate. The part of expences, represented in the WP has already been included in the road maps, financed by the previous project investors, so the project takes twice as much money for the same thing.
Lack of experience in creating and scaling similar scale projects on the side of the company's management core leaders. Lack of specialists with block development experience. Regional education of the company's management core. The team has already been calculated in fairly simple terms from the point of view of marketing and experimentation -design situations, and it cost the time.The team task is much more complex now, and no one will wait for the solution.
