MARKET OVERVIEW AND ENVIRONMENT OF PLAY2LIVE PROJECT - THE FIRST DECENTRALIZED STREAMING PLATFORM FOR GAMERS AND ESPORTS FANS

MARKET OVERVIEW AND ENVIRONMENT
      OF PLAY2LIVE PROJECT

 THE FIRST DECENTRALIZED STREAMING PLATFORM
         FOR GAMERS AND ESPORTS FANS

Global gaming and cryptocurrency markets
  Global market
  eSports market
  Live game streaming and VOD market
  In-game items trading market. Betting and gambling
  Global cryptocurrency market
  VR market
  Markets Play2Live will operate in
Open sources

       White Paper
       Page 2 of 12

GLOBAL GAMING AND CRYPTOCURRENCY
MARKETS

Below are the most up-to-date figures for the markets where Play2Live project
operates.

GLOBAL MARKET

ACCORDING TO FORECASTS, THE REVENUE OF THE GAMING INDUSTRY
WILL REACH $115 BILLION BY 2018
AND BY 2020 WILL REACH THE $130 BILLION MARK.

  White Paper
  Page 3 of 12

The following excerpts are from a SuperData study:

   665M people around the world tune in to sites like Twitch.tv and YouTube for
   content about their favorite games. Taking into account the 100M+ monthly active
   users of Twitch.tv and the total live broadcast, this audience is substantial. At the
   same time, data from the Chinese market are not included in the calculation, which
   significantly exceeds other regions in terms of viewership.

   eSports is one of the fastest growing tech markets, with the only VR technology
   market outpacing it.

  White Paper
  Page 4 of 12

ESPORTS MARKET
eSports is one of the most dynamically developing segments of the gaming industry.
By 2020, the market is expected to reach $1.5 billion.

Millennials contribute significantly to the overall growth of eSports market. This
audience is:

   Solvent
   Eager to make own decisions on purchasing and spending
   Active and knowledgeable
   Likely to favorably meet novel products and services, which yields high conversion
   rate

  White Paper
  Page 5 of 12

In other words, the existing users of streaming platforms are willing to spend their
time and money in exchange of the new products and solutions, constituting a
lucrative target audience for many brands worldwide.

Classic sports and eSports industries are already comparable in terms of the
revenues and fan base.

LIVE GAME STREAMING AND VOD MARKET
Absolute numbers for viewership of eSports tournaments versus traditional sports
audiences are almost similar. Gaming and eSports have opened new channels of
communication for viewers such as live streaming platforms for gamers.

  White Paper
  Page 6 of 12

According to Superdata, live game content and VOD in 2017 will generate $4.6
   billion in revenue.

   Twitch was acquired by Amazon for $970 million and at present is the industry
   leader.

It’s fair to say that gaming and eSports markets have huge growth potential.
Interestingly, Twitch.tv has been a market leader in both sectors, accounting for 70 to
80% of the global gaming market share according to various estimates.

The development of eSports has been somewhat different in China. The market is by
large divided between 5 companies - Douyu, Huomao, Zhanqi, Huya, XiongMao
[PandaTV], QuanumTV. There is no established leader there compared to the other
parts of the world.

  White Paper
  Page 7 of 12

Therefore, streaming market has low barriers to entry due to:

   Opportunities to provide gamers with innovative solutions and their readiness and
   desire to try new products

   Exclusive content provided by publishers on a regular basis

   Dissemination of new technologies.

IN-GAME ITEMS TRADING MARKET. BETTING AND GAMBLING
Basically, the market of in-game items trading has been established mostly due to
several well-established games. As the majority of publishers reasonably encapsulate
their ecosystems prohibiting integration via APIs or other services, we are convinced
that it is impossible to establish a decentralized market of in-game items exchange.
Without a permission from the large publisher or open APIs, any third-party platform
is not able to get access to in-game items or accounts. However, there are
opportunities of cooperation with a few publishers that enable this option such as
Valve.

  White Paper
  Page 8 of 12

Betting and gambling market in eSports is dominated by betting on in-game items.
Valve banned in-game items trading on its platform last year, but crypto community
managed to resolve this problem with such projects as SkinCoin.

GLOBAL CRYPTOCURRENCY MARKET
Market capitalization of global cryptocurrency market is unstable due to price
fluctuations. Still, despite this this volatility tendency, the market is currently valued at
$130 bn with a solid growth potential.

Main cryptocurrencies by capitalization.

Along with these trends, there are as few as 55 million cryptowallets currently
established in the world. Obviously, the penetration rate of blockchain technology and
cryptocurrencies is relatively low.

Gaming industry might contribute largely to this growth since gamers are regarded as
the most tech-savvy segment of PC and mobile users, and it is plausible to assume
that they will find it easy to make the transition from fiat money to cryptocurrency, as
many already have.

  White Paper
  Page 9 of 12

VR MARKET

VR market constitutes one of the largest parts of video games market.

MARKETS PLAY2LIVE WILL OPERATE IN
Providing a diverse set of features for a global gaming audience, Play2Live operates
in both gaming and eSports markets.

  White Paper
  Page 10 of 12

Play2Live introduces the brand-new streaming platform for gamers with several
functional modules that provide users with the completely new level of virtual
interaction. Diversified functionality of Play2Live platform is a significant advantage
for the developing markets. Play2Live platform is a great investment opportunity, as
we take care of market-specific restrictions and regulations by providing flexible
configurations for different markets.

Growth projections for Play2Live platform estimate at least 10M unique users per
month by the end of the first year of operations after the product is launched. Each
user registered in the system has a cryptocurrency wallet powered by Level Up Coin
(LUC) token, the fuel that facilitates monetization opportunities for all users, from
streamers to viewers.

  White Paper
  Page 11 of 12

OPEN SOURCES

1. https://newzoo.com/insights/trend-reports/global-esports-market-
   report-2017-light/

2. https://superdata-research.myshopify.com/products/year-in-review

3. http://tnl.media/esportsnews/2017/3/8/time-to-kill-the-esports-beats-
   sports-viewers-stat

4. https://bitinfocharts.com

5. https://superdata-research.myshopify.com/products/year-in-review

6. https://en.wikipedia.org/wiki/Twitch.tv

7. https://www.idc.com/getdoc.jsp?containerId=prUS42959717

8. https://techcrunch.com/2017/01/24/streamer-numbers-and-incomes-are-
   rising-healthily-according-to-data-from-popular-tool/

9. https://blog.streamlabs.com/livestreaming-q117-twitch-vs-youtube-avg-
   spend-ltv-and-tip-volumes-8263c6a9f99e

  White Paper
  Page 12 of 12