Taking a cue from other struggling companies like Eastman Kodak, Atari is venturing into the world of cryptocurrency. Upon the announcement, Atari saw an almost immediate jump in stock price, with shares going as high as $.94, more than doubling its 30 day low. Echoing the spike seen by Kodak, shares have already started to dip back down, ending at $.76 on Friday.
According to a recent press release, the company has acquired a 15% stake in Infinity Networks, Ltd:
The company is developing a decentralized platform giving access to any form of digital entertainment, that is to say, a very wide offer ranging from video games to movies and music. This platform, under development, will operate using a cryptocurrency, the Atari Token. In exchange for these equity interests, earnings, and future royalties, Atari has granted Infinity Networks, Ltd. (Gibraltar) a long-term license to use the Atari brand.
In short, Atari is leveraging the nostalgia and worldwide recognition of their brand to gain a low risk (aka no cash required) entry into the volatile world of cryptocurrency.
Not satisfied with a single entry into the already crowded cryptocurrency scene, Atari will be taking a second low-risk gamble by broadening its current branding partnership with PariPlay, an online gambling company focused on fixed-odds gambling solutions, with the release of the Pong token, a coin poised to promote the use of cryptocurrency alongside real money transactions at online gaming sites. Although specifics of this venture have not been released, a pairing of the already heavily regulated gambling industry with cryptocurrency could only add more ammunition to the battle surrounding crypto-regulation.