The Playside Studios Ltd (ASX: PLY) share price is nosediving today following a project update on the BEANS Web 3.0.
At the time of writing, the video game developer’s shares are down 10.31% to $1.175.
What’s dragging Playside Studios shares lower?
Investors are selling off Playside Studios shares after the company reported a technical issue regarding a smart contract.
According to its release, Playside Studios advised that an error allowed 2,223 BEANS to be minted for minimal consideration. The mistake in judgement occurred late afternoon yesterday following the sale of 7,777 BEANS. The latter generated a net revenue of $8.38 million.
Playside Studios stated that once it found out what happened, the independent third-party quickly facilitated corrective action via the NFT marketplace.
As a result, normal trading was quickly restored and no long-term impacts are expected to arise.
The costs associated with fixing the issue by the third party is estimated to be less than $500,000. Playside Studios noted that it does not foresee any material changes to its revenue earned from the original mint.
To ensure that the error doesn’t occur again, the company has reviewed its internal procedures and made adjustments. Further process improvements are anticipated to follow to safeguard the BEANS project in future.
Playside Studios said that it will reveal the identity of all BEANS to the owners on Thursday 10 February. More information to the community will be provided in relation to new features being added to the roadmap ahead.
Playside Studios share price snapshot
Over the past 12 months, Playside Studios shares have gained more than 220%, and are up 7% year-to-date.
Based on today’s price, Playside Studios commands a market capitalisation of roughly $170.26 million, with approximately 144.29 million shares outstanding.
The post Playside (ASX:PLY) share price tanks 10% on BEANS project update appeared first on The Motley Fool Australia.
Should you invest $1,000 in PlaySide Studios right now?
Before you consider PlaySide Studios, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and PlaySide Studios wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Which ASX shares have exposure to NFTs?
- 3 highly rated small cap shares with heaps of potential
- Playside Studios (ASX:PLY) share price soars 21% amid NFT gold mine
- Why is the PlaySide Studios (ASX:PLY) share price on pause today?
- PlaySide Studios (ASX:PLY) share price climbs on record revenue
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/Zq7AQaU
Leave a Reply