- The stock price of Scienjoy Holding Corp (NASDAQ: SJ) increased by over 35% pre-market. This is why it happened.
The stock price of Scienjoy Holding Corp (NASDAQ: SJ) – a leading live entertainment mobile streaming platform in China – increased by over 35% pre-market. Investors appear to be responding to the company announcing that it has entered into a strategic alliance via a Master Services Agreement with Snipp Interactive, a global provider of digital marketing promotions, rebates, and loyalty solutions.
Through this alliance, both parties will explore different ways of incorporating Snipp’s Customer Acquisition, Retention and Engagement (C.A.R.E) platform into Scienjoy’s suite of mobile applications. And the initial cooperative exploration between both parties is expected to focus on the following two areas:
1.) Scienjoy will combine its in-app currency solution with Snipp’s loyalty and rewards engine to develop a new rewards system. And this will enable Scienjoy to augment its user experience, cultivate additional revenue streams, and explore the potential of using cryptocurrencies on its platform. As part of this system, Scienjoy will utilize Snipp’s platform to provide Scienjoy’s broadcasters and users with more opportunities to earn points through engagement. Broadcasters and users will be able to redeem these points for various digital rewards, including Scienjoy’s virtual currency, Bitcoin gift cards, retailer gift cards, trinkets, and more. Beyond the enhancing of Scienjoy’s user acquisition, retention, and engagement capabilities, this new rewards system will also serve as an additional monetization channel for the company as third-party brands interested in reaching Scienjoy’s sizable user base will be able to sponsor events, broadcasters, and live broadcasts through the system.
2.) Both parties are going to work together to enable broadcasters to mint their own non-fungible tokens (“NFTs”) on Scienjoy’s platform and allow users to utilize the points they have accumulated through the new rewards system to bid on and purchase NFT “momentos” from their favorite broadcasters. And in addition to strengthening the relationships between broadcasters and their fans, this initiative will provide broadcasters with more monetization opportunities, augment broadcaster loyalty, and attract more new creative talent to Scienjoy’s platform.
“With approximately 250 million users and 300,000 broadcasters across our ecosystem, we are well-positioned to help our partners increase their outreach efficacy. Snipp’s cutting-edge technology and loyalty solutions will serve to further strengthen our value propositions for users and broadcasters alike. Our decision to explore the usage of both cryptocurrencies and NFTs through this strategic alliance further underscores our commitment to integrating those solutions that are new, innovative, aligned with our business objectives, and capable of fueling our long-term growth trajectory.”
— Victor He, Chairman and Chief Executive Officer of Scienjoy
“We are excited to partner with Scienjoy and leverage its established infrastructure to make our initial foray into the Chinese market. By connecting to Scienjoy’s substantial user base and talented broadcaster pool, we will be able to provide our portfolio of global brands and Fortune 500 clients with highly targeted marketing programs in the region. We continue to receive interest from markets outside of North America and look forward to building our presence in these areas going forward.”
— Atul Sabharwal, founder and Chief Executive Officer of Snipp
Disclaimer: This article is intended for informational purposes. Prior to making any investment, you should conduct your own analysis and financial strategy.