A prominent investment research firm has sounded the alarm on a popular online gaming platform, accusing it of artificially boosting user numbers to impress investors and advertisers. The firm, known for its scathing reports on corporate malfeasance, claims that the platform’s daily active user count is inflated by as much as 42%, and that engagement hours are overstated by a staggering 100%.
The research firm points out that the platform’s definition of daily active users is misleading, as it includes not only individual players but also bots and alternate accounts. This, the firm argues, creates a distorted picture of the platform’s true popularity and value.
The accusations have sent shockwaves through the investment community, with the platform’s shares plummeting by nearly 10% in early trading. The research firm’s report is the latest in a series of high-profile takedowns, having previously targeted companies owned by billionaire investors and business moguls.
The online gaming platform, which generates most of its revenue from in-game purchases of virtual currency, has faced scrutiny over its business practices. The company had reported a significant increase in daily active users in its last quarterly earnings, with 79.5 million players logging on as of June 30.
The research firm’s allegations have sparked concerns about the platform’s transparency and accountability, and have raised questions about the accuracy of its financial reporting. As the investigation unfolds, investors and regulators will be watching closely to see how the company responds to these serious allegations.
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