Looking at the current investment ideas of chain game projects from the independent market of Pirate Nation

Author: Cookie, BlockBeats

Chain gaming is a very unique track. Time comes to this year, that is, 2024. If you are a light chain game player like the editor and I (that is, you do not focus on paying attention to the chain game track, and invest a lot of time in actually playing chain games every day), Your impression of chain games may be that today's chain games are getting better and better, and their playability is getting better and better.

In the past, the models for making money in chain games that we were familiar with were probably:

• There is an admission cost. For example, in Wolf Game and StepN, the earlier you enter, the lower the entry cost, and the later you enter, the higher the cost.
• The value of Token is highly dependent on its consumption. Or at least, players care.

Based on the above two points, there is the "death spiral" issue that has caused countless discussions.

But in fact, many of the money-making chain game projects this year are no longer the same as in the past.

Look at the investment ideas of chain game assets from Pirate Nation

One of the most typical examples is Pirate Nation. Even if you play this game more than a month before the token is issued, you can get hundreds of Us of income from a single account. Recently, Pirate Nation has also received more attention for its NFT series and Token $PIRATE stepping out of the independent market.

After the selling pressure of TGE, $PIRATE has risen steadily in the past 1 month

The floor price of the NFT series has also hit new highs

Why is Pirate Nation successful? There are mainly three reasons:

• The team has a strong background and is supported by large amounts of financing. Proof of Play, the game studio behind it, announced in September last year that it had completed a $33 million round of financing led by Greenoaks Capital and a16z Crypto. CEO Amitt Mahajan was a development engineer at Epic Games, development director at Zynga, and co-founder of one of Zynga’s flagship games, FarmVille (the “QQ Farm” prototype).
• The game updates and iterates quickly.
• The control of Token acquisition is well done.

So having said that, back to the topic of this article, for light chain game players, where are the opportunities to participate? From the above floor price trend of the NFT series, we can see that Pirate Nation only TGE in June this year, and its NFT series has been trading around 0.15 ETH for more than a month even after announcing that it has received large amounts of financing. Buying at that time As of now, regardless of the $PIRATE share obtained, the income is close to 10x.

This is the current thinking of many NFT players investing in chain game NFT assets - looking for chain game projects with large amounts of financing and reliable background teams to gain a first hand on future Token expectations. As long as the team updates frequently and does not lie flat, after the Token expectations are officially announced, many other investors who do not pay attention to the project itself and only pay attention to market news will come in to "lift the sedan chair."

The current "Play 2 Earn" is more like "Play 2 Airdrop"

Why can Pirate Nation's NFT still rise after TGE? This is another place where current chain games are different from the past. In the past, chain games usually had a dual-Token model, an in-game Token with no upper limit on supply, and a governance Token. The project side had to constantly regulate it as the number of players increased, and in the end it was out of control. But like Pirate Nation’s $PIRATE, it’s an in-game token with a supply limit. During TGE, part of it is uniformly distributed to players as rewards. Want more? Then please continue playing the game.

Moreover, Pirate Nation will also build a series of game infrastructure. Now you can get Proof of Play points by staking $PIRATE. What if another Token is issued for future infrastructure construction? That valuation is definitely higher than the simple chain game project itself. So thinking from this level, we can easily think of Blur and Blast. Although Blur is not a chain game, it has the same model - first have a mature product (NFT market), trade in the market to obtain Tokens, and finally Send a chain (Blast) to keep users in the ecosystem.

Play games, but the Token rewards are not settled immediately, but are left to be distributed uniformly at a certain time point. This routine has almost become a trend now, so the investment strategy has also changed a lot. Compared with Axie's NFT assets that are rolled out by studios and ambushed on the chain game track, and then the Buddhist-style but serious experience of the game as the game itself rather than a gold-making tool is what light chain game players can do in this track. New ways to earn revenue.

Last year, Parallel’s PFP series only needed to use each race to win a total of 25 games to get it for free. Later, the floor price rose to more than 1 ETH. This year, The Beacon’s first Token reward event is obtained by playing games and participating in social tasks. TGE will have to wait for more than half a year, and they will also sell their share of Tokens in the form of NFT, which will be obtained in the future. Part of the subscribed Token shares still have to be used to play games. Despite this, with approximately more than 20 million Token FDV, 10,000 NFTs for which Tokens can be subsequently obtained were sold out at a price of 0.115 ETH, and the price of its pet NFTs was also raised by players.

The thoughts of light chain game players: The perspective of observation returns to the Crypto project from the perspective of "games"

So the criteria for judging whether a chain game project can make money have also changed:

• Playability is of course important, but game quality It itself is not the factor that determines whether you can make money, the buzz caused by the quality of the game is the key.
• The project party itself cannot spamly issue NFT assets to dilute the Token value. The clearer the project party’s positioning of the NFT series and actions to maintain the empowerment (Token share) of the series, the better.
• It is best to calculate FDV more clearly. Everyone will compare it by themselves. As long as it is very cost-effective compared with the "PPT project", there will be no shortage of people to give it a try.

The most cost-effective operation is when a chain game is so popular that we can see a bunch of people discussing it on any social media before going to make gold. At this time, it is difficult for light chain game players to make a profit. of income. We don’t have to play chain games, but we need to liberate the idea of ​​observing chain game projects from the positioning of “games” and observe them from the perspective of the Crypto project – can the financing and team situation of this project attract attention? Does the content (gameplay) presented by this project attract attention? If this project has a token, do the current valuations have good enough odds in our opinion?

There are even many token activities of chain game projects that can be participated in by completing social media tasks. For such projects, the editor has mentioned in previous articles (Related reading: Inventory of 4 projects worth playing with low intensity, Inventory of 6 projects worth playing with low intensity casually | E02) are all mentioned, and the NFT series of Super Champs mentioned among them have increased by about 50%. (This does not constitute any investment advice. The editor will try his best to explore more similar chain game projects for everyone in the future)

In general, the current income from chain game projects is to exchange time for space. Compared with Solana Meme Token or Bitcoin ecological infrastructure, the chain game track is not at the same level as these top market focuses in terms of attention, but everyone loves Token, so there will be a lot of interest in chain game assets related to Token. There is a gap in information. When they are not paid attention to by the market, it is okay to look for high-possibility and relatively cheap targets to ambush, ship them after the market reacts, or continue to participate in the game. You can advance to attack, retreat or defend. Fundamentally, chain game projects are also Crypto projects, so we don’t really need to spend a lot of energy playing games. Playing games itself is more like investment research on chain game projects, which can help us evaluate whether the team is reliable and the future. Determine whether it can obtain sufficient market buzz.

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