Thank You, 2024 🚀
As 2024 comes to a close, we’re beyond grateful for every partner, supporter, and community member who joined us on this journey.
From small wins to big milestones, this year was all about turning a vision into reality for a project that started from zero.
Brace yourselves – 2025 is where it all takes off. Let’s build the future together!
Are you here for quick flips or the long game?
Do you want to mix things up, like combining 1 + 2, or another combo? Let us know!
1️⃣ Take Profit and Quit
2️⃣ Stay for Airdrops
3️⃣ Long-Term Passive Gains
4️⃣ Combine Strategies
After $6bn+ invested in web3 gaming and $0 in memecoins, here are the results:
● 9 memecoins in the top 100 ($37bn mcap), 14 in the top 200 ($39bn)
● 4 gaming tokens in the top 100 ($5bn), 14 in the top 200 ($9bn)
The gaming tokens are in the top 200 not because they have great games, meaningful organic player spending or engagement. They played the token marketing or ponzinomics game right - most of their buyers or holders are clueless about the underlying product or its current performance.
How would Catizen or Hamster Kombat have performed in web2 without a token?
Any entrepreneur could look at the numbers and see an opportunity here. But the demand that drives this opportunity is not for games, it is for SPECULATION.
Token buyers don’t care about the game design kumbaya, they wanna see “price go up”.
Token buyers are investing in the perception & narrative of a game - not the underlying product being successful. They either don’t have the skills to evaluate your game or are too lazy to play it.
If the product quality or differentiation has little or no impact, then having a “sufficient” game and polished trailers is enough. The marginal benefits of having a better game beyond a certain point converge to 0.
Based on this logic, there is little to no incentive for web3 game developers to spend money on game development or game marketing beyond a certain point.
Founders are better off spending money on token marketing (aka KOLs, partnerships, exchanges, buybacks, etc.) & their time shitposting on Twitter rather than putting on the game producer hat.
Web3 provides an alternative financing source for game developers who can’t get better terms from web2 gaming VCs or web2 gaming publishers.
You can use this capital to build a game for the web2 audience; you end up competing with the most established web2 game developers for user acquisition with a failure rate of >99%.
Even if you do manage to have unit economics that are OK, the net cash flows from player spending or ad revenue just won’t justify $100m FDVs. There are few who have the potential to do well here; Fableborne is one of them with its unique gameplay.
The failure rate of launching a token is lower than launching a game - more importantly, the net present value of launching a token is much higher even if your token ends up trading at $15m mcap & $100m FDV.
Obviously, this is not sustainable nor value-additive for the industry and none of the web3 gaming builders signed up for this.
There is one other direction some web3 gaming founders have taken - if SPECULATION is pmf, then embrace it and design your game around it. Provide the gambling, Binance, https://t.co/GiBdLBsMY6 experience but in a better way. Some teams building with this approach are Goat, Uncharted, Moku, Mirai.