Manager Names Explosive Metaverse Coin Projects!

A little-known blockchain game surged 191% last month, surpassing the popularity of popular metaverse coin Axie Infinity. A VC shares a tool to spot these crypto game winners early, pointing to 2 fiery rivals that seem poised to explode. Chen Li, one of Youbi’s managing partners, explains why investing in blockchain games has become so popular among VCs. Detail Cryptoconi.com‘in.

Explosive metaverse coin projects

According to Chen Li, managing partner of crypto VC firm Youbi Capital, Bitcoin and Ether currently have a liquidity problem. Bitcoin, the world’s most traded cryptocurrency, has faced almost breathless selling pressure since hitting a record high of nearly $69,000 in mid-November. It has climbed a little higher in the last few days, but is still around 36% below its all-time high. Meanwhile, Ether has lost about 31% since it hit around $4,770 in November. He said the recent downward price action is not surprising given the liquidity issue as well as the pressures of impending rate hikes by the Federal Reserve.

In the past year, more institutional and traditional finance investors have jumped into crypto. But Li said that under the weight of interest rate pressures, both cryptoassets will need a lot more buyers to push the price up. “The market cap is already huge for Bitcoin and Ethereum. “We need a lot of liquidity,” he said. Achieving this means reaching a wider audience that might not benefit from the financial markets or the crypto ecosystem. Crypto venture capitalists are pointing out that in the same way that so-called multiplayer online games (MMOGs) like World of Warcraft and even The Sims initially drew people to the web, gaming could be an important entry point to reach a mainstream audience. “We see gaming as an entry point for mainstream adoption, because as we saw in web 2.0 in the early 2000s, the internet was the entry point for MMORPG games, for people to use the internet,” Li said.

Blockchain games have become a key focus for Li’s venture fund, which has been around since 2017 and predominantly invests in crypto infrastructure and decentralized finance. “DeFi and games are very similar. “Many games are just DeFi wrapped in a game package,” he says. While focusing on these two crypto areas, Li puts a significant emphasis on the team and their ability to build a community and create an easy-to-use product.

Identifying game winners

It also uses on-chain data to find opportunities in the market. This has helped him stumble upon a game that has turned out to be a bigger winner in recent weeks. Defi Kingdoms is a little-known DeFi game that has surpassed Axie Infinity in popularity, according to volume trends, according to Footprint Analytics. In December, Li started tracking this metric and as it started to rise significantly, he secured a position in the game’s native token Jewel. Li said, “I think it was before Christmas, it passed Axie, and we were very impressed. And that was a big reason why we invested in it,” he says.

Defi Kingdom’s Jewel token rose 191% from $7.16 to $20.81 last month. In the same time frame, Axie Infinity’s AXS token fell 25% from $104.26 to $78.15. The platform the administrator uses to access the data on the chain is Footprint Analytics, which offers both free and premium services. He uses the GameFi Dashboard to delve deeper into game analytics. By looking at the “Top 10 Game Rankings” chart, Li saw Defi Kingdoms’ attraction against Axie Infinity. The third-placed Bombcrypto game recently may also be a potential threat to Axie’s leadership. Li is not investing in Bombcrypto, but highlights that it could be a potential opportunity for investors, based on a chart that reflects the number of GameFi users per blockchain. Bombcrypto for Binance Smart Chain is suddenly taking a lot of market share and outpacing the likes of metaverse coin gaming platform MOBOX. Li said, “A week ago MOBOX, this card was 90% or more than 90% of PvP games. But now Bombcrypto has taken almost half of the market share,” he says.

Li said that looking at the charts, the most important factors are volume and liquidity. The volume is converted into revenue from the treasury, which can then be used to further develop the game and scale the community, he added. Looking more into the fundamentals, Li sees opportunities in his portfolio for “Cradles: Origins of Species,” a company that offers MMORPGs – multiplayer online role-playing games. Li said that the game focuses on interaction and content flow, while most other popular blockchain games are very modular. “Cradles” allows the community to provide feedback and participate in the development process. Li says about this:

It’s similar to the Roblox and Minecraft business model, where they let third-party developers create new games. They say they give 30% to 40% to the developers but nobody knows because you don’t know the transactions, they keep their own ledger. There is no transparency.

Li said investing in blockchain games involves a change of mindset. Li said the cost of acquiring users is too high. Initially, the founding team must create the liquidity pool and pay the market makers and the people who sell their tokens. But later on, early adopters essentially become market makers and investors in the game, who play a more important role in the success and development of the game and its community. According to Li, this really embodies the spirit of web 3.0, which means that the network belongs to its users.

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