Collectibles, Crypto-gaming, Non-fungible tokens: state of the economics

Transcript

so hello everyone we'll start the new topic about NF T's I guess that you already heard about NF tears and you know what I mean non-tangible tokens so basically we'll give you some insights about the non fungible token economics what's currently happening with blockchain gaming with art and globally with this new generation of tokens and so let's start with a little question who knows what is an NF t please okay globally after the other room okay

so let's start with some basics so what are non tangible tokens the definition of not often role is that it's basically a token when can be replaced or exchanged by another one was googly the same value and with same characteristics and I don't introduce myself so I'm go to the Punjab and I walk for non fungible calm basically what we do is that we try we gather all the interactions and trades about NF tears so we are basically a data platform and we cover everything ready to any of TS

on fee if you're on blockchain so the main difference between a fungible and non tangible token I'm sorry for the one who already know what it is and how it works but a front of all TRACON is basically an ESC 20 and a non tangible is near C 721 so the SE 20 is mostly defined by a value and as we address of oh now a non-central token can be different kind of things it can be a game asset it can be an art aset and dozens of different things like IDs degrees and other things too on the blockchain a non-central token

can be defined by several metadata like liquor all the names love all the strength and other things related to its use in the game or in the project and the value of these assets is defined mostly by the use in the project there it's defined mostly by its metadata so let's have a look at figures non-tangible tokens market cap into 19 has been estimated at about two hundred and ten millions and to be honest that's pretty crazy because the EFC 7:21

standard has been set in August to a seventeen there's only two years after we have more than two hundred millions of value created from scratch which is pretty crazy it's mostly driven by gaming which we'll see the other eras of value our forecast for 2020 is at about 3:15 Millions it's only a forecast and just for information is based on about I turn red projects on the Ephrem blockchain it's only based on vese 7:21 not the ELC 1155 the engine token for the technical

ones and for our information Guerard also NFT is on arrows neo Tron and other blog chains so it's only a part of a whole nfg market what about the players it's interesting to notice that between to 17 to 18 cooee it rise it was really crazy into 18 some projects like crypto kitties definitely [Music] derive the growth and in two or nineteen last year the growth was really really tiny our explanation for that is that

most of the players of the active addresses into 18 we're flippers most of the people not all of them were most of them where traders and there were not there to play with the assets or to enjoy the game adjust to own the asset and make money which is definitely not the main use case of any of Tears so what happened into a 19 is that these guys vias traders just realized that okay it's funny but you can't make money just like that with enough tears and a new generation of users arrives like real gamers forever to enjoy the game to

learn what they can do and even already focus on the use case so it's not a critic roof but compared to the u.s. d'etre oh that's another one okay ever the whales the 10 biggest whales into a 19 spent more than 1 million wine 1.4 million was spent by only 10 people compared to the crypto market that's nothing sorry nothing - in comparison and honestly we think that it's a good thing that people are not just spending millions and millions just to all sets

but are now focused on the use case so about USD traded it's the only metric that decreased between 218 and 219 it moved from one point 55 million to wine pound 52 and the thing is that in 218 you had some recreate out potato games Ponzi's sorry for them but like crypto country scrip to celebrate regenerated something like I don't remember thousands of millions and in 219 you had some sales pretty big

pre-sales but we are not these kind of projects just generating huge volume of USD so basically these people just rushing in via an empty space to buy assets just I say move away or just oddly envy assets and now people are playing there are having interactions with the assets and not only trading so what is driving the growth in the non tangible space it's not a surprised you surprised that collectibles into

eighteen we're definitely the biggest part of Industry with more than 1.5 million traded into 19 it's only eight million so these decrees say it's very interesting because in comparison you have the article system more than doubled in a way in a year that's globally the same for the TCG and the [Music] sorry TCG only so the figures we've seen on the previous slide about the global

USD traded has to be read with this these figures vary with different topology of projects so for the beginning we are talking about the trades but economics of these enough years but the main point about NF it is is not as I said about just trying them and making money with them but what is the community active other people replay as enjoying the game for a real experience behind the game and we have built at non-tangible metric that we call the NFC ideas this kind of

map is based on several KPIs that give a global overview of the elf of a project so what we are there is V the value of asset volume of trades and communion theorem of interactions this kind of projects are really really active in terms of market for example if you take the central and a few everybody central and do you know it yep okay some of them this one is extremely active in terms of of a market people are just trading the land every day a land is one thing about

1000 USD that's pretty crazy but actually people are not playing a lot with this central on right now so on the other end you have projects like I'd say my crypt arose overs well the community is extremely active is huge or something like 4,000 people playing micro tours every week which is huge for the blockchain gaming ecosystem and this kind of projects of this kind of a nifty ideas so the people interact a lot with the smart contracts the community retention is huge globally it means that

people play the game really often and the size of the community is used as well so that four thousand for my crypt arose and so this metric gives us a really really interesting vision of what's happening more and more we see projects with this kind of green ideas really focused on the retention of the community of the interaction with them and not only on just selling assets it's obvious that the projects have to sell the advances first to do generate revenues and to ensure their business

model but in a second step we realized that when we are set up in boat but no one use it for projects as to rethink about its future and about the retention of its community that's it so this was a global preview of the non-tangible report with built with our team it was 60 pages report with something like 25 different metrics about what's happening in V non-functional talkin ii sistema if you have any question of course feel

free to ask you should a little card with a link to download the report and i hope it has been interesting for you to have these little figures about what's happening in V non-central and blockage and gaming ecosystem so if you have any question feel free thank you for the presentation what do you see the the future of n FG more in do you think you will find a real use case in more native applications or will have an impact on existing assets asset

I think the future of any of TS will be definitely driven by gaming in the next few years we had a really good example with AXA infinity we have a founder of ax infinity in the room and the point is that gaming is a really a very good use case folk for gaming is a good use case for n F years because your game character can really be owned there is a real question through ownership on the blockchain the gaming experience is really easy to handle with blockchain and I think in something like maybe ten years we'll see

some other use cases with real-world assets like building tokenization x' and one of the most interesting use case to me is about ids degrees and real estate ownership not in our countries but in developing countries who don't have this kind of official registration of the real estates of ideas and everything so I think and then if she can be a really good vehicle for this kind of use cases in developing countries how do you measure the value of n of T s you were

mentioning some numbers at the start if I try to sell my game character for fifteen million dollars on open C does that inflate your number by fifteen million basically there are two things and if kids are definitely a target for speculation so the price people ask for an asset don't define is price is value the value is definitely defined by the amount people are ready to pay for it if tomorrow we pour already to pay 1 million for your assets ok that's it it was 1 min but we under the figures you

have there we have taken attention to remove all your washed rating and all the suspicious sales there are some really really weird cells during 2:19 so the value is basically defined but what people pay for it oh sorry yep yep exactly thank you for your intervention it was very interesting you kind of expect a very kind of positive 2020 according to

the graph you show to us right we you forecast a growth in the NFT market can you explain a little bit more about the kind of matrix you have used to predict that yeah to be completely honest it's fully automated formula based on all the figures we have gathered between tools 17 and 2 or 19 and the point is that the nfg ecosystem has a learn from its mistake from 218 and from its really beginning I think that 218 was a year of

testing and learning now that vias craze of not I SEOs but I'll put it'll games and pansies I guess is over now we are facing a way Elvia ecosystem so the trend we have identified and the forecast our based on these really deep dynamic of ecosystem were just getting much or getting alpha and actually people are really investing in the games in terms of cash and in terms of time and energy so yeah basically we are pretty confident for the next coming

years and just a question regarding your business mother how do you make money come basically what we do is that as I said we gather all the information of a choice about the nfg ecosystem so if you are a VC and you want to invest in a project you are on a diligence process you want to know exactly what's happening in the TCG ecosystem on blockchain or you want to know if this project is really an active community no one expect us can provide this kind of

information we provide monthly reports to all the projects released of course we realize otherwise and the last thing is that in a near future we are back to provide some b2c features to the end-users it can be to a burglar gamer I just want to us to buy an asset at a fair price of just two flippers that just want to be extremely active in the market and be able to auto purchase assets so high so how do you value or judge the value of a community I mean

you had the score the scorecard I think that's particularly interesting in the space where there's been some abuse so yeah so how to value a community that's a really good question we don't really value the community in itself what we value is some matrix about the community I'd say the size of a community which can be pretty easily calculated one of the interesting metric for us is the retention rate we created that on a weekly monthly and yearly basis and we know if the community plays your game only once a week once a month once a

year and actually people are not playing the game extremely often some projects like blockchain cuties actually infinity and cryptic it is a very good retention rate but most of the time people play and a nifty game something like once a month something like that so it's not our role to define the value of a community but we can give you insights about its commitment in your game are you familiar with any NFT projects where you can earn money from owning an NF t without having to sell it without having to sell it now yep if there are some

idle games like mega crypto police where you can just purchase via set and then there is logic of influence between the different parcels it's some kind of SimCity game and when you own in an asset or land on a really cool place and people build around your place you get a little piece of what we invested and that's a good question because what is interesting about NF TS and Bachchan gaming is that it's not only about just owning the true ownership thing is not a topic for all the gamers but the original and innovative business model that NFT is alow is extremely

interesting and mega crypto police is an example of that another question right there just to follow up on that question and the possibilities there's been some exploration in terms of how to mix D Phi into NF T's one way this is being done is actually infusing an NF t with chai which is died with the savings rate already built in and that NFTE actually has a set base value and then starts to automatically earn interest as well which is pretty fascinating in

terms of what that can mean I was like a base price for an N of T beyond a market speculative premium for instance definitely I agree yeah just a little point about that what's personal food I really think that the speculation hurt the nfg and Bachchan gaming ecosystem because historically people that just jumped into into V bludgeon gaming space as we're really beginning why not gamers want people from the crypto space but I

used to purchase and trade crypto assets and any of these actually asked some kind of crypto assets but the use case is different so people just jumping into a gay into the space and saying okay I can make money with that it's like okay guys it's not the point you can make money but if a real a gamer just jump into the game and see that V standard asset is something like i58 fear it won't buy it and it will move so are we done okay thank you very much for your time