From September 23 to September 27, we conducted a 7-day L3E7 test. This test was the second test of the project. VGG obtained more than 100 activation codes through various channels and finally obtained a total of 350,000 Stardust. According to the OTC price of 0.03u/Stardust, the value is about 10,500 USDT. This project has become one of the more valuable projects we have recently obtained. In order to help everyone better understand this project and our experience, I will share in detail our strategy and journey of earning 10,000 USDT in 7 days.
1. Why did we choose the L3E7 project?
Why did we choose to participate in the L3E7 project? Mainly based on the following considerations:
1. Team and financing background: The core team of L3E7 comes from Tencent, which has launched the successful game "Catch Monsters Together". The L3E7 project received $10 million in financing in April this year, led by well-known investment institutions such as Spartan Group, SevenX Ventures and OKX Ventures. After seeing these backgrounds, we immediately became very interested in this project. The strength of the team and the guarantee of financing make the prospects of this project more solid.
2. The playability of the game itself: We have further deepened our understanding of the game. L3E7 is the world's first game based entirely on 3D location service (LBS). The game has a high degree of freedom and is similar in style to (Genshin Impact). This game clones the entire earth, allowing players to explore and interact in real geographical scenes. The gameplay is novel and interesting. This type of innovative gameplay undoubtedly enhances the game's appeal and market potential.
3. The reward mechanism of this test: We studied the tasks of this test and learned that during the test, we can share 3% of the tokens in proportion by obtaining stardust, and have the opportunity to obtain the whitelist qualification of the second-generation NFT. Through the summary of the test information, we learned that there are about a few thousand places for this test (but the final published data is 13,000), the project financing is 10 million US dollars, and the valuation is generally about 5 times the financing, so the project valuation is about 50 million US dollars. Based on these data, we estimated the value of the airdrop and estimated the approximate income that each account can obtain. The valuation × 3% ÷ the number of participating accounts = the average income obtained by each account, that is, 50 million US dollars × 3% ÷ 13,000 people = 115 US dollars. The average return per account is 115 US dollars, which can be said to be considerable. Combined with the previous factors, we basically determined to participate in this project.
2. Diversification of our execution strategies
After deciding to participate in the L3E7 project, we quickly developed an execution strategy to ensure that we could maximize the benefits. We took the following steps:
1. Obtain game qualifications from multiple parties: After deciding to participate, we immediately began to obtain game qualifications through multiple channels. First, we obtained some test codes through cooperation with ambassadors and community partnerships. Then, we purchased test codes from various player groups and compared prices from multiple parties to reduce the cost of obtaining test qualifications. In the end, we successfully obtained about 100 test codes at a lower investment cost.
2. Diversified management of accounts: In order to maximize the income of each account, we have adopted a hierarchical management strategy. It is understood that the acquisition of the whitelist is ranked according to the total amount of stardust obtained in the game. The top 400 are the must-win whitelist, and 401-1000 are the lucky whitelist. In order to avoid all accounts being concentrated in the same ranking interval, affecting the chance of obtaining the whitelist, we divide the accounts into three levels: 10 premium accounts, 20 sub-premium accounts, and the rest are low-security accounts. Each level of account has different strategies to ensure the diversity of income.
3. Adopt different strategies for different accounts: We adopt different strategies according to the level of different accounts. For premium accounts, we spend more time on tasks, and increase combat effectiveness by consuming stardust, so as to obtain more stardust. For low-income accounts, we adopt a time-saving and labor-saving approach, only doing tasks to obtain stardust, and not doing other tasks if possible, so as to save time and energy to the maximum extent.
3. How to realize monetization?
Not long ago, the official list of the top 1,000 accounts during the test was released. After checking, 14 of our accounts entered the top 400, and about 20 other accounts entered the 401-1000 range. This result basically meets our expected goal, and the next thing we will focus on is how to monetize these accounts.
1. Recover the capital first through the OTC whitelist: We plan to recover the capital through some of the OTC whitelist first. Since we have invested a lot of capital in the early acquisition of test codes and game proxy, priority recovery can ensure that we are invincible in the project. According to the market conditions of OTC transactions, the current price of the must-win white list has been hyped up to 200 oil each. Recovering the capital through the whitelist will be an important strategy for our first step.
2. Self-mining second-generation NFTs: After recovering our investment, we decided to self-mint some second-generation NFTs. Based on the high-quality fundamentals of the game and the good market performance of the first-generation NFTs, we believe that the performance of the second-generation NFTs will not be inferior to that of the first-generation. Based on experience, the market value of the second-generation NFTs is about 30% of the first-generation NFTs. Through this data, we can calculate the potential value of the second-generation NFTs. In addition, only after owning the NFTs will the stardust we obtained previously be unlocked, and the unlocked stardust can also be traded over the counter. Therefore, owning NFTs not only has short-term value-added potential, but also long-term profit guarantee.
3. Stardust monetization strategy: We will adopt the method of partially over-the-counter trading and partially waiting for the project party's token TGE to monetize Stardust. OTC trading can bring immediate benefits, while the token may bring greater returns after it goes online. In this way, we can obtain short-term benefits while also ensuring long-term benefits.
IV. Summary and Future Outlook
Through participating in this L3E7 project, we have summarized several rules that can be followed in similar projects. These rules will help us judge future participation opportunities more rationally, reduce risks and increase returns.
1. Control costs and avoid over-investment
Try to maintain a low-investment strategy, especially in the early stages. Don’t spend money to buy something that you can get for free. If you can buy testing qualifications at a low price, you don’t have to buy NFTs. This low-cost intervention method can ensure that even if the project performs not as expected, the losses will be kept to a minimum.
2. Estimate the rate of return and consider the worst case scenario.
Before participating in a project, don’t just do it mindlessly. You must make a reasonable estimate of the rate of return and also consider the worst market situation. Only when the worst-case profit can cover the investment, is it suitable for large-scale intervention; otherwise, it is recommended to focus on small-scale experience.
3. Prioritize return on investment and maintain a healthy cash flow
In the cryptocurrency world of the stock era, liquidity is particularly important, and the return strategy should be the highest priority. We can quickly recover visible profits through over-the-counter transactions to avoid excessive waiting for potential future benefits. After the return, we can consider how to obtain greater benefits. This is similar to the strategy of cryptocurrency speculation, first lock in the returns that have been seen, and then strive for potential growth in the future.
4. Flexibly adjust strategies and diversify operations.
At different stages of a project, it is particularly important to flexibly adjust strategies according to market conditions. You can flexibly adjust investment and operation methods based on the actual performance of the project to avoid rigid follow-up.
5. Improve information sensitivity and obtain intelligence in a timely manner
In the field of web3 and blockchain games, being the first to get information is often the key to success or failure. Seizing the initiative allows us to enter the project at a lower cost and with less competition. Timely acquisition of intelligence such as activation codes, whitelists, and project information can improve our competitiveness in the project.
The above is some of our experience sharing and summary of participating in the L3E7 project. In the future, there will still be many similar opportunities. How to stand out in the fiercely competitive market depends on whether you can grasp the intelligence, make reasonable analysis, and obtain the activation code qualification in the first time. If you also want to seize the opportunity in future projects, welcome to join the VGG community, we will explore more project opportunities together, share experiences and strategies.
