Today we are going to talk about a project that I think has a lot of potential, which is YGG - currently the largest web3 game guild. Many friends have sent private messages before and asked to talk about it, so let's talk about it today. It has a market value of more than 26 million US dollars. Ranking 380+, this market value can be said to be relatively low. If it were to increase 100 times, it would reach 2.6 billion US dollars. 2.6 billion US dollars is really not a large amount. Projects with potential should be relatively easy to get. This market value.
Yield Guild Games (YGG) is the world's first and largest web3 gaming guild, where players can find their own community, discover games, and level up together. As a decentralized gaming guild network focused on blockchain gaming and web3 education, YGG is committed to providing its members with opportunities to succeed in an open virtual world. The guild empowers its community to build their Metaverse through programs such as Web3 Metaversity and the achievement-driven community token distribution protocol, the Guild Advancement Program (GAP). YGG is also focused on supporting the thriving web3 competitive esports scene and has its own team of elite esports players, called YGG elite, who have competed and won in various web3 gaming tournaments around the world.
From its founding in the Philippines, YGG Pilipinas, to its global network of regional guild partners, and collaboration with over 80 blockchain gaming and infrastructure projects to develop the web3 ecosystem, YGG caters to an ever-expanding community of gamers and blockchain enthusiasts.
Vision
YGG combines the advantages of the non-fungible token (NFT) and decentralized finance (DeFi) space to bring a liquidity mining model to the game economy while adding value to the virtual world by developing game content and economy. We want to own and develop assets in the Metaverse because we believe that the virtual economy will be more valuable than the real economy over time. At the same time, we want to create value for union members in the virtual world and let them thrive in the virtual environment - those competitive gamers, artists and content creators are all in the Metaverse.
market situation
YGG has the intersection of three markets, each of which has strong growth potential:
NFT sales reached $2 billion in the first quarter of 2021. NBA Top Shots and NFT artists such as Beeple have brought NFTs to the mainstream.
The total locked value of DeFi tokens reaches 50 billion US dollars.
There are 70 million crypto wallet users.
The global gaming market value reached US$167.9 billion in 2020.
The rise of virtual worlds (such as Decentraland) and blockchain games (such as Axie Infinity and The Sandbox) has garnered fully diluted valuations of over $1.8 billion.
Note: Data is as of the end of March 2021.
The pandemic has had a profound impact on the human world, prompting people to continue to migrate to the virtual world, and this trend has spawned a powerful other world under the influence of NFT technology. For example, while the COVID-19 pandemic has caused an unemployment rate of up to 40% in the Philippines, local players have made money by playing games as a way to earn a living.
YGG's Actions
YGG aims to maximize the value of NFT assets used in virtual worlds and blockchain-based games. Its protocol is automated through smart contract instructions, and consensus is reached through DAO based on governance proposals and distributed network voting by token holders.
YGG's actions include:
Building a global community of gamers who earn while playing, competing to collect in-game rewards (e.g. players in Axie Infinity earn tokens by winning battles);
Profits are generated by renting or selling NFT assets owned by YGG (e.g., reselling land in The Sandbox or renting Axies to players as part of a profit share, called scholarships);
Allow the community to participate in the governance of the DAO through proposals and voting;
Coordinate the research and development of gamers in the DAO to gain revenue by maintaining competitiveness in games related to the Metaverse.
business model
The DAO’s main revenue will come from directly or indirectly utilizing NFT assets owned by YGG, through a leasing program, where union members use these assets in exchange for a portion of the rewards directly entering YGG’s games;
In-game assets such as land, income, etc. can be generated by third parties (non-union members) through economic activities on the land in the game;
NFT ownership will benefit from the rise in the economic value of in-game assets and will be reflected in the value of the native fungible token (FT) on the open market. The value of all YGG activities will be reflected in the fully diluted market value of YGG token governance.
Guild Risks
Currently, YGG relies heavily on Axie Infinity for revenue, and therefore they need to rely on the continued success and growth of the Axie Infinity ecosystem to remain profitable. The DAO has been investing in numerous Web3 games to diversify its portfolio and reduce the risk of depreciation in the value of its individual holdings.
Another risk faced by YGG is that most P2E-based games feature money-making, which is unsustainable in the long run. Players may prioritize making money over playing games, and abandon the fun if it no longer provides the expected incentives. That being said, YGG needs to coordinate with crypto game developers to continuously redesign an economy that prioritizes culture and community building.
Gaming Industry Outlook
Games are the most approachable medium to educate and introduce newcomers to the world of blockchain and cryptocurrency or emerging technologies in general, as people tend to acquire information faster through game-based learning. For example, people understand and learn about AR/VR through PokemonGo and Web3 through Axie Infinity.
According to a report by DappRadar, in the second half of 2021, more than 50% of the unique active wallets in the entire blockchain industry were connected to GameFi, surpassing the total number of users of DeFi and NFT to reach 1.4 million. This means that more people are entering the blockchain world and interacting with the ecosystem than ever before.
With the growth of active users, the global game market is expected to be worth about $365 billion by 2025, with a compound annual growth rate of 16%. At the same time, the proportion of revenue generated by virtual goods purchased in games has also been on the rise over the past decade and may reach 95% of total game revenue in the next five years.
With this positive outlook, YGG can take advantage of this market and become one of the earliest strategic investors in the GameFi industry. Although new technology trends always come with risks, in the early stages of GameFi, those who dare to accept uncertainty may be waiting for huge rewards.
Community member data
At the end of September 2021, the YGG Discord channel had 62,545 community members, a year-on-year increase of 16.4% from August 2021. Since the launch of the YGG guild badge at the end of July, a total of 14,161 people in the community have minted badges, which is also an official recognition of guild members.
YGG Treasury
According to the wallet address in YGG's Q2 2022 report, the public asset value of YGG can be obtained: more than 70 million US dollars in assets.
The number of users has been growing steadily since 2022. Although the number of YGG users was halved in May due to market adjustments, the number of SubDAOs users remained stable. Currently, YGG's SubDAOs include: YGG SEA (Southeast Asia), IndiGG (India), Ola GG (Spain), BAYZ (Brazil), and YGG Japan (Japan). Considering that there are 3 billion gamers in the world, but there are less than 1 million on-chain game users, if the market stabilizes, it is conservatively estimated that the current growth rate will decline by 60% per year. When the tokens are fully unlocked in December 2026, the number of scholars is expected to reach 200,000.
YGG的知名投资者包括Delphi Digital、BlockTower、Scalar Capital、Youbi Capital、Ascentive Assets、gumi Cryptos、Animoca Brands、Dialectic、SevenX Ventures、Sparq Ventures、Matic (Polygon)、Sfermion、Bitscale Capital、Flamingo DAO、Free Company、BITKRAFT、A.Capital Ventures、Atelier Ventures、Fabric Ventures、Greenfield One、IDEO CoLab、Mechanism Capital、ParaFi Capital和Third Prime Capital、Andreessen Horowitz (a16z)、Infinity Ventures Crypto (IVC)、Kingsway Capital和Emfarsis。
Token Allocation
The total number of YGG tokens is 1,000,000,000, and 72.5% of the tokens have not been unlocked. The current price is $0.19, and the peak price was $11, a drop of 99%. You should know that its crowdfunding price at that time was $0.5, so now it has fallen below the crowdfunding price at that time, and there is not much room for further decline. Now is a really good price range.
Finally, let's summarize. YGG is the leader of the blockchain game guild in the blockchain world. The last bull market has been verified, so there is no problem with this track. Why is it falling so hard now? Because it was mainly based on AXIE in the last wave, and the game AXIE definitely has a life cycle. The purpose of players making money is to make money. If they don't make money, they will definitely not play it. But we have said many times before that there is no problem with the chain game, and this track will become more and more fun. At present, the number of game users on the chain is still too small, and there is a huge incremental market. YGG is a very good way to connect ordinary users to the game world on the chain, especially in some economically underdeveloped regions, so it will vigorously develop Southeast Asia, India and other regions. Later, as long as he can continue to launch some high-quality and profitable chain games, his ability to make money will still be no problem. First, the game assets (NFT) can appreciate when they are bought, and second, they can be rented out to earn the difference. It is also a platform model, equivalent to a Meituan takeaway. The more people work for it, the more it earns. Of course, the moat of this thing is not deep, so he has to increase user stickiness through other means, such as organizing various competitions, etc. Of course, he also had a big pull yesterday, but at present, it is still in a value trough.