Is anyone wondering why all those VCs are now investing in Crypto of NFT game guilds? Or is it profitable for an individual investor to invest in Crypto of NFT game guild?
Here is the answer: it can be profitable for both VCs and individual investors to invest in Crypto of NFT game guild, but it is getting harder to identify the next AXS in the market.
The more cryptocurrency comes into the market, the harder it gets for investors to identify a potential growth stock in the crypto market.
Thus, some people are mentioning about a role of a crypto of NFT game guild as “Metaverse INDEX FUND.”
Game Guild = “Platform”
First, let’s talk about game guilds. Until now, game guilds have been only one kind of organizations of people who play games together.
However, rather than playing together, the NFT Game Guild is about to become a platform to support new “Play To Earn” game players by renting NFTs and educating scholars.
What is the next “Axie Infinity”?
You may have seen on the news that YGG raised funds og $ 22.4 million, and also GuildFi seed round raised funds of $ 6 million.
Cryptocurrency VCs such as Andreessen Horowitz (a16z), DeFiance Capital tend to invest in the value of the NFT Game Guild as a “Metaverse INDEX.”
This is because today’s investors are most interested in “What is the next Axie Infinity?”
However, in the current situation where thousands of new P2E titles are appearing one after another, it is difficult to judge “which one would be the popular game?”
Therefore, the game guild that works as a connector between game players and game companies is expected to be a predictor in the crypto market.
Game Guild as “INDEX FUND”
“Merit Circle” wrote in its white paper, “Merit Circle functions as an index fund for the Play-to-Earn industry.”
PathDAO also mentioned in Medium, “PathDAO wants to be the SuperIndex of Metaverse. With more blockchain games coming into the space, it is getting harder for investors to make the right bet given the amount of noise in the market.”
Paving the road to the metaverse
PathDAO is a community-first, decentralized autonomous organization focused on creating value for investors and players…
This is NOT just about VCs.
Just as some people invest in Nikkei 225 and the Global Index rather than individual stocks, we will now invest in the entire NFT game industry and the entire Metaverse industry rather than crypto for individual games like “Axie Infinity” and “The Sandbox.” There would be even more people coming into the market to invest in those industries.
YGG’s Trial: “YGG Vault”
Actually, YGG Vault has a very unique mechanism.
With YGG Vault, you can choose a staking destination, such as a safe specializing in NFT rental, a safe specializing in training Axie, and a safe related to YGG’s activities in general.
The investors could also get rewards in various forms, including YGG tokens, ETH and stablecoins.
For example, if you think that demand for NFT rentals is likely to grow, out of 1,000 YGG, you could invest:
・ 700YGG as a safe for NFT rental
・ 300YGG is a safe for all activities
It means that you will be able to choose the ratio of staking in which area you would invest.
That’s exactly the idea of INDEX investment, isn’t it?
Several risks game guilds can face
Of course there are some risks.
The current value of YGG tokens is highly dependent on the yield of assets held by YGG, including NFTs.
In other words, if the NFT games that YGG chooses continue to fail, the value of the guild will inevitably decline.
That means, HOW WELL THEY COULD PREDICT NEXT COMERS would give a huge impact on the value of the game guild itself as well as crypto of it.
We, LGG, have also set up a research team to predict the next NFT game.
In the future, we plan to announce some of our predictions from the guild as much as possible.
If you are interested, please follow our twitter account or join Discord of LGG guild.