A 22-year-old crypto VC who bought his first Bitcoin nearly a decade ago shares a little-known win-to-play game where players can earn “significant amounts of money” and explains an under-theradar protocol. Cryptocoin. com
In , we look at altcoin projects that the investor draws attention to.
Altcoin which projects
Piers Kicks, crypto leader at Bitkraft and venture partner at Delphi Digital Piers Kicks, bought his first Bitcoin at age 13 to help him succeed in the online fantasy game Runescape. Almost a decade later, he has become a leading VC in the crypto gaming space. He shares his perspective on games won by playing and the battle between tier one blockchains. At the age of 13, Piers Kicks bought his first Bitcoin for about $8. It wasn’t a wise investment decision at the time, it was just a way to secure virtual currency in the online fantasy game Runescape. However, it was the decision that prepared him for a career in investing, as he is now one of the leading crypto gaming venture capitalists almost a decade later. After playing competitive gaming for a while in Rainbow Six Siege and setting up its own venture fund, Kicks joined crypto research house Delphi Digital in 2019 as a venture partner focusing on non-tradable tokens and games.
Two years later, Kicks took a position as a crypto leader at Bitkraft, a gaming venture fund founded by Jens Hilgers, a legend known for helping gaming esports become mainstream, and with over $540 million in assets under his management. The two companies have launched a joint token fund of $75 million that will jointly look into token-based investments led by Kicks. Kicks said, “Basically, this allows us to combine this deep token engineering experience from Delphi, which is activist in our investment approach, often emerging at these early stages, and actually helping to build and stress-test these token models. Combine that aspect with Bitkraft’s deep gaming network and game design expertise, and we think it’s pretty compelling.”
Meanwhile, Delphi has a private fund approach, so there is more flexibility in the types of investments they can explore. One of Delphi’s first big bets was the win-win game Axie Infinity. The win-to-play game Axie Infinity has started to gain attention in recent months as gamers in the Philippines are starting to make more money than some traditional jobs. The Smooth Love Potion (SLP) token used in the game increased by 159% last year. This is an investment Hilgers from Bitkraft missed. Kicks said it’s not surprising that many venture capitalists, including gaming experts, missed out on the popular altcoin Axie investment because it requires some in-depth analysis to assess the level of fun in the game. “Since this is one where people make money, your benchmark for fun is not other games on the market, like driving a taxi or doing manual labor,” Kicks said.
Yield Guild Games, another Kicks investment, has seen a significant amount of success from Axie’s rise. To play the game, individuals must purchase three Axies in advance. To give access to more people, Yield Guild Games lends Axies and then gets a share of players’ in-game revenue. Yield Guild’s last token sale sold out in 30 seconds, and the token price has increased 375% since the end of July. Kicks said many other games are trying to design strong play-to-win cycles after seeing Axie’s success. But he said it was difficult to do and it would take time to get those things off the ground.
Kicks said, “We’re definitely going to see a lot, I don’t think the shared concept in the game is 100% gone. The difference between a traditional publisher with a 100% take rate on everything and these new crypto native Web 3.0 games with a full 4% to 6% take rate on market fee and the rest is somehow distributed among the players of the game. But Kicks said most apps don’t make sense yet. “This is largely because real win-win cycles and these others have not yet come online,” Kicks said.
Kicks: “If you look at other platforms that are earned by playing like BlackPool, they only get 30% of the revenue from Axie and the remaining 70% from Sorare strategies. Sorare is clearly not a strong win-win cycle, but it’s basically a football manager game, and you can make a pretty significant amount of money doing it well. ” Sorare is a fantasy football game running on the Ethereum blockchain where players manage a virtual team. Layer two protocols A significant number of crypto gaming projects are run on Ethereum, a blockchain that is currently facing scalability issues due to its high gas fees and slow transaction times.
Advantages of popular altcoin Solana
The goal is to resolve these issues with an upgrade to Thereum 2.0 and its layer two protocols. However, competing first-layer blockchains like Solana claim to offer more scalable and faster solutions compared to Ethereum. Solana is already making significant progress in the field of play. Kicks said, “We are actively looking at a few projects related to Solana. However, I am very optimistic about the second-tier ecosystem on the leading altcoin Ethereum. “Some of the cool stuff we’re seeing right now with the Starkware tech stack that ImmutableX is working on has more endgame scalability than Solana itself.”
Kicks, who has personally invested in Ethereum, describes the network effects as terrific and believes the window of opportunity for alternative layers to deploy themselves has closed thanks to the rise of the second layer ecosystem. Kicks said, “Starknet has a completely new programming model with Cairo, but I’m pretty sure what I saw there. Solana is probably the only actor beyond Ethereum that we’re actively looking into at this point. Most of the others are decentralized only in name, not in practice. ”