I believe NFT Worlds is positioned to become the #1 P2E platform in the metaverse by the end of 2022.
In my most recent post, I highlight how the Minecraft-based NFT Worlds gaming platform is closely tracking Axie Infinity’s 2021 player adoption curve. I also mentioned a few of the near term marketing-related catalysts for the project, which has been in quiet-build-mode since launch in October 2021.
Until last week, there had only been 2 ways for investors to get direct exposure to NFTW: World NFTs & WRLD token…
A collection of 15,000 unique, 1-of-1 playable characters that will have special perks throughout the NFT Worlds multi-metaverse. Perks include access to:
Exclusive cosmetic items & drops
A GA-only NFT World (think SoHo House of the NFTW multi-meta)
Exclusive vanity player titles that carry across all Worlds
50% of fees from NFTW’s soon-to-launch NFT Marketplace, into perpetuity.
Note that the purely cosmetic/vanity driven video game skins industry is already a $40B+ industry in the legacy gaming world (despite the lack of IRL value 🤯).
Therefore, even if driven only by perks 1-3, it wouldn’t be surprising to see GAs accrue significant value as the platform grows in popularity.
However, the potential value of perk #4 seems to be going overlooked by most given that NFTW’s Marketplace hasn’t yet launched yet.
Considering that top ecosystem-specific NFT marketplaces (ie. Axie’s and TreasureDAO’s) have generated 30-day volumes ranging from $20M to over $700M… access to 50% of NFTW’s (soon-to-launch) marketplace fees forever may be quite valuable indeed.
Note: *fees will be distributed amongst holders who **“***stake their avatar and participate in other game mechanics in the NFT Worlds launcher.” - NFTW Docs
A Discounted Cash Flow Analysis allows us to value these NFTs as capital assets by estimating the present value of their projected future cash-flows.
Summary findings:
Assuming monthly marketplace volume reaches $30M shortly after launch and a conservative 4% marketplace fee, implies an annualized direct cash flow of $7.2M to Genesis Avatar holders.
Assuming a modest 25% average annual growth rate, makes the DCF valuation of GAs $290M, which implies an average value of $19K per GA.
Applying a PE multiple of 33 (S&P 500 Shiller PE ratio) implies an average value of $16K per GA.
Thus, even without factoring in potential premiums placed on GAs for their value as Consumable/Transformable or even Store of Value assets, I believe there is a strong case for GAs being significantly undervalued at the current .4 ETH (~$919) mint price.
Note: “$WRLD earned through these mechanics will be relative to the rarity of each genesis avatar owned by a holder. If the least rare genesis avatar receives a base of 1x, the rarest NFT Worlds avatar would receive 4x the base avatars.” - NFTW Docs
To learn more about the future of NFT Worlds, I highly recommend taking 15–20 mins to read their recently released Roadmap 2.0. You can also visit the tree.io page I’ve created to organize my NFTW-related notes.
DISCLAIMER: I am invested in NFT Worlds, with exposure to multiple Worlds, Genesis Avatars, and plenty of $WRLD. I have never received any monetary/NFT compensation from the NFT Worlds team. All work I produce is of my own doing and is not influenced or endorsed by the NFT Worlds team. Personal opinions only. NFA, DYOR + WAGMI.
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