# NFT Worlds | Bull-Case for Genesis Avatars By [crypD0nut](https://paragraph.com/@crypd0nut) · 2022-05-11 --- Primer ------ I believe [NFT Worlds](https://www.nftworlds.com/play) is positioned to become the #1 P2E platform in the metaverse by the end of 2022. In my [most recent post](https://medium.com/@crypd0nut/wrld-summer-is-about-to-begin-26a99c05827), 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](https://opensea.io/collection/nft-worlds) & [WRLD token](https://medium.com/@crypd0nut/why-i-think-nft-worlds-wrld-token-could-be-worth-3-currently-under-2-by-the-end-of-2022-cb9367b7d857)… Introducing Genesis Avatars --------------------------- [A collection of 15,000](https://docs.nftworlds.com/nft-worlds-other/genesis-avatars-mint) unique, 1-of-1 playable characters that will have special perks throughout the NFT Worlds multi-metaverse. Perks include access to: 1. Exclusive cosmetic items & drops 2. A GA-only NFT World (think SoHo House of the NFTW multi-meta) 3. Exclusive vanity player titles that carry across all Worlds 4. **50% of fees from NFTW’s soon-to-launch NFT Marketplace, into perpetuity.** Note that the purely cosmetic/vanity driven [video game skins industry](https://medium.com/wax-io/how-on-earth-is-trading-virtual-items-in-video-games-a-50-billion-industry-5972c211d621#:~:text=For%20hard%20core%20video%20gamers,looks%20set%20to%20keep%20growing.) 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](https://cryptoslam.io/axie-infinity/sales/summary) and [TreasureDAO’s](https://metaversal.banklesshq.com/p/a-quick-guide-to-treasure?s=r)) 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_](https://docs.nftworlds.com/nft-worlds-other/genesis-avatars-mint) Bull-Case Valuation ------------------- A [Discounted Cash Flow Analysis](https://docs.google.com/spreadsheets/d/1c8yjVoOCQ7Ze-IapIP7cix0LfqaHcnHN_zpIzc4ddZs/edit#gid=0) 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](https://www.multpl.com/shiller-pe)) 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_](https://docs.nftworlds.com/nft-worlds-other/genesis-avatars-mint) To learn more about the future of NFT Worlds, I highly recommend taking 15–20 mins to read their recently released [Roadmap 2.0](https://docs.nftworlds.com/nft-worlds-other/roadmap-2.0). You can also visit the [tree.io page](https://tree.io/@Evan/nft-worlds-wrld) 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._ [edition://0x9cDf081681fC348F46f57a17317a3bfAD27404Dd?editionId=0](https://etherscan.io/address/0x9cDf081681fC348F46f57a17317a3bfAD27404Dd) --- *Originally published on [crypD0nut](https://paragraph.com/@crypd0nut/nft-worlds-bull-case-for-genesis-avatars)*