Nakamoto Games Due Diligence
Easy 2D games with a suite of games, currently, there are 13 games of different styles for various kind of players.
How to play: purchase a small amount of $NAKA tokens (USD$1 to $2) to buy 1 ticket to play. The nominal entry fee for each game goes into the reward pool that will be distributed to the winners. $NAKA distributed to top players per game via Top 10 Weekly Leaderboard.
Number of web visits as at 16 April 2022 shows a downtrend of web visits post launching of Nakamoto Games on 8 Dec 2021, with a bounce rate of 56% (slightly on the high side).
With an average 3 pages per visit could mean that most people leave after reaching the page to connect your wallet or reaching the USD$1 deposit in order to play the game
Axie Infinity (ranked #2,500 globally) is the most popular Web based play-to-earn (P2E) game by far with 13.1 million total visits. In terms of user adoption, measured by web traffic, Nakamoto Games is ranked #650,803 globally, behind many of peers of similar nature.
Going through Nakamoto’s social channels, it is not engaging in discord, possibly due to the infancy of the game as compared to Gala Games. Nakamoto is more engaging in Twitter, Medium and TikTok.
Peers Analysis
Looking at its closer competition, Gala Games, Nakamoto needs to spend considerable amount of marketing publication and giveaways is needed to build up its followers and content for awareness establishment.
Roadmap
Nakamoto has been meeting its roadmap thus far with notable accomplishments:
1. Nakamoto managed to list on top tier centralized exchange, Kucoin, drawing potential for incoming interest and investments.
2. Nakamoto will be doing community land sale on July 8th –July 31st on their NFT marketplace (Nakaverse). The NFTs can be mined for materials to build assets in the Nakaverse.
3. Nakamoto announced in March 2022 that it is releasing SDK with a new MMORPG game that will attract user base to the platform.
Tokenomics
Sales of 55million tokens (31%) via seed and private fund raising is to fund the start up of the game, and 16.7% of the tokens will be released to the team & advisors to support the games.
The vesting schedule is rather short with 47% of total supply to be released to both private investors and the team by end-2023. A longer vesting schedule is preferred to keep their interest aligned with the success of Nakamoto Games in the long term.
Examining further, there is a portion of the token supply that goes into the development and expanding reach of the game, 11.1% is allocated towards game and bounty development. The remaining portion of the tokens are used to reward the players through play 2 earn rewards (22.2%) and referrals (8.3%). FYI, Stakers currently earn between 15- 25% of APR for locking token for 30 to 90 days.
There are some deflationary features for the Naka, 25% of Naka tokens collected from the digital land sale will be burned as well as 4% of the nominal fee paid by users to play games.
Technology
Currently, Nakamoto can be played on both desktop and mobile, on 4 types of browser support: Safari, Explorer, Firefox, Opera. It operates on the Polygon network, for higher throughput and lower network fee as compared to Eth Network.
Q2 2022 is the release of SDK for mobile developers. SDK allows third parties (game developers) to build and deploy their own gaming creations within the Nakamoto ecosystem. This means independent game developers or start ups can launch their games on Nakamoto’s blockchain gaming ecosystem.
For third party gaming release, 3% of rewards pool are paid to game developers to incentivize developers to participate and contribute to Nakamoto’s ecosystem.
Investment Thesis
With a conservative estimation of growth in the estimated market capitalization and taking into calculation the high competition within the Blockchain P2E games, above is my forecast on the valuation of Nakamoto Games.
Conclusion
SDK and attraction of user base is the key factor towards Nakamoto’s success. Therefore, aggressive marketing campaigns are required to recruit players as well as community engagement efforts to keep the players in the Naka ecosystem.
There is potential of Nakamoto performing better than my forecast provided there is any partnership with notable games/investors as well as awareness of the game by influencers to boost the number of users.