A 2.5M USD FULLY DILUTED NFT GAMING PROTOCOL
Hi everyone, it’s been a while since I’ve contributed something that I thought would be worthwhile and (potentially) significantly beneficial from an investment (Risk/Reward) point of view.
As some of you know I’ve been one of the larger holders of SHROOM (Gaming NFT ecosystem meta-token).
The past weeks I’ve done some more digging and the -85% price drop combined with the fundamentals makes me say that this is the no.1 (high) Risk/Reward opportunity in my portfolio of around 25 assets.
In this write up, I will be focusing more on SHROOM, the meta token then on GSWAP. Mainly because GSWAP is part of the larger SHROOM ecosystem (see diagram below) and is currently being farmed, which is a great opportunity for SHROOM holders (I’m farming 100%). I expect both tokens to significantly appreciate in price over time and that at the moment there’s even more upside in SHROOM itself. I’m however planning to get the same % of the total supply of SHROOM and GSWAP, so that tells you how I see both tokens.
The past weeks I’ve had multiple conversations with one of the project founders (“Joey DeFi”). This all has made me go even more “irresponsibly LONG” on SHROOM and GSWAP. I truly believe this has a 100x+ potential in the coming 12–18 months.
Key points that strengthen my thesis
General topics
- NFT’s will probably become the no.1 / no.2 biggest trend / hype over the coming 18 months
- Gaming is a 100 billion usd global industry, “in-game assets” are already at multiple billions usd (Fortnite earns 3 billion+ / year in selling in-game assets). Therefore gaming NFT’s can become the “Trojan Horse” for crypto adoption. Protocols that facilitate gaming NFT trades, swaps, NFT minting etc. for legacy games (Fortnite, Call of Duty) as well as blockchain games (Axie Infinity, Cryptokitties, Aavegotchi) can potentially become 100’s of millions or even billion dollar protocols down the road. A simple calculation of the in-game assets market and comparing it with Uniswap tx volume already shows how much potential there is and what potential valuations could be.
- Value proposition of transaction fee’s of a NFT Gaming Ecosystem (launchpad, NFT minting) and a NFT Gaming DEX flowing to the (governance) token holders of these protocols is an easy to understand (investment) narrative.
Specific SHROOM / GSWAP points:
(based on my judgement and 12 years of corporate enterprise level experience)
- Joey, the founder is a smart and experienced guy, he has almost 9 years of Blockchain development experience so he was in this ecosystem (as a developer) almost since the beginning and is well enough equipped to think of and execute the strategy
- They actively listen to the community and adjust plans based on feedback
- There has been significant VC interest which they will potentially utilize to pay for development costs and marketing
- Only a 2.5M USD fully diluted mcap (SHROOM), we all know that even less interesting projects can accrue significant multiples with these kind of mcap’s in a full blown bull market, so what do you think a potential sophisticated protocol that can get adoption quickly can do in such circumstances?
- The team has delivered everything on time, kept their promises and the quality of what they deliver is at a high level
- The SHROOM community has exploded in just 1 month, that shows what could happen when new retail will come in in 2021
- Building on that, one of the key drivers has been the amount of large crypto influencers who have been mentioning and pushing shroom. This was a welcome surprise to me, this was at the level of larger hyped projects like (Keeper, YFL etc.) and I believe this will go for a 2nd and 3rd round next year.
- And finally, there has been serious interest from gaming devs and other DeFi platforms, a potential Andre Cronje + YFL collab is being spoken about. But first they obviously need to deliver on the tech.
Risks involved
- General DeFi risks, contract bugs etc.
- Anon team, Joey is affiliated with another (large) crypto project and can’t be transparent (yet). I’ve been investing quite some time in speaking to him to make an assessment if he’s legit and my conclusion is he is. This is based on his core values, the values which he believes in. Amongst others these are long term sustainable growth, high quality product before any marketing and other values that made me believe he’s a good and trustworthy person in general. This is all based on a few hours of conversation, including a few test questions to see how he would respond and I’ve concluded that both Joey and the project are the real deal.
Strategy
What needs to happen for SHROOM and GSWAP to accrue value and become successful (on a short term 6–12 months time frame)?
The no.1 deliverable is the MVP of the Gameswap DEX. This is planned for EOY. With this MVP gaming devs will have prove the team can deliver the tech, after that I expect multiple collabs will follow in Q1.
This will also be the time when the marketing engine will start.
I expect that these two drivers will be enough to start a strong uptrend for both SHROOM and GSWAP and that they both will outperform other low cap crypto assets.
Concluding
All in all, I expect we’re close to or already have seen the bottom in SHROOM.
Technical indicators are looking good and it seems the uptrend has already started. I expect a steady upward trend towards EOY, it’s hard to say when the real fireworks will start. It could happen any day, however it could also take until the delivery of the MVP.
Furthermore, except for maybe 1 or 2 updates I don’t expect a lot of marketing and /or communication from the team the coming 6 weeks since they are fully focused on building (which is how it should be, the rest comes afterwards).
With a 2.5M fully diluted mcap, a (potential) technically sophisticated project that’s FULL on trend with the no.1/no.2 hype of the next bull run and that currently trades at -85% vs the previous ATH of 6 weeks ago I see SHROOM as the most interesting asset within my portfolio of 25+ bets.
I’m “irresponsibly LONG” on SHROOM and GSWAP and I believe it has a significant probability this will be the no.1 performing asset in my portfolio.
Disclaimer: please do your own research, this is no investment advice, still lots of risks involved, anon team always higher risk. Make your own investment decisions. I’m not being paid for this, this is just my POV which I truly believe in and am happy to share with others cause I want us all to maximize the coming bull run.
SHROOM / GSWAP Medium articles:
General site:
https://medium.com/@shroom.finance
SHROOM ecosystem overview:
https://medium.com/@shroom.finance/a-defi-protocol-for-in-game-assets-608517fea314
Discourse Forum for active discussions:
https://forum.shroom.finance/
CoinGecko overview
SHROOM: https://www.coingecko.com/en/coins/shroom-finance
GSWAP: https://www.coingecko.com/en/coins/gameswap
Telegram: https://t.me/shroomfinance
