Gaming has been on fire lately, with gaming tokens BIGTIME, SHRAP, TOPIA gaining a lot of attention. One sector that is probably going to come back into the limelight again is the gaming guilds — YGG, Merit Circle, and GuildFi are the top 3.
These guilds raised huge amounts of funds during the bull market of 2021-2022 but have since languished after the promise of Web3 gaming took longer than expected to come to fruition.
Merit Circle recently announced a high-profile partnership with Immutable and Polygon, began a token migration from MC to BEAM and has been flaunting its $100M treasury.
On the other hand, I believe that GuildFi (GF) is under the radar and well worth watching for two main reasons:
1. RFV play.
GuildFi has a treasury of ~$100M in non-native tokens (ETH, Stablecoins & investments) but a circulating market cap of $73M (at today’s price of $0.147). Just the staking yield alone ($2M – $3M annually) affords GuildFi a nearly unlimited runway.
Compare this to Merit Circle, which has a similar-sized treasury. However, its BEAM token is at a $1B+ FDV (after migration). The premium is likely due to attention around Merit Circle’s recent announcements and rebrand. So GF appears relatively cheap at <15% of BEAM’s valuation
2. Upcoming revamp.
GuildFi will be launching new products in 2024 with an aim to bring millions of players into their network (as per the tweet). Some of their plans are quite ambitious (Metagame), based on my conversations with industry folks. Nothing is certain, of course, and it depends on them executing their marketing and product strategy well beginning Jan-Feb.
There is some uncertainty around the tokenomics, and a revamped whitepaper is in the works.
In any case, I would put GuildFi on your radar for 2024, especially if you believe (like me) that 2024 will be a great year for Web3 gaming.