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Teng YanDec 8, 2023 • 2:54 PM

GuildFi appears to be under the radar

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.

Thank you Teng for this lookout, I longed Guildfi shortly after and plan to add during dips. This will be my guild of choice for this next cycle. The fact that it has a similar treasury and asset portfolio as BEAM and its 1/10 the val is a good play in my eyes.

Good luck on the trade! Watch for Jan-Feb 2024 when GuildFi will likely be starting all of its rebranding activities, that will be a positive catalyst IMO.

Why is YGG not doing as well as BEAM and GF? Also GF just hit the same marketcap as YGG; does that make GF still a better buy compared to YGG? Thanks

Quoting my gaming colleague Joe's reply in the Delphi members telegram chat (where someone asked a similar question about YGG):

"I don't know if I'd say I prefer one over the other, both still have a lot to prove. The main reasons for excitement with GF is that they have announced a couple times now about their rebranding in Q1. Aside from just a name change, we can also expect them to launch their own network (I'm guessing it will be like Beam), a questing platform, publishing tools, and a couple other things."

wait, please note merit circle has been rebranded to beam, and migration completed over 80% and new token is named Beam. so its marketcap has been around 1B.

You're right Anthony. That makes the relative difference in valuation between MC/Beam vs GuildFi even more stark. I'll edit the post to reflect this.