CoinWorld Report:
Author: Rain Sleeping in the Rain, Source: substack
1. Basic Data
First of all, Pirate Nation has a good foundation. The first part is on-chain activity (Proof of Play has created a Layer3 through Arbitrum Oribiter, and the main activity on-chain currently comes from the game Pirate Nation). The on-chain activity of Proof of Play Layer3 is second only to Basechain (XAI is brushing volume). Proof of Play is the first Layer3 to achieve such high activity through its own dApp. (Here, it is worth mentioning that another reason for achieving such high activity is that Pirate Nation is a full-chain game, and all the game logic runs on-chain).
From the changes in Gems, we can see the demand for $PIRATE and the team’s income (Gems is the game token used to enhance the game experience).
Based on the calculation of the quantity of Gems according to the price of 333 $PIRATE, 333 $PIRATE can purchase 3393+857 (Bonus) Gems. In other words, 1 $PIRATE = 12.76 Gems. The team’s income is currently about 57M Gems = 4.46M $PIRATE, approximately 1.2 million USD (1.2 million USD is the lower limit estimate of income. If someone buys the other two packages, the team’s income will be higher. The team can sell these income directly. On-chain liquidity is not enough, and the best solution is to transfer it to Coinbase for sale).
If calculated based on the quantity sold in boxes, (333*13075+166*331+66*1591)*0.27=1.21 million USD. The two sets of data are similar.
The rapid growth of the team’s income is temporary. From 6.22 to 6.30, the team’s income grew rapidly. In recent days, the income has declined significantly. From the data in the following figure, the reason for the decline in income may be related to the insufficient number of new paying players. Old paying players are playing the game and actively using Gems in the game. Another reason may be related to the rise in the price of $PIRATE. As mentioned in the Docs, the team will adjust the exchange ratio based on the price of $PIRATE. If the team enhances the purchasing power of $PIRATE, it may promote a new round of in-game payments. The next time to adjust the price may be July 9th.
The forging of in-game resources has also been well maintained. I won’t put the pictures one by one. Currently, it is at its peak and stable. This is also the advantage of a full-chain game. The data of in-game items/resources can be seen at any time.
According to the official statement, hundreds of people play Pirate Nation every day, and the total number of players is 1500+. Currently, players need to queue to play the game (mainly considering the capacity of the chain, new players are temporarily delayed from entering). If the chain cannot solve this problem, the development of the game will be restricted.
2. Token Economics
Total supply: 1 billion
Circulating supply: 216 million
Current MC: 57 million
FDV: 263 million
Already listed on Coinbase.
Data source: Coingecko
The TGE unlocked 15% of $PIRATE, and the remaining part will be unlocked over 36 months. Investors & Advisors and Team’s 11.75%+28% will be locked for 12 months. In other words, until June 13th next year, token release will only be given to the Community and Ecosystem.
Currently, $PIRATE can be used to purchase Gems (as well as other in-game items/services), and it can also be staked on the Foundation website to earn PoP points. Staking has a staking multiplier that decreases by 10% every day. In other words, the earlier you stake, the higher the points multiplier. If you unstake, the multiplier will reset to zero. Founder’s Pirates NFT (will be lost if sold) can also earn points. Currently, 125 million $PIRATE has participated in staking, accounting for 57% of the circulating supply.
Could there be a PoP airdrop for points in the future? (Just a possibility, Pua)
3. Investment Background
Proof of Play, the developer of Pirate Nation, completed a $33 million financing in September last year, led by a16z. If PoP issues tokens in the future or if PoP’s Layer3 issues tokens, it may airdrop to $PIRATE Stakers.
4. Summary + Opinions
In summary, Pirate Nation has good fundamentals, has captured a group of players, and has high game revenue. As for $PIRATE, the token utility is not a problem. Game players need to use it to buy Gems, and speculators can stake the token to earn PoP points. Moreover, the investors and team’s unlocking has been delayed for more than half a year.
Motivation for the price increase?
First, as I mentioned before, if the team wants to sell the income, it needs sufficient liquidity, which may be the motivation for a pump?
Second, raising the price to attract new players, and new players bring more income? This is questionable. The game has reached saturation now-until the game solves the current problem of on-chain capacity.
Third, good fundamentals may attract many fundamental investors to buy $PIRATE. However, I think this is also doubtful. The current market sentiment is average, and many people may not make position judgments during this period.
Personally, I will add a small bell to Pirate Nation’s Twitter to know the latest progress in solving problems. Also, I will pay attention to the staking data of $PIRATE. It seems a bit early to bet on the price increase at this stage. The key to buying is the concentration of market attention. The current market’s attention to $PIRATE is still brewing.
