NFT, through playing games or staking Realms, can obtain the token $Lords. Currently, the game is not fully open.
Loot Survivor (a text-based Roguelike game) and Shoshin, launched by Topology, have gone live on the mainnet and can be tested on the test network. Playing the game requires consuming at least 25 $Lords.
Non-full-chain games refer to games where some game assets are on the chain. Currently, most NFT-related games belong to this category.
Although the NFT market has been cold this year, NFTs in the gaming sector are very hot. The analysis of a project generally focuses on three aspects:
1. Technology
2. Operation (breadth)
3. Community (depth)
Among them, the most important are 2 and 3, while 1 is relatively secondary.
Projects worth paying attention to: Matr1x.
Matr1x aims to build a web3 boutique game platform. The first shooting game is already available for experience, and the related community is very active. It is one of the few game products that have landed and have a high community enthusiasm.
Of course, this game also faces challenges: how to attract web2 users? Because the number of web3 users is limited, and most of them only care about profits rather than the game itself, the project needs to attract web2 players to make the game more sustainable.
Matr1x’s approach is to use Douyin, Bilibili live streaming, and hold esports competitions. From the game data, the proportion of web2 players is not low.
There are two ways to participate in Matr1x:
1) Staking NFTs to obtain tokens
2) Participating in subsequent game activities or public testing
If the Gamefi trend arrives, non-full-chain games will be the first to receive attention, and when the entire ecosystem’s funds overflow, full-chain games will be lifted.
According to the report of Binance Research Institute, the financing growth of Web3 projects related to artificial intelligence in 2023 will reach 298 million US dollars, far exceeding the total financing amount of AI-related projects from 2016 to 2022.
At the same time, tokens related to AI also outperform BTC and ETH overall in 2023. 2023 can be said to be the AI year of the whole world, as the importance of AI in the Web2 world gradually strengthens, we should also consider how AI and blockchain can be combined and what directions the combination can take, and finally, we can pay attention to which projects.
With the increasing demand for AI models, whether it is large language models or customized AI models based on demand scenarios, the intelligence improvement of AI cannot be separated from a fundamental aspect: massive training, and the essence behind massive training is computational power. In traditional large-scale model training, the training environment of large models is carried out in centralized machine rooms, using high-performance computing devices as clusters and connecting through high-speed networks for shared computing tasks.
In the Crypto environment, by sharing computing power and idle bandwidth, more computing power can be provided for AI model training, which is one of the exploration directions of AI & Crypto.
The decentralized mechanism of Web3 makes AI more democratic from the bottom up. By deploying, training, and using AI in a decentralized manner, users’ data privacy can be better protected, and there is also an opportunity to be rewarded by sharing data.
However, it should be noted that for model training, decentralized computing networks have the drawback of communication delays due to distributed distances. Nodes need to spend more time waiting for data transmission, which is less suitable for models pursuing training efficiency.
In Web2, well-known AI applications include chatbot ChatGPT, AI search engine New bing, image generation tool Midjourney, and virtual character AI, among others. In Crypto, if AI wants to integrate with Crypto at the application level, it can develop in the following directions:
1) Like RSS3, based on the ChatGPT model, integrate on-chain data and data sources such as Twitter, Reddit, Lens, Farcaster, Mastodon for training, to build a more Crypto Native chatbot or AI assistant tailored to the needs of Crypto players.
Or, like 0xScope, it built an AI cognitive model based on a knowledge graph, and users can use the AI trading assistant Scopechat to access and understand on-chain data for investment and trading analysis.
2) In addition, generative AI can bring new narratives to Web3 applications, such as embedding virtual people, character AI, and other cutting-edge elements in games, social ecosystems, and developing new gameplay.
From the two AI-related projects recently launched by Binance, it is not difficult to see that the largest global exchange is very optimistic about the future of the AI track. The two projects launched are AI image generation and AI virtual idols, which are explorations of the combination of AI and Crypto in the application layer.
In addition to the mentioned projects, other projects to watch include:
1) Bittensor ($TAO): A decentralized machine learning network based on blockchain that coordinates the collaboration of AI models through blockchain and mining incentive mechanisms.
2) FetchAI ($FET): A blockchain-based machine learning platform that aims to enable traditional products to access AI through Fetch.ai tokens without changing the underlying business applications.
3) Dynex($DNX): A neural-morphic supercomputing blockchain based on the DynexSolve chip algorithm, proposing a useful proof of useful work (PoUW) method to improve the speed and efficiency of decentralized networks, aiming to provide computing power for machine learning, fintech, biopharmaceuticals, etc.
4) Grass: A decentralized incentivized network for fetching networks, where users sell their unused network resources to companies, laboratories, and other institutions through the Wynd Network. The buying companies of Grass seek unused network resources to access more diverse IP addresses for market research, network crawling, AI training, and other tasks.
5) Clore.ai ($CLORE): A platform that provides GPU computing power rental services based on PoW. Users can rent their GPUs for tasks such as AI training, video rendering, and cryptocurrency mining, providing services to individuals and institutions in need of computing power.
If users want to participate deeply in the above projects, the main participation methods are renting computing power or mining. For example, Grass currently has an open Chrome plugin account on the computer, and users can download it, register, and earn points by hanging up through Wi-Fi. After the project releases tokens, users can obtain tokens based on their points.
(Note: Currently, most AI & Crypto projects are in the exploration stage, with projects focusing on different application scenarios. However, it is necessary to carefully distinguish whether the projects themselves have real demand.)
The Meme track, as a unique branch in the cryptocurrency field, has attracted widespread attention in recent years.
A Meme can be a misspelling (HODL), a catchphrase (GM, LFG),
A Meme can be a counter-cultural symbol (Doge, RFD),
A Meme can also be “arbitrage” of liquidity overflow (Aidoge, Stark Inu, which is expected to airdrop on Starknet).
The characteristic of this track is that it does not rely on traditional business models or specific technological applications but relies on the consensus and cultural attributes of the community. The value of Meme track tokens largely depends on the recognition and emotional connection of the community, rather than the traditional asset valuation model.
From the rise of $PEPE in the bear market, the highly memetic $BITCOIN, the arrival of $BONK in middle school, and the endorsement of $Silly by the founder of Solana, we can see that strong Meme coins often have the following characteristics:
1. Cultural resonance and community-driven
Meme track tokens are usually combined with popular internet culture. For example, Dogecoin ($DOGE) and Shiba Inu ($SHIB) originated from popular internet memes or cultural symbols. This cultural resonance is easy to spread in internet communities, attracting a large number of followers and supporters, and gaining lively discussions on social media, increasing the visibility and attractiveness of these tokens.
2. Social media and celebrity effect
Social media has a huge influence on Meme coins, and endorsements from celebrities like the founder of Solana can significantly boost their market value. This celebrity effect and the power of social media can greatly enhance the visibility of a token and create FOMO among investors in a short period.
3. News coverage and media attention
Due to their unique image and sometimes bizarre stories, Meme coins often become the focus of news coverage, further increasing public attention to these tokens.
When it comes to Meme, one thing we need to understand is how to judge the consensus strength of a Meme, that is, how many people in the market are willing to pay for a Meme.
In the early stages of Meme, we can usually only judge its investment value based on community activity, IP concept (riding on hype), project team strength, cultural background, and other “mysterious” conditions. This is also the biggest risk of investing in Meme in the early stages, either going to zero or being a rug.
When the Meme successfully “survives” for a period of time, we can try to judge whether it is worth investing in from multiple dimensions such as the number of holders, trading volume, and support from the K-line (for example, more mentions of the Meme on Twitter).
As Meme becomes more well-known, its consensus also strengthens, and the risks of going to zero and being a rug gradually decrease. However, the returns of such Meme coins are discounted. As the saying goes, risks and returns coexist.
Overall, the Meme track represents the new direction of diversification and cultural integration in the cryptocurrency market. It is not only a speculative direction but also a carrier of cultural expression and community consensus. With more cultural elements and creativity joining, the Meme track is expected to continue to develop, but the risks it brings should not be ignored.
Therefore, for ordinary investors, understanding the cultural attributes of Meme coins, securing early chips, and most importantly, cultivating a familiar logic and judgment, and taking action, are the keys to participating in the Meme track.
Finally, 2023 is a year of transformation and innovation in the blockchain and cryptocurrency field. From the launch of the first modular blockchain to the rise of BTC metaverse ecology, to the integration of AI and crypto, each link injects new vitality into this industry.
As we step into 2024, we believe that these developments will continue to influence the industry’s direction. Stay alert and learn, analyze market dynamics rationally, explore new tracks, and it may be one of the essential courses for everyone in 2024.
In 2024, Biteye will stay true to its original aspiration, continue to select high-quality projects, and explore the codes of wealth with our teammates!
Biteye is the leading Web3 research community in Asia. It generates forward-looking investment research content and tools through community and AI-driven methods to help community members explore the Web3 rabbit hole.
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Further reading:
Which airdrop has the highest profit in recent years? TIA, JTO, BONK have all created tremendous value
Celestia (TIA) mainnet launch | Opportunities and challenges of modular blockchain