Podcast Summary

The podcast features Alex, the head of gaming at Shima Capital, discussing the current state and future of web3 gaming. The conversation covers the role of token design, in-game economics, user acquisition, and the importance of building strong gaming communities. Alex also shares insights on how Shima Capital sources and evaluates potential investment opportunities in the crypto space, with a focus on pre-seed and seed-stage investments.

Key Takeaways

web3 Gaming: Beyond Play-to-Earn

  • Creating New Experiences: Alex emphasizes the need to look beyond popular trends like play-to-earn and stresses the importance of creating new experiences and monetization methods in web3 gaming.
  • Token Design and In-Game Economics: The discussion highlights the role of token design and in-game economics in the mainstream adoption of web3 gaming.
  • User Acquisition and Retention: Alex underscores the importance of user acquisition and retention strategies in the success of web3 gaming projects.

Investment Strategies at Shima Capital

  • Deal Sourcing and Evaluation: Alex details his role at Shima Capital, which includes sourcing deals, evaluating pitches, conducting deep research, and supporting portfolio companies in various aspects such as product development and token design.
  • Building Relationships: Alex highlights the importance of building relationships and generating one’s own alpha to find investment signals in the “wild west” of crypto.

Challenges and Opportunities in web3 Gaming

  • Go-to-Market Problem: Alex points out the go-to-market problem in web3 gaming, where games sell assets like land or NFTs before the game is live, creating a financial burden for the community.
  • Creating Net New Experiences: Alex questions the effectiveness of simply adding web3 features to clones of Web 2 games and stresses the need for creating net new experiences to engage players.
  • New Monetization Models: The podcast explores the basics of in-game economies in web3, exploring new monetization models and economic opportunities for gamers.

Investing in Gaming Content and Infrastructure

  • Value Accrual in the Gaming Stack: The conversation highlights the concept of value accrual in the gaming stack, comparing it to the layer one and layer two infrastructures of blockchains.
  • Token Economy Design: At Shima notes the importance of token design and the pitfalls of copy-pasting token models from other protocols.

Evaluating Early-Stage Projects in web3 Gaming

  • Data Analytics Platforms: The speaker emphasizes the importance of using data analytics platforms like Dune, Nansen, and Active Chain to form opinions and identify promising projects.
  • Community Engagement: A key strategy mentioned is to look for projects with cult-like communities, as these often indicate a deeper engagement beyond speculative interest.
  • Qualitative Aspects of Project Evaluation: The conversation delves into the qualitative aspects of project evaluation, such as the founders’ thought processes and strategies for user acquisition, differentiation, and retention in a competitive market.

Sentiment Analysis

  • Bullish: The podcast expresses a bullish sentiment towards the future of web3 gaming, with Alex highlighting the potential for new gaming experiences and monetization methods. The discussion also shows optimism about the role of token design and in-game economics in the mainstream adoption of web3 gaming.
  • Neutral: While the podcast is generally bullish on web3 gaming, it also acknowledges the challenges in the space, such as the go-to-market problem and the need for creating net new experiences. The conversation also highlights the difficulties in evaluating early-stage projects and the importance of using data analytics platforms and assessing community engagement.

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