Research Summary
The report discusses Supercell’s investment in web3 games, focusing on its funding of Games for a Living (GFAL). It explores GFAL’s Elemental Raiders game and its $GFAL token, the challenges of integrating tokens into game clients, and the potential benefits of web3 for user acquisition and retention. The report also examines GFAL’s future plans and the reasons behind Supercell and Benchmark’s investment.
Key Takeaways
Supercell’s Investment in Web3 Games
- Supercell’s Commitment: Supercell, along with Mitch Lasky of Benchmark, contributed to a $3.2M funding round for GFAL. This is Supercell’s first investment in web3 games since the NFT frenzy of 2022, indicating a belief in the potential of this project.
- GFAL’s Elemental Raiders: GFAL’s game, Elemental Raiders, is a hero-based card battler with both PvP and PvE modes. The game is available on Steam, Android, and iOS, with plans for a console release. It has full IAP monetization with soft and premium currencies alongside seasonal PvE/PvP gameplay.
- GFAL’s Token: The game’s web3 implementation focuses on its $GFAL token, which was launched in 2023, raising $3.5M in private sale and $800K in pre-sales. The token is focused on merit-based play-to-earn, awarding players through game leaderboards and seasons.
- Challenges with Token Integration: GFAL faced challenges with integrating its token into game clients due to platform restrictions. The company had to adapt and feature traditional IAP for a premium currency, with the workaround being the ability to purchase the currency for $GFAL tokens on its web marketplace.
- GFAL’s Future Plans: GFAL plans to expand the need for the token, with plans for it to be an in-game currency. The company also plans to introduce NFTs into the mix in Q2 2024.
Actionable Insights
- Understanding the Potential of Web3 Games: Companies should explore the potential of web3 games, as they offer new opportunities for user acquisition and retention. GFAL’s approach of rewarding dedicated play has shown some success in these areas.
- Overcoming Platform Restrictions: Companies planning to integrate tokens into game clients should be prepared to face platform restrictions and find ways to adapt, as GFAL did by featuring traditional IAP for a premium currency.
- Exploring New Monetization Strategies: Companies should consider new monetization strategies, such as merit-based play-to-earn, which can provide additional incentives for players to engage with the game.
