Welly
@welly
Speaking to a large (>$500M AUM) VC yesterday who is bearish on web3 consumer (gamefi, socialfi) in this market. Strong preference for infrastructure and middleware. Who strongly agrees/disagrees?
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Samuel Thomas
@st100
Why are they bearish on gamefi? Gamers are still going to play games despite what’s going on in the markets.
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Welly
@welly
Rationale was the sector isn't mature enough to given them confidence it would survive the bear market. I think that's overly conservative.
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Samuel Thomas
@st100
Got it, i understand. What are your thoughts on the Gamefi market?
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Welly
@welly
Optimistic, but looking forward to sustainable business models and experiences that can reach web2 scale
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Welly
@welly
Zynga’s revenue, for example, includes a large portion from advertising, which grew faster yoy than its transaction-based revenues. I don’t know if gamefi projects that have significant ad revenues (if you know, please share). https://i.imgur.com/t4pOkO2.jpg
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Welly
@welly
And the current web3 market is tiny. It needs a platform dynamic to enable network effects across apps to make user acquisition more efficient - like how Zynga used Facebook to reach a tipping point (https://techcrunch.com/2011/12/12/zynga2009/) https://i.imgur.com/IcBswg4.png
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Samuel Thomas
@st100
I’m not too sure about that, but when I find out, I’ll surely send them to you. I know the advertising space in Web3 will be massive. Brands and projects can directly advertise to each consumer via their wallet…
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