Translated by LC
Table of Contents
1. 21 Blockchain Game-Related Tokens Listed on Major Korean Exchanges
2. Major Blockchain Game Tokens
3. Blockchain Game XCR Rating Scale
A Guide for Cryptocurrency Enthusiasts on Navigating the Web3 Universe
The growth of Korea's crypto exchanges has been remarkable, with the top five exchanges in Korea listing and trading around 400 coins as of the end of 2022. Coins, including representative cryptocurrencies such as Bitcoin and Ethereum, are traded daily with transactions ranging from tens of millions to hundreds of billions of Korean won. However, it is crucial to consider how many investors truly understand the purpose and utility of each asset, as well as how to trade them effectively. Moreover, rumors often drive the prices of coins that are poorly managed or underutilized.
Xangle is dedicated to evaluating the sustainability and potential mass adoption of various blockchain projects and cryptocurrencies by analyzing their whitepapers and project information. Our process involves assessing the coins' utility and usability continually. We strive to make this information available to investors in Korea and contribute to the maturation of the cryptocurrency market.
As part of our ongoing mission, Xangle will be launching a series of "A Guide to Cryptocurrencies Listed on Korean Exchange Platforms." This guide will categorize coins listed on major exchanges in Korea based on their utility and showcase their goals and current status. Our primary goal is to encourage investors in Korea to invest in these crypto assets based on their true potential and actual value rather than being swayed by rumors and speculation. The Xangle platform aims to provide easy access to information and real value related to cryptocurrencies.
A Map of Cryptocurrencies Listed on Korean Exchange Platforms 1. Blockchain Game
The first sector we will explore in our series is blockchain games.
Blockchain gaming is one of the most popular services used by blockchain users, and it continues to grow even after the crypto winter. According to the Blockchain Gaming Alliance (BGA), blockchain gaming accounted for 50% of all on-chain activity in 2022, and the number of unique active wallets grew 60% YoY. Although the play-to-earn (P2E) craze that began with Axie infinity has faded, investor and market participant interest remains high. Despite a decline in VC investment YoY, it still accounts for more than 50% of funding in the overall crypto market.
1. 21 Blockchain Game-Related Tokens Listed on Major Korean Exchanges
About 21 blockchain game-related tokens are listed on the five major Korean exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) due to the high level of interest in this sector. Of these tokens, 12 are Korean projects, and 9 are overseas projects, with a majority of Korean blockchain game projects listed.
Korean game companies are more active in combining blockchain and games than their overseas counterparts. This is because MMORPG genre games, which form an in-game ecosystem among users, are already prevalent in the Korean market. Furthermore, in 2022, WeMade, a medium-sized Korean game company, released Mir 4 Global, demonstrating the potential of blockchain games.
Components of Blockchain Games
Blockchain games differ from traditional games in that they incorporate crypto assets, or NFTs, into the game and grant actual ownership of in-game assets to players. In traditional games, platforms, and game companies retain all revenue generated from the game. However, in blockchain games, users can hold in-game items and character NFTs directly on the blockchain and trade them peer-to-peer, allowing them to earn profit.
Shifting away from the traditional revenue model, game companies now sell NFTs for gameplay or collect trading fees on their exchanges. This new model has led to game companies onboarding a diverse range of games to maximize their fee revenue and solidify their position as a gaming platform.
Dual Token Economy for Blockchain Games
Normally, blockchain game tokens consist of both project tokens (native tokens) that determine the ecosystem's overall value and game tokens that are exclusive to various games. In a single-token system, game diversity cannot be guaranteed, and new games struggle to acquire enough tokens since the token supply is limited. To tackle this issue, projects introduce separate game tokens that players can use to purchase in-game items or specific game content and exchange for native tokens at a fixed rate. Game tokens are restricted to in-game use only and must be converted into the project's native tokens to be cashed out.
Utilities of Blockchain Game Token
The primary functions of a native token in a blockchain game can be described in three ways.
1) Serving as a reserve currency for on-platform games and marketplaces
Blockchain game-native tokens function as the primary medium of exchange for all transactional activities on the platform. They can be used to cash out game tokens for onboarded games and to purchase and sell items in the marketplace. Developers and publishers on the platform may also use native tokens when utilizing paid features of the service platform. Furthermore, blockchain gaming platforms are developing their own infrastructure, such as Decentralized Exchanges (DEXs) and Launchpads, and native tokens can serve as a backing currency in the built DeFi services.
If a blockchain gaming project has its own mainnet or private chain, its native tokens can serve multiple purposes, including being used as a native currency and a means of paying transaction fees.
2) Providing rewards for game players and ecosystem participants
Users of blockchain games can earn game tokens as rewards for playing games on the platform. These game tokens can then be used to purchase in-game content and even converted into native tokens, which can be cashed out according to the user's preferences. One significant benefit of native tokens is that they can be easily converted to cash in any country, providing a more favorable exchange rate than traditional in-game currency/points.
Apart from rewards for playing games, some blockchain gaming projects distribute a portion of the platform's revenue to token holders.
3) Enabling participation in the governance of the ecosystem and voting on key decisions
Holders of native tokens in a blockchain game can participate in the governance of the platform by voting on critical decisions that shape the direction of the ecosystem. Typically, those with more tokens have relatively more decision-making power.
However, in projects like WeMix, which do not implement decentralized governance, not everyone who holds tokens can participate in governance. In these cases, only a few authorized governance moderators have the authority to make major decisions.
The utility of native tokens in blockchain gaming is not limited to the three examples mentioned earlier. Blockchain gaming platforms are expanding the utility of tokens by providing token holders with special benefits within the platform. For instance, native token holders can participate in on-platform crowd-funding initiatives and receive airdrops of new game tokens released by the platform. Additionally, they can participate in the platform's launchpad and pre-purchase tokens for promising game projects.
2. Major Blockchain Game Tokens
Xangle utilizes XCR to analyze whitepapers, roadmaps, and token economics of diverse blockchain gaming projects.
1) Axie Infinity (AXS)
Axie Infinity is a prominent blockchain game that has facilitated game-based economic activities in certain countries during the COVID-19 pandemic and introduced a comprehensive P2E concept. With cute characters, engaging games, and a robust community, the game amassed over $1B in cumulative revenue in 2021.
The Ronin sidechain was launched to address Ethereum's scalability challenges. However, on Mar 23, 2022, a massive hack on the Ronin Bridge, which connects the Ronin chain to Ethereum, caused a significant price drop. This drop in token price resulted in a sharp decline in the game's profitability, leading to increased user churn and a rapid decline in popularity.
Meanwhile, Axie Infinity has disclosed its token distribution plan to investors in a whitepaper. As of Feb 2023, the circulating supply stands at 112M AXS, with a total supply of 270M AXS. The circulating supply is subject to an average annual inflation rate of approximately 20%, posing an overhang risk.
2) PlayDapp (PLA)
PlayDapp is a blockchain game platform that facilitates blockchain game development via its proprietary software development kit (SDK) and runs an NFT marketplace. In 2019, it launched Ethereum-based dApp games Cryptodozer and Dozerbird and has been operating the PlayDapp NFT marketplace on Polygon since June 2020.
PlayDapp is also venturing into the metaverse by introducing PlayDapp Land on ROBLOX. The key feature of PlayDapp is that NFT items can be interconnected between games, providing a natural cross-promotion mechanism when a new game is launched, which can help expand the ecosystem and attract more users.
As per the circulation plan revealed by the PlayDapp team, the circulating supply stood at 537M PLA tokens, accounting for roughly 77% of the total 700M issued as of Feb 2023. An additional 7.4% of the current supply is slated to be released by Feb 2024, resulting in a relatively low overhang risk.
3) Bora (BORA)
Launched as an Ethereum-based private chain in August 2019, Bora has provided several services, including the Play2Bit online game service platform and the TODAYIS NFT platform. In April 2022, Bora unveiled the Bora 2.0 upgrade, transitioning from a traditional game publisher to a P2E platform, concentrating on securing P2E infrastructure via collaborative content creation and launching a DEX and NFT marketplace. Currently, Bora has six games onboard, including ArcheWorld and Birdie Shot. In 2023, Bora will continue to develop a stable infrastructure and secure top-quality content by onboarding additional games.
Meanwhile, Bora generates commissions on transactions executed on the platform, and platform revenue is projected to grow as more games join the platform, and the ecosystem becomes more active.
According to Bora's circulation plan, the circulating supply is 994M BORA tokens, with a total supply of 1.2B BORA tokens as of Feb 2023. An additional 16% of the current supply will be distributed over the next year.
4) Gala (GALA)
Gala Games is an integrated Ethereum-based NFT game distribution platform launched in July 2019. Providing an integrated platform offers users the convenience of cross-trading goods and items while allowing game developers to launch their services to an established user pool. The Gala platform includes founder nodes and individual game nodes autonomously operated by ecosystem participants. External development teams can also launch games on the Gala Platform, but they must obtain the consent of a majority of the founder nodes.
As of Feb 2023, GALA's circulating supply is 7.0B GALA tokens, with a maximum supply of approximately 50B GALA tokens. GALA tokens will be issued daily, but they will halve on Jul 21 every year, reducing the daily supply by half. As of February 2023, the daily supply is 8.6 million GALA tokens; an additional 31.6% of the current supply will be released over the next year.
5) Ludena Protocol (LDN)
Ludena Protocol is a social platform for blockchain-based P2E games with over three million users worldwide. The platform includes GameTalkTalk, a P2E gaming social app, and an NFT marketplace. Ludena Protocol is constantly onboarding self-published and partner games to expand its ecosystem. In Nov 2022, the company launched Kanimal Clash, an NFT strategy game, but the NFT marketplace has yet to see any active trading. Ludena Protocol is actively partnering with game players and publishers to create a social ecosystem for all participants in the gaming industry to build Ludena World, the ultimate goal of Ludena Protocol.
As of Aug 2022, LDN's circulating supply is 162M, representing 13.5% of the total supply of 1.2B. The three-month inflation rate is very high at 65.4%, and the one-year inflation rate is 283.8%. However, the project completed the burning of 200M LDN tokens in early August, as announced on Xangle's Disclosure.
6) Pibble (PIB)
In January 2022, a P2E Metaverse platform PIBBLE announced the PLAYMETA ecosystem that combines NFTs and DeFi. The platform has been operating since April of the same year, with the launch of the GameFi dApp, BomulPlanet. While the project aims to onboard games from existing game companies to its service chain, PIBERNET, no other games have been released yet besides BomulPlanet. However, the project plans to become a comprehensive P2E metaverse platform by onboarding various games based on PIBERNET, the Klaytn service chain, in the future. PIBBLE is currently building PIBERNET v1 and plans to support various games on the platform in 2023 after further updates.
As of October 2022, PIBBLE's circulation is 20.2B PIB out of a total supply of 30B PIB. The project plans to burn a portion of the PIB token revenue generated by the Pibble app, and according to a disclosure on Xangle, 265M PIB tokens have been burned to date. The expected inflation rate over the next year is below 5%, and the overhang risk is relatively low, considering the token diversification and inflation.
7) SYLTARE (SYL)
SYLTARE is a TCG P2E game developed by "LIKE LION," a digital education and Web3 development company that combines card games with unique Korean characters. Since its launch in Aug 2022, the game has had a positive start, with a retention rate of over 92% in the first seven days. The project has been actively marketing itself through referral events, NFT staking events, and other methods to attract early users, resulting in an increase in the value of NFTs by about 48% within three days of launch. However, the company's founder and Meta Kongz have been involved in controversies, such as the Lee Doo-Hee scandal in late 2022, which led to a sharp drop in the SYL token price and NFT transaction value. As a result, the project has yet to see significant trading volume to date.
According to Xangle's Disclosure in Feb 2023, the circulating supply of SYL is 24.9M, and the total supply is 100M. The inflation rate for the next year is expected to be 95.4%, and the overhang risk is high.
8) MixMarvel (MIX)
MixMarvel is a Korean blockchain-based game incubator and publisher that offers a wide range of services, including cryptocurrency issuance support, content publishing, DeFi tools and infrastructure, and community collaboration. The company has released and operates five games, including the blockchain card game DeHero and the multiplayer game HyperSnakes.
Despite its range of services and game offerings, MixMarvel has struggled to compete with other blockchain game publishers such as Wemix, Gala Games, and ImmutableX regarding user numbers and revenue. This is also true compared to individual game projects like Axie Infinity and League of Kingdoms. The project needs to strengthen its competitiveness to improve its performance.
As of May 2022, MixMarvel has 5.1B MIX in circulation, which accounts for 51.4% of the total MIX supply. The projected average annualized inflation rate for the next four years is 18.1%.
9) Ultra (UOS)
Ultra (UOS) aims to become the Steam of P2E gaming platforms, with more user and developer-friendly rewards. The platform launched the Ultra mainnet by forking EOS, but most of the information, including the blockchain core technology, is not publicly available. The success of the gaming platform relies on the quality of the games onboarded, but there is currently no effective game content available. Additionally, the structure of tokenomics is not currently designed to reflect the platform's success in the value of the UOS token, necessitating further improvements.
As limited information is available on the Ultra mainnet, the top 10 holders, excluding exchanges and contracts, hold approximately 78% of the total UOS supply, according to ETH Explorer. According to the initial token distribution plan, all UOS tokens have been distributed.
10) My Neighbor Alice (ALICE)
My Neighbor Alice (ALICE) is a 3D multiplayer life simulation game inspired by Animal Crossing. It is targeted towards a female audience and features cute graphics and a user-friendly design to make the gameplay enjoyable without requiring an understanding of blockchain. The project has achieved several milestones, including the launch of the Pre-Alpha test in 2021, a successful NFT (land and item) sale, and a listing on Binance. However, awareness and on-chain transaction metrics are still relatively low compared to other blockchain-based multiplayer games, indicating additional efforts are needed to secure a competitive edge following the full-service launch.
As of Feb 2023, the circulating supply of ALICE is 41.5M, and the total supply is 100M. A clear unlocking schedule has yet to be released, making determining the exact overhang risk difficult.
11) Mineral (MNR)
Mineral is a blockchain gaming platform that aims to make blockchain gaming accessible to all by automatically creating a wallet upon account creation. It tackles the issue of ownership and centralization in the gaming industry by ensuring user ownership of in-game assets through NFTization. In Mar 2021, the project launched "Five Stars for Klaytn," which combines blockchain technology and has achieved impressive performance indicators such as 8.5 million monthly active users and 31.3 million cumulative downloads as of Sep 2022. The platform plans to launch in additional countries and secure overseas revenue sources to expand its global reach.
As of Q4 2022, Mineral has a circulation of 6.7M MNR, and the total supply is 10B MNR. By the end of 2023, the total supply is expected to increase to 12.1B MNR, with an inflation rate of approximately 20%.
3. Blockchain Game XCR Rating Scale
This article should not be taken as an approval or recommendation of any specific cryptocurrencies or projects regarding their social or monetary value or sustainability. It also contains no predictions of cryptocurrency prices, investment advice, or suggestions to buy, sell, or hold cryptocurrencies.