SevenX Ventures shared the story behind Matr1x becoming the world’s largest gaming NFT by market value.
Matr1x is a non-profit project driven by the developer community with the goal of building a decentralized gaming world that enables players to own and control their gaming assets. The project provides a new way to create, trade and manage in-game assets, subverting the monopoly control of game assets by traditional game companies. The philosophy of Matr1x is to give players greater power and autonomy, allowing them to more freely participate in the construction and development of the game world. Through blockchain technology, Matr1x realizes the digitization of game assets, ensures the transparency and security of assets, and provides players with a fairer and more open gaming environment.
Matr1x’s success story also reveals the huge potential of blockchain technology in the gaming industry. By leveraging blockchain technology, game developers can create a more fair, transparent and reliable gaming environment while providing players with more control and benefits. In the future, with the continuous development and popularization of blockchain technology, we can expect more innovative projects to emerge, bringing more changes and opportunities to the gaming industry.
SevenX Ventures has been a staunch cornerstone investor behind Matr1x since 2021, and continues to serve as a co-lead investor in its recently completed $10 million Series A financing square. And why are we confident that multi-round betting supports Matr1x? In addition to the ultra-fast learning ability demonstrated by its team, we are also impressed by the decentralized spirit, professional capabilities and the huge business opportunities it has unearthed with its deep knowledge of the shooting game circuit, which we will discuss in this article. Let’s share the reasons why Matr1x attracts us one by one.
SevenX is currently focusing on developing the Web3 game field, because games have huge potential in the blockchain and can bring a large number of new users to the blockchain. However, it is regrettable that in the past development of Web3 games, more and more products were limited to the blockchain community and failed to attract the participation of game users. This is mainly because most Web3 game products cannot meet the high requirements of game users and cannot attract their interest.
Why does SevenX believe that Matr1x has the opportunity to attract a large number of game users? This starts with their entrepreneurial story. The core team of Matr1x was still working in the head shooting product team of a major manufacturer. During a market survey, they discovered an abnormal data. At that time, the revenue data of one product among all shooting game categories was abnormally high. This product is CSGO. They found that the number of online users of CSGO is basically the same as that of CrossFire. CSGO’s single user revenue ARPU is 100 times that of CrossFire, while CSGO’s user monthly payment rate is 50%. CrossFire's pay rate of 1% is almost a 50x difference. This gap in revenue data is so large that it cannot be explained simply by the difference between PC games and mobile games or the different spending power of European, American and Chinese users.
Therefore, they began to deeply study the reasons for CSGO’s commercial success and found that the core of its high user income lies in the design of the business model. Unlike other gun games that sell weapon skins directly through the official mall, all CSGO weapon skins need to be obtained through unboxing and can be traded for real gold in the secondary market. CSGO's main revenue comes from the sale of open box keys and transaction taxes.
Why are users so willing to spend money in CSGO? The core reason is that when users open boxes in CSGO, it is not a pure consumer psychology, but a feeling that there is an opportunity to make money. Because all the jewelry users have in CSGO can be sold for real money, users think they really own these virtual items, and they will treat the jewelry in CSGO as assets rather than consumer goods. Since they are assets, users will naturally be willing to spend more. More money to purchase.
After studying CSGO, the Matr1x team discovered a huge market opportunity, which is that there has never been a business model similar to CSGO in the field of mobile games. Products that allow users to truly own their game props and trade them freely in the market. The decentralized spirit of blockchain and technical standards such as ERC-721 coincide with the positioning of this product, which also triggered the idea of starting a business in Matr1x.
How big a business opportunity is this? Let’s first make a market estimate from Matr1x’s first game, Matr1x Fire, which is the benchmark product of Cross Fire: Cross Fire’s annual market revenue is US$187 million. We conservatively estimate that Matr1x Fire will be able to increase its ARPU through a Web3-based business model. 30 times (refer to the 100 times ARPU difference between CSGO and Cross Fire), its annual revenue is expected to reach US$5.61 billion. The US$5.61 billion is five times the revenue of PUBG Mobile, the most profitable shooting mobile game in 2022. This only calculates the expected revenue of Matr1x Fire. Currently, Matr1x is also about to launch a series of Web3 shooting mobile games including battle royale gameplay. If we follow the same calculation method to calculate what Matr1x can achieve in the field of shooting mobile games. Market revenue is expected to reach a market size of 1.12 billion (PUBG mobile revenue)*30 5.61 billion = 39.21 billion US dollars, which is almost equivalent to the overall revenue of the entire shooting mobile game. And its user scale will reach millions, bringing unprecedented killer applications to the blockchain.
Matr1x found that Web3’s business model can set off a revolution not only in the shooting game circuit, but the team also hopes to start developing from the shooting category mobile games they are best at, and then Other tracks derived from games, such as SLG, MMO, Party game, etc., make Matr1x a gaming platform that can provide a variety of popular games. Eventually, with its many hit games, it will grow into the largest entertainment platform comparable to Web3, which is the leader in the gaming industry today.
And a journey of a thousand miles begins with a single step. In the current journey to a better future, Matr1x has also made considerable achievements. The total market value of the NFT series released by Matr1x has reached 110 million US dollars, becoming the game NFT with the highest total value in the world. Their achievements are not just explained by the excellent quality of their products and good game positioning. According to SevenX’s observation, the decentralized spirit of the Matr1x team is the core reason for its market recognition. Next we will explain through specific examples.
From the company philosophy, Matr1x has set a vision to bring users a sense of happiness and security, and the implementation of this vision is completely reflected in all aspects of their behavior. , among which the sale and operation of the NFT asset series can be a complete reflection of their philosophy.
Before NFT was released, the team wanted to understand that the purpose of selling NFT was not to make money, but to allow early participants in the ecosystem to grow with the team by owning assets, so that these early Holders Ability to enjoy and participate in team growth. And they also encountered many controversial moments in the process. For example, despite the extremely high popularity in the community, the Matr1x team still insisted not to increase the price of the first batch of NFT sales. The team gave away all the Genesis NFT YATC for free. Contributing participants, and the Matr1x 2061 series was priced at 0.1 ETH. Compared with similar popular projects at the time, the price of Genesis NFT was basically set in the range of 2-3 ETH. In a bear market environment, as investors, we also asked the team that if there is an opportunity to earn an income by selling NFT, why would they not want to? The Matr1x team firmly answered that the purpose of issuing NFT is not to make money from users, but to reward these early users who were willing to support them. Facts have also proved that Matr1x is willing to give benefits to users, and users are willing to support them more.
Another thing that shocked us was that the team shared with us that there are currently close to 1,000 holders of the Matr1x NFT series, but the founder of the Matr1x team knows almost every one of their NFT holders. How did they do it? The team replied that it was because the founder did a lot of AMAs and offline Matr1x Fire competitions, and listened carefully to the suggestions and feedback from each user. And every NFT holder will be treated as a shareholder of the company, sharing with them the development of the project and strategic thinking about the future. And when the founder truly treats NFT holders as shareholders instead of leeks, every user who is treated with care can feel it. The Matr1x team truly demonstrates how to give users a sense of happiness and security, by truly treating every Matr1x user with care, and users who are treated with care will truly choose to support the most trustworthy team. We believe this is decentralization This is the core reason why Matr1x is currently the world's largest market value game NFT.
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