Abstract: "the casino chain"
GC ALPHA 48
Disclaimer: None of this information should be taken as financial advice. DYOR + I will hold some of the assets that are spoken of in this newsletter.
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MARKET TALK
ABSTRACT “THE CASINO CHAIN”
Since its launch in January, Abstract has gained good mindshare among the crowded L2 market. What’s interesting here is to see what types of apps on the green chain have fueled its success so far…
It’s for a good reason that Abstract has been called “a casino” by various people, as the apps and games with some type of RNG associated with real money outcomes have been the most popular and successful
This is in line with what CT-natives want, and you could argue the same for “consumer crypto” as well (e.g., sports betting, Pokémon cards, lootboxes, etc.)
My Web2 friends making bets on football outcomes is more degenerate than I buying a gaming NFT, I’d argue
Outside of “the casino” being appealing to both types of users (CT-natives and non-crypto users), Abstract’s “consumer crypto thesis” hasn’t unfolded yet, probably for a multitude of reasons. It only managed to create a foothold with a small group of loud evangelists so far
Some of the critics argue that this combination of a small group of power users (and a bunch of farmers) is only “getting rinsed” by these casino (-adjacent) apps
As with every incentive program, it will be interesting to see if the apps themselves will be able to create enough staying power post-TGE. Is there enough intrinsic motivation?
This is not a jab at Abstract, just a topic I have been thinking about more, as I am working on a larger piece (Twitter article coming soon…)
Becoming “the consumer chain” is simply easier said than done. Abstract is changing how we interact with blockchain-based apps to create a seamless onboarding experience for non-natives
However, like any piece of infrastructure, the real growth has to come from the success of apps. Can Abstract grow outside of its “casino” label?
Lastly, I don’t think it’s necessarily an Abstract problem, but a larger problem in the crypto industry
INFOFI IS TAKING OVER?
Because of a lack of talking points and my desperation, we’re coloring outside the lines of gaming today. Let’s talk about information finance (short for InfoFi)
While InfoFi has been part of DeFi for a while, it was Kaito’s Yap to earn platform that popularized the term
At its core, InfoFi is about incentivizing people to talk (Yap) about your app. In return, you get distribution: people Tweet about you. The bigger their reach, the better they’re rewarded (broadly speaking)
The effectiveness of the related content can be measured in “mindshare”
A similar (or identical, even?) concept, SocialFi, was popularized last year. Socialfi is another way of incentivizing users to talk about your app and interact with your socials, however, in a less structured (and arguably less effective way)
Whether InfoFi has a longer lifespan than SocialFi remains to be seen. Interestingly, SocialFi changed how we measure a project’s traction: from likes and RTs to views, just like how InfoFi introduced the new KPI of “mindshare” now
Distribution is everything in crypto, and the quality of the eyeballs is even more important
However, as the projects listed on Kaito’s pre-TGE leaderboards grow, the attention will continue to dilute (without new user growth)
As long as there are enough projects that see value in the Kaito distribution model, we will see new projects allocate a percentage of their tokens
InfoFi is primarily a distribution method for your token launch, so the question becomes: does increased mindshare = a better chart at launch?
But just like with any distribution model in crypto, you are playing a game of wanting to attract users for intrinsic reasons with extrinsic-first rewards
To end on this topic:
Doodles just introduced a gamified take on the model: Lord of the Files, a social and political game about content. Maybe this is where the model goes next
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