White Star Capital Digital Assets Fund - Newsletter #137
All eyes on the mass appeal of Web3 casual gaming: why we invested in Eyeball Games
All eyes on the mass appeal of Web3 casual gaming: why we invested in Eyeball Games
By Eddie Lee, General Partner and Alex Thabet, Venture Partner
We’re thrilled to be investing in the future of mobile gaming, leading Eyeball Game’s oversubscribed $1.5m pre-Seed equity round that included participation and grants from Web3 firms Polygon Ventures and Immutable, venture capital funds Ocular and Great South Gate Ventures and prominent angel investors. Here’s why we invested.
The gaming industry is huge, and growing
The gaming industry has evolved at a near-continuous rate since the 1970s. Commercial and tech innovations have increased the number of worldwide gamers to nearly 3b, and annual industry revenue to $385b.
Game studios have repeatedly innovated on ways to retain and monetise gamers. From buying hard disc games like Super Mario Kart in the 1990s, to gaming-as-a-service subscriptions like World of Warcraft in the early 2000s, to free-to-play apps with in-app purchases like Candy Crush, gameplay has continuously evolved and with it, user spend.
A significant driver of recent growth has come from the rise of mobile gaming, which now makes up over 60% of the market. Since the launch of the iPhone in 2007 and the App Store in 2008, developers have a new, low-cost way to acquire users and sell either games or in-app purchases.
At White Star Capital, we look to web3 as the next paradigm shift for gaming.
Blockchain is the next paradigm
We see three key pain points as drivers of innovation within gaming. For gamers:
1. In-game assets are not interoperable: gamers spend $1.6b per week on mobile gaming alone, on anything from skins to swords, and yet these assets are not transferable. Users can spend money to buy in-game assets, but gameplay is then limited as they cannot own, trade, or use these assets in different contexts not determined by the developer.
2. Users cannot own their progress despite putting effort into a game, with gamers averaging 7.6 hours per week. There is an estimated $11.5b gaming grey market, where users trade games, accounts and virtual items through unofficial channels because the game publishers do not allow for this.
And for developers:
3. Customer acquisition costs are rising as social media platforms become increasingly crowded and data regulation becomes increasingly restrictive, reducing conversion and retention rates.
Blockchain technologies can solve all three of these pain points. They enable assets, avatars and accounts to be ownable, interoperable, and tradeable. Especially in the case of hyper-casual and casual games, interoperable user-owned assets pose significant opportunities to deepen the emotional engagement between gamers and their player experience. For developers, we believe token-based economies and NFTs as in-game purchases extend the user acquisition funnel at the acquisition, retention, engagement and monetisation levels.
But so far, despite all this promise, and despite seeing hundreds of promising startups in the space, blockchain gaming hasn’t really taken off. Why? Because financialisation through crypto has come at the expense of gameplay. We wanted to invest in a proven gameplay model where blockchain could improve on all of the above.
Enter, Eyeball.
8 Ball Pool, owned by Miniclip, is a record-breaking pool game which has over 1b downloads, 10m DAUs and $100m in ARR. By every measure, it is incredibly successful among gamers everywhere. And yet the pain points identified above are clearly present.
Eyeball Games was founded by Jonathan Ivarsson and managed together with Karsten and Thomas, the original creators of 8 Ball Pool. It’s a Singapore-based game studio whose first title, Eyeball Pool is a high-quality and fun pool game built on Unity.
In Eyeball Pool, players can play against each-other 1v1, compete in tournaments, or in other mini-game action. Users can now genuinely own their progress, with NFT cues that can be earned from playing, trading, and tournament winnings and trophies. Cues can be customisable or limited edition if released with partner brands and will come with improved gameplay.
The game will launch on the Polygon x Immutable zkEVM chain, an industry-first platform that enables developers to build a faster experience for gamers with lower gas fees. Eyeball Pool will be one of the first featured projects on the new collaboration between the industry leaders and also backed by their investment support.
Its first mint of 4,001 genesis NFTs (Ballroids) sold out in 30 minutes, but those who missed out will have another shot. Visit Eyeball.games for the whitelist for the Eyeball Pool expanded NFT series.
We’re excited to see where the team takes this new shift in gaming.
🔦 White Star & Portfolio Spotlight
DeFi project Atlendis lands $1M loan from french national bank BPI
DeFi platform Atlendis achieved two key milestones: PSAN registration and a €1M loan from BPI. This will support growth of their new product, Atlendis Flow, which offers decentralized lending for institutional borrowers with on-chain liquidity and direct crypto-to-fiat transactions.
ALEX launches decentralized launchpad for community governance
ALEX is advancing progressive decentralization by introducing the Decentralized Launchpad, where $ALEX and $atALEX holders participate in decision-making for each stage, from project application to launch. The process involves project applications, community voting on potential projects, and project approval voting, representing a significant stride towards decentralized governance and community involvement within the ALEX ecosystem.
Superfluid launches open-source checkout toolkit for sustainable business models
Superfluid recently launched Superfluid Subscriptions, an open-source web3 checkout toolkit that enables sustainable business models. It offers customizable, no-code checkout design, real-time payments on any EVM network, and stream-reactive apps for subscription NFTs and more.
DFNS and Tokeny partner to offer comprehensive tokenization solution for financial institutions
DFNS and Tokeny have partnered to provide financial institutions with a comprehensive tokenization solution. This collaboration offers seamless issuance, management, and distribution of ERC3643-based tokenized assets, ensuring compliance and security for an enhanced user experience.
Index Coop's $BLUR token and decentralized NFT marketplace
Index Coop's $BLUR token is utilized to operate Blur, a decentralized NFT marketplace on Ethereum. It has also been integrated into the Metaverse Index (MVI) for community-led governance. Owning $BLUR enables users to support the entire Blur ecosystem, including the marketplace, aggregators, and Blend lending protocol.
ThalaSwap MOD-USDC pool is currently offering 32% yield
ThalaSwap's MOD-USDC stable pool provides an impressive 32% yield, among DeFi's highest, while deep liquidity supports recursive RWA and LST strategies. Thala aims to replace $THL emissions with escrowed THL/$esTHL soon, allowing users to convert esTHL to liquid THL after 30 days or exit early with a dynamic penalty distributed to veTHL holders.
Eyeball Games has secured the greatest pool player of all time as an advisor
Eyeball Games has recently announced that Efren Bata Reyes has joined their team as an ambassador. The company is thrilled to have the greatest pool player of all time on board. In a playful manner, they invite readers to take on the challenge of facing him in a player-versus-player (PvP) match.
🏦 Enterprises & Institutions
Google Cloud eyes more involvement in fast-evolving Web3 segment
Google Cloud collaborates with financial services and gaming companies to explore Web3 technologies for streamlined operations and new revenue streams. The company aims to be a significant player in the Web3 ecosystem by offering services like Blockchain Node Engine and on-chain datasets, while also focusing on unique AI applications for Web3.
Deloitte and Chainalysis partner up in quest to achieve crypto compliance
Deloitte and Chainalysis are partnering to boost crypto compliance for their shared clients, including US public sector customers and financial institutions. The collaboration provides mutual clients with access to Chainalysis' blockchain dataset and analytics software, along with Deloitte's forensic, investigative, and compliance services, aiming to enhance law enforcement efforts and regulatory compliance.
Ducati partners with XRP Ledger for first-ever NFT launch
Ducati teams up with XRP Ledger for its inaugural NFT launch, offering a digital collectible showcasing logos on motorcycle tanks since 1946. Users signing up within seven days of the July 26 launch will gain access to future project releases, as Ducati plans to create new digital spaces and NFT collections using XRPL.
OpenAI brings ChatGPT to Android
OpenAI is launching its ChatGPT chatbot on Android, making it available to users on-the-go. The Android app will have increased protections and features, addressing concerns about misinformation and ethical use of AI.
⚖️ Government & Regulation
OpenAI, Google, Microsoft promise White House to keep AI safe
Leading AI companies, including OpenAI, Google, Microsoft, and others, have committed to developing safe, secure, and transparent AI technology in alignment with the Biden administration's goals. The commitments involve pre-release security testing, sharing best practices for AI safety, and investing in cybersecurity, among other measures.
Namibia takes a u-turn on crypto with Virtual Assets Act of 2023
Namibia has recently passed the Virtual Assets Act of 2023, marking a significant departure from its previous anti-crypto stance. The law aims to safeguard consumers and address money laundering and terrorism financing risks by establishing a regulatory authority to oversee virtual asset service providers (VASPs) within the country.
Japan's Prime Minister praises Web3 potential and emphasizes 'new capitalism' policy
Japan's Prime Minister Fumio Kishida believes web3 has the potential to drive social change and aligns it with his "new capitalism" policy. Japan is actively pursuing web3 technologies, leveraging its advantage in emerging tech and emphasizing international collaboration.
Coinbase urges swift crypto regulation in Australia amid global competition
Coinbase's Chief Policy Officer, Faryar Shirzad, called for Australia to promptly enact clear cryptocurrency regulations to remain competitive globally. Testimonies at the Senate hearing revealed that Australia's slow progress in crypto regulation is causing uncertainty and pushing some businesses to consider more certain regulatory environments in other jurisdictions.
Putin signs digital Ruble bill into Law, priming Russian CBDC for launch
Vladimir Putin signed a bill making the "digital ruble" legal tender, and testing of the central bank digital currency (CBDC) will commence on August 1. The CBDC allows Russians to make payments and transfers from digital wallets amidst Western sanctions and inflation due to the Ukraine war.
💰 Funding & Exits
Flashbots raises $60 Million in Series B funding to develop SUAVE platform and tackle MEV on Ethereum
Flashbots raised $60 million in a Series B funding round led by Paradigm to develop the SUAVE platform, addressing the negative impacts of maximal extractable value (MEV) on Ethereum. SUAVE acts as an independent network, offering cheaper and more private transactions through intra-block applications, while Flashbots also builds MEV-boost for MEV optimization used by most Ethereum validators.
Futureverse raises $54 Million in Series A funding for AI-driven Metaverse development
Futureverse, a leading AI and metaverse technology company, has completed a $54 million Series A funding round led by 10T Holdings, with participation from Ripple. The company's mission is to empower developers and users to create and engage with interoperable content and applications within the metaverse, using advanced AI content generation tools and forming a vast metaverse community powered by digital collectibles.
RISC Zero raises $40 Million in Series A funding for zero-knowledge virtual machine technology
RISC Zero, a prominent developer of general-purpose zero-knowledge (ZK) virtual machine technology, has raised $40 million in a Series A funding round led by Blockchain Capital, with participation from notable investors like Galaxy Digital and Bain Capital Crypto. Their mission is to equip developers and infrastructure providers with innovative cryptographic tools, enabling trustless, scalable, and decentralized computation to challenge conventional assumptions about computing systems.
Cosmic Wire raises $30 Million in Seed funding for Web3 innovation
Cosmic Wire, a leading technology company innovating Web3 and blockchain solutions, has raised $30 million in its Series Seed round. The funding, led by Solana Foundation and Polygon, positions Cosmic Wire as the first cross-chain funded Web3 company, enabling the development of decentralized applications for a more private, secure, and transparent digital ecosystem with sovereign user control over data and interactions.
Manta Network secures $25 Million in Series A funding for zero-knowledge layer 2 solution
Manta Network's development team, p0x labs, raised $25 million in a Series A funding round led by Polychain Capital and Qiming Venture Partners, valuing the project at $500 million. Manta Network also launched the testnet for its Layer 2 solution, Manta Pacific, focusing on scaling zero-knowledge-based applications within the Ethereum ecosystem with enhanced security and reduced fees.
Radiant Capital secures $10 Million from Binance Labs for Cross-Chain DeFi Protocol
Binance Labs has invested $10 million in Radiant Capital, a cross-chain lending and borrowing protocol, supporting its mission to facilitate seamless DeFi transactions across chains. The funding will fuel product developments and expand to other Ethereum-compatible chains, reducing the need for multiple transactions and consolidating fragmented liquidity.
Delabs Games raises $4.7 Million in Seed funding for Blockchain Games Development
Delabs Games, the blockchain game developer behind Rumble Racing Star and upcoming titles, raised $4.7 million in a seed investment round led by Hashed Ventures. The funds will support the development of Rumble Racing Star, Space Frontier, and Meta Bolts on the Polygon network, empowering players with digital ownership and control of in-game assets through Web3 technology.
Side Labs raises $1.5 Million to develop cross-blockchain liquidity network
Side Labs, the startup behind the cross-blockchain liquidity network Side Protocol, raised $1.5 million in pre-seed funding. The funds will be used to expand the team, ensure legal compliance, and develop the Mesh Liquidity Network for seamless cross-blockchain asset exchange.
🚀 Project Launches & Updates
Worldcoin Protocol launches WLD Token on Optimism Mainnet
Worldcoin Protocol and native WLD token have successfully launched on OP Mainnet, accompanied by the expansion of the World ID system and global Orbs deployment, targeting 1,500 Orbs worldwide by year-end.
Film3: A Blockchain solution for Hollywood's equity crisis
Entertainmint CEO Genevieve Thiers proposes Film3, a blockchain platform connecting creators and fans directly, as a solution to Hollywood's current strikes by SAG-AFTRA and WGA. By flipping the streaming model, Film3 enables fair compensation and creative control for creators, fostering a more equitable path forward.
Welcome to McNuggets Land: McDonald’s Launches Metaverse Game in ‘The Sandbox’
McDonald's Hong Kong launches McNuggets Land in The Sandbox, an Ethereum-based metaverse game, celebrating 40 years of Chicken McNuggets with real-world rewards like food coupons and blockchain-based rewards like NFTs and SAND crypto tokens. The Sandbox has collaborated with major brands such as Adidas and Gucci to create immersive metaverse experiences.
🔥 Other Bits We're Excited About
Revenue constraints will drive Bitcoin mining to Sustainability
Bitcoin mining's proof-of-work approach can contribute to global adoption of renewable energy and safeguard economic freedom during climate-induced instability in nations. While revenue constraints prompt sustainability and innovation, it alone cannot solve climate change. Nonetheless, it plays a crucial role in managing energy challenges and supporting renewable energy projects.
Crypto is the future of France, survey confirms
Survey confirms crypto as France's future with 40% of Gen Z investors entering the space in the last six months after MiCA regulations passed. Companies are also rushing to enter the country following approval for digital asset services, indicating growing interest in France's crypto market.
You can now customize AI Chatbot ChatGPT to respond the way you want
OpenAI introduces "custom instructions" for ChatGPT users, enabling personalized AI chatbot responses based on user preferences while ensuring data privacy. The feature allows setting parameters like formality, reference, and opinionation of the responses, currently limited to Plus subscribers.