In order to create, you must destroy
From The Editor
GM.
No one asked for my opinion. But here it is anyway.
Back in ‘05 or ‘06 when I was going through the quintessential rebellious phase in life, I began obsessing about a line from one of Satyricon’s tracks - Prime Evil Renaissance. As a strict warning, Satyricon are a black metal band; abrasive, loud, offensive. Listen at the risk of your own sanity.
“In order to create, you must destroy”. A line that repeats more than a few times in the 6 minutes that speaks of a misanthrope espousing the annihilation of humanity to start afresh in a nihilistic utopia. To be very clear, this is not the context I wish to talk about. Mine is much simpler.
It is a Darwinistic view - the survival of the fittest. The bad times are when new business models emerge, companies move toward profitability, people realize the need to up-skill, technology that was once passed on gains adoption if it brings efficiency. With economic downturns, new entrepreneurs emerge that choose to build differently from their predecessors. Scarcity brings out the resourcefulness that is suppressed when capital is cheap.
In context of Web3 gaming, we’ve seen cheap capital flood the market leading to games that are devoid of any true value - broken gameplay, suspect economics, bad actors, misplaced hype. What we haven’t seen are games in which the use of blockchain tech elevates the game. Instead, we got Play-to-Earn, a promise that was lapped up by everyone because it seemed so novel and the storytelling was on point. How could everyone be fooled by a label that is devoid of reason?
Throughout history, humans have fallen prey to the illogical in times of plenty. Economic downturns are just a gentle reminder that foolishness cannot persist for too long. The economic train has entered what looks like long-ass tunnel which seems to have no light at the end as of now. The lack of sunlight and oxygen will many unfortunate folks who weren’t part of the decisions that led us here. We’re merely passengers of a train over which we have no control. We must demand better. With our money, our voices, and our choices.
Over the weekend I watched a very interesting video which helps visualize how cycles work. While the context here is of predator and prey, it applies to economic cycles well enough.
As I wind down on my philosophical musings, I urge you to consider this as a piece of optimism. As I listen to the rasping vocals deliver the apocalyptic verse “In order to create, you must destroy”, I choose to focus on ‘create’.
From Tegro HQ
We did a space this week where we spoke about the bear markets; this was a break from our usual programming on Web3 games. Instead, we chose to talk about the macro aspects of what’s happening and how it will pan out over the coming months.
Alongside Siddharth Menon (Cofounder of Tegro & WazirX) was Shashwat Gupta (Founder of NonFunjible and Altcoin Buzz).
Siddharth also made a guest appearance on Cope.Studio-hosted Twitter Space about the future of Web3 gaming.
We’re Hiring
Btw, did we say the Tegro is hiring? We give you 7 reasons although you don’t need to get past the first one if you’re any wise.
At A Glance
<insert_anything>-to-Earn
Move-to-Earn. There will soon be more of these things that incentivize the most mundane of things. If you’ve taken away anything from today’s intro, it’s that the label of ‘to-Earn’ is constructed on shaky foundation.
Many are predicting STEPN’s demise and it would be good to explore why. Some reads on the topic below.
The future of fitness might be a Ponzi scheme by Morning Brew
Why STEPN’s Collapse is Inevitable by Vader Research
FOMO in the Metaverse
No one likes to be left behind. Least of all big brands that have seen the underdogs embrace change with wild abandon.
And so, they flock to the metaverse in droves. Is this a long-term strategic play, or a FOMO-induced leap into the unknown?
Meta launches a digital fashion marketplace; partners with Balenciaga, Prada, Thom Browne
SKNUPS raises $3.5M for its digital fashion collectibles; partners with Dolce and Gabbana
Mattel makes a move to the metaverse through avatars on Cryptoys
Lacoste released an NFT project UNDW3; it’s pronounced “underwater” although an informal survey I conducted with a few friends of mine swear that they thought it was “underwear”
The true test is not whether people will buy into these; there are always enough folks happy to speculate. It’s whether there’s utility in ownership. Else, we’re still in the throes of a hype-driven phase.
News
Funding
AR company Kaleidoco raises $7M from Animoca Brands, Merit Circle, GameFi Ventures and others.
Playful Studios raises $46M for The Wildcard Alliance, a division making a battle game called Wildcard that blends MOBA with a card battler. Playful Studios is the maker of Words With Friends and Lucky’s Tale.
Atmos Labs raises $11M to build AAA-quality competitive gaming
Clockwork Labs raises $22M to develop its community sandbox MMORPG - BitCraft. The round was lead by a16z, with Supercell, David Baszucki (Roblox founder). David Helgason (Unity cofounder), and others participating.
Thought For Food
This week has been spent re-visiting some of the content that has helped me get a better understanding about the future of virtual worlds. I’d recommend reading through and following the trail if you’re just starting out or need a refresher.
Understanding the Metaverse
The Metaverse Primer: A 9-Part Series by Matthew Ball. He’s one of the finest minds out there and an equally good writer.
Another good read: 7 Essential Ingredients of a Metaverse on Future by a16z
1 vs 2 Token Economies for Games on The Metacast by Naavik
Nat Eliason and DeFi Vader in conversation with NicoVereecke of Bitkraft Ventures
Conclusion
No one asked for my opinion. But I shared it anyway. I’m glad you reached all the way here to the sign off.
I don’t have pearls of wisdom for today. Instead, I send you good vibes in the hope that this week turns out better than the last.
See you again next week.
WAGMI