Liquid funds remain optimistic about Web3 gaming and blockchain uses for AI
By: cryptosheadlines|2025/05/16 00:30:05
0
Share
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com This is a segment from the 0xResearch newsletter. To read full editions, subscribe.The following is the third and final part of a multi-part series on the state of crypto liquid markets, based on several conversations with liquid funds. You can find part one and two here.Which crypto sectors are the most reviled by the average person in the industry?Anecdotally, gaming and crypto x AI projects seem to make the easiest punching bags. If I had a dollar for every time I heard “crypto games aren’t fun...”The liquid funds I spoke to, however, had much more lukewarm and varied feedback. Though some were uninterested in gaming, others expressed optimism.“The Web3 gaming space is very challenged at the moment and is most overlooked or under-owned,” Spartan co-founder Kelvin Koh told me. “We need a big hit game for people to pay attention to Web3 gaming again. Off the Grid, Maplestory Universe and FIFA Rivals are three games we are watching closely.”Off the Grid in particular has continued to average about 552k daily players after its big bang launch. Its active player base has cemented the GUNZ chain as a top 10 chain based on active addresses and transaction count, according to Delphi Ventures, an investor in the game.1kx was another fund that expressed greater optimism for Web3 gaming.Traditional free-to-play mobile games have an incredibly high entry barrier and require millions to breakeven. But a Web3 game that leverages the power of token incentives can greatly reduce that barrier of user acquisition, 1kx partner Peter Pan told me.“A game like Pixels raised $4 million in their first year and was able to go to market within 18 months. They spent $70 million in token incentives on user acquisition and made about $25 million back — that’s roughly a 30% return on spend that would never be possible for a Web2 startup managing the same budget.”Despite the early days of crypto x AI, a few funds also expressed hopefulness for the sector. At the very least, most acknowledged that in the long run, blockchain would enable AI in some specific use cases.For instance, one crucial way that blockchain tech can support AI is in the area of “identity,” Pantera’s Cosmo Jiang said.“Infinite agents and bots will exist thanks to AI. So there will always be a demand to know what is truly human. What better way to create a global, permissionless, censorship-resistant identity solution than using a blockchain? World [formerly known as Worldcoin] is doing something critical here.”When it came to more mature token sectors within DeFi (DEX, lending liquid staking), there was general agreement among the funds I spoke to that these were markets with proven PMF and ways to perform valuations.This however also crucially means that token valuations in DeFi were increasingly tethered to financial reality and less susceptible to speculative valuations than, say, memecoins, as one investor told me.This is in stark contrast to L1/L2 tokens, which saw more disagreement on how they should be valued.The valuations of most existing L1 tokens (on a P/E ratio basis) were far beyond what a fundamental analysis would explain, and poised for a harsh correction to the downside, one investor told me.Another believed that L1 tokens were still erroneously being valued as a comps to bitcoin, which has become more of a store of value.Here’s what Blockworks head of research Ryan Connor had to say on L1 valuations:“The reason, all else equal, for the higher valuations for L1 and L1-like things is because they are platforms, and platforms can be money-making machines. So all else equal, theoretically, you’re pricing in higher growth. Solana, for example, can 5x its revenue in the next 12 months to above 10b. That’s incredible earning power. You can’t say the same for AAVE.”Get the news in your inbox. Explore Blockworks newsletters:Source link
You may also like

Reduced to a hacker's ATM yet standing tall, the theft of Venus reflects the awkwardness of DeFi
After experiencing over $100 million in bad debts in at least four incidents, Venus remains the leading player in the lending sector on the BNB Chain, making it a rare "survivor" in the crypto space.

Under geopolitical conflicts, a policy window has opened. Can Hong Kong seize this wave of RWA opportunities?
The RWA wave sweeps the globe: the scale of on-chain real assets surged fourfold in one year, exceeding 25 billion USD. Hong Kong, backed by the mainland's "going out" policy window, is accelerating the tokenization process of physical assets from entertainment to real estate.

For Web3, this time Cai Wensheng is determined to get his hands dirty
This industry has experienced too many undignified endings; a bull market and a recovery cannot solve the problem. In the end, it will rely on projects that truly succeed and ecosystems that are genuinely established to win a dignified victory for the crypto OGs.

Ethereum Foundation Sets Up a "Dead Man's Switch," Will the Community Buy It?
The Ethereum Foundation's Manifesto Has Torn the Community Apart: Punk Idealism or Disconnect from Reality?

ConversationArthur Hayes: AI Will Spark Financial Crisis, Wait for Central Bank Money Printing Before Buying Bitcoin
「War Means Printing Money, and Printing Money is Good for Bitcoin」

From Power to Chip: How the Average Person Can Participate in the Wealth Opportunities of the AI Era
Everyone is talking about AI applications, but the real money-maker is the person selling the "shovel."

Venus Exploit Post-Mortem: How to Profit in a Flash Loan Window?
Due to Venus's own vulnerability, someone was able to borrow real money using "fake money."

Oil Price Surges, Inflation Rekindled: Will the Fed's Next Move Be a Rate Hike?
Affected by geopolitical conflicts and surging oil prices, renewed inflation concerns have arisen. Currently, the derivatives market is pricing in a 25% probability of a rate hike this year.

The Rise of Crypto Passive Income: How Auto Earn Unlocks the Hidden Value of Idle Crypto
Discover how Auto Earn helps investors turn idle crypto into crypto passive income. Learn why Auto Earn is becoming a popular strategy in the evolving Web3 economy.

Tron Industry Weekly Report: Risk aversion intensifies but Strategy increases BTC holdings, detailed explanation of the Agent payment protocol PAN Network based on x402 and ERC-8004
TRON Industry Weekly Report

March 16 Key Market Intel - A Must-See! | Alpha Morning Report
1. Top News: Crypto Market Initiates Morning Rebound, Bitcoin Surges Past $73K, Ethereum Surpasses $2200
2. Token Unlock: $ARB

Google's biggest acquisition ever, why Wiz?
Cloud War, Extremely Costly.

「1011 Insider Whale」 Agent Garrett Jin: After the Houthi blockade, who will run out of steam first?
Vulnerability Assessment of the Seven Kingdoms.

Vitalik Revisits Ethereum Beacon Chain Architecture, Claude's Off-Peak Transaction Limit Doubled, What Are English-Speaking Communities Discussing Today?
In the past 24 hours, what was the most concerning issue for foreigners?

$90 Million Black Hole: War, Power, and the Crypto-Tragedy of the Middle East
$90 Million Burned, Not Stolen, in Apparent On-Chain Political Cleanup Action.

The price difference exceeds 50%, and the pre-market arbitrage market for cryptocurrency stocks will become a new business in the crypto bear market
In a bear market, what to Buidl? Besides having a counter-cyclical mindset, one must also find the "cracks" in existing services.

How to Trade Crude Oil: Market Volatility Creates New Opportunities for Crypto Traders
Oil prices are back in focus as geopolitical tensions and supply shifts reshape global markets. Learn how crude oil trading works and explore a $30,000 trading campaign on WEEX.

OpenClaw and AI Bots: From AI Trading to BTC Liquidations in the Crypto Gold Rush
AI crypto trading bots like OpenClaw and AI trading apps are reshaping digital markets. From BTC liquidations to crypto bubble charts, automated trading is expanding alongside free crypto airdrops, affiliate programs, LALIGA partnerships, and tokenized gold markets.
Reduced to a hacker's ATM yet standing tall, the theft of Venus reflects the awkwardness of DeFi
After experiencing over $100 million in bad debts in at least four incidents, Venus remains the leading player in the lending sector on the BNB Chain, making it a rare "survivor" in the crypto space.
Under geopolitical conflicts, a policy window has opened. Can Hong Kong seize this wave of RWA opportunities?
The RWA wave sweeps the globe: the scale of on-chain real assets surged fourfold in one year, exceeding 25 billion USD. Hong Kong, backed by the mainland's "going out" policy window, is accelerating the tokenization process of physical assets from entertainment to real estate.
For Web3, this time Cai Wensheng is determined to get his hands dirty
This industry has experienced too many undignified endings; a bull market and a recovery cannot solve the problem. In the end, it will rely on projects that truly succeed and ecosystems that are genuinely established to win a dignified victory for the crypto OGs.
Ethereum Foundation Sets Up a "Dead Man's Switch," Will the Community Buy It?
The Ethereum Foundation's Manifesto Has Torn the Community Apart: Punk Idealism or Disconnect from Reality?
ConversationArthur Hayes: AI Will Spark Financial Crisis, Wait for Central Bank Money Printing Before Buying Bitcoin
「War Means Printing Money, and Printing Money is Good for Bitcoin」
From Power to Chip: How the Average Person Can Participate in the Wealth Opportunities of the AI Era
Everyone is talking about AI applications, but the real money-maker is the person selling the "shovel."