Original author: SevenX Ventures, Arthur
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. 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 the Web3 game track because games are an application track that has great potential to break through the blockchain and bring a large number of new users to the blockchain. But it is a pity that in the past development of Web3 games, we have seen more and more products that can only be limited to the Web3 circle and cannot impress game users to participate at all. The core reason is that most Web3 game products simply cannot satisfy the discerning appetites of game users.
From researching the FPS track to discovering entrepreneurial opportunities
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 while 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%. CrossFires 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 delve into the reasons why CSGO has been so successful in commercialization. They found that the core reason why CSGO’s user income is so high lies in the design of its business model. Unlike general gunfight-type games that sell weapon skins directly in the official mall, all CSGO weapon skins (accessories) are obtained through unboxing and can be traded for real money in the secondary market. CSGO’s main income also comes from opening the box. Taxes are imposed on the sale and transaction of chest keys.
And why are users so willing to spend money in CSGO? The core reason is that when users open boxes in CSGO, it is not just a consumer psychology, but a feeling that there is an opportunity to make money. Because all the accessories users have in CSGO can be sold for real money, users think they truly own these virtual items, and they will treat the accessories in CSGO as assets rather than consumer goods. Since they are assets, users will naturally be willing to spend more. More money to purchase.
From CSGO to revolutionizing shooting circuits through decentralization
After studying CSGO, the Matr1x team discovered a huge market opportunity, which is that there has never been a product similar to the CSGO business model in the field of mobile games that allows 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 start with Matr1x’s first game Matr1x Fire’s benchmark product Cross Fire to make a market estimate: 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 $5.61 billion is 5 times the revenue of PUBG Mobile, the most profitable shooting mobile game in 2022. This is only calculating 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 1.12 billion (PUBG mobile revenue) * 30 + 5.61 billion = 39.21 billion U.S. 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 the business model of Web3 can set off a revolution not only in the shooting game circuit. The team also hopes to start from the shooting category mobile games that they are best at, and then branch out to other game circuits such as SLG, MMO, Party game, etc. , making 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.
The story behind the Matr1x NFT series becoming the world’s No. 1 gaming NFT market
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 U.S. dollars, becoming the game NFT with the highest total value in the world. Their achievements are by no means explained only 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 perspective of company philosophy, Matr1x has set a vision to bring users a sense of happiness and security, and the implementation of this vision is fully reflected in all aspects of their behavior. Among them, the sale and operation of the NFT asset series can fully serve as their The embodiment of the idea.
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 could enjoy and participate in the 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 approximately 1,000 holders of the Matr1x NFT series, but the founder of the Matr1x team knows almost every NFT holder. 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 worlds largest market value game NFT.
In summary, the Matr1x team has not only relied on its professional shooting game research and development skills to create the top shooting mobile game in the Web3 field, but also relied on its long-term accumulation and understanding of the shooting track to capture huge product positioning. Business opportunities, and starting from one business opportunity, more games and more ecological projects will emerge in the future. And the true decentralization spirit of its team makes us believe that Matr1x will have a great opportunity to set off a wave of decentralization revolution in the pan-entertainment industry! Let us look forward to the success of this revolution.
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