As metaverse tokens like Enjin Coin continue their ungraceful collapse, certain new projects coming onto the scene are displaying clear signs of investor interest. One project, in particular, is Metacade (MCADE), a Web3 gaming community hub which is currently roaring through its presale.
While Enjin Coin (ENJ) is marketed as a utility coin, its focus is on NFTs. Metacade, on the other hand, is planting itself firmly in the direction of gaming – a massive target growth area. Unsurprisingly, the two projects seem to be going in opposite directions. In this article, we explore the clear reasons behind this pattern.
Enjin Coin claims on its website to be “the gold standard for digital assets”. It allows projects to create NFT assets on the Ethereum blockchain safely and securely. These NFTs are industry agnostic, meaning you can create music, art, gaming, sports, or fashion NFTs. Gaming is a big focus for Enjin as it allows for projects to tokenize in-game items and value exchange between players
Enjin Coin is a Singapore-based company established in 2009 and primarily known for its work in the gaming industry, with one of the largest gaming platforms. At the time of this writing, Forbes values Enjin Coin at $0.45. It was once valued at $3.80 so clearly, something has gone wrong along the way.
However, it looks as if ENJ may have had its day, with investors looking to hold onto tokens that have strong price appreciation and are tied to a specific target audience – ideally a lucrative one. Unfortunately, Enjin Coin does not provide this, as the project remains extremely broad in scope.
This would go a long way to explain why current investors are continuing to drop Enjin Coin. Once an established project, multiple market segments seem to be applying the pressure.
The NFT industry is not as lucrative as once believed. People think they can just mint an NFT and sell it for millions, based on a project without any real value. Yet the market as a whole has woken up to this. Sustainable investment requires more than hype and marketing. The NFTs need to be tied to real value with a demonstrable use case.
Moreover, Enjin Coin has plenty of competition. Theta, OVR, Decentraland, Sandbox all offer NFTs in various formats. Enjin Coin is basically a blockchain that allows you to create a virtual asset, without being tied to a specific industry but, any blockchain can do this, and for a price close to zero you can replicate a virtual item infinitely.
Like many other Web3 platforms, there is evidence to suggest that Enjin is overvalued and there is little upside potential left for investors. As a result, they are flocking en masse to alternative projects that retain a viable use case.
While the Enjin Coin project is dropping, the Metacade presale shows a rising number of registrants. Its growth is explosive and there is a clamour to get in early before it potentially sees results comparable to other metaverse projects. So, why is there such a rise in Metacade presale registrants, and what exactly does the project do?
Metacade is working to create a self-sustaining ecosystem for Web3 gaming that genuinely rewards users for their input. It intends to be a virtual hangout for GameFi users with tons of features that facilitate Web3 gaming interaction and rewards, as well as in-house gameplay. The Metacade will present itself as a simple interface, consisting of tiles or rooms through which users can access the components of the platform.
Its aim to transition to a DAO as it becomes more established will ensure collaborative decision-making. Networking features will allow for testing and development, and even transactions within in-house games. Participants are to be rewarded through staking and play to earn games, and there will be numerous competitions and tournaments with prizes. There will also be opportunities to vote and take part in fundraising for new gaming projects that demonstrate the most potential.
In other words, whereas most projects are designed so that the initial creators extract profit from the users, the Metacade ecosystem is completely community-focused, as a fun arcade hangout where Web3 gamers can collaborate, make a living, and connect with one another.
For the reasons we’ve stated, investors are obviously going to prefer Metacade and possibly be dropping the Enjin Coin project in the process. While the Enjin Coin project aimed to be the gold standard in NFT utility, in reality, it seems to have extremely limited utility, as well as a growing number of competitors squeezing the market.
To summarise how Metacade will prove to be a superior project for 2023:
It’s in an early presale stage with enormous upside potential.
It’s focused on a massive, lucrative target market of Web3 gamers.
It is designed to become genuinely self-sustaining.
It maximises incentives by rewarding all users through various means.
It looks to become truly decentralized, as a DAO governed by its token holders.
Metacade is aiming to become the gold standard in Web3 gaming, and investor interest is clearly reflected in its sheer number of presale registrants. There are a total of 1.4 billion tokens available in the Metacade presale, but as it is being released in stages, the initial offering is 125 MCADE for $1, but the final stage offering will be only 50 MCADE for $1.
With its huge potential, we’re certain all of those early bird investors understand the importance of getting in sooner rather than later. We highly recommend you check out what they’ve got!
You can participate in the Metacade pre-sale here.
Disclaimer: Insights provided by crypto industry players and is not a part of the editorial content of BanklessTimes.
