The Play2Earn Report - December 2023
So it really is happening, I am restarting the Play2Earn report! As indicated in my other article yesterday, I'm going to make some adjustments to how I did things in the past, though. Most notably, I'm changing the scope of this thing a bit.
In the past, I did track what everything in my collection was worth. Starting from my tokens going down to every single piece like land plots, individual cards, or even totems. Back then, it felt like the obvious thing to do as everything was going up over time and who doesn't get excited when things are going up? The thing is, though, this doesn't really make sense. Looking at what I did in the legacy world, ever since I turned 19 I started to buy stocks. I never intended to sell them again and I don't intend so now. Those were and are just meant to pay me dividends. So 20 years later, some of these stocks have lost 95% in value while others have gone up several 1000%. Truth be told, their current value isn't of much concern to me - what I care for is how much dividends they are going to pay me. And the same is or should be true for my crypto endeavors. What do I care if my cards in Splinterlands are worth more than last week, I'm not going to sell them anyway, I just care how much crypto they can earn me.
So because of that, I am no longer going to track the value of my underlying assets but instead will only focus on the gaming tokens, documenting the amount I hold, their value and how that changed on a monthly basis. At the same time, I will start to track the amount of money I was able to take out each month and overall and this is actually going to be the true focus of the Play2Earn report moving forward.
During the last cycle, I was doing extremely well and while I did take a nice amount of money off the table, I could have taken a lot more obviously. That's probably something everybody does wrong and even more so during their first cycle. So this time, I want to make sure that I take out early and aggressively. The goal is to create a monthly income out of this that is both substantial but also sustainable, meaning that I don't want to touch the underlying assets in order to take money out. That said, I will very aggressively monitor my assets and anything that is not making me money is fair game to be sold at any given time.
Lastly, I'm obviously only going to track my Play2Earn stuff in this article, so anything I do outside of the gaming world won't be a topic here (I still may do separate articles on that of course).
So where are we at right now? Well personally, I'd say we've left the bear behind us and we are seeing a small bull run right now. This is going to end sooner or later and we'll go back to more sideways movement for some months. Come the Bitcoin Halving stuff is probably still going to be at around the area we are in right now and then, some months later, things are finally going to accelerate again, leading to another hyper bull and another blow-off top some time in 2025.
So my personal goal for this cycle, and I know this must sound crazy to a lot of people, is to take out $1,000,000 until the end of 2025. I'm totally aware that this a lot of money and that a lot of things have to come together for this to work, but what can I say? I'm an optimistic guy and everything I have in Play2Earn is monopoly money anyway. The idea of this ambitious goal is to keep me honest towards aggressively taking out money. I want to work towards it as early as possible, which means that I will start taking out mid 2024 at the latest. We'll see how it goes, but I'm sure it's going to be a fun ride again.
With that out of the way, let's start to take a look at what I'm holding right now. As always, I'll then talk you through the different projects briefly and describe what my strategy for each of them is.
| Token | Amount | Dollar Value per Unit | Total Dollar Value | Change |
|---|---|---|---|---|
| SPS | 1,555,246 | 0.026 | 39,865.80 | - |
| GLX | 1,164,274 | 0.003 | 3,270.65 | - |
| PRIME | 373 | 7.85 | 2,928.05 | - |
| - | - | - | - | - |
| TOTAL | - | - | 46,064.5 | - |
So here we are, these are the three ecosystems I'm actively working on. I hold some other gaming tokens but I don't interact with the corresponding ecosystem, so they are not a part of this report. I also mess around with some other projects like Golem Overlord (which I'm going to do a separate article on soon) but I neither have any serious investment there nor do I expect any major growth. These projects are more used as a faucet and are funding my other, more serious endeavors. Next up, let's have a quick look at each project:
Splinterlands still is and very likely will remain the prime focus of my operation. I love the game, I enjoy playing it a lot, and on top of that, the economy seems to be really starting to kick off again. With the flywheel finally in action, things are really looking up on that project. Besides my SPS stack, I own a region, 10 validators, and a ton of cards in the game. This is where I expect my main income to come from but then again I'm in no rush at all here. I believe Splinterlands to do very well during the next bull again, so SPS has still a long way to go before I may decide to sell some.
I also really like to own a sizable stake of SPS and I intend to hold that into and during the next bear. So if I end up selling SPS, it's going to be freshly earned SPS, not the SPS I have already staked. Right now, I make about 1,000 SPS every day, so selling some shouldn't be an issue. On top of that, I will monitor all the assets I own and if I come to the conclusion that some of them aren't earning me any meaningful returns, I'm very open to selling them.
I'm going to be quite honest here. I'm very underwhelmed by Genesis League Goals so far. Developing the platform and the game has taken forever and thus far, there's not really much to show for it. The game is very bare bones and just as the integrated market, it leaves a lot to be desired for. That said, with Aggy in charge now, I still see a lot of potential. He's done wonders in the past and I'm pretty sure he can do it again. That's why I'm not going to sell any of my GLX any time soon. In fact, my price target would be at least $0.1 GLX before I even consider to sell any.
If we'll ever get there? Nobody knows, but I'm a patient guy, so lets see. There's also the possibility of Invenium giving an airdrop for holding GLX tokens and I totally don't want to miss out on that. Other than that, though, I do hold a lot of cards in the game and with the way ranked works, I just don't see how they are going to make me any kind of money. Because of that, over time, I'm going to sell a lot of these cards. For the moment, I'm going to convert anything earned there to more SPS which I will either stake or burn for DEC. Further down the line, though, I very well might use that as a means to start taking out some money.
Parallel is hot right now and thanks to Aftersound, I got in just at the perfect time before things started to take off. I make about 0.5 Prime each day playing the game right now and looking at their tokenomics, I think a $100 Prime during the next bull is totally reasonable, so that's an amount I'm quite happy with. As we are still far from that, I'm not in a rush to sell any of my Prime. In this case, the NFTs I'm earning while playing are more relevant in my opinion. Some of them are worth well over $1000 each and I'm going to monitor these quite thoroughly. Right now, it's not clear if and how much money they could potentially be making me, but if they either keep rising up more or if I come to the conclusion that I'm not going to earn a lot with them, I am going to start selling them as I see fit, once again as a means to start taking out money early.
So that's where we are at right now. I'm very excited for the next two years, let's see how far we can get with this! Anyway, that's all from me for today, thank you all for reading and see you next time!
