SORARE | Raising +$500 million to be the FIFA of blockchain...

SORARE | Raising +$500 million to be the FIFA of blockchain games

This looming raise is a great example of the sky high valuations that can be achieved for the developers of a top 5 or top 10 game/collectible, which exhibits potential mass market appeal. Yet, Sorare's US$3.8 billion valuation appears to be based almost entirely on potential at this stage, with many years of growth, development and perfect execution already baked in. Animoca's valuation looks very conservative in comparison.

The top 3 games/collectibles are in a league of their own at present, and Axie might soon be in a league of one the way it is heading, but it's good to see that F1 makes the top 20 (with all-time gross sales around 1/10th of Sorare). However, Animoca has only made $30k from F1 sales over the past month, based on 595 transactions and 144 buyers. Presumably they are generating the majority of revenue from in-game NFT sales, which have much better margins.

Based on receiving a 5% fee from every peer-to-peer sale, a game would need $20m sales per month in order to generate $1m revenue. Very few games have achieved this so far and even fewer have managed to maintain user interest for a prolonged period of time, but Axie is firm validation of what is possible.

I still expect the full launch of the SandBox to be the next major fundamental catalyst for a re-rate of the stock price due to its potential to become a top 10 blockchain game. If it can claim the number 1 metaverse position, then anything is possible.