Can Bora (BORA) make Money from the Metaverse?

The builders of BORA (BORA) hope to profit from the metaverse by allowing users to earn NFTs.

They claim Bora users can earn nonfungible tokens (NFTs) from influencers, webnovels, celebrities, tokens, webtoons, and other properties. They claim BORA will onboard intellectual property (IP) based Massively Multiplayer Online Role-Playing Games (MMORPGs), IP-based sports simulations, and Hyper-Casual Games.

To explain, a Hyper Casual Game is an easy-to-play mobile game that is often free. In other words, a freemium game. A freemium, or free-to-play, is an app a user downloads for free. A freemium app makes money by offering items or services users pay for. For example, a game that sells weapons or merchandise to players.

Hyper Casual Games

Hyper Casual Games are an enormous business. SensorTower estimates mobile games generated revenues of $6.4 billion in the Apple App Store and Google Play in June 2022. The US is the largest mobile games market, American Hyper Casual games generated $1.8 billion in June 2022, SensorTower estimates.

Mobile games are the largest segment of the global gaming market, Statista estimates. Mobile games generated $92.2 billion in global revenues in 2022, Statista calculates. In contrast, console games generated $51.8 billion in revenues, PC games generated $38.3 billion in revenues in 2022, and browser games generated $2.3 billion in revenues in 2022.

The top-grossing mobile game in June 2022 was Tencent Holdings’ Honor of Kings. Sensor Tower estimates players spent $238.2 million on Honor of Kings in June 2022. Chinese players generated 95% of Honor of Kings’ revenues.

Statista estimates 2.66 billion people worldwide were playing mobile games in 2021. Europe was the largest mobile gaming market with 551.7 million users in 2021.

IP-Based Sports Simulations

An intellectual property (IP) simulation is a game that mimics an actual sport. For example, FIFA Football or EA Sports FC.

They call it an “IP simulation” because such games often include images of actual athletes and other people. Hence, users can play as their favorite player, wrestler, manager, or coach. An IP-based sports simulation can make money by selling players the right to use athletes’ images.

Sensor Tower estimates IP games comprised 23% of US gaming revenues and 17% of downloads in 2020. However, video games are the biggest source of game IP. Sensor Tower estimates Video Game IPs generated 33% of US IP game revenue in 2023.

Bora 2.0 and Klaytn

The Bora ecosystem is closed so users can migrate to Klaytn. Bora has migrated to the Klayton Network (KLAY).

Klaytn (KLAY) calls itself a “metaverse blockchain.” They claim Klaytn will take games and other entertainment properties into the Metaverse. Kakao a South Korean software company is building Klaytn as an EVM Layer 1 blockchain.

The Ethereum Virtual Machine (EVM) is the digital computer that runs the Ethereum blockchain. A Layer 1 blockchain runs on the Ethereum. Hence, Klaytn is running on the Ethereum blockchain which allows it to work with popular Ethereum solutions such as Tether (USDT).

They hope to build and run play-to-earn (P2E) and other freemium games on Klaytn. They claim, one Klaytn game, MIR4 had 1.3 million players in February 2022.

Bora currently operates as a Klaytn sidechain. Kakao Games owns Bora.

What Value Does Klaytn (KLAY) offer?

Mr. Market has a little interest in Klaytn (KLAY). KLAY was CoinMarketCap’s 67th ranked cryptocurrency with a 25.75₵ Coin Price on 2 March 2023.

CoinMarketCap gave Klaytn a $792.025 million Market Capitalization, a $2.833 billion Fully Diluted Market Cap, and a $62.048 million 24-Hour Market Cap on 2 March 2023. They gave KLAY a $58.577 million Centralized Exchange (CEX) Volume and a $3.256 million Decentralized Exchange (DEX) Volume on 2 March 2023. They base numbers on a 3.076 billion KLAY Circulating Supply and an 11.007 billion KLAY Total Supply.

Thus, Bora (BORA) is working with a cryptocurrency for which there is a demand. Klaytn works in a business that can generate revenue Hyper Casual Games.

What Value Does Bora (BORA) Offer?

Interestingly, Mr. Market thinks Bora (BORA) still offers some value even though it migrated to Klaytn in 2021.

Bora was CoinMarketCap’s 171st ranked cryptocurrency with a 20.96₵ Coin Price on 2 March 2023. CoinMarketCap gave Bora a $2194.293 milion Market Cap, a $252.352 million Fully Diluted Market Cap, and a $12.522 million 24-Hour Market Volume on 2 March 2023.

Bora also had a $12.379 million Centralized Exchange (CEX) Volume and a $143,236 Decentralized Exchange (DEX) Volume on2 March 2023. They base numbers on a 927.5 million BORA Circulating Supply and a 1.206 billion BORA Total Supply.

What Can Speculators Learn from BORA (BORA)?

I think BORA and Klaytn can teach speculators three lessons.

First, there are many ghost tokens out there. A ghost token is a cryptocurrency that represents something that no longer exists. For example, the defunct BORA ecosystem. However, people are still trading the token which generates market value.

Second, the value in many cryptocurrencies and DeFi protocols is acquisition by a larger organization. For example, Kakao’s acquisition of BORA. I predict banks and tech companies will buy many cryptocurrencies and DeFi protocols to get their technologies. In particular, I predict investment banks will buy many of the DeFi projects.

Third, the metaverse is a hype that hides actual products with true value. For example, the value at Kaytn and BORA is the hyper casual games. Hyper casual games generate actual revenue from real customers.

Hence, the true value at Bora and Katyn is the lessons they can teach speculators, not the coins themselves.