Yield Guild Games (YGG) was the most trending cryptocurrency on 8 August 2023. Hence, speculators are wondering what is Yield Guild Games and why is there so much interest in it?
Yield Guild Games (YGG) is a decentralized autonomous organization (DAO) that invests in non-fungible tokens (NFTs). They use those NFTs in virtual worlds and blockchain-based games. Arrogantly, they claim Yield Guild’s mission is to create the “biggest virtual world economy.”
I think Yield Guild is an unregulated investment fund that invests in game-related assets. For example, Yield Guild’s primary source of revenue is leveraging YCG-owned NFT assets, the White Paper states. Yield Guild owns some assets.
Harvesting Profits from Blockchain Games
It also owns a rental program for Yield Guild DAO members. The “rent” takes the form of in-game rewards that go directly to Yield Guild. Hence, Yield Guild is a mechanism for harvesting game profits.
Assets Yield Guild can harvests include “virtual land,” game revenue, and rent on virtual land. The YGG governance token will represent in-game assets’ economic value. They claim the full diluted market capitalization of YCG governance tokens represents the value of all activities in YCG. They hope to create a “virtual-land-based” economy and a virtual economy with a native token.
Initially, Yield Guild’s Treasury harvested profits from play-to-earn games. Early games YCG harvested profits from include: Sky Mavis’s Axie Infinity, The Sandbox by TSB, and League of Kingdoms by NPlus.
Game profits Yield Guild harvests include:
- Yield gained from assets acquired by treasury.
- Yield produced from active play of treasury’s virtual assets.
- The percentage of APY token rewards generated from treasury’s farming activities.
- Rewards generated from Esports.
- Rewards generated from raids.
- Rewards generated from sponsorships.
- Rewards generated from subscription fees.
- Rewards generated from merchandise sales.
How Yield Guild Games (YCG) manages assets
consider Yield Guild a fund because its treasury manages assets. This management’s purpose is to maximize the assets’ value. Hence, Yield Guild is an asset manager.
Yield Guild’s asset management activities include:
The purchase of cryptocurrencies, NFTs, metaverse virtual assets, SAFTs, in-game tokens, Small Love Potions (SLP), and Metaverse NFTs. A Simple Agreement for Future Tokens (SAFT) is an investment contract offered by cryptocurrency developers to accredited investors. Because they considered SAFTs securities, these tokens must comply with securities regulations.
A Small Love Potion (SLP) is an ERC-20 gaming token used in Axie Infinity.
Arbitrage farms built to maximize yields. Management of locked tokens, unvested tokens, and undistributed tokens. Buybacks of assets, future fundraising rounds, debt and interest payments. Acquisition of debt assets.
Financial operations, including accounting, auditing, reporting, and tax law compliance.
Yield Guild also functions as a staking pool for game-related assets. A staking pool allows investors to pool resources and share rewards. For example, Yield Guild harvests token rewards and distributes them to YGG token holders. The ultimate goal is to create staking vaults that earn networks rewards as annual percentage yield (APY).
Hence, I think Yield Guild resembles like an investment bank. Therefore, I predict Yield Guild will run afoul of financial regulators such as America’s Securities and Exchange Commission (SEC) and Britain’s Financial Conduct Authority (FCA). I predict Yield Guild will need to accept financial regulation at some point.
Thus, Yield Guild’s popularity is yet another example of decentralized finance’s (DeFi) resurgence.
What Value can Yield Guild Games (YGG) obtain?
Mr. Market shows some assets Yield Guild manages offer value. For example, CoinMarketCap gave the Smooth Love Potion (SLP) a $67.304 million Market Capitalization, a $67.372 million Fully Distributed Market Cap, and a 24-Hour Market Volume of $5.003 million on 8 August 2023.
They base those numbers on a Circulating Supply of 41.701 billion SLP. CoinMarketCap named the Smooth Love Potion (SLP) the 313th largest cryptocurrency with a 0.16.14₵ Coin Price on 8 August 2023. Thus, many speculators think the SLP token has value.
The value of the global blockchain gaming market was $4.83 billion in 2022, Grandview Research estimates. Conversely, the IMARC Group estimates the size of the Global Blockchain Market at $4.6 billion in 2022. IMARC speculates the global blockchain could market to grow to $117.5 billion by 2028.
What Value does Yield Guild Gaming (YGG) offer?
Theoretically, Yield Guild could tap a $117.5 billion market by 2028. But speculators want to know what value does the YGG token offer?
Yield Guild Gaming (YGG) was CoinMarketCap’s 252nd largest cryptocurrency, with a 35.14₵ Coin Price on 8 August 2023. CoinMarketCap gave Yield Guild a $93.181 million Market Capitalization, a $352.978 million Diluted Market Capitalization, and a $187.679 million 24-Hour Market Volume on 8 August 2023. They base those numbers on a Circulating Supply of 264.009 million YGG, and a Total Supply of one billion YGG.
I think Yield Guild Gaming is an interesting speculative investment. However, I consider YGG pure speculation. Only people who can afford to lose money should investigate YGG. I recommend everybody else stay away from Yield Guild Gaming because it is an extremely risky speculative investment.
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