Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: How to make a hit web3 game

• 🔎 This seems important: "SOL might not be a security" - The SEC

• 🤝 Partner: The first AI-powered startup unlocking the “billionaire economy” for your benefit​

• 🔪 Let's dissect this: Reserves of BTC on exchanges have plummeted!

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Web3, fiat, self-custody wallet.

💅 This is cool:

How To Make a Hit Web3 Game

In one sentence: The Telegram-based game ‘Hamster Kombat’ just hit 300M users — but once its airdrop hits, our bet is its user base will fade (the solution: copy Hamster Kombat’s growth/retention mechanics, but make the game fun).

Web3 mobile gaming needs its ‘Zombie Run moment.’

If you’ve ever used an Apple Watch, you’ll be familiar with this experience:

You get the thing → it starts setting arbitrary daily movement goals → you eventually get tired of it pestering you → you start ignoring its prompts.

The problem here is: these devices are trying to gamify things that don’t give us value in the moment (only future promises of better health).

Long term health is massively valuable — but guilt alerts from some snobby $500 device isn’t a fun incentive to stay active long term.

One app, Zombie Run, found a fix to this:

Create a narrative with active tasks that take place in the real-world. The app literally tells an audio-based post-apocalyptic zombie story (with you at the center) as you exercise.

For example:

• ‘Today’s goal: collect supplies from a spot 2 miles from here’…

• As you walk, zombies may show up in the narrative — time to run!

• Got the supplies? Cool, you’ve unlocked the next episode, which starts tomorrow.

Why’re we telling you this?

Hamster Kombat, The Telegram-based game, is like the Apple Watch of web3 games. It’s wildly popular…but we doubt its mechanics are going to hold users’ attention long term.

It works like this:

• You open the game, click three buttons with varying titles, and earn points depending on the varying combination of titles you choose.

• Maintain a daily streak? Unlock new features and earn more.

• Invite your friends to play? Unlock new features and earn more.

And all of it is wrapped in a future promise that users will one day be able to exchange their points for crypto (much like the Apple Watch’s future promise of better health).

It’ll work in the short term, but once the payouts hit, our bet is: the glorified to-do list that is Hamster Kombat is going to struggle to maintain users.

Now, here’s the opportunity for you builders out there:

Take the growth/retention mechanics behind Hamster Kombat, pair them with an actual game that users will get consistent, real-time value (fun) out of, and launch it on Telegram.

Need some stats to get you inspired?

Hamster Kombat launched in March. It just hit 300M users. That is one third of Telegram’s global user base (900M).

Imagine what might happen if you made a game that was actually fun to play!?

🥇 Want the news before anyone else?

🔎 This seems important:

The SEC Might Be About to Drop Its Attack on Solana…

In one sentence: The SEC wants to amend certain parts of its case against Binance, specifically, the parts that allege a range of “third party crypto assets” (inc. Solana, Polygon and Cardano) are actually unregistered securities.

Solana holders, rejoice!

The SEC might be about to drop its allegations that SOL is an unregistered security (alongside other cryptocurrencies like Polygon and Cardano).

The SEC wants to amend certain parts of its case against Binance, specifically, the parts that allege a range of “third party crypto assets” are actually unregistered securities.

Now, this doesn’t mean they’re dropping the allegations as a whole — just in this specific case.

Basically, they’re saying “we’re not going to fight this point here and now.”

Which could mean many things, the shortlist of which look like this:

1. The SEC doesn’t feel like it can be proven in court at this time

2. The SEC is worried that a judge will rule against them and set a legal precedence that says ‘these tokens are not securities’

3. The SEC is quietly walking back its attack on crypto as a result of growing political pressure

Either way, its a short term win for crypto holders!

Let’s hope it translates into a definitive long term win some time soon 🤞

🤝 Partner:

The First AI-Powered Startup Unlocking The “Billionaire Economy” For Your Benefit

It’s one of the oldest markets in the world, but until recently, the average person would never dream of investing in it. Until a Harvard data scientist and his team cracked the code with a system to identify “excess alpha.”

The best part? Everyday people are already benefiting. 

The company that makes it all possible is called Masterworks, whose unique investment platform enables savvy investors to invest in blue-chip art for a fraction of the cost. Their proprietary database of art market returns provides an unrivaled quantitative edge in analyzing investment opportunities.

So far, it's been right on the money. Every one of their 16 exits has been profitable, with recent exits delivering +17.8%, +21.5%, and +35.0% net annualized returns.

Intrigued? Web3 Daily readers can skip the waitlist with this exclusive referral link.

_{*Past performance is not indicative of future returns, investing involves risk. See disclosures at masterworks.com/cd.}

🔪Let's dissect this:

Reserves of BTC on Exchanges Have Plummeted!

In one sentence: The reserves of BTC on exchanges is the lowest it’s been in years, which suggests investors are buying and holding for the long term rather than planning to make short term trades.

The reserves of BTC on exchanges is the lowest it’s been in years.

Which is a good thing!

Here’s what we mean:

Typically, people use exchanges to buy and sell crypto (or onboard/offboard their fiat over to crypto).

Once you’ve bought whatever coin you’re in the market for (e.g. BTC), you’ve got a few options - keep it on the exchange (exposing it to the exchange itself collapsing a la FTX, or other cyber hacks); or transfer it off the exchange to your own self-custody wallet (the safer of the two options).

If you’re day trading, chances are you won’t be sending it back and forth between the exchange and your wallet (paying a gas fee each time).

But, if you’re looking to buy and hold for the longer term, transferring it off the exchange to your own self-custody wallet is easily the best option.

Which is exactly what people are doing (see header image 👆).

Just another positive sign for crypto long term.

💎 🙌

Diamond Hands vs Paper Hands