There’s a term that gets thrown around in crypto every so often, and most of the time it’s , that term is flywheel. A lot of projects say that if they can get the momentum going and get the ball rolling, and that will continue and create more and more opportunities as the future comes. Anything can happen, of course, but I think that arcade can actually be one of these flywheel type projects. And I’ll tell you what, I’ve talked about these guys plenty of times before. I’ve made videos here and I’ve talked about them on Twitter. Make sure you’re following me at Mac loaded, by the way, if you’re not already. But the reason I bring them up now is for two reasons. Number one is they are currently experiencing a 54% hump. I know what you’re thinking, Mac. Don’t you always say to buy on heavy red days, not big green days, chasing candles. And that answer is yes. But what I wanted to see before talking about these guys again is that they had this pump potential. Cuz what happened at launch is Kucoin, who is the main centralized exchange, the details. So it wasn’t a very great start. Plus, the market was actively imploded way. Make sure to look for this logo because there are multiple arcades. So this shows me there’s some excitement lurking. Reason number two, and just as important, is their market app. It’s under $2 million right now. That is insanely low. If you do consider buying, just know that it can be very volatile until this market cap gets higher. But it also means that there’s tremendous upside potential back to the flywheel part.
Let me explain how Arcade’s business model works. In the most rudimentary terms, arcade gives you access to gamify. So they have a whole treasure trove of NFTs and game assets for big projects like Star Atlet, US big time and many others buying these NFTs at these in game assets costs money and also takes time to extract the value from them if you’re playing the game. So arcade came along and said, what if we pull our resources together, we have a bunch of assets or we have access to people who can operate these quests or these missions to make money in these web 3 games. And then we have a bunch of people with money who want exposure to it for not really doing much. It’s the same concept as staking. And if you stake any of your coins, you may think that all you’re doing is just clicking a few buttons and earning a reward, but what you’re doing is you’re delegating your tokens to a node operator. And with arcade, it would be a mission pool operator for them to go and do whatever. So instead of verifying transactions on a blockchain, they’re now performing quests, selling assets, doing all kinds of things in web 3 games. If you go to their website, you can find all of the games in the mission pools that they have. So heroes of Mavia, my pet hull again, Star Atlas, Alluvium, many more to come. So that’s part of the flywheel. It’s just the abundance of Triple a top tier games that are about to come on the market. Other part is the way their tokens are engineered, so they just have one token which is tradable, which is arc, but they also have X arc. And this is what you use for Mission Pool. I’ll explain the difference between the two with an example.
So this is the recent mission pool that went live. Current contributions is 100,000 XR. So when you buy arc, all you gotta do is convert it to XARC, which basically puts it on the avalanche block. Now, after 27 days, this mission should be complete with 14000+ in rewards, which means you basically make 14% on your money after 20,27 days. Making 14% on your money in less than a month is pretty good. But we’re not done yet because what’s then gonna happen is this person is gonna go on their quest, they’re gonna earn this money, right? But they earn it in Star Atlas. They don’t earn it in arcade. Because remember they’re playing the Star Atlas game. So they then sell the token of whatever game they were playing, be it Star, Atlas, Alluvium or whatever ever, and on the open market by Arcade Tokens, which further diminishes the supply of arcade. And then from here, they convert that to XR and then distribute out to all the contributors for their API. But the critical difference is there’s not a pool set aside for rewards like inflationary staking program. Arcade is basically using other web 3 games to put arcade tokens in the hands of arcade holders. Think about that for a second. That’d be like if you were steaking salana and I used your steak salana to go sell other tokens and give you more Salana. Kind of crazy if you think about it. That’s why I think there’s tremendous upside here.
Now one thing I do wanna acknowledge is that there is a low circulating supply right now. Yes, but the tokenomics for this project, especially with concern with the vesting schedules of the Vcs because they’ve got some heavy hitters behind them is very attractive. The seed round has a six month cliff with 18 months of vesting, so that means that they don’t even get any other tokens until 6 months from now. Then it takes some 18 months to get all of them. Then the private round has 12 months cliff. So they won’t get any coins until a year from now. And then the team doesn’t get any of theirs until 18 months. Even after all these early round investors get their token, there’s still, you know, a year or two of vesting that has to take place. So it’s not just gonna dump on the market all at once.
So I hope that makes sense. Like I said, this is a 53% pump day. Please don’t buy it. And then it crashes 25%. You get mad at me. Do what feels comfortable for you.
All I can say is that long term in this Bull Run, I think that this is going to be a monster. And it is silly how low the market cap is right now. As always, if you have questions, please hit me in the comments and I will catch you guys in the next one. Thanks.