Demystifying web3 gaming with Shima Capital – trends, challenges, opportunities | Fundamentals ep.80

Fundamentals

In this episode, we’re joined by Alex Wettermann, the Head of Gaming at Shima Capital – an early stage VC firm investing in disruptive web3 companies. Alex gives us an overview of the current state of the web3 gaming market, and walk us through the key trends, challenges and potential opportunities within the space. Alex highlights the importance of looking beyond trends like 'play to earn' and emphasizes the need to create net new experiences and novel monetization methods. He also discusses the role of token design, in-game economics, user acquisition and retention, building strong gaming communities, and the unlocks needed for web3 gaming to go mainstream. Finally, we cover how Alex analyses potential investment opportunities, and how Shima actively works with their portfolio companies. Tune in for a great episode about the fundamentals of web3 gaming. Shima Capital: https://shima.capital/ Alex on X: https://twitter.com/awettermann Shima on X (Twitter): https://twitter.com/shimacapital Make sure to leave a comment if you have any questions 🙌 📊 Token Terminal platform: ► https://www.tokenterminal.com/ ----------------------------------------- 💬 Join our Discord: ► https://discord.com/invite/tokenterminal ----------------------------------------- 📱 Follow us on Twitter: ► https://twitter.com/tokenterminal ----------------------------------------- 📩 Subscribe to our Newsletter: ► https://tokenterminal.com/resources ----------------------------------------- Timestamps:

00:00 Introduction

02:28 Overview of Shima Capital

03:22 What problem does Shima solve for LPs?

04:13 What does Alex’s day-to-day look like as the head of gaming at Shima?

07:14 The barrier to entry for researching crypto is high

09:32 The core value proposition of web3 in gaming

13:24 The current state of onchain gaming

17:15 Would a Supercell-style game development model work in web3?

20:13 Does the financialization of in-game assets make it harder for game studios to iterate?

24:03 Net new experiences and monetization models enabled by web3

27:22 Balancing monetization and gameplay in web3

30:58 What trends or verticals in web3 gaming currently stand out?

36:56 Investing throughout the web3 gaming tech stack

38:07 Value accrual

40:56 The thesis behind investing in Pudgy Penguins

42:39 The biggest hurdles facing web3 gaming today

45:35 What are the main KPIs that Shima focuses on?

49:38 What qualitative data could be helpful at scale?

51:18 How does Shima work with their portfolio companies? … Crypto redefines the way businesses are built and operated. Token Terminal gives you the tools to evaluate and track the most promising projects. The following content is meant purely for educational and informational purposes, and should not be relied upon as financial, investment, legal, tax, or any other professional advice. The authors of this content, or members, affiliates, or stakeholders of Token Terminal may be participating, or are invested, in protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Token Terminal accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content. #ShimaCapital #Fundamentals #Gaming #Crypto #tokenterminal