Dialogue with Volatility Technology: NFT Bull Market on the Way, How to Screen for "Most Potential" GameFi Projects

SLP-1. 15%

In July, Axie's single-day revenue completely crushed "Honor of Kings," becoming a shockwave in the crypto circle. Subsequently, GameFi projects emerged one after another, leaving investors dazzled. An NFT-related crypto bull market seems to be waving at us... So, how should investors screen for excellent GameFi projects? On August 20, OKX Intelligence Bureau invited REX, Head of Chips at investment firm Volatility Technology, and Bluce, Head of NFT Sector, to discuss the topic of "How to Screen GameFi Projects" for institutions and investors.

I **, Why Focus on GameFi**

Since last year's DeFi Summer, the DeFi sector has continuously emerged with various investment opportunities, but after months of excitement, the actual returns obtainable were quite limited. On the other hand, starting from the end of last year, Ethereum's congestion problem became very serious, with gas fees costing at least $100, becoming one of the biggest pain points for investors. So, where will the massive influx of new users and funds go in the future?

Before May 2021, the overall market and DeFi's excellent data always occupied investors' attention. But since the second quarter, NFT games have grown rapidly, with the GameFi sector led by P2E (Play to Earn) game Axie Infinity becoming more active than ever before. Accompanied by the astonishing rise in AXS price, it also thoroughly ignited the blockchain game concept, and the term GameFi began to appear frequently on the internet. At this point, industry insiders have clearly felt that GameFi may bring disruptive transformation to the entire blockchain game industry.

REX stated that Volatility Technology believes blockchain games can lead a wave, and the P2E model has brought something different to the entire blockchain game sector.

Before specifically discussing the profound impact GameFi brings to the industry, let's first recall the familiar DeFi. DeFi's underlying logic is disruptive to the entire global financial system, but it must be said that if DeFi's fire hadn't been ultimately ignited by Liquidity Mining, the entire industry's progress would have been greatly slowed.

Now we realize that P2E is most likely the spark that ignites GameFi . This model will greatly advance the blockchain game industry into a high-speed development period, and in this process, we will see great changes and development in the entire game ecosystem. In REX's view, future mainstream blockchain games will all introduce P2E mechanisms, otherwise they will most likely be unable to achieve better development.

The following diagram summarizes some characteristics of DeFi's liquidity mining and GameFi's P2E.

The content provided is already in English. There is no Chinese text to translate. Please provide the Chinese HTML content you'd like translated. ncluding dual tokens (AXS and SLP); NFT assets, including Axie creatures and land.

• First, SLP is a game token issued by Axie Infinity with no cap on total supply. SLP rewards can be obtained by winning battles. At the same time, this token also has a consumption model; for example, breeding Axie creatures requires consuming SLP. Additionally, we found that there are now many market makers in the Philippines who have opened channels for exchanging SLP for fiat currency. At this point, in the Axie Infinity economy, SLP effectively plays the role of currency in the real economy. It can be issued without limit and will generate inflation, while having production and consumption models. Thus, SLP can well simulate the economic cycle in the game . Money supply is actually very particular. If an economy develops rapidly but doesn't have corresponding money supply, it will also hinder economic development.

• The second economic element is AXS . AXS is the project's platform token with a supply cap, with an issuance limit of 270 million. This token also has reward and consumption models in the game, and can be traded on secondary market exchanges or participate in trading , similar to external investment. When large numbers of users flock to the market to buy AXS , AXS corresponds to GDP in the real economy. When an economy prospers and everyone earns money, GDP will inevitably develop rapidly, and the corresponding AXS unit price will also show an upward trend.

• The third economic element is Axie creatures. The number of Axie creatures is also uncapped, gradually produced through breeding. But breeding Axie creatures requires consuming SLP, meaning its breeding has a cost. **Axie creatures are like productivity tools in the game, earning money through breeding and battling, similar to "population" in the real economy. ** In real life, when a child is born, a lot of money is spent during the growing process, but after this child grows up, they can work to earn money and can also obtain some extra income through investment. From this, we can see that Axie Infinity's simulation of the real economy is very much in place.

• Finally, Axie Infinity will recently launch a land project. The total amount of land is limited, and land is also a productivity tool that can generate cash flow. **We don't yet know the specific gameplay of land, but for now, land is definitely something that can carry bubbles. If there are bubbles in the economy and everyone exchanges tokens to dump, the entire game will crash; but with scarce resources like land, it can carry some bubbles. ** This po The content you've provided is already in English. There is no Chinese text to translate — it appears to be a passage about Axie Infinity's economic model, SLP/AXS tokens, and the YGG game guild. rs to GameFi games, teaching many users with absolutely no relevant experience to play games and trade tokens. Compared with DeFi, where many industry insiders also needed to spend a lot of time getting started. But now many elderly people in the Philippines are playing Axie Infinity, which is enough to show that YGG's work is done very well. YGG now holds NFT assets from many game projects and rents these assets to those who can't afford these NFT assets, letting them play games and then sharing revenue. **Currently YGG's sharing ratio is: game users receive 70% of revenue, community managers get 20%, while YGG only takes 10%****, **this is YGG's business model.

  Regarding YGG guild, REX proposed 4 viewpoints. First, he believes that YGG is a bridge connecting on-chain and off-chain, a new species in the industry . As a bridge, YGG can enjoy the growth of three markets: first is the NFT market, second is the DeFi market, and third is the game market **. **So in its development process we can imagine that YGG, relying on its future massive on-chain NFT assets and off-chain game player numbers, can build a game-centric platform that will have a very strong position in the entire blockchain game ecosystem.

  Second, YGG is a vault pool in GameFi, and this model involves off-chain business operations. Imitators can easily copy, but building scale advantage takes time . YGG is similar to YFI in DeFi. YFI pools funds to mine and distribute dividends, while YGG pools users' time to play-to-earn and then distribute dividends. This model is very easy to replicate, but YGG has already built some early scale advantages, so I believe its future development will be faster than copycats.

  Third, currently, YGG tokens can be viewed as ETF index funds for the blockchain game industry . Because YGG now not only holds Axie Infinity's NFT assets, but also holds assets from many other game projects, some of which haven't even officially launched yet and are currently in development and testing stages. As a game guild with high visibility in the GameFi industry, YGG has the ability to obtain these games' NFT assets in advance and participate in testing these games. In the future, YGG will gradually expand these advantages. Although these assets aren't worth much now, once projects launch and users pour in, once guild members get moving, their appreciation could be more than 10 times. For YGG's competitors, this cost is unimaginable.

  Fourth, YGG's business model has a moat . Compared with real-world labor service companies, traditional labor companies are light-asset companies, only responsible for connecting companies and job seekers, charging intermediary fees. This business model indeed has no moat, but YGG is different. First, YGG is heavy-asset operation, with massive NFT assets as productivity tools that generate cash flow. Second, YGG can co ```html nnect on-chain and off-chain worlds. Off-chain tests community managers' ground promotion capabilities, while on-chain tests asset operation capabilities. As the traffic entry point for most people's first on-chain experience for the foreseeable future, YGG will share in the revenue brought by this massive traffic.

  Therefore, in summary, currently YGG possesses four core competitive advantages:

  1. Has already built visibility and IP, possessing early scale advantage.
  2. Participates in early testing of various games, purchasing game NFT assets in advance. YGG's costs in this area will be far lower than competitors.
  3. Community managers' ground promotion capabilities are very strong, especially evident in the Philippines and Vietnam.
  4. First to complete capitalization, which will allow YGG to participate in higher-dimensional competition.

  YGG's business model is actually very simple, but why is this simple model being hyped so high now? REX believes that first, because of the bull market; second, because of Axie Infinity; and partly, because capital sees YGG's position in the entire blockchain game ecosystem, which can bring greater imagination for the future. REX predicts that YGG may have four profit models in the future:

  1. Social-attribute digital assets and network traffic gathering place: YGG has crypto assets and network traffic in hand, and can become a social-attribute platform.
  2. Build a game-centric platform: YGG, relying on its future massive on-chain NFT assets and off-chain game player numbers, can build a million-user-scale social platform centered on games.
  3. Preferred sales distribution channel and community operation promotion center: Massive user numbers and strong promotion capabilities can gain favor from capital.
  4. Build its own metaverse : With so many users and NFTs, YGG can build its own metaverse project.

  IV, Analyzing YGG from On-Chain Data

  So, as institutions or ordinary investors, how to confirm whether a project is worth investing in, when to buy and sell, can be judged by analyzing financing situation, token allocation, and chip analysis.

  **First, pay attention to project financing situation, including how many rounds of financing were completed, financing institutions, financing time, and financing amount. ** The lead investor is particularly important. A good lead investor can bring traffic and heat to the project, and even participate in the design and iteration of the project's economic model. We can also treat the project team's past success experience as an important observation point. Additionally, pay attention to financing timing and amount. For example, in bull and bear markets, different projects have different financing amounts. In bull markets, many projects' valuations are high, while in bear markets, many projects' valuations are ``` The content you provided is already in English. There's nothing to translate — the text about Yield Guild Games (YGG) and its financing is already written in English. Did you mean to paste a Chinese version? ket cap is between $70-88 million, with circulation ratio around 7.02%-8.8%. Calculated at the then market price of 1.1U, the valuation was actually $77-96.8 million. After removing project team and investor addresses (assuming project team and investors' tokens don't circulate in the short term), YGG's actual circulating market cap is only $27.46 million, with a ratio of about 2.75%, and circulating market cap is only about $30.2 million (calculated at 1.1U market price). If calculating an over $80 million valuation at current prices, it's actually quite high.

  Of course, overall circulation needs continuous tracking of project team and institution unlocking status. Judgments on unlocking and circulation of different addresses will affect the circulation estimation of this project. After completing preliminary chip analysis and labeling, you can derive buy recommendations from a chip perspective.

  V, How to Find GameFi Projects

  Currently, the entire NFT industry can be divided into digital crypto art, NFT trading platforms, NFT financial assets, NFT public chains, and NFT games. Each sector has leading projects that investors can focus on. For example, the metaverse we often discuss currently has popular projects like Decentraland, Sandbox, and Cryptovoxels; the currently hottest GameFi game sector, with games represented by Axie Infinity, may emerge in large numbers from the second half of this year to the first half of next year. The GameFi field has also spawned game guilds like YGG, which are also investment targets.

  

  Additionally, there are some public chains that carry NFT trading. We can focus on DFINITY, Flow , Immutable X, Efinity, etc. Of course, there are also some NFT financial assets that aren't popular yet, such as Uniswap's v3 market-making assets. These NFT financial assets all follow the ERC-721 standard and have also spawned some ecosystems. For example, there are already professional market makers in this field.

  The above is an overview of the entire NFT industry. Below, let's specifically look at how to find quality projects in the GameFi field? First, in the early information collection stage, everyone can obtain public information on some websites, such as playtoearn.net, Dappradar, Discord, Telegram groups, Twitter, Chain News, and other platforms. Additionally, you can listen to opinions from some investment partners or friends in the circle.

  

  REX's team recorded all 40+ quality games found on the market and conducted deep investment research and tracking analysis. Through the experience of tracking Axie Infinity, REX believes that analyzing a GameFi project requires focusing on the following points:

  1. Project team information . If founders have blockchain industry experience and game industry experience, you can basically confirm this is a very potential team.
  2. Partners and investors . If well-known venture capitals participate in investment, it also adds considerable visibility and credibility to the project.
  3. Community influence . If the project has high community influence on platforms like Twitter, Facebook, Reddit, etc., it can be considered that this project's initial launch will be relatively smooth.
  4. Project whitepaper . The whitepaper introduces the entire game's token distribution mechanism, including whether it's a single-token or dual-token system. Through some experience from the Axie project, we believe that a dual-token system might be a method that can better simulate the entire real economy cycle.
  5. Game economic model . This is the most important point. You must go through the game's economic model once to confirm whether this model's logic has problems.
  6. Game guild participation . Looking at the Axie project, YGG's support is very important. So if there's participation from game guilds like YGG, this project's credibility and attention in the circle should be relatively high.
  7. Project business model . That is, how the project team makes money. These profit methods directly reflect in the project's token and platform token value.

  Based on the above criteria, Volatility Technology has currently screened out some projects as follows: Decentraland, Sandbox, Cryptovoxels, Derace, Mist, Gold Fever, Nine Chronicles, My Neighbor Alice, Aavegotchi, My Defipet, Immutable X, Enjin, Efinity, Ultra, Flow ; additionally, there are some projects with YGG support that everyone can focus on: Axie, Illuvium, ZED RUN, F1 Delta Times, Guild of Guardians, Star Atlas, Splinterlands, Ember Sword, League of Kingdoms. (Disclaimer: The project and token introductions involved in this article do not constitute investment advice. The views in this article only represent the interviewee's personal views and do not represent OKX OKX's position.)

  Taking Star Atlas, which is preparing to issue tokens at the end of August, as an example, this is a currently popular game project. This project has many labels, such as AAA production, using Unreal Engine 5, etc. Additionally, the YGG Foundation has officially announced its entry. It's now in the Solana ecosystem, and even legendary trader SBF expressed that this game is so good it exceeds his expectations. So the REX team will next conduct investment research on this game. Additionally, this project will conduct an IDO at the end I don't see the Chinese HTML content that needs to be translated. The text you provided appears to already be in English (it looks like a disclaimer and some content about OKX Pay). Could you please provide the Chinese HTML content that you'd like me to translate to English? I'll keep all HTML tags intact and provide only the translated HTML output. -process=image/resize,w_784/format,webp" alt="okxice 2">

  New Chapter: Building Next-Generation Financial Infrastructure Together

  The partnership between OKX and Intercontinental Exchange (ICE) is an important moment for OKX and equally significant for the evolution of the entire digital assets market. ICE establishes and operates the world's most important financial infrastructure, including the New York Stock Exchange and global derivatives and clearing platforms. This time, ICE selected OKX for investment and joined our board, reflecting both parties' shared belief—digital assets technology will be in financial markets

  March 10, 2026

  

  Tribute to Another Year of Forging Ahead

  As OKX's CEO and also a builder who never forgets the original intention, I proudly look back on OKX's extraordinary growth and progress this year. Despite many challenges, 2024 was still a year filled with focus, innovation, and resilience. We not only expanded and optimized our products, but also made important progress in launching transparent and regulatory-compliant localized businesses, while further strengthening our global management team. Notably, after experiencing

  January 29, 2026

  

  2025: Steady Progress Toward Financial Freedom Together

  — A year-end letter from OKX Founder and CEO Star to global users. "Financial freedom" is often misunderstood. It doesn't mean no rules, but rather having the right to choose even when rules exist—and when the system is truly tested, it remains reliable and effective. This is exactly what we focused on throughout 2025. First, I want to extend sincere gratitude to our global clients, partners, and regulatory authorities

  January 16, 2026

  

  OKX Officially Launches in Germany and Poland

  Author: Erald Ghoos, CEO of OKX Europe. Today is significant for OKX—and also for crypto users across Europe. We have officially launched a fully compliant centralized cryptocurrency trading platform in Germany and Poland! For us, this is not just a geographic expansion, but a commitment to building the cryptocurrenc y future the right way: safely, transparently, and meeting local needs. If you're in Germany

  October 21, 2025

  

  Partnership Upgrade! OKX Partners with Standard Chartered to Expand European Market

  On October 15, OKX Europe CEO Erald Ghoos stated that OKX is expanding its strategic partnership with Standard Chartered to the European Economic Area (EEA). Earlier this year, OKX first partnered with Standard Chartered in the UAE to launch the collateral mirroring program—this is a

  October 15, 2025