When investing in a token, i look into 3 things : Product, Team & Community. These may not be the best indicators but at least I can evaluate any project i’m interested in. Sometimes, an extraordinary good indicator is enough (happy early YFI investor because of Andre), sometimes I need two good one (I love LINK community & Team, though don’t deeply understand the product), but here with Aavegotchi I have a good feeling on the three aspects :
· Product : not existing yet, but interestingly unique, could combine NFT+DAO+DeFi mania
· Team : kept promises and roadmap so far, backed by Aave, they have an overall very positive activity in the discord channel.
· Community : seems pretty solid, can’t follow the discord channel, placed GHST first at OKEX listing contest, first DAO vote quorum obtained within a few hours
The Aavegotchi team has done a great job so far in getting hundreds of people expert in their upcoming product. Each week or two, there is a mission that will reward the early adopter who complete these.
One could botch these missions under 5 minutes, others could create multiple accounts to accumulate rewards, but no plan is perfect and this one seems very good in getting users excited about what’s coming. It has also helped educating the broader crypto community about what Aavegotchi is.
On the community engagement, 1000 unique adresses have staked 36% of the circulating cap of GHST within 3 days, among which 5.5 million FRENS were already used to create 89 Godlike, 64 Mythical tickets, 88 Legendary, 263 Rare, 60 Uncommon & 162 Common tickets. We can estimate between 1 & 2 thirds of the total FRENS have already been converted to tickets.
Value that can be extracted from GHST :
· ETH : stake GHST, earn FRENS, buy Raffle Tickets & sell on opensea. 73 tickets have been sold so far for a total amount of 13.8 ETH (alpha leak, annualized ROI up to 529 % for some of the tickets)
· More GHST from rarity farming rewards (Q1 2021), more details in §4.1 from Aavegotchi’s whitepaper https://docs.google.com/document/d/186zOapKeHNNJ9y8LIByQQ64rs0eJUlEF/edit#
· Wearables : once the game launches, or even after the first raffle. Wearables can help you earn more GHST rewards from rarity farming, or they can be sold on opensea for ETH
· GHST token appreciation : impossible to predict, though we can be optimistic that once the game launches on mainnet, there will be more demand for it, possibly new ATH
As a conclusion of this first post that will hopefully help me complete mission 9, I am bullish on GHST. Although, one needs to remain cautious about existing risks : no product live yet so mainly speculation, L2 announced but staking shipped on L1, ROI on things sold on opensea not sustainable. I expect most of these to be mitigated in the coming weeks, and will for sure be an Aavegotchi player!