We come bearing a very important new announcement for Metaverse. Pluto Digital has embarked on a joint venture with a high-end gaming studio and has taken a significant shareholding in the company. We are thrilled to announce that Pluto has officially entered into the Play to Earn crypto games market.
As we see out 2021, we look back at 11 months of Pluto Digital. We’ve seen brilliantly exciting bull markets, we’ve hunkered down and built out the business during the bear markets, we played our part in the NFT Summer and have diversified the business to new and exciting realms.
While we have a host of news and announcements to share with you in the New Year, many that are of galactic significance, today we bid you a Merry Christmas and leave you to enjoy the highlights of Pluto Digital this past year.
Pluto Digital has acquired a strategic holding in a leading UK-based computer gaming software studio to propel Pluto into the Play2Earn (P2E) market. P2E gaming is revolutionising the world of computer gaming as it decentralises the economic benefits of gaming to the players of the game. P2E refers to the concept of gaming in which a platform provides its players with a chance to earn any form of in-game assets that can be transferred to the real world as a valuable resource. Gaming is, in itself, a massive market with over 3 billion gamers across console, mobile and desktop gaming.
In addition to acquiring the strategic holding, Pluto and the computer gaming studio are in the process of forming a joint venture to launch a suite of blockchain-enabled games. P2E has already become one of the hottest and most significant areas of crypto, with the initial P2E games securing substantial token market caps such as Axie Infinitie (market cap of $6Bn) and Gala Games (market cap of $3Bn).
The investment and joint venture, which shall be formally announced in early January, is already well progressed in the concept development of the new portfolio of games and will focus on being high quality gamer experiences, with the added benefit of providing the gamers the ability to acquire and monetise game assets. During 2022, we expect to launch NFTs and tokens that will secure funding for the games without requiring additional equity capital.
Details to be revealed early in 2022.
Pluto V Update
Pluto Ventures has invested circa $5m across 90 different early-stage digital ventures this year across a range of different verticals including Defi, NFTs and ‘Play to Earn’ gaming (P2E). The first quarter was dominated by Defi and NFT related technologies, with P2E becoming much more prominent during Q2 2021 and remaining a key area of focus throughout the rest of the year. The portfolio exposure for all listed ventures currently equates to approximately $2.6m.
The value of the listed tokens has increased by an average of 600%, this means that the $2.6m invested value into traded tokens is currently valued at circa $16m. Many of these projects have vesting terms, whereby tokens are released over time (ie. released according to a vesting schedule) which means it isn’t possible to exit all tokens upon initial liquidity event. The market has come off slightly in the final quarter, this only justifies our strategy that we have taken in being aggressive in de-risking positions during times of relative strength.
Approximately 1/3 the portfolio in numbers comes from P2E gaming and Gaming Guilds, these tokens have performed exceptionally well this year with many of those tokens featuring in our best performers list. This sector of the market exaggerates the overall performance of the market and does exceptionally well when the majors are trending up and performs poorly when the overall market has a downturn.
We also own a significant number of NFTs, some of which are connected to the gaming projects into which we’ve invested, others being from either PFP or the wider Art space. This portfolio has also performed very well, particularly those projects acquired during Q2 such as Bored Ape Yacht Club (BAYC) where we picked up 5 in the series in the 1 ETH to 5 ETH range. These now have a floor of over 50 ETH each. We have recently seen some big moves by the likes of Nike and Adidas who bought into/partnered with CloneX, BAYC and PixelVault which has brought mainstream attention to these projects. This will undoubtedly be a theme we believe will continue into next year.
Overall, our outlook is very optimistic as our network means that we see incredible deal flow and get attractive allocations into some of the most sought-after projects and we believe that we will see new highs during the first half of 2022 which would have a dramatic impact on the value of our portfolio.
YOP Year End Roundup
It’s hard to believe that it has been only 3 months since YOP boarded the Pluto mothership. So much has happened in that time — the Labs team has grown significantly, as has the Product team, and we have been hard at work across a whole range of areas. We released the YOP 2.0 Roadmap in November, mapping out the journey for the next 12 months. We have also been working on a YOP whitepaper, which lays out in great detail, our plans for the updated YOP ecosystem across multiple protocols and blockchains. Internal reviews are complete, regulatory and compliance reviews are underway, and work has started on the visual design of the paper. If you want to get an idea of the quality we are aiming for, as well as a great introduction to the Decentralised Finance (DeFi) space, take a look at “DeFi: An Unstoppable Wave?” — a collaboration between Pluto Digital and a group of MBA students at University College Dublin.
In addition to the whitepaper, a lot of work has gone into the revised Tokenomics, with a big focus on the long-term sustainability of the protocol. The YOP website redesign is also well under way, with a target launch date of mid-January.
We have been busy engaging the existing YOP user community with multiple blog posts on Medium as well as a couple of AMAs to introduce the community to the new team and keep the community up to date. We have seen a very positive shift in community engagement and outlook in the last couple of months. We have plans in place to continue enhancing this through new community initiatives and additional marketing hires.
In terms of where we are at today, the core of the protocol is almost complete — across 19 Vaults, Strategies, Rewards, Roles and Access Control Smart Contracts. We are on track to have this set of contracts audited early in the new year, with many more to follow as we continue to build out the DeFi Protocols and Blockchains ecosystem. Front end design and development is well underway and is shaping up really well. We will be sharing some designs in mid-January — right around the time the whitepaper will be released, and the new website goes live. January is going to be a busy month!
February is going to be even busier, with the private release of the platform to YOP NFT token holders. At that time, we aim to go live with three to four Vaults supporting Bitcoin, Ethereum and Stablecoins. In terms of Strategies, our current focus is on Curve and Convex, as they are two of the top-ranking protocols according to our analysis. The whitepaper will also provide full details on how we assess and score protocols using our Risk Evaluation Framework. If you want to be part of this private beta, you can get one of the NFTs on OpenSea that will give you early-access.
Pluto Labs Update
We are excited about the team we have put together in the Labs division. We have a strong team built from a core that have experience working together (in FeedHenry/Red Hat/IBM) in the past, supplemented with additional talent to really help us push the boundaries. The Labs team continues to go from strength to strength as we drive forward with development and we plan to add even more talent to team. We have filled key roles across front end, back end, blockchain, product management and strategy design, with confirmed hires for design & user experience and blockchain security joining shortly. We are continuing to recruit aggressively across a wide range of roles (for more information see Pluto Jobs) and will augment the core team as necessary in 2022.
The team has really hit its stride and we are powering through development of the YOP protocol and front end dApp. The core smart contracts are already deployed to testnet and front-end development and Web3 integration is well under way.
As we look forward to the months ahead, with many exciting projects coming down the tracks. YOP will continue to be a key focus for the team, and we are also looking eagerly ahead to Pluto’s upcoming Metaverse projects — with new tokens, NFTs and blockchain development & integration to come.
Huge thanks to each and every one of you for your continued support to date.
We’ve big plans for 2022 and look forward to taking you with us on our journey to Pluto and beyond.
The Pluto Team 🚀