The Potential of Pirate Nation

Coin World Report:
Author: Rainy Sleep Source: substack
1. Basic Data
First of all, Pirate Nation has a good foundation. The first part is on-chain activity (Proof of Play has created a Layer3 through Arbitrum Orbit, and the main on-chain activity comes from the game Pirate Nation). The on-chain activity of Proof of Play Layer3 is second only to Basechain (XAI is artificially inflated). Proof of Play is the first Layer3 that has achieved such high activity through its own dApp. (Here, it is worth mentioning that another reason for achieving such high activity is that Pirate Nation is a full-chain game, and all game logic runs on the chain).


From the changes in Gems, we can see the demand for $PIRATE and the team’s income (Gems are game tokens used to enhance the gaming experience).


Based on the calculation of the number of Gems at a price of 333 $PIRATE, 333 $PIRATE can purchase 3393+857 (Bonus) Gems. That is, 1 $PIRATE = 12.76 Gems, and the team’s income is currently about 57M Gems = 4.46M $PIRATE, approximately $1.2 million (this $1.2 million is a minimum estimate, and if someone buys the other two packages, the team’s income will be higher. The team can sell these incomes directly. Selling on-chain liquidity is insufficient, and the best solution is to transfer to Coinbase for sale).
If calculated based on the number of boxes sold, it is (333*13075+166*331+66*1591)*0.27=1.21 million dollars. The data from the two calculations are similar.
The rapid growth of team income is temporary. From June 22nd to June 30th, team income grew rapidly. In recent days, income has declined significantly. From the data in the figure below, the reason for the decline in income may be related to the insufficient number of new paying players. Old paying players are actively playing the game and using Gems. Another reason may be related to the rise in $PIRATE price. As mentioned in the Docs, the team will adjust the exchange ratio based on the price of $PIRATE. If the team enhances the purchasing power of $PIRATE, it may promote a new round of in-game payments. The next price adjustment may be on July 9th.


The forging of in-game resources has also been well maintained. I won’t put the figures one by one. It is currently at its peak and stable. This is also the advantage of a full-chain game, which allows you to see the data of in-game items/resources at any time.
According to the official statement, hundreds of people play the game Pirate Nation every day, and the total number of players is over 1,500. Currently, there is a queue to play the game (mainly considering the capacity of the chain, and the entry of new players has been temporarily postponed). If the chain cannot solve this problem, the development of the game will be restricted.
2. Token Economics
Total supply: 1 billion
Circulating supply: 216 million
Current market capitalization: 57 million
Fully diluted valuation: 263 million
Already listed on Coinbase.
Data from Coingecko


The TGE unlocked 15% of $PIRATE, and the remaining parts will be unlocked over 36 months. Investors & Advisors and Team’s 11.75%+28% will be locked for 12 months. That is to say, before June 13th next year, token release will only be given to the Community and Ecosystem.


Currently, besides being used to purchase Gems (and other in-game items/services), $PIRATE can also be staked on the Foundation website to earn PoP points. There is a staking multiplier, which decreases by 10% every day. In other words, the earlier you stake, the higher the points multiplier. If unstaked, the multiplier returns to zero. Founder’s Pirates NFTs (once sold, they are gone) can also earn points. Currently, 125 million $PIRATE has participated in staking, accounting for 57% of the circulating supply.
Will there be a PoP airdrop for points in the future? (Just a possibility, Pua)
3. Investment Background
The developer of Pirate Nation, Proof of Play, completed a $33 million financing round in September last year, led by a16z. If PoP or PoP’s Layer3 issues tokens in the future, it may airdrop to $PIRATE Stakers.


4. Summary + Opinion
In summary, Pirate Nation has a good foundation, has captured a group of players, and has high game revenue. Speaking of $PIRATE, the token utility is not a problem. Game players need to use it to buy Gems, and speculators can stake the token to earn PoP points. Moreover, the unlocking of investor and team tokens has been delayed for more than half a year.
Motivation for the rise?
First, as I mentioned before, if the team wants to sell their income, they need sufficient liquidity, which may be the motivation for pushing up the price?
Second, raising the price to attract new players, and new players bring more revenue? This is questionable. The game has now reached saturation-until the game solves the problem of current on-chain capacity.
Third, with a good foundation, many fundamental investors may buy $PIRATE. However, I think this is also doubtful. The current market sentiment is average, and many people may not make position judgments at this time.
Personally, I will set a notification for Pirate Nation’s Twitter to know the latest progress in problem-solving. Also, I will pay attention to the staking data of $PIRATE. It seems too early to bet on the rise at this stage. The key to buying is the concentration of market attention. The current market’s attention to $PIRATE is still brewing.