Written by：0xkyle

Market Overview

(+) Pokemon cards growing exponentially in interest once again. this is clearly not one off trend. NFTs were one off, but for something to resurge, it indicates something of substance & structure

(+) Cards is the ONLY liquid token play for pokemon beta.

(+) Crypto token for pokemon beta also has PERFECT product market fit because of two reasons:

1. There is no other way to get exposure to the narrative in equities

2. This is the EXACT type of product that is PERFECT for a token - similar to PUMP, or Perp Dexes, or Prediction Market, this is another "hyperfinancialization" vertical that has shown tremendous growth

Product Overview

(+) Has 160% MoM revenue growth

(+) low float market cap

(+) and most importantly, the product is fantastic. they have done 145mm in total volume, their next competitor only did 4mm in volume

(+) They have a 99% market share amongst all crypto products in this space (+) 76m has been spent on gacha so far. The runner up is 2m, phygitals.

(+) They thus make a crazy amount of money for such a small cap business - high growth, good margins, and insane distribution. HOLY GRAIL.

Risks

(-) Undoubtedly most of their vol and hence rev is done through the gacha product.

Counter: I think this is an incredibly smart business. Because a marketplace for pokemon cards face volatility (see OpenSea) and also doesn't make that much money (there are so many alternatives, Ebay, etc.) that this is an incredible vertical to expand into (imagine CSGO gachas) Growth rates of Net Revenue really show this:

(-) Volumes drop after token launch.

Counter: Today, they did a legendary card sale in which it was sold out 3-4k packs in under 7 MINUTES. THE DEMAND IS INSANE.

(-) Price is up alot.

Counter: Yea… this is a fair point.

Disclaimer: I hold CARDS. Not financial advice. Positions here don’t reflect my employer or my employers opinion. Not financial advice. NFA.