March 15

Deep-Dive: Phantom Galaxies


Overview

Phantom Galaxies is a third-person, open world, space simulation, mechanized shooter action role playing game (ARPG). Players take the role of Space Rangers who pilot Mechanized Starfighters (mechs)/ robot-based battle suits and fight for supremacy in an immersive play-to-earn (P2E) Metaverse. Phantom Galaxies is aiming to deliver a AAA experience that is based on blockchain technology and will be available across a range of platforms including PC and consoles. What is unique about Phantom Galaxies compared to other 3D first person shooter games is unlike traditional games where all playable assets are owned by the platforms (PlayStation, X Box etc.) gamers will be able to own the items they use in the game due to the utilization of blockchain technology and the use of fungible and non-fungible tokens (NFTs). These items, also known as, in-game assets, include things such as mechs (mechanical battle suit fighters), equipment, avatars and game currency.

Deep-Dive

Team

Phantom Galaxies is being built by Blowfish Studios, also known as ‘Blowfish’. Blowfish Studios is an independent Sydney-based developer and publisher with extensive experience in developing, porting, and publishing high-quality multi-platform games for PC, Mac, PlayStation, Xbox, Switch, iOS, and Android. Some of these titles include: Qbism, Siegecraft, Morphite, Projection: First Light.

It was founded in 2010 by Benjamin Lee, a veteran of the computer software and 3D graphics industry, and Aaron Grove, an award-winning visual effects supervisor.

The Sydney-based developer has a portfolio of 30+ games, including both self-developed and published titles, that have been played by over 2.5 million people and it also has a robust pipeline of major upcoming projects to be announced shortly.

Rating: 5.0 out of 5.0 stars

Investors & Advisors

Phantom Galaxies is now exclusively owned by Animoca Brands, who purchased 100% of the parent company Blowfish in a deal worth A$35m. Animoca Brands is a Hong Kong-based game development company and venture capital company founded in 2014 by Yat Siu, a gaming veteran. It is also, a powerhouse in the Web 3.0 based NFT, Blockchain gaming and metaverse space and is known for making many strategic and very profitable early-stage investments in key projects. Their portfolio includes over 150 NFT related companies and games including titles such as the Axie Infinity, the Sandbox, Yield Guild Games and Star Atlas.

Rating: 5.0 out of 5.0 stars

Concept/Features

  • Engage in fast-paced battles against enemy mechs, spacecraft, and sky-filling capital ships.
  • Gain new skills, abilities, weapon configurations, and more as you upgrade the mech class that fits your playstyle.
  • Unlock different variants for each of the four mech classes and customize your loadout to triumph on the battlefield.
  • Travel to different stars, exploring sectors inhabited by pirates, scavengers, and rogue factions.
Phantom Galaxies Game Loop

Rating: 4.0 out of 5.0 stars

Community

Blowfish Studies are a multi-platform hub whose titles have already been played by over 2.5m people globally. This is a huge captive audience who are likely to be engaged with Phantom Galaxies.

Phantom galaxies have built a quite sizable organic community across a variety of key social platforms. This includes over 102,000 followers on Twitter, and 97,000 members on Discord, which is the preferred social media platform for crypto/blockchain gamers. A useful fact to also note is that their discord community is very active with currently 20,000 people online at certain points in time. These are very positive foundations for a game to build on.

The alpha test was a huge success showing significant community engagement. For a couple of months Phantom Galaxies had opened their website, to allow gamers to register for a free NFT called the Halberd-001, which gave owners access to play the Alpha. They distributed 562,776 copies of the NFT, which are now in 555,860 different wallets. This means that Phantom Galaxies likely expected over half a million gamers participating in their alpha test, which shows significant engagement and interest from the community. The have just launched their Episode 2/Beta test which is likely to have similar engagement to the Alpha test.

Rating: 5.0 out of 5.0 stars

Financial Analysis & Potential Opportunity

It is our opinion that one of the most attractive features of Phantom Galaxies is the tokenomics or the financial opportunity the game presents. Below is a breakdown of how the team plan to distribute the tokens. What is unique about Phantom Galaxies is that unlike most blockchain projects who typically have a sizeable list of private investors and venture capitalists, as Phantom Galaxies parent company were bought out by Animoca Brands they are well capitalised and thus did not need to do any of these traditional funding rounds. This means that there will be less tokens available for people to sell, which should reduce any sell pressure on the tokens and provide a strong foundation for price support and appreciation. Other than the 10% of the tokens reserved for listings and liquidity pools, which is basically the liquidity needed for investors to buy and sell the tokens on either a centralised exchange like Binance (please note that we are not suggesting that Phantom Galaxies will be listed on Binance, this is purely for illustration) or a decentralised Exchange (DEX) such as Uniswap, the rest has to be earned by either owning a planet or playing the game. This is a very interesting concept, which will limit the token inflation and supply. This typically leads to higher token prices, and thus likely to be very favourable for the Phantom Galaxies (PG) token price.

In terms of the opportunity of how much Return on Investment (ROI) an investor could make form investing in Phantom Galaxies it is important to do some comparable analysis. In terms of concept and target market Phantom Galaxies is very similar to a blockchain game called Star Atlas. Unlike Phantom Galaxies, Star Atlas has two tokens: a DAO/governance token called POLIS, and an in-game currency called ATLAS, thus for the purpose of this analysis we will only be using more popular ATLAS token as a comparator. This allows a like for like comparison, as well as enabling us to be conservative with our valuation estimates by not combining the value of the two tokens. At its peak, the ATLAS token achieved a fully diluted valuation (FDV) of $7.2bn, and the lowest range valuation of $900m. The average of this valuation range being $4.1bn.

If we assume that Phantom Galaxies will perform comparable to Star Atlas as it has a similar concept, community size and hype, then that would mean the price we can expect each PG token to reach is c. $4.56 per token ($4.05bn indicative fair valuation /0.888bn total supply). Below is a list of opportunities to invest in Phantom Galaxies by purchasing planets, and the price per each PG token. As illustrated below, the price per token and thus ROI for investors will depend on which planet you purchase and at what price. A large planet is clearly much more attractive than a small asteroid because the average price per token the planet emits is different at $0.29 for the large planet vs $1.44 for the small asteroid.

Phantom Galaxies “Planet Genesis Sale” (Figures may change)

Return on Investment (ROI) Analysis

We ascertained earlier that the fair value PG token price is $4.56. This would mean purchasing a small asteroid could likely yield a return of 3.2x or 320% based on the $1.44 price per token. Though please note that as these emissions are over 3 years. Purchasing a medium planet could yield a return of 12.7x or 1,270% based on the $0.36 price per token. And purchasing a large planet could yield a return of 15.7x or 1,570% based on the $0.29 price per token. This presents a very attractive opportunity for investors. This opportunity is even more attractive if an investor could purchase a planet below the initial sale price; or is able to purchase the PG tokens on a centralised or decentralised exchange anywhere below $1.44.

Rating: 4.0 out of 5.0 stars

Summary

It is our opinion that Phantom Galaxies is one of the most ambitious NFT gaming projects in the cryptocurrency space. It is being developed by a veteran team with a wealth of experience developing for multiple platforms and have already proven themselves by having their tiles played by over 2.5m gamers. It is also impressive how they have organically built their community; and have already onboarded KOLs (Key Opinion Leaders/influencers) with significant subscriber numbers. Similarly, Phantom Galaxies is backed by Animoca Brands who have a significant network in the blockchain gaming space, which Phantom Galaxies will be able to leverage. In addition, the financial opportunity is one of the most unique presented by any project to date with the emission plan likely to reduce inflation and thus maintain a very attractive token price. Also, we have intentionally stayed away from mentioning the play to earn element as this is still largely being developed, but we believe the incorporating of play to earn mechanics into a AAA game of such quality is likely to be attract many existing blockchain gamers and traditional gamers to the Phantom Galaxies universe. All these factors considered Phantom Galaxies is definitely a project that we believe investors should keep on their radars.

Overall Rating: 4.6 out of 5.0 stars

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Disclaimer

Please note that nothing here should be interpreted as financial advice. At Hard Fork Gaming we aim to provide cutting edge, detailed content for our community members and at times we may offer our opinion on various projects. However, any decision to invest is solely on the end of the reader doing further research.

Sources


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