“Global expansion at the right time” after IEO: Mr. Yoshida of Hashpalette | CoinDesk JAPAN

HashPalette, which handles blockchain development specializing in NFT distribution, held an IEO briefing session for “ELF Token” on February 9th, which will be the fifth IEO in Japan and the first game token IEO in Japan. It was held at the crypto asset (virtual currency) exchange bitFlyer.

IEO (Initial Exchange Offering) is a funding method using crypto assets. Crypto asset exchanges examine new crypto assets issued by companies, projects, and other issuers to ensure business continuity and operational safety. We support the sale and distribution of products after confirming their gender, etc. This IEO is the first project for bitFlyer's IEO platform “bitFlyer IEO.”

Related article: Hash Palette announces second IEO ─ To raise 1.25 billion yen from in-game tokens

At the briefing session, Hashpalette Chairman and Founder Masahiro Yoshida first gave an overview of the NFT farming game “THE LAND Elf Forest'' where IEOs and Elf Tokens can be used. He said, “Japan's first IEO for game tokens.Many game tokens are in circulation in other countries, and they have reached the scale of forming a category, but in Japan, a gaming powerhouse, there are still no works in this genre.'' I cut it out.

“THE LAND Elf Forest'' is a so-called “farming game,'' in which players cultivate and harvest crops, sell them to other players, and engage in various interactions. When creating a Web3 game, browser games have fewer restrictions, but “We were particular about making full 3D fun to use on mobile.'' “Farming games and miniature garden games are supported around the world, especially in Asia, and I want it to be a project that is popular among people.”

Furthermore, he pointed out the user retention rate and access frequency as reasons for choosing the farming game. For example, in competitive games, there are cases where people end up hating the game if they lose, but in farming games, “the advantages are that users continue to play for a long time and access the game frequently.Sustainability is a major theme.'' “I'm working on it,” he said.

The challenge of sustainability

Web3 games, or Play to Earn games, were once hugely popular, but they often relied on new entrants for revenue, making sustainability an issue and stalling.

Mr. Yoshida said, “Game tokenomics is broadly divided into two parts. One is the flow of money based on advertisements, and the other is the flow of money based on in-game purchases and NFT sales. Advertisements are a very big theme, At the same time, we are positioning it as a marketing platform. In other words, by accumulating and analyzing external revenue such as advertisements and user behavior history in the game, and linking it to marketing measures, we can secure revenue and create a sustainable structure that does not rely on new entrants. The idea is to ensure sexuality.

“100% of advertising revenue will be returned to users. The amount of energy that users engage in in-game activities will be linked to advertising, or external money, which will be returned to users.”

On the other hand, Hashport will use a portion of in-game purchases and NFT sales to fund its operations.

Mr. Yoshida also cited “accessibility'' as an important element for a game's success. It's about ease of use for users. Specifically, Web3 games require a wallet to purchase items, which is a major pain point.

Mr. Yoshida said, “The game has an in-app wallet, and a wallet is automatically generated when you download the game. They use the same infrastructure, and private keys can be managed using just an ID, password, and PIN code.We would like to work on the mutual use and interoperability of these Web3 technologies on a large scale.” .

Looking to expand globally

On the same day, Hashpalette announced that in order to promote the overseas expansion of “THE LAND Elf Forest”, Animoca Brands Japan, a strategic subsidiary of Hong Kong-based Animoca Brands, known for its active investment in Web3, ) announced a partnership with Regarding the background to this, Mr. Yoshida said, “I have a strong sense of crisis that the domestic IEO market will not be able to grow unless it has global influence.''The last time IEO was for Palette Token (PLT), which was the first case in Japan. After the domestic IEO, the path to listing overseas was not yet clear, but continued, “This time we are thinking about going global.''

Of the 150,000 people who have pre-registered for “THE LAND Elf Forest,'' just under half of them are overseas users, mainly from India, the Philippines, Indonesia, and Vietnam.

“Global expansion is a very important point for domestic IEO projects. We would like to take on this challenge with our feet firmly set. We believe that a good cycle will be created if we expand globally at a good pace after the IEO. “I'm there”

Yuzo Kano, representative director and CEO of bitFlyer, was scheduled to attend the presentation, but due to poor health, Shogo Yamato, deputy manager of the Crypto Strategy Office, gave an overview of the company and IEO. Regarding the second and third bitFlyer IEO initiatives, bitFlyer Holdings executive officer Aoi Kanemitsu, who facilitated the briefing session, said, “It was difficult to set up the screening system and internal systems.However, Japan “It can be said that this is the only country where IEO is institutionalized. We believe that the opportunity to conduct IEO at an exchange like ours is of great significance for the Japanese industry.”

Currently, applications for Elf Token IEO are being accepted until the 20th. Of the total issued amount of 1 billion EFL, 10%, or 100 million EFL, will be sold at 12.5 yen per ELF. The amount raised through IEO was 1.25 billion yen. Against the backdrop of a bullish market in which Bitcoin exceeded $50,000 and hit an all-time high in Japanese yen, Yoshida said, “I want this to be the first web service for many people.'' This is the fifth game in Japan, and the first. How will the token IEO develop? For the future of domestic IEO, trends will be closely watched.

｜Text and photography: Takayuki Masuda