NFT Projects Unveiled – PixelSweepers
Hello, again friends!
Right now, I’m excited, and a little nervous about my second project evaluation. This week is probably the hottest thing on this side of the chain!
The Game Theory NFT Project: PixelSweepers
First, What is PixelSweeper NFTs?
Where have you been if you haven’t heard of this project? All joking asides, PixelSweeper has had lots of attention since their mint, so let’s do a quick resume on what they propose:
A collection of 10,000 3D robots. Minting funds go as follows:
· 90% Sweeps squaddies
· 5% future community sweeps
· 5% for the team
One of the greatest things about Pixel sweepers is that the percentage of minting that stays in the collection was 90,25% per NFT since there were 500 Sweepers separated for the team giving and giveaways. That amount is unheard of on the BNB chain so big props.
Trading fees have the following distribution:
· 67.5% squads
· 3.8% of projects voted by the community
· 28.8% for the team/artists
After they are swept, those NFTs are given back to PixelSweepers holders. There are two ways:
1. Staker’s Pot:
Each week, you have a chance to win a Pancake Squad NFT from the Prize Vault. In the future, some runners-up prizes will be NFTs from other BNB Chain collections just for staking your Sweepers in the Staker’s Pot.
2. Player’s Pot:
The Player’s Pot will give you a second opportunity to win a Pancake Squad NFT from the Prize Vault through weekly ticket sales. You will only be able to buy tickets for the Player Pot if you have staked at least one Sweeper.
All the draws are randomized by Chainlink, which guarantees fairness.
Now that you’re more familiar with how the PixelSweepers work, let’s go deeper into this. PixelSweepers has been successful with their launch, building the hype, little by little and providing the whitelist to every community on BNB Chain. Launching a partnership with Galler and Binance NFT Marketplace has also really paid out.
PixelSweepers smooth launch can be attributed to:
· Renowned names within the community.
· They have attracted the attention of big pockets with squads.
· They have drawn in attention of other projects on the 5% sweep.
· Utility on what the project aims right from the start.
· Most money on minting back to project.
They also have three things that any successful NFT project should aim for: Solid Team Members/Utility/ Great Community Art, which is reflected in the price bump from 0.25 per mint to 0.8 – 1.5 then sitting around 0.8 at the time of writing this article. Now let’s focus on how the draws lottery works.
Another great thing about PixelSweepers is that the utility has been there since day one. It is a weekly chance to win a Pancake Squad NFT, and that draws a lot of awareness to the project because it is considered the holy grail as far as the NFTs on the BNB Chain universe.
The Weekly draw and the Player Pot draw can be a little tricky. If the volume is low, the value of the vault will be slowly depleted. Some people might anticipate that people will sell due to fear. That may be replenished. That is how the staker’s pot works. It is not a concern about empty drawings since there were more squads swept than distributed last week but it’s something that may happen in the long run. Currently, there are 152 NFTs allocated for the staker’s pot, which means three years of staker’s draws. That’s considering that every week the player’s pots keep closing the deal, 1.5 if no player’s pot tickets are sold, which I highly doubt.
The paragraph above clarified the dynamics of the staker’s pot. Let’s move forward to the player pots. As a business model, I think it is incredible for the owner of the project. It is guaranteed that every week on the player´s pot and for every ticket sold, 95% goes to sweeping a squad and 5% to the team. So how does this work? If the tickets sold are below a squad, the squad will be taken off the NFT vault. If the amount in the vault remains the same, the squad sold is given. So, the trick is if there is a low total of tickets sold, people will have an incentive to get more tickets. When getting more tickets they
equilibrate the equation. It is funny because, in my experience in crypto, people always find the point that the balance is good enough (this would be 70-90%) but what we do see, is they are fully sold week after week. This has a nice dynamic that makes people buy tickets and keeps revenue and rewards for the team, also getting engaged in driving hype. Keeping the team engaged is very important for any project’s survival.
In my opinion, unless there are fewer tickets sold than the value, it is a lose-lose game, since each dollar spent 0.95 goes back to a squad. I also know this is crypto, and most of us like to gamble and so on, and I don´t think it’s terrible since people buy lottery tickets from the government and other businesses, so if you feel lucky, go for it. I also understand it is not investing, rather than just gambling.
Team & Community:
Fab, owner of Rareboard, on the BNB chain NFT space has famously helped a lot of projects and people auditing contracts, even making a new one for the Moonwalkers after a rug. That is someone people will want to follow and praise. He also made the utility from day one.
Now, onto the second aspect. The team is kind, and they have some fun games and lots of engagement on Telegram that I do enjoy, like puzzles, and other things that keep people involved. From that side, it gives me BNB chat, which I consider the bet, thank to Bonnie.
· Holders: 1316
· NFT/Holder: 7.598
· Mint Price: 0.25
· Floor Price: 0.72
· Vault/NFT value: 0.11
The current data is based on the time the article was written.
Good aspects/ Positive Points:
· Utility was ready at launch.
· Fab is a wizard so having his back is amazing.
· In June, 50% of Rareboard profits will be used to sweep PixelSweepers, so that will keep some momentum.
· Other projects are looking to capitalize on PixelSweepers success, providing whitelist/ sweeping/ and that strength their narrative.
· They are transparent on how the royalties/mints and funds are distributed, and this one is one of those that put more back in.
· The business model is on profiting on tickets and trade, not on mint, which is beneficial to keep project engagement.
· Everything is clear on how the minting funds are split; It Is so rare to see transparency on projects, so big thumbs up.
Bad aspects/ Negative Points:
· If the volume drops down, it can cause a decline in the rate of the Vault Value/NFT.
· To me, Sweepers should be traded on a premium on average Vault Value /NFT, but also when you can trade a chance in 1 thousand for the prize, which is a kind of a no-brainer.
· Lottery at the same time is reasonable, there is a chance that you never win anything, so play as if it is a game.
· Player’s pot may be an aspect of the project that wouldn´t change the dynamic, only they must own a sweeper.
· Pancake Swap is the holy grail for NFTs on the BNB chain, but also not the priority for Pancake Swap (PCS), the price is driven on a promise of utility and community support in the hope of the utility or defending the investment, and wanting sweepers are a Squad proxy.
· Metaverse – this is more on the opportunity side on how the project will capitalize Metaverse, and potentially bring new holders while increasing the partnership with Orbofi.
· One challenge for PixelSweepers is how to keep the hype going.
· In my opinion, they must keep combatting the temptation that people will want to sell their sweepers for players’ pot.
· Sweepers don´t promise anything, except what is pointed out on their website which may be a challenge but also can create a sensation of over-delivering, which markets love.
Do I Hold Pixel Sweepers? No. Did I Mint? Yes, I minted on the strategy of flipping when I saw that FOMO kicked in. I live by selling on FOMO and buying on FUD projects that the teams are pushing. I even had some whitelist spots that I skipped, but when I perceived the FOMO, I decided to use the liquidity that I had, to do the flip.
Do I think PixelSweepers is a bad project?
Not at all. I like taking my odds, even on PCS predictions (please don´t throw your money away doing this). But as the mint of Sweepers started, I saw opportunities to open in what I thought were other good projects.
I may get more someday, if I see the value and opportunities are good, or when comparing them with other things I would like to have.
The objective of this evaluation isn´t to tell anyone what to do but to share my perception and thought process (I´m not always right anyway). With this, you can ask yourself what a good way would be to allocate your money.
I know it is a bit too long but tried to provide the best info and my perception. For sure would love some input and feedback to deliver a better article each time.
And one last message for the games:
“Don't Follow Me I'm Lost Also”
“Not All That Wanders Are Lost”
Make sure visit the Money Monkey Telegram to vote on next weeks project evaluation!
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