And welcome to our first-ever Crypto Insider for January 14th 2022 – free issue. By popular demand, we’re bringing you the smartest insight, analysis and investing tips for all things crypto.
Everyone knows about and talks about Bitcoin and Ethereum, but what about the rest of your crypto portfolio? Unless you’re neck-deep in the space, it’s hard to know what to invest in.
That’s why our focus is specifically on coins and projects you may not have heard of. Where to find moon shots before they take off.
Our very first issue is a deep-dive into the value of Defi Kingdoms’ $JEWEL, with a current market cap of over $1bn.
As an ex-gamer, I’m very bullish on crypto play to earn games. I don’t think anybody would say no to earning some money while having fun gaming. That said, I’m very excited to feature DFK, a very new project with multiple tantalizing components, with gaming being at the forefront.
Defi at a glance:
- $JEWEL (at time of writing): $20.11
- Market Cap (at time of writing): $1,257,431,468
- Chain(s): Harmony, Avalanche (coming Q1, 2022)
- Twitter: https://twitter.com/DefiKingdoms
- Discord: https://discord.gg/defikingdoms
Why It Could Moon
Defi Kingdoms (DFK) has taken the cryptocurrency world by storm, accumulating over $1B total value locked (TVL) in less than 4 months. However, it’s not the only reason it’s constantly featured as one of the most promising cryptocurrency projects of 2022.
What makes it so popular, and why has $JEWEL gone up so quickly? Because it has multiple things going for it. It’s not only a fun play to earn (P2E) browser game, but it also:
1. Serves as a popular decentralized exchange (DEX) which allows users to swap for other coins on the Harmony network. This means the game generates revenue from users that trade coins on its platform.
2. True to its name, it’s a decentralized finance (defi) platform where users can profit from the current $JEWEL liquidity.
How the game works
The gameplay mechanics aren’t overly complex, but they take time to understand.
To play the game you’ll need a hero in the form of an NFT, which can be bought from the game’s marketplace called the Tavern. Here, you’ll find heroes to purchase or rent. Once you have a hero of your own, you come here to sell it or generate some ROI by renting it out yourself.
Here is a look at some heroes for sale in the tavern at the time of writing:
The heroes are randomly generated, with various stats and professions that they excel in. For example, they can be miners, gardeners, foragers, fishers… And as you carry out these tasks with your heroes, you get items that can be used to level up your character and then be sold for $JEWEL.
DFK Project Roadmap
DFK has a fairly promising roadmap. The two largest undertakings are a cross chained decentralized app (dApp) and adding a battle system for PVE (“player vs. environment”) and PVP (“player vs. player”).
They have a lot more things planned, and you can check out their official roadmap here (but it doesn’t seem to be fully updated).
I’ve been part of DFK’s discord for over 2 months and the community is great, not even just by crypto projects’ typical low standards. With plenty of discussion and people willing to help, it’s fairly easy to get your questions answered.
The team behind DFK also makes sure to keep the community engaged by having a set of mods, twitters posts, and fun challenges that rewards winners. It’s pretty fun.
$JEWEL is more than 20% below its ATH, but the biggest reason it went down seems to be because of the crypto mini-crash.
That said, it has been incredibly resilient as an altcoin during the $BTC mini crashes in December and January.
During crashes and mini crashes alike, many traders swap their altcoins for larger coins such as $BTC, which many see as the reserve currency for cryptocurrency. Some people’s popular trading strategies involve looking for the top stable altcoins during market drops.
- Fast-growing game in crypto right now, second only to Axie Infinity
- Also serves as one of Harmony’s largest decentralized exchange (DEX)
- Defi platform – players can easily stake $JEWEL in the bank and engage in liquidity pools
- Browser game makes adoption easy
- Exciting roadmap to add to and improve gameplay
- Plenty of decisions and activities for players of all levels
- Play 2 Earn (P2E) is an extremely attractive mechanic for those who like to game
- Gameplay tokenomics is easy to understand
- Playable heroes with various stats, traits, and professionals are in the form of NFTs
- Cross Chain plays to another popular chain, Avalanche
- Extremely cheap gas fees
- Cute as hell, with very catchy music
Risks of $JEWEL:
No project is perfect, and DFK is no exception. While it has rapidly grown in the past ~5 months since its conception, it is a new project which leads to further risks.
First, the gameplay is still being developed. There are still some rare bugs, so if the gameplay (most of which is not yet completed) is not executed well, then this will severely negatively impact engagement and users.
Another risk is that the team is fully anonymous. That means they could technically just take everybody’s money and run without anyone knowing who they are. While it doesn’t seem likely for such a mature and serious project, it’s still a risk.
Finally, with any software, there is a risk of hacks, bugs, and exploits. Plenty of projects have been hacked, often resulting in losing millions of USD in cryptocurrency. New projects haven’t been around as long and are therefore may not be as safe as older projects.
Fortunately, DFK has been audited, and you can review the results here. DFK passed all of the “external threat results” tests that Solidifi, the 3rd party auditor performed. While that is certainly a good sign, no software project is guaranteed to be free of software risks.
- A relatively new project, launched in August 2022
- Development is still in progress
- The team is fully anonymous
- Contract risks (hacks, bugs, exploits)
With DFK’s rapid rise to the #2 game in crypto, it is often compared to Axie Infinity, the most popular game in cryptocurrency. Axie Infinity is on the Ethereum network and has a market cap of $4,441,990,721 on CoinMarketCap at the time of writing. Many analysts believe Axie Infinity will grow in 2022 and beyond. This article expects more than a 7X in 5 years.
Like DFK, Axie Infinity has the gameplay to earn sellable NFTs. While I haven’t personally played Axie Infinity, I hear that the gameplay mechanics are repetitive.
According to Coin Market Cap, DFK claims a market cap of $1,128,943,169 at the time of writing. This means that $JEWEL can go up to x4 if it reaches Axie Infinity’s current market cap and x28 in 5 years if the above-mentioned article is correct.
There are a LOT of ifs here. Crypto gaming and play-to-earn are both new models – there are no predecessors that have achieved the scale of these games.
Also, DFK itself is still new; DFK has only been live for six months while Axie has been live for almost 4 years. We don’t know if DFK can reach Axie Infinity with so much of the game yet to be released, but it’s certainly a good sign for DFK that it can get to 25% of Axie Infinity’s in less than 10% of the time.
Want to invest?
Disclosure: This is not financial advice. This article is for entertainment purposes ONLY. I am also a holder of $JEWEL and long on the project.
And just a heads up – we will not be going through crypto safety best practices in this section. It is your responsibility to keep your information safe and secure.
How to Purchase $JEWEL:
There are multiple ways to do this – we’ll go over the route that we imagine most beginners would go through.
You can watch this handy video I made:
Or follow the instructions below:
- Buy $ONE on a CEX such as Kucoin
- Install Meta Mask (MM)
- Add HARMONY to MM
- Send $ONE to your MM
- Go to https://game.defikingdoms.com/
- Create your profile (takes 1 minute), making sure you give the app permission to interact with your wallet – it’ll come in the form of a pop-up like all MM approval notifications
- Navigate to the Marketplace
- Talk to the Druid
- Exchange $ONE for $JEWEL
- Add $Jewel to MM by going to https://www.coingecko.com/en/coins/defi-kingdoms/, hover over the fox face icon and click “Add to Metamask“
- You now own $JEWEL and can see it in your wallet
Staking Your $JEWEL (Optional)
Now that you own $JEWEL you can either let it sit in your wallet, stake it in the bank, or participate in a liquidity pool. The last two options can generate some interest.
We won’t go into details here (check out the guide below 👇), but any $JEWEL owner should strongly consider staking. It’s easy to do and has no lock period, unlike DFK’s liquidity pools.