Demystifying web3 gaming with Shima Capital – trends, challenges, opportunities | Fundamentals ep.80

In this episode, we’re joined by Alex Wettermann, the Head of Gaming at Shima Capital – an early stage VC firm investing in disruptive web3 companies. Alex gives us an overview of the current state of the web3 gaming market, and walk us through the key trends, challenges and potential opportunities within the space.

Listen to the episode

Alex highlights the importance of looking beyond trends like 'play to earn' and emphasizes the need to create net new experiences and novel monetization methods. He also discusses the role of token design, in-game economics, user acquisition and retention, building strong gaming communities, and the unlocks needed for web3 gaming to go mainstream.

Finally, we cover how Alex analyses potential investment opportunities, and how Shima actively works with their portfolio companies.

Tune in for a great episode about the fundamentals of web3 gaming.

Timestamps:
00:00 Introduction
02:28 Overview of Shima Capital
03:22 What problem does Shima solve for LPs?
04:13 What does Alex’s day-to-day look like as the head of gaming at Shima?
07:14 The barrier to entry for researching crypto is high
09:32 The core value proposition of web3 in gaming
13:24 The current state of onchain gaming
17:15 Would a Supercell-style game development model work in web3?
20:13 Does the financialization of in-game assets make it harder for game studios to iterate?
24:03 Net new experiences and monetization models enabled by web3
27:22 Balancing monetization and gameplay in web3
30:58 What trends or vertical in web3 gaming currently stand out?
36:56 Investing throughout the web3 gaming tech stack
38:07 Value accrual
40:56 The thesis behind investing in Pudgy Penguins
42:39 The biggest hurdles facing web3 gaming today
45:35 What are the main KPIs that Shima focuses on?
49:38 What qualitative data could be helpful at scale?
51:18 How does Shima work with their portfolio companies?

Shima Capital: https://shima.capital/
Alex on X: https://twitter.com/awettermann
Shima on X: https://twitter.com/shimacapital

The authors of this content, or members, affiliates, or stakeholders of Token Terminal may be participating or are invested in protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Token Terminal does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only, and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Token Terminal at any time without notice. Token Terminal accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.