Tilted's Potential FDV and the RWA Market Opportunity

Introduction

The Gaming Real World Asset (RWA) market is witnessing a significant transformation as platforms like Tilted emerge to capture the very large market that is tokenization of game skins. Tilted's innovative approach to integrating RWAs with Web2 game asset liquidity pools, particularly in the gaming skins and collectibles market, positions it uniquely within this web3 gaming space. This analysis evaluates Tilted’s potential fully diluted valuation (FDV) if it successfully captures just 5% of the game skin RWA market share. Because Tilted is the world’s first liquidity pool for RWAs, focused on game assets.

Understanding Fully Diluted Valuation (FDV)

FDV represents the total market value of a cryptocurrency project assuming all tokens are in circulation. It is calculated by multiplying the total supply of tokens by the current market price of one token. FDV provides investors with a comprehensive view of a project's potential market capitalization, which is crucial for understanding its growth prospects and investment attractiveness. Tilted isn’t going to account advertising that comes from the TikTok gap in the USA alone (worth $5 billion a year) because it sees the market for game skins alone as the RWAs behind the token, that are driving the value of the Tilted Token and so for this analysis we will look only at the market that is game skins and character primary sales per year to have the most realistic insights. So likely the FDV could be much higher if we account the revenues that are going to be coming in through advertising. We can dive into advertising FDV calculations in a blog post next week.

Current Market Landscape

As of 2024, the RWA market is estimated to be valued at around $5 trillion, driven by increasing demand for tokenized assets and the integration of blockchain technology in traditional finance. The RWA sector is becoming a focal point for investment, with players like Ondo Finance leading the charge by creating platforms that facilitate the tokenization of traditional assets like

CoinGape. As the gaming industry continues to evolve, the integration of RWAs into gaming, particularly through collectibles and skins, offers a new revenue stream for platforms like Tilted. Rest assured, the following analysis only looks at game skins annual sales. It doesn’t look at the RWA market. Tilted will expand beyond game skins soon, to support all web2 digital assets, but to start it sees the game skins market as sustainable because no one is after this market in the way that Tilted is because it addresses the TikTok gap. Tilted is getting banned in the USA, and was already banned in India, two substantial markets for Tilted to focus on. In fact, these are already two of Tilted’s top community members. Beyond that Tilted’s community is currently spanning Brazil, Bangladesh and Japanese markets as well.

Tilted's Market Strategy

Tilted's unique strategy revolves around the tokenization of gaming assets, specifically focusing on skins and collectibles. The platform aims to create a liquid market for these digital assets, enabling both primary and secondary sales, thereby increasing the accessibility and value of gaming assets. By targeting the gaming skins market, Tilted could capitalize on the existing demand for digital collectibles, which has grown exponentially over recent years.

Gaming Skins Market Overview

The gaming skins market is currently valued at over $30 billion per year, with a substantial portion of transactions occurring in both primary and secondary markets. For instance, in 2023, the skin market saw more than $10 billion in secondary sales alone according to

Coin Edition. By capturing just 5% of the RWA market share, Tilted could position itself as a major player in the gaming collectibles space.

Valuation Calculation

Assuming Tilted captures 5% of the RWA market, the projected market share would amount to $250 billion.

To simplify this basic analysis, Tilted has a total token supply of 1 billion tokens. Let’s make the math simple and look at it from the perspective that each Tilted Token is represented with a value of $1. Therefore, the potential FDV could be calculated as follows:

FDV=250,000,000,000?(market?share)×1,000,000,000?(total?supply)×1?(token?price)\text{FDV} = 250,000,000,000 \text{ (market share)} \times 1,000,000,000 \text{ (total supply)} \times 1 \text{ (token price)}

FDV=250,000,000,000?(market?share)×1,000,000,000?(total?supply)×1?(token?price)

This would result in a theoretical FDV of $250 billion. This estimation is conservative, as the price per token could rise as demand for Tilted's services increases.

Implications of Capturing Market Share

1. Increased Liquidity: By capturing this market share, Tilted would not only enhance its liquidity but also attract institutional investors looking to diversify their portfolios with tokenized gaming assets. Increased liquidity can lead to higher trading volumes, driving further price appreciation.
2. User Growth and Adoption: Tilted's approach to integrating RWAs into the gaming ecosystem could significantly increase its user base. With a market-centric approach, Tilted can tap into the existing gaming community and attract new users interested in the investment potential of digital assets.
3. Ecosystem Development: As Tilted grows, it will continue to facilitate partnerships with game developers and publishers to expand its ecosystem. This would create a feedback loop where the demand for tokens drives the value of underlying assets, further incentivizing user participation. Tilted already has 488 games in its ecosystem at the time of writing this article.
4. Regulatory Considerations: As with any blockchain project, regulatory movements will impact Tilted's growth trajectory. The success of capturing 5% market share will depend significantly on how well Tilted navigates these regulations and is proactive in compliance.

Risks and Challenges

Despite the promising outlook, several risks could hinder Tilted's potential growth:

• Market Competition: The RWA and gaming markets are becoming increasingly crowded, with many platforms vying for market share. Tilted will need to differentiate itself and provide unique value propositions to succeed.
• Volatility: The cryptocurrency market is known for its volatility, which could affect investor sentiment so injecting revenue into token buy backs is something that Tilted puts into consideration.
• Technology Risks: As Tilted builds out its platform, it must ensure security and user experience as a factor in addition to compliance. Any significant breaches or user dissatisfaction could damage its reputation and user base.

Conclusion

Tilted's potential to capture 5% of the game skin RWA market share represents a transformative opportunity for the platform and its stakeholders. The resulting FDV of $250 billion underscores the significance of tokenized gaming assets and the potential for growth within the game skins sector. While challenges remain, Tilted's innovative approach positions it well to capitalize on the evolving landscape of the gaming and RWA markets, potentially redefining how digital assets are perceived and utilized. By fostering a robust ecosystem and ensuring user satisfaction, Tilted can achieve its ambitious goals and deliver substantial value to its investors and users alike.