Earth2.io - The Money Making Machine

Before anything, make sure you understand irony, sarcasm, and what "doing your own research" means. I will shortly explain this just to make sure you don't interpret what you are about to read as investment advice, but rather my two cents on why the Earth2.io phenomenon is a good place to consider when looking for another revenue stream.


When investing, consider taking action based on what you know and only after you have answers to all your questions.

When investing, it's better to lose the money on your strategy than winning on somebody else's.

The Internet is full of losers advertising schemes that lost them money.



Now, straight to the point: Earth2 is a platform released in November 2020 and raised nearly $35m in revenue to date .. from their paying users. (estimation was made on February 21st, 2021)


WITHOUT:

  • any marketing budget spent

  • any sales department

  • a product fully developed (not even 10% of the product ready)

  • a platform ready to sustain more than 50.000 users browsing daily and transacting

  • a fully engaged team

  • any roadmap publicly assumed

  • any details on what the final product will be


ONLY with:

  • a mad founder and an extraordinary vision:

Earth 2 is a futuristic concept for a second earth; a metaverse, between virtual and physical reality in which real-world geolocations on a sectioned map correspond to user generated digital virtual environments. These environments can be owned, bought, sold, and in the near future deeply customized.

And money is still pouring in. From paying users.


But why?

Retail investors, or 'poor people with money' as I call them (me included), tasted the Crypto era with massive gains and losses in 2018, then tasted the Options & Forex trading in the Covid-19 era with the same (maybe more important) gains and loses in 2020, went crazy on GameStop in 2020/21 and witnessed Bitcoin reaching the $50.000 price. That is a lot to happen in a youngster's life, but this sat up as a reality. And when reality sets up, the comfort zone moves a little bit further and the need for 'the next best thing' emerges.


Enters Earth2.io

Behind Shane's metaphorical vision of escaping earth to a metaverse, lays a trading platform with a twist.

  • You buy tiles (squares) on a 1:1 replica of Earth.

  • Each tile is 10x10m.

  • You can buy multiple tiles at once forming properties: 30 tiles properties, 100 tiles properties, 750 tiles properties (the maximum you are allowed to buy at once).

  • You can buy properties of whatever tile number you wish directly from Earth2 platform (available / New Land) or you can buy properties from other players by bidding on their properties with what you are willing to pay, or by buying directly from marketplace properties already listed for sale.


The Twist?

Price action - The New Land Value Price (price you pay when buying new land) increases exponentially with every tile purchased in each country. Each country has its own dynamics, based on users' interest, Megacities development, and other strategic considerations each user has.

All countries started with an initial price of $0.1 / Tile, except for International Territory that started from $0.01 / Tile.

The exponential formula the price is currently following is:

NewPrice = InitialPrice * e^(TotalSoldTiles / 100.000)
Where e = 2.71828 (Euler's number) and TotalSoldTiles  represent the total number of tiles sold in that country (for which you calculate the new price).

It is known but not exactly calculated that transactions between players also are factored in the exponential formula. We at Alchera Global Venture didn't figure it out, but we had some observations in price correcting in certain conditions.

The important takeaway from this part is that the price only went up and it keeps going.


The "Game" Expectations - Of course people don't spend $35 million on squares on a map on a website. We are not that stupid yet.

Earth2.io it's a game. Properties in the platform will start to produce resources. Resources will be used for improving the properties, developing technology, trading between players, and, yeah, that kind of game. Just remember (or google it) Travian. Got it?. OK. The guy that created Travian works for Earth2.

When we discuss resources there are 2 main things that are important (even if you never played a game like Travian):

  1. In-game economy

  2. Resources become assets - produced in time, or boosted with real money (credits) or traded.

First, I want to highlight the importance of trading, because trading is what filled the Earth2 startup's bank account with ~$35m: Trading will remain an important business opportunity in the game (property trading or resource trading). There are also some assumptions on NFTs...

Last, but not least, an observation on the in-game economy: Wolfgang Walk is in charge of Gameplay Concept & Design, so the concept, economy, and mechanics behind it are expected to be impeccable.


The twist is that we have a trading platform with massive cash to burn in the earliest stage of a startup and assets traded in the platform are in-game assets with intrinsic value that oscillates while the game develops, AND the game is being developed by a very solid team (and I didn't get to the best part yet in gameplay).

Now, remember those tiles you bought? If it's still March, you can call yourself an early adopter.


"Dude, but your article is called something about <<money making machine>>"




Yes, that.


The opportunity lays in the vision the Earth2 Team has. And if we were to strip the vision for metaphors we would get:

A platform with endless possibilities where everyone can join, own land in an exact Earth replica, develop their land, rent, build, transact and have real-life businesses around the in-game mechanics.

The third (after the last above) twist is that the Earth2 team works on a terrain system that will be deployed on top of everything and bring it all alive in an Augmented / Virtual reality platform for education, social interactions, business, technology development, or just to simply escape the pandemic-soaked real world. What you just saw in 4k in the link above it's not a movie clip, it is actual in-game footage. Yes, I know. Cool.

To accomplish this, they have Nathaniel Doldersum (Ex - D.R.O.N.E) and Ferran Galvan onboard to lead the game design and terrain system in the third phase of game development.


And there is also the Earth2 Business perspective

  • They forecasted 200.000 paying users in the first year when they drafted their business plan and got that number in less than 4 weeks.

  • They have enough burning cash to accelerate and grow in all business aspects: Team, Game development, Innovation, VC funding to raise more cash, user acquisition, loyalty campaigns for existing users and so much more.

  • Tiles started with the price of $0.1 and now, as I type, New Land in the United States is purchased at $49.76 per Tile.

  • In total, until today, 46.78 Million tiles were sold in the game.

  • Cheapest country: $0.411 per tile

  • Megacities: At least 116 (here is a documented list)

If you put yourself in the Earth2 team's shoes and try to think like them, the numbers above seem small. They plan a monstrous platform available worldwide and used by the general population.


Images credits: https://www.123rf.com/clipart-vector/genious.html | https://fifrenchtalent.com

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