Illuvium - $ILV, Asset Review
”Massive Blockchain Game Illuvium Raises Another $10M From Framework Ventures” (Cryptorank, 2023)
General Information-What is Illuvium
Illuvium Background
Illuvium Funding/Collaboration
Token Information-Tokenomics
Additional Information-
Games on Illuvium
Is Gaming Really That Serious?
Technical Analysis
Conclusion
General Information-
1. What is Illuvium?
Illuvium is an immersive open-world fantasy battle game set on the Ethereum blockchain, blending the thrill of exploration with intense PVP battles. In this groundbreaking AAA Ethereum game, players traverse a vibrant realm filled with elusive creatures called Illuvials. After a victorious battle, these creatures join your team, ready for future challenges. Co-founded by the visionary Warwick brothers, Kieran and Aaron, Illuvium not only offers an entrancing gaming experience but also interweaves the essence of DeFi through its native ILV token, rewarding achievements and empowering players to shape the game's future via its decentralized governance system.
2. Illuvium Background
Illuvium is a project based out of Sydney, Australia founded by Aaron Warwick, Grant Warwick, and Kieran Warwick in 2020. Illuvium, an ambitious project set to redefine the fusion of gaming and blockchain, has its roots firmly planted in the combined expertise of a multifaceted team. Spearheaded by co-founders Kieran and Aaron Warwick, the game was envisioned as a revolutionary AAA title on the Ethereum blockchain. Kieran, with his vast experience ranging from e-commerce to pioneering DeFi ventures, and Aaron, whose passion for game building and world creation shines through, together embarked on this journey, setting the cornerstone for Illuvium. Beyond the founders, the Illuvium team is a mosaic of global talents – from game producers like Nate Wells, known for his contributions to iconic games like Bioshock, to Danny Wilson's formidable business acumen and partnerships expertise. With a team that spans game design, business strategy, technical development, and marketing, Illuvium's journey from conception to realization is backed by a diverse powerhouse of industry veterans and innovators.
3. Illuvium Funding/Collaboration
Illuvium held an ICO in 2021 and raised about ~$52 million dollars according to icodrops. The co-founder of the RPG series Illuvium, Kieran Warwick, announced that the game has secured an additional $10 million in funding from Framework Ventures. This investment is aimed at accelerating the development of Illuvium and was transacted through a token that will be locked for two years. Most recently, Illuvium has entered into a partnership with GameStop, unveiling a 20,000-piece nonfungible token (NFT) collection titled "Illuvitars". These dynamic NFTs, each referred to as an "Illuvitar", symbolize unique avatars of Illuvial creatures with distinct expressions and power ratings based on rarity. Notably, the collaboration features unique GameStop-branded "Illuvitar D1SK NFTs" that hold various potential combinations of Illuvials and can be traded on the Illuvi decentralized exchange. NFT holders also gain early access to Illuvium's creature collector games and other special benefits.
Figure A
Token Information
Tokenomics
$ILV is the native token for the Illuvium blockchain. At the time of writing, the circulating supply is 5,665,108 with a max supply of 10,000,000 according to Coingecko. The early distribution can be broken down per the following: 10% of the supply was allocated to public investors, 5% was allocated to the pre-seed investors, 15% was allocated to seed investors, 15% was allocated to the team, 15% was allocated to the treasury, 30% was allocated to yield farming, and the remaining 10% was allocated to the in-game rewards. $ILV has both inflationary and deflationary mechanics as per the supply. The tokens have multiple use cases like the following. $ILV is used to pay transaction fees on the Illuvium network. $ILV may also be used to earn rewards for yield farming purposes, and is used in-game as a reward token. Holders of $ILV may also be a part of a DAO which governs the network, more on that here. One takeaway is that the supply is small and it looks like most of the supply has been released although there is more sell pressure ahead per figure B.
Figure C
Figure B
Additional Information
Games On Illuvium
As it stands Illuvium has about four games displayed on their website: (1) Illuvium Arena, (2) Illuvium Overworld, (3) Illuvium Zero, and (4) Illuvium Beyond. All these games have their own unique storyline, but that’s not the point. The point is that they have been innovating and have a game with gameplay. What a weird statement to make right? But the truth is that so many competitors claim to do what Illuvium is doing never launch a real product. I don’t want to bash any other games, but there is only one game that did really well last cycle and that was Axie Infinity which has paved the way for play-2-earn. All beta gameplay on Illuvium is playable on Windows, and Mac.
Figure D
2. Is Gaming That Serious?
In 2022, young American men aged 15 to 24 displayed a notable shift in daily priorities, dedicating an average of 3.82 hours to computer and video games while concurrently reducing time spent on work according to Bloomberg. This pronounced affinity for digital entertainment, coupled with the first decade and a half trend of the 21st century, underscores an emerging opportunity: the rise of blockchain gaming. Given this demographic's increasing commitment to the virtual gaming world, the integration of blockchain technology, with its promise of decentralized, secure, and often financial interactions, could catalyze the next significant evolution in the gaming industry. Such a trend suggests a ripe market for developers and investors to capture a dedicated, tech-savvy audience eager to embrace the convergence of gameplay and blockchain utility.
Figure E
3. Technical Analysis
$ILV has had an amazing run from $29 to $1904 yielding ~63x + returns. Ever since $ILV hit all-time-highs, we have seen the price fall towards the range zone before the expansion took place in 2021 and currently has acted as a support region. Price is currently consolidating at this level and to me, it looks like bullish consolidation. Why do I say that? Well here’s a few reasons: (1) The RSI is gaining momentum in a range. (2) Price failed to break down to a new low when the price recently hit $37. (3) The market itself is getting ready to make a bigger move to the upside while $ILV is at a support from 2021. All in all, the price action of this chart is no super* bullish at this moment but holding the support will be crucial.
Figure F
Conclusion
Illuvium's trajectory, both in conception and execution, paints a vivid picture of a future where blockchain gaming isn't just a niche, but a mainstream behemoth. With its foundation firmly rooted in the Ethereum blockchain and a game design that promises both depth and engagement, Illuvium is poised to pioneer the next generation of p2e gaming. The Warwick brothers, by merging a passion for gaming with deep knowledge of the decentralized financial ecosystem, have masterfully capitalized on the burgeoning trend of younger demographics dedicating significant time to digital entertainment. Moreover, the strategic partnerships, such as the one with GameStop, further position Illuvium at the forefront of the blockchain-gaming nexus. The tokenomics of $ILV and its promising use cases suggest a robust and sustainable economy within the game. Couple this with the broader industry's movement, and the observable sentiment around $ILV's technical metrics, there's ample reason to be bullish about Illuvium. As the landscape of both gaming and blockchain continues to evolve, Illuvium seems ready not just to adapt, but to lead. While I am bullish on Illuvium, that doesn’t mean it’s correlated to the value of $ILV.