MVI Update Sept 2021

Summary

It’s been a little while since the last update but a lot has changed in the meantime. Let’s dive into some of the more interesting bits before talking about where we go next.

Meeting our (unofficial) targets

In mid-May we posted some figures that we wanted to hit over the following 3 months. This post is coming out a little later than we’d like (by about 2-3 weeks), but here is where we got to by the end of last month:

  • Target: $12m market cap. Current: $22.6m or 188% of target.
  • Target: 150k supply units. Current: 166k or 111% of target.

Driven by the narrative around digital ownership through NFTs and the excitement around NFT gaming, MVI easily surpassed both of these targets. Not a perfect comparison but after 4.5 months DPI had 270,000 units, so we consider it decent to have over 50% of that number.

We are also starting to see MVI become the default recommendation from crypto influencers to those looking for Metaverse exposure. If MVI cements itself as the go-to product as we saw with DPI, we can’t ask for much more than that. We have the growth team and wider community to thank for this, spreading the word with relevant and professional content has no doubt helped drive the message home.

There were also some more qualitative targets we set for ourselves in that mid-May post.

  • Run a partnership with two underlying projects that give MVI utility: 0/2

It wasn’t for lack of trying, but we wanted to land the right partnerships and give genuine utility to MVI. We had something in the pipeline for Sandbox (thanks for the hard work Caf and Static) but in the end it didn’t seem worth the squeeze. There are two other options we have under consideration and look forward to sharing updates on them as they progress.

  • Carry out our first metagovernance vote: N/A

Another miss here, but given the other priorities in the Coop during July and August we’re not going to beat ourselves up over it.

  • Grow MetaPortal subs to >500: 82%

This one hurts a little more. Growth is in the right direction and we’ve seen a lot of traction on Twitter, but long form articles can be an acquired taste. We have plans for shorter form content and a stellar lineup of guests for the podcast during September, so feeling pretty confident that another 4 weeks should have this in the bag.

Dune Analytics

June was the stickiest month in terms of MVI holders, but it’s great to see every month since the launch, conviction seems to be growing. This can potentially be explained by the increased understanding around the space as information spreads and the thesis becomes less speculative. More likely though is the fact June holders purchased the market bottom and are sitting on substantial gains. Of course this could all change dramatically with another sell-off!

As you might imagine, August was a massive month for holder growth in all size brackets. It is particularly interesting to note that while addresses holding <10 MVI make up 53% of all holders, this only equates to 3.8% of AUM. The lion’s share still comes from 0.8% of holders that hold 30.4% of AUM (>750 units). In real numbers that’s 25 addresses with $6.3m between them. At the same time, the second largest cohort are those holding between 50 and 249 units (~$5k to ~$25k) as they make up 28.4% of the AUM, ahead of those holding between 250 and 749 units.

Daily revenue is another chart moving up and to the right, with the 7-day average now tipping over $550/day. In August alone, MVI generated 92% of its cumulative revenue up to that point. When combined with the retention graph above it’s a positive trend that should see consistent income to the Coop.

Looking forward

Change of management

As outlined in our post on the forum we are looking to change the way MVI is managed, moving from the community methodologist setup to a negotiated fee split instead. We felt the time was right for a number of reasons, and will be looking to double down on making MVI a success, as well as exploring all the opportunities the NFT and Metaverse space provides.

This will somewhat affect the way we approach growth of the product. As we see with DPI and other products, some of the responsibilities for growth will now fall to the Coop. On our side, we plan to re-invest most of the income from fee + bounty towards initiatives that will help us grow MVI. We are also considering new ideas that are tangential to MVI but should bring benefits to the product in a roundabout way. In all of these initiatives, we look forward to working with the Coop to maximise impact and potential of MVI.

So what do we have planned?

Without giving too much away we would be looking to grow and leverage the MetaPortal brand and, as Thomas likes to say, building our own personal monopoly around the Metaverse.

On the MVI side of things we will continue to iterate the methodology where necessary to ensure the best experience for MVI holders. This means staying true to the inclusion criteria and taking action to exclude anything that threatens the integrity of the index. We have already seen this with the removal of RFOX and MEME in July and August on the basis of low liquidity. We will continue to work closely with Mason, and the team at Coingecko to make sure we stay on top of the space as it develops, so that MVI best reflects any evolution.

The Metaverse space has grown rapidly this year. For example, in the beginning of the year, the market cap requirement for inclusion was $5m and the draft index composition had 11 tokens. Today, we are considering raising the market cap inclusion criteria to $50m from current $30m. All this is to say that the space is maturing to some degree and we see opportunities begin to open up for another product.

Time for some more targets

Given how cyclical crypto is these numbers could end up looking silly. But if we look towards December (3 months) as our next milestone, conservative figures could look like:

  • DFC:$30m AUM, AG: $35m
  • DFC:250k Units, AG: 230k
  • $3m liquidity in Uniswap V3
  • Two projects providing MVI utility (important as LM should’ve ceased)
    • Therefore 0% incentivised by Coop
  • 750 MetaPortal subs
  • Youtube channel >200 subs
  • Have proposed a new index product
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Absolutely love the Metaverse Index and the work you guys do, looking forward to seeing the growth in the last 4 months of the year.

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