DISCLAIMER: Please note that we are not giving any investor advice here - you should make your own decisions.
To summarise: Holding $ATTR tokens is not a bet on a project going well. Rather, it is a bet that eventually people will realise that we need web3 marketing based on web3 fundamentals, by which time Attrace will be - at the very least - one of the main protocols capable of facilitating this essential service.
We received a question:
Why would the $ATTR token itself become more valuable in the (near) future, and why is it interesting to have and keep $ATTR tokens for investors?
There are many variables to this question. Let’s try to answer this, assuming the market will at some stage in the future become more rational. And let’s also not spend any time comparing Attrace with the +80% ‘shitcoins’ that have nothing to do with the future of web3, and or are not based on web3 fundamentals.
To start, Attrace has always refrained from artificial pumps (via KOLs etc.), as we believe pumping is not sustainable long term. This is something that the market sometimes seems to forget: Pumping has a significant cost and is almost always going to hurt - bad - in the long run. We aim to set up a legitimate project/ecosystem for the long run, which means we aim for real value increase based on vision, true deliveries and real traction.
Also please note: The network fees of the Attrace protocol will go to $ATTR holders that staked.
Credible reasons to hold $ATTR: Diversification, the potentially gigantic future Attrace market, and the bet on becoming a marketing infrastructure.
In general, there are currently 3 main investment verticals in crypto:
- Crypto currencies and meme coins;
- NFT and NFT related (games, music, socials).
There are many thousands of projects in all these verticals.
As a referral marketing protocol for web3, Attrace does not really fit in any of those verticals as it is accommodating all of them.
This is something that has frankly surprised us over the past 3 years: In the crypto space, few ever touch on the issue of marketing.
So, investing in Attrace means investing in a new vertical to bring diversification. Today, there are no competitors to Attrace, but this will change at some point.
2. Future Attrace market
So what is the potential value of this “new vertical”?
Quick answer, we believe Attrace can hit $100 Million ARR.
- In 5 years, online marketing is estimated to be worth $750 Billion PA
- Of this, we conservatively estimate that “performance based marketing for web3”-market for Attrace could be worth $7.5 Billion a year, assuming:
- In 5 years, 10% of web2 marketing spend will have moved towards web3 (which we believe is a conservative assumption);
- of which, 10% would become performance-based (which we believe is a very conservative assumption, given that in essence any online project will always prefer performance-based marketing if possible, and with Attrace this is now for the first time possible in a fully trustless and fully transparent manner without data privacy issues).
- Attrace has first-mover advantage.
- Should Attrace be owning that market - with only 3% network fees - then ARR would be $225M for token holders that staked.
Of course, we - and eventually DAO - could decide to increase the 3% network fees (best-practice levels of web2 are between 15%-45%), or it could be that in 5 years time the web3 market is way larger than anticipated (McKinsey believes so). Either way, we believe $100M ARR is achievable in about 5 years, even if there were other competitors.
i) Revenue in 2022 for affiliate marketing in web2 is estimated to be worth anything between $17 and $20 Billion;
ii) And we should not forget that affiliate marketing does not work very well in web2, whereas in web3 it works perfectly.
3. Attrace as a marketing infrastructure play
There are many referral marketing use cases in web3, Attrace is going to accommodate them all.
Regardless of sentiment or current market state, we are convinced that Attrace is a huge use case.
Only since June 25 this year, after many years and huge investments, have we been able to solve the use case of performance based marketing for web3 (trustless, with 3rd party verification so completely based on web3 fundamentals). Going live in the biggest crypto bear market definitely hurts, but it’s not relevant if you hold to a long term vision. [Just study Warren Buffett in the 1970s/early 1980s]
Getting the Oracles live has been the biggest hurdle. So, right now it’s a matter of enabling the Oracles to facilitate referrals for more "asset types", and to "observe" more networks. As mentioned in our previous update, we identified 4 main use cases, all of which Attrace can eventually facilitate:
- Refer users for NFTs (DEXs live already) so we can facilitate NFT Marketplaces.
- Refer users to a smart contract - e.g., staking, farming and lending protocols.
- Helping DEX and NFT aggregators to get paid.
- Refer users to other blockchains/networks.
However, please note: It is going to take time and a lot of additional resources to complete all these use cases, and right now development will go slower as we had to trim down the team to get through this bear market. But once we have set up all these referrals and connected the Oracles to all main networks (ETH, BSC, Solana etc.), once that has been completed:
Attrace will be technically positioned as the performance based marketing infrastructure for web3.