WP bits #4. Risks and how to deal with them
Welcome to WP bits, RAWG’s regular series of posts where we chop our whitepaper, presentations, other documents and overall strategy in small digestible pieces. The presale of RAWG tokens is already open and we are halfway through to the hardcap of $10M, so this is high time we started explaining RAWG tokens to private purchasers.
While RAWG presents itself in a neat beautiful package for all parties involved, there are risks to be cautious of. And we want to be as open about them as possible. RAWG consulted with external experts to see what weaknesses we might have and how we can overcome them.
One of the first risks is low users’ interest in our product. While we are sure that our product, which you can already test, is needed, we plan to have 40% of raised funds spent on attracting new audience. Also, one of the inherent services that RAWG provides is rewarding gamers for playing and getting achievements which we think will ensure that players will be coming back.
One of the facts that proves our point in necessity of RAWG for gamers is that during the test period the first 2,500 users imported more than 470,000 games into RAWG. And in 2 weeks they independently reviewed or marked over 50,000 games in the database, 20 games on average per user.
Low attraction for advertisers
Advertising is the main income for RAWG, so one of the risks that we want to avoid is no interest from advertisers in using our product. What we are trying to achieve and offer for them is targeted advertising to the preferred audience of gamers.
As you might know, rawgers share with us their data to create the recommendation system tailored for every user. The same data will be used for targeted ads. Gamers’ sociodemographic parameters, interests and platform interaction are all considered to create a comprehensive base for our advertisers. Publishers will be able to display ads to their devoted fanbase while indie developers will be able to show their product to the niche audience of the market. RAWG is creating a system where any advertiser can fully optimize their marketing spend by targeting their intended audience.
Another risk is third-party adblocking that are so popular around the web. While the ads can be done unprofessionally and get in the way, RAWG gives preference to advertisers that are loved on the gaming market. They should be of high relevance to our users to not get adblocked. RAWG ads will be also provided on the own technical solutions that efficiently deals with third-party adblocking.
Important to note, that advertisers only pays for views that were not blocked and advertisements themselves will drive the value of the token that RAWG users get for achievements which should properly incentivise the gamers.
RAWG token depreciation
When the crowdsale ends, some users may be inclined to sell all of the tokens thus creating a dump which can plummet RAWG token price. But we believe that the inherent value of the token for advertisers and gamers will keep the price afloat and make it rise. The tokenomics system is set up to face such challenges by providing advertisers, gamers and partners a platform to fully utilize the token.
Market-related, regulatory and other risks
While we refer to ourselves as a global company, RAWG has to abide by the rules set by the government and financial institutions. There is a risk that public authorities in some countries may consider that RAWG token should be regulated. This could impede or limit the ability of token holders to hold, use and dispose of the RAWG tokens.
Plus, some market-related risks must be assessed when exchanging RAWG tokens: the market liquidity, market size/cap and listings on crypto exchanges, the potential collusion of exchange operators/market manipulation and challenges regarding market surveillance, etc. RAWG cannot influence the market to suit users’ needs.