DeepMine - Early Utility Announced & Good Buys!

a year ago   •   6 min read

By Craig Fulton
Table of contents

DeepMine has announced (November 2) staking utility for early supporters holding pre-launch NFTs.

I held off buying DeepMine packs/NFTs from the secondary market after missing out on the whitelist, but this announcement has seen me pull the trigger.

I'll explain why, but first, some context on the pre-launch sale.

The Pre-Launch Sale

We recently covered DeepMine's first sale on October 27 and how you could increase your chances of securing a spot on the whitelist.

If you weren't on that whitelist, you weren't getting a pack.

There was an intended public sale for the upcoming play-to-earn game, however, with 953 on the whitelist and multiple re-purchases allowed after a short-cooldown, all the packs were snapped up before the on-looking ticketless masses could even muster a click of a buy now button.

That naturally disappoints those who were eager to get hold of a pack at pre-launch prices.

To credit the DeepMine team, they were quick to admit to the miscalculation and have vowed to take a different approach with future upcoming sales. With demand so high, it's hard finding the right balance and it's inevitable that there will be disappointed fans.

What's important is that the DeepMine team have created a project with high demand, that's no easy task. We dust ourselves down, suck up the disappointment of the whitelist and look for the inevitable value on the secondary market.

Like any comedian will tell you, it's all about timing.

Pre-Launch Utility

Before we explore the secondary market, let's take a look at the recent DeepMine announcement.

DeepMine announced (November 2) the upcoming release of the Staking Shelter, expected before the end of the year. Players will be able to stake their DeepMine NFTs (not including unboxed packs) and earn DMP (DeepMine Power) BEFORE the game starts circa Q2 2022!

The Staking Shelter Portal

DMP can be used to purchase DeepMine NFT in auctions, giving the token instant utility. DeepMine NFTs purchased with DMP can also be staked.

You can also save up your DMP to use in-game. Here's what DeepMine say you can do with DMP when the game is released:

  • Serves as a source of DAO power;
  • Serves to fund the political parties and issue Senator passports;
  • Used as voting power to influence the course of the game;
  • Used to upgrade Areas by rarity;
  • Used to craft important in-game NFTs;
  • Will be possible to stake into the portal (portal is one of the in-game entities) for rewards;
  • DMP can be generated by burning DME (DeepMine Energy in-game token) in the portal.

The early utility of earning DMP serves one important purpose. Your funds aren't completely frozen in DeepMine NFTs whilst you await the game release. They will be earning DMP for you, whilst increasing the value of your collection.

Nice!

Current Secondary Market

Launch day on the secondary is fun. You witness the entire range of emotions stamped as min/max sale prices: The FOMO, the FUD and everything in between.

I settled on not buying. Why? Because I know how impatient this market is and with zero immediate utility, it was always going to apply downward pressure on market prices (amongst other variables).

Without understanding a solid base price (always difficult to do on sale day) and with no news of immediate utility, the timing just wasn't quite right to pull the trigger (as much as I want to support this project. Read the whitepaper, huge potential!).

There were three packs available at launch, here is some information about launch prices, compared to current market prices:

Pack Type Total Packs Total NFTs Launch Price Future Equivalent Price Suggested Secondary Price Current Lowest Listing
Genesis Area Pack 500 2 $499 Min $1k Auction (for Common NFT) 8,200 WAX ($3,790.04) 8,245 WAX ($3,810.84)
Genesis Equipment Pack 2500 20(+2) $99 $300 918 WAX ($424.85) 929.12 WAX ($430)
Launch Equipment Pack 5000 20(+1) $20 $40 148 WAX ($68.39) 168 WAX ($77.63)

With the recent staking announcement, floor prices were quickly swept, giving NFT singles/packs a lift in price (with some contraction after the initial rush).

Let's take a look at each of the packs in more detail:

Area Pack/NFTs

The remaining Area NFTs (500) will be released outwith packs, with commons starting as a minimum $1k bid.

Area NFTs intend to be very powerful in-game (you become a landowner, renting out space for Mines to be built), but for many, the price may be out-of-reach. The lowest Area NFT on the market right now is 4,000 WAX ($1,856) for a common rarity (the next lowest listed is 4,888 WAX!).

You may have more luck when the auctions are released, but these will definitely command high fees (an Epic sold for 77,777 WAX!). It's just a little difficult to determine their true worth right now, without fully understanding their earning potential for such an outlay.

A common would be the lower-risk purchase, but the Area Pack does give one other incentive to close the potential impermanent loss (if you pull a common).

That's because every pack also comes with a Mine Certificate (non-transferable) that you will be able to redeem for a Mine NFT, another powerful and vital NFT to the DeepMine economy (you need this to open a Mine on an Area NFT).

We won't know the value of the Mine NFT until they hit the market, but we have a feeling their value will be fairly high (511 Mine Certificates in circulation to date).

Equipment Packs/NFTs

The Launch Equipment pack (equipment can be contracted to work in a mine) is a great entry point, though there is a 65% chance of hitting a common on each of the 20 NFT slots.

It's hard to tell what value you will get back on a common in terms of staking and eventually mining power (as is the case with all rarities), but it does give you a fairly low-risk early entry into the game.

With a future drop value of $40 for an equivalent pack, the secondary market is reasonable and better deals still pop up (literally just grabbed one for $58). You also have the chance of pulling higher rarities (uncommon 22%, Rare 10%, Epic 2% and Legendary 1%) AND a 1% chance of pulling a Mine Certificate!

The Star Pack

But the star of all the packs, in my opinion, is the Genesis Equipment Pack. What's special about this pack is that it's 3X the power of the future equivalent equipment pack. By 3X, we mean the odds of pulling higher rarities are three times as good and they won't ever be better.

Rarity % Odds Total NFTs
Legendary 15% 7500
Epic 30% 15000
Rare 30% 15000
Uncommon 15% 7500
Common 10% 5000

2 x Bonus Slots:

Rarity % Odds Total NFTs
Common Area 0.2% 5
NTT Sticker (Free Mine) 10% 250

You can see the great odds of pulling legendary (197 WAX floor - $90.76) and Epic (59.4 WAX Floor - $27.37), compared to only 10% for a common.

The current floor price was also boosted by the recent staking announcement:

Genesis Equipment Pack Sales

With the spike in value seen across the board from the staking announcement (with some contraction after the initial sweep. As I've been writing this, Legendary/Epic equipment have been creeping down, also interesting buys to pick up as singles), I can only predict an exponential increase when the Staking Shelter is released. Base prices now with no utility won't stay the same when utility launches.

Couple that with the less-powerful future equivalent pack dropping at $300, I can easily see those hitting the secondary within the $450-$500 range as a minimum.

Therefore the current Genesis Equipment pack has overpowered odds for pulling higher rarities and can be bought between $450-$500 now, pre-utility!

I was fortunate to buy a pack as soon as the announcement was made, for $350, the timing was just right. That said, I'll be looking to pick up another pack once I clear more funds.

To me, it offers excellent value as a hold and a fairly low-risk option to open with the higher-rarity odds in your favour vs any other pack. Just keep an eye on Legendary/Epic single prices to get an idea of what you would need to pull to get your value back as equipment NFTs in the short term.

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arodie.com articles are not financial or investment advice. Please do your own research.

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