What Is Gamer Arena and Is Its GAU Token a Good Investment

Published: 27th March, 2024 | Last Updated: 2nd April, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this post, I will explain what Gamer Arena is and whether its GAU token is worth investing in. To do this I will evaluate Gamer arena across four dimensions: Team, Product, Tokenomics, and Momentum. 

Let’s take a close look

What is Gamer Arena

Gamer Arena is a platform that allows you to compete against other players for money while playing your favorite game. For example, say your favorite game is Fortnite. 

In case you are not a gamer, Fortnite is a massively popular game that has been around for years. It’s not a game developed by Gamer Arena. 

However, using Gamer Arena you can join a Fortnite tournament. To participate in the tournament you decide what amount of GAU tokens you want to pay as an entry fee. This can be 0 or it can be up to 1000 GAU tokens. The platform will put you up against opposing players with a similar skill set and the same entry fee. The winner keeps 90% of the reward while Gamer Arena keeps 10%. 

This unique play to earn model resembles esports arenas where players compete for a trophy. Gamer Arena has partnered up with multiple gaming providers and organized more than 500 tournaments with more than 100,000 participants. 

What games can I play on Gamer Arena? 

At the time of writing, 30 games are available on the Gamer Arena platform. You can participate in these in a tournament or one on one against other players.

Below is a sample of their popular games:

Competitive Mobile Games

  • Clash Royale
  • Brawl Stars
  • FIFA Mobile

PC Games

  • PUBG
  • Counter Strike:GO
  • CoD Warzone
  • Apex Legends 
  • FIFA Online
  • Hearthstone,
  • NBA 2k 22

Console Games

  • FIFA 23
  • CoD Warzone
  • Overwatch 2
  • Fortnite
  • NBA 2K22

For a comprehensive list of their third-party games see here.

Gamer Arena has also developed its own games on a separate platform called GAU Arena which is available as a mobile app on Android and iOS.

Self-developed games include:

  • Jump shot
  • Aero Dash is a game where you can practice your acrobatic skills
  • Flip Ride
  • Brick Smasher, a fast-paced reflex game
  • Space Fighter where the strongest fighter with the best score wins
  • Hoop Shot a basketball game
  • Arena jumper
  • Circle Rush, a reflex reactor game
  • Dash Valley is a fast-paced game where you have to dodge balls at high speed

Plus more new games will be launched shortly. 

Confusingly there is a third-platform called Gaulaxy Labs that is in the making. Presumably, this will host Web3 games but for the moment it has introduced a staking feature with an 18% Yield. 

How does Gamer Arena work? 

Most games offer developers access to an API. Gamer Arena can then tell who the winner is and reward them. Of course, this process is automated through the use of smart contracts and blockchain technology as the GAU ecosystem lives on the Avalanche C-Chain. 

In cases where there is no API then the process is more manual and involves players sending a screenshot of their score points which Gamer Arena then processes to announce a winner. 

Is playing on Gamer Arena gambling?

You might think that putting up real money in the form of GAU tokens to play a game is gambling. However, because results depend on your gaming skills and not chance it is not gambling. 

Scope of GAU token

The GAU token is the main currency on the Gaming Arena platform. The token supply is fixed at 500 million with just over half of that amount in circulation. Technically you don’t have to use GAU tokens to participate in duels and tournaments but what’s the fun in that? Players who want to compete for a monetary pot of honey need to buy and pay entry fees in GAU tokens. The platform allows players of all ages to participate.

You can purchase GA coins with a debit or credit card directly on their platform or on an exchange such as Trader Joe, AscendEx, and MEXC. 

GAU token allocation

  • Team: 7.5%
  • Investors: 10%
  • Future sales: 10%
  • Private sale: 10%
  • Development and security: 15%
  • Loyalty rewards: 7.5%
  • Airdrop: 5%
  • Platform rewards: 15%
  • Marketing: 20%

Is GAU token a good investment?

I see various Twitter posts about this coin’s potential to grow 50X from here. Granted the market cap is only $40Mn at the time of writing. The question is does GAU have the potential to grow more from here? 

To answer this I scored Gamer Arena and its GAU token across four dimensions: 

  1. Team: 55%
  2. Product: 80%
  3. Tokenomics: 95%
  4. Momentum: 70%

Team   

1. Are the founders legit with related experience?     ❌

The team is young; as in graduated-from-uni-3-years-ago young. This means they don’t have loads of experience under their belts though they do have some and it is all gaming-related. Having said that they do also have some grey hair advisors and investors on the team. The team is based out of Istanbul, Turkey.

2. Have they built Web 3 projects before?    ❌    

No

3. Did they do an exit?    ❌    

No

4. Can you find legit profiles on LinkedIn?    ✔️    

Yes

5. Did they raise funds?    ✔️    

They raised a seed investment at a $6Mn valuation from DOMiNO Ventures in March 2024. 

6. How long have they been around?    ✔️    

Since 2019

7. Public appearances through Interviews/podcasts    ✔️    

Not really. I was able to find an interview with their head of blockchain but that’s about it 

Overall team score        55%

Product        

1. Is it easy to understand what they do?     ✔️    

Yes

2. What is it?

A platform that coordinates head-to-head PvP battles and tournaments

3. Is there a demand for their product?     ✔️

Gamers like to compete so I would imagine even more so if they can receive a monetary reward.

4. Is there a use case?    ✔️

Yes make gaming more interesting with a monetary reward

5. How big is the market?    ✔️

The global online gaming market is $86Bn

6. Is it being used?     ✔️

According to Similar Web Gamerarena.com has about 20K monthly visits and their apps have more than 10K downloads on the Google Play store

7. Has the product launched?    ✔️

Yes, three platforms have launched. 

8. Does it have a strategic moat?     ❌    

No

9. Is it fo​cused?    ❌

I have some concerns here. Their Gaulaxy Labs site talks about artificial intelligence products, AI image generation, and staking. It’s a little all over the place at the moment and seems to distract from the main product which is the coordination of tournaments and duels

10. Is the website easy to understand for non-crypto visitors?    ❌

Could be improved. It’s not immediately clear what the benefit of using Gamer Arena is. 

11. Do they have a proof of concept?    ✔️   

Yes the product is live and includes many in-house games

12. Is the UX good?     ❌

I tried the product out and was able to complete all steps except when it came to paying the entry fee to join a duel. I was unable to figure out how to add GAU tokens using a wallet. There was only the bank card option which I did not want to use

13. Is it already being done?     –

It’s a good idea. I was unable to find others doing exactly the same thing

14. At what stage is the product?     –    

Launched

15. How does it create value?     –    

Make games more thrilling by making players win a monetary reward for skills-based games

16. How does the project generate revenue?    –    

Keeps 10% of the amount that players are competing for.

Overall product score        80%

Tokenomics        

1. Why is the coin valuable?    ✔️

The token’s utility is that you need GAU to pay an entrance fee if you want to play for a monetary reward.

2. Did they do a pre-mine?    –    

Yes, tokens were allocated to investors and the team.

3. Is supply fixed or inflationary?    –    

Fixed

4. Was it a fair launch    –    

No, they did a premine

5. Circulating/total supply    ❌    

50%

6. Token release schedule    ✔️    

The token release is gradual on a monthly basis over 2-8 years depending on allocations

7. Are there incentives to reduce or lock supply?    ✔️    

It looks like they are about to promote staking via Gaulaxy.com

8. How many tokens    ✔️    

Only GAU

9. How much upside is left: market cap vs industry size    ✔️    

$46Mn vs many Bns

10. Is it listed on major exchanges    –    

No, it is not listed on tier 1 exchanges yet

Overall tokenomics score        95%

Momentum

1. Is it trending on social media?    ❌    

They have 30K followers on Twitter and 20K members on their discord. However, I don’t see many social media mentions of the project on social media as measured by Lunar Crush

2. Is the market cap low compared to similar projects?    ✔️    

Yes the market cap of $46Mn is low for a gaming project

3. What is the crypto market like?     ✔️    

Bull run

4. What is the sentiment for the sector this crypto focuses on    ✔️    

Gaming is a hot sector right now

Overall momentum score        70%

Summary

My main concern with Gamer Arena is that the team is relatively inexperienced and they seem to be going off track from their core offerings by trying to add AI to the narrative. On the other hand, they have a sizeable volume of users for a new project, their innovative approach is simple and addresses some of the pain points of Web 2 gaming.

Also, the tokenomics are looking pretty good.

Given that the market cap is low I think this token will grow in the coming bull run. I won’t be taking a position but will be keeping a close eye on this one to see what their new artificial intelligence-based products are about.

Please note that none of this is financial advice.

References

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Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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