Research: ZepetoX (ZTX)

Introduction

In the rapidly evolving landscape of blockchain innovation and metaverse integration, ZepetoX (ZTX) emerges as a pioneering venture, backed by South Korea's prominent metaverse platform, ZEPETO. This collaboration represents a significant step forward, marking Zepeto's entry into the blockchain arena. With Zepeto's impressive track record as Asia's largest "Web2" metaverse platform, boasting over 400 million users since its inception in 2018, and its current valuation exceeding $1 billion, the ZepetoX initiative has a robust foundation and immense potential.

Raising the Stakes: A $13 Million Seed Round

In a testament to its promising vision, ZepetoX recently announced a successful $13 million seed round led by its venture capital partner, Jump Crypto. This substantial injection of capital signifies not only investor confidence but also the growing recognition of ZepetoX's mission to redefine the metaverse by merging blockchain technology and immersive 3D experiences.

Genesis Home Collection: Redefining Ownership in the Metaverse

A pivotal milestone in ZepetoX's journey was the launch of the Genesis Home Collection. This collection features 4,000 meticulously designed 3D houses, each to be sold as Non-Fungible Tokens (NFTs) on the Ethereum scaling network Arbitrum. The choice to develop on Arbitrum, a Layer 2 (L2) solution on Ethereum, is a strategic decision that is crucial for achieving fast and cost-effective transactions—a fundamental requirement for a highly transactional environment such as the metaverse.

Why Arbitrum Matters:

1. Scalability: Arbitrum offers a scalable solution for the Ethereum network, effectively reducing congestion and transaction bottlenecks. This ensures a seamless and efficient user experience within the ZepetoX metaverse.

2. Cost-Efficiency: By leveraging Arbitrum's Layer 2 capabilities, ZepetoX can offer users cost-effective transactions, enabling the seamless exchange of assets and interactions within the metaverse without the burden of high gas fees.

3. User Accessibility: The choice of Arbitrum enhances the accessibility of the ZepetoX metaverse, making it more inclusive by minimizing the financial barriers associated with Ethereum's Mainnet.

ZTX: Genesis Home Collection

As we delve deeper into the ZTX ecosystem, the Genesis Home Collection takes center stage as a pivotal release. This collection marks a significant milestone in the ZTX project, serving as the initial entry point to their metaverse. Each unveiling of a Genesis Home offers a unique opportunity for users, shedding light on the project's vision for metaverse ownership.

The launch of the entire ZTX Genesis Homes Collection was a momentous occasion for the project, representing the first official release within the ZTX metaverse. Each 3D property featured in this collection is meticulously designed to captivate and engage users on an unprecedented scale.

In the upcoming sections of the research, we will delve further into these significant developments, providing a thorough analysis of key metrics and valuable insights into the Genesis Homes Collection's impact on ownership, user engagement, market dynamics, and community involvement. As ZepetoX continues to progress with the support of Zepeto and substantial backing from recent fundraising efforts, it is poised to make a lasting impact on the metaverse landscape, reshaping the understanding of ownership, engagement, and innovation within the evolving digital realm.

Exploring ZTX's Genesis Home Collection: A Snapshot of Success

In the vibrant world of NFTs and the metaverse, the ZTX Genesis Home Collection has emerged as a captivating entity, drawing attention and participation from a diverse community of enthusiasts. Let's delve into the remarkable insights that paint a vivid picture of this NFT collection.

Participation that Speaks Volumes: The Genesis Home Collection garnered significant interest right from the start. During the Pre Sale phase, an impressive 793 addresses participated, while the Public Sale attracted 723 addresses. This robust engagement signifies a strong foundation of support and interest in this unique digital asset.

A Price Evolution that Commands Attention: One of the most intriguing aspects of the Genesis Home Collection is its price evolution. It commenced with a Pre Sale Price of 0.03 ETH, providing early participants an enticing entry point. As anticipation grew, the Public Sale Price slightly increased to 0.06 ETH. Now, the Floor Price has ascended to an impressive 0.27 ETH, reflecting a substantial appreciation in value. In a mere week, the collection's prices witnessed a staggering 123% change, underscoring the dynamic and speculative nature of the NFT market.

Remarkable Sales Data Unveiled: The Genesis Home Collection has witnessed remarkable sales events, with the highest sale price reaching an impressive 0.69 ETH. However, it's not just about the highest sale; the secondary market has been bustling, with nearly 1,000 secondary sales transactions accumulating to almost 150 ETH in total volume. This robust secondary market activity reflects the enduring appeal and trading opportunities associated with these NFTs.

In summary, the ZTX Genesis Home Collection's journey from its Pre Sale and Public Sale phases to its current market dynamics is a testament to its impact within the NFT and metaverse space. It has attracted a diverse community of participants, and its substantial price growth and active secondary market activity make it a captivating entity within the digital ownership landscape. As the metaverse continues to evolve, collections like these exemplify the exciting opportunities and engagement possibilities it brings to the forefront of digital experiences.

The Impact on Arbitrum

The launch of the ZTX Genesis Home Collection has sent ripples through the Arbitrum network, reshaping its NFT landscape and establishing itself as a pioneering force within the metaverse. Since its debut, the Genesis Home Collection has not only captured the imagination of collectors but has also dominated trading activity on Arbitrum, with an impressive trading volume exceeding 250,000 USD.

To put this into perspective, the Genesis Home Collection's trading volume has outshone its closest competitors. Prohibition and LEGION, two notable collections, trail behind with less than 50,000 USD in trading volume. This stark contrast in trading activity underscores the Genesis Home Collection's significant impact and popularity within the Arbitrum ecosystem

Deciphering Traits and Rarity in Genesis Home NFTs

Understanding the traits within the Genesis Home Collection is pivotal. While these traits play a central role, it's essential to note that the utility of ZTX Genesis Homes within the metaverse remains unconfirmed. This intriguing uncertainty adds to the anticipation surrounding the collection, which comprises 4,000 NFTs, setting the stage for potential surprises in the future.

1. Background: There are 18 distinct backgrounds available, with the rarest being the enchanting Aurora Borealis background, accounting for a mere 1% of the total supply. It serves as a purely aesthetic trait.

2. Secret Room: This collection offers 17 intriguing Secret Rooms, with the Luxury Secret Room emerging as the rarest, comprising only 1% of the total supply. The full functionality of these rooms will be unveiled post-Beta-Launch.

3. Ground: With 15 diverse Grounds to choose from, the rarest among them is the elusive Space Ground, representing a mere 0.4% of the total supply. Remarkably, this trait holds the distinction of being the scarcest feature in the entire collection. It is primarily an aesthetic attribute.

4. Special: These enigmatic statues hold a mystery yet to be unraveled within the metaverse. There are 11 unique Specials, with both Bull and Bear statues claiming rarity, each accounting for only 1% of the total supply.

5. Door: Offering 10 different Doors, the Diamond Door stands out as the rarest, comprising only 2% of the total supply. It is a pure aesthetic element.

6. District: The Genesis Home can be located within one of four distinct metaverse districts: Fashion, Art, Gaming, and Financial. Genesis Home holders will gain access to District Level Treasury and Governance as ZTX gameplay is built out.

7. Slots: Comprising four varied Slots, these represent additional construction spaces within the house, ranging from None to Three. Notably, the Three Slot configuration is the rarest, accounting for just 2% of the total supply.

8. Size: There are three Size options available: 1 Story, 2 Stories, and 3 Stories. The 3 Stories configuration is the rarest, encompassing only 15% of the total supply.

9. Billboard: Each Genesis Home may or may not include a billboard. Notably, only 20% of these homes feature a Billboard. Following the Beta-Launch, users will have the opportunity to display content on these billboards, potentially offering a unique advertising avenue.

In the metaverse landscape, the concept of size traditionally plays a pivotal role in asset pricing. However, in this distinctive scenario, Genesis Home holders have a multitude of avenues to explore and potentially enhance the value of their assets. These opportunities extend beyond mere size considerations to encompass unique features, additional slots, secret rooms, and even the option to rent billboards for advertising purposes.

Market data analysis reveals a current focus on Size and Slots as key drivers of value. Genesis Homes with 3 slots or 3 stories are currently evaluated at a premium compared to the floor price. Additionally, other noteworthy traits to monitor include Special, Secret Room, and Billboard, as they hold significant potential for future value appreciation.

Now, based on OpenRarity, the NFT Ranking provider used by Opensea, let's explore the rarest specimens within the collection:

1. ID 3986 - A Rarity Beyond Compare

At the pinnacle of rarity stands ID 3986, a Genesis House located in the Games District. Adorned with a warm grey background, a wood ground, and a Jade door, this NFT exudes an exquisite aesthetic. Notably, it features a billboard, boasts a two-story structure, offers three slots, and harbors a mysterious Catacomb secret room. Adding to its allure is a special Unicorn statue, making it truly one-of-a-kind. Remarkably, ID 1531 has never graced the secondary market, yet its floor price commands a staggering 49 ETH.

1. ID 2528 - An Artistic Masterpiece

ID 2528, nestled in the Arts District, is a gem of artistic expression. Its captivating blue background, Red Grass ground, and Iridescent door form a harmonious visual composition. Noteworthy is its billboard, two-story layout, three slots, and a fascinating secret room—a Movie Theater. Distinguished by a unique Ghost statue, this NFT was once part of the secondary market, where it changed hands for 0.0659 ETH on August 30, 2023. Since then, it has remained absent from listings.

1. ID 3420 - A Marvel in the Arts District

Within the Arts District resides ID 3420, an NFT distinguished by its Green Gradient background, Wood ground, and Ornate door. This captivating Genesis House also features a billboard, though it stands as a one-story structure with three slots. Its secret room takes the form of a Library, creating a quiet sanctuary within the metaverse. A charming Monkey statue further enhances its unique appeal. Surprisingly, ID 3420 has never made an appearance on the secondary market.

ZTX Token: The Backbone of ZepetoX's Digital Economy

In the evolving landscape of digital economies and metaverse ecosystems, the role of native tokens cannot be overstated. The ZepetoX project introduces its native cryptocurrency, $ZTX, as the cornerstone of its digital economy. In this chapter, we delve into the multifaceted world of $ZTX, exploring its utility, governance, distribution, and the game-changing airdrop that has stirred anticipation within the community.

A Multi-Layered Approach to World Economics

$ZTX is designed to serve as the hard currency of the broader ZTX metaverse, underpinning economic transactions and interactions within the digital realm. Beyond its role as a currency, the ZTX ecosystem will introduce various in-game assets such as gold coins and materials. These assets will find utility in crafting NFTs and gaining access to games, adding depth and diversity to the in-game experience.

Empowering Community Governance

In a bid to empower and engage the community, $ZTX will facilitate governance at multiple levels within the ZTX metaverse. The community's voice and influence will extend to decision-making processes, ensuring that the ecosystem evolves in tandem with the desires and needs of its users.

Rewards and Redistribution

One of the intriguing aspects of $ZTX lies in its economic model. A portion of the economic activity within the ZTX ecosystem, including activities on platforms like the ZTX Marketplace, will be distributed to stakeholders. This redistribution mechanism aims to reward and incentivize active participants, fostering a sense of ownership and shared prosperity within the community.

The Game-Changing Airdrop

A significant development that has captured the attention of Genesis Home NFT holders is the upcoming Token Generation Event (TGE) scheduled for Q4 2023. During this event, an unprecedented 3.5% of the total token supply will be airdropped to Genesis Home holders. What sets this airdrop apart is its unique proportionate distribution model. The more Genesis Homes you own within the Genesis Homes Collection, the larger your allocation of $ZTX will be.

Rewarding Belief and Long-Term Commitment

To acknowledge and incentivize long-term holders who have demonstrated unwavering faith in the ZepetoX project, multiple snapshots of Genesis Home NFT holders will be taken leading up to the TGE. The frequency of your NFT's inclusion in these snapshots directly correlates with the size of your $ZTX allocation for that specific home. This innovative approach not only encourages community participation but also reinforces the project's commitment to its most dedicated supporters.

It's important to note that eligibility for the airdrop requires NFT holders to retain their NFTs until the final snapshot. Additionally, it's worth mentioning that the timing of the first snapshot remains unconfirmed at this stage.

The $ZTX token is poised to play a central role in shaping the future of the ZepetoX metaverse, offering utility, governance, and rewards to its vibrant community. As the project unfolds and further details emerge, $ZTX is expected to become an integral part of the digital economy, driving innovation and engagement within the metaverse.

A Comparative Valuation of ZTX in the Web3 Metaverse Landscape

In the Web3 Metaverse arena, Zepeto faces formidable competition, primarily from Decentraland and Sandbox. To provide a concise comparison in terms of valuation, we'll perform a quick analysis:

Within the Zepeto ecosystem, there exist 4,000 ZTX Genesis Home NFTs, currently boasting a "floor price" of $450 each. This collective market capitalization places the collection at an approximate valuation of $1.8 million.

Now, let's explore the potential of ZTX tokens. If 3.5% of the Total Supply of ZTX tokens is set to be airdropped to ZTX Genesis Home holders, the fully diluted valuation (FDV) of ZTX would ascend to approximately $51 million, taking into account the existing floor price.

In a hypothetical scenario where ZepetoX attains a comparable status to its competitors:

• Decentraland commands an impressive FDV of $654 million. Accordingly, the implied value of a ZTX Genesis Home would surge to $5.7k—representing a remarkable 58-fold increase from its Public Sale price and an astounding 116-fold rise from its Pre-Sale Value.

• Sandbox, with a formidable FDV of $912 million, would elevate the implicit worth of a ZTX Genesis Home to nearly $8k. This equates to an awe-inspiring 80-fold surge from its Public Sale price and an astonishing 161-fold upswing from its Pre-Sale Value.

These calculations underscore the vast potential and substantial growth opportunities that await within the Zepeto ecosystem.

⚠️ Disclaimer: The data contains forward-looking statements that represent Nova Research estimates and projections. Please note that these statements are not affiliated with the ZTX project development team in any way.

Comparing these figures to the current market price of $450 for these NFTs, one can observe a substantial opportunity for growth and value realization. This underscores the dynamic and potentially lucrative nature of NFT investments within the evolving metaverse landscape.

As ZepetoX continues to innovate and engage its community of NFT holders, the Airdrop Leaderboard becomes a compelling avenue for NFT enthusiasts to participate in the value creation process, potentially reaping significant rewards as the ZTX token continues to evolve and the metaverse landscape evolves alongside it.

Conclusion

In the ever-evolving landscape of metaverse and blockchain integration, ZepetoX stands as a promising initiative with several key strengths and a few notable challenges.

Strengths:

1. Powerhouse Backing: ZepetoX benefits from the substantial backing of Zepeto, a colossal company with a proven track record in the metaverse segment. This support lends credibility and resources to the venture.

2. Strategic Funding: A successful $13 million funding round led by top venture capitalists injects confidence and resources into ZepetoX's vision, setting the stage for meaningful growth and development.

3. Arbitrum Integration: Leveraging Arbitrum's Layer 2 network showcases a strategic approach, enabling fast and cost-effective transactions within the metaverse—an essential feature for user engagement.

4. Genesis Home Collection Triumph: The launch of the Genesis Home Collection was met with resounding success, as evidenced by its status as the most traded collection on Arbitrum. This achievement highlights the collection's appeal and the demand for innovative NFT offerings.

5. Untapped Potential: The Genesis Home Collection's potential for growth is substantial, especially if the ZTX Token can attain valuations akin to industry leaders like Decentraland. This represents an enticing opportunity for early adopters.

Weaknesses:

1. Scaling Challenges: Building a scalable metaverse on-chain is a formidable challenge that the entire industry grapples with. Criticism regarding the low user usage relative to valuation in metaverse projects like Decentraland and Sandbox underscores the complexities of achieving widespread adoption.

In conclusion, ZepetoX's strengths, including its robust backing, strategic funding, and the successful launch of the Genesis Home Collection, position it as a formidable player in the metaverse arena. However, it must navigate the challenge of scaling and user engagement that has posed difficulties even for established projects. As the metaverse landscape continues to evolve, ZepetoX's ability to capitalize on its strengths while addressing its challenges will determine its future impact and success in reshaping the digital realm.

Still Curious?

In our quest to provide you with the most comprehensive insights into the ZTX Genesis Home Collection, we've taken an extra step to keep you informed in real-time. We're excited to introduce our On-chain dashboard tool, powered by FlipsideCrypto. This tool allows you to monitor key metrics related to the Genesis Home Collection, ensuring you stay up-to-date with the latest developments and trends.

We'd like to extend our heartfelt thanks to Flipside, OpenSea, and NFTScan for their invaluable services, which have enabled us to create this research and our interactive dashboard.

But this is just the beginning of our journey at Nova Research. ZTX is the first of many in-depth reports we plan to publish over time. As we grow, so will our offerings.

Stay tuned for updates on our website, Twitter, and Friend.Tech, where we'll be rolling out exciting features and early access privileges for Friend.Tech key holders.

Your support means the world to us, and we're committed to providing you with the insights you need to navigate the ever-evolving landscape of the metaverse.

⚠️ Disclaimer ⚠️ : Nova Research is an independent research entity and is not affiliated with Zepeto or any related organizations. This report is not a paid promotion or endorsement and is conducted solely for research and informational purposes. Nova Research maintains strict adherence to its core principles of impartiality and independence in providing insights and analysis. Readers are encouraged to conduct their own research and due diligence before making any investment decisions or engaging with the mentioned entities.