Source: 1confirmation; Translated by: 0xjs@Golden Finance

Recently, MeebCo, the company behind the NFT project Meebits, announced that it had completed a new round of financing of US$3 million, all invested by 1confirmation.

1confirmation also released an investment memorandum on why he participated in MeebCo on X, as follows:

Abstract:

Meebits is an NFT (non-fungible token) series created by Matt Hall and John Watkinson of Lava Labs in May 2021. Lava Labs is also the team that created the CryptoPunks series in June 2017 and the Autoglyphs series in April 2019.

CryptoPunks and Autoglyphs are now widely regarded as iconic series in NFT and Generative Arts, respectively, with flooring prices of over $100,000. Meebits is a more affordable collection from Lava Labs, with flooring currently priced at around $1,400. There are 20,000 NFTs, 10,000 of which were airdropped to CryptoPunks holders, and another 10,000 were minted at 2.5ETH. Based on floor price calculations, the current full dilution valuation (FDV) is $28 million. We believe that based on its artistic creativity and the real-life influence unlocked by the community and new companies developing IPs and bringing value to the series, the Meebits series is seriously underestimated with a clear appreciation potential of 20 times.

We will invest $3 million in the newly formed Meebit Company (MeebCo), which will be led by Founder and CEO Sergio Silva. The company will acquire Meebits intellectual property and NFT series from Yuga Labs and focus on developing these IPs. We are the only investor in the new organization, whose board will be composed of 1confirmation, Sergio, Yuga Labs, and future employees. Mike Tomaino will join the new entity's board of directors.

MeebCo's key assumptions:

1. Unique artwork and community: We believe that in the long run, the core value drivers of NFT are artistic creativity and community strength. Meebits has a unique combination that will create significant long-term value if we can expand our community and bring real-life impact to IP.

2. Perfect Leader: Sergio Silva is a passionate member of the Meebits community, heWill turn this passion into effective leadership and become the perfect leader in the new era of Meebits.

3. Create realistic influence and branding: The team will use these works of art to have meaningful impact in the real world and create one of the iconic consumer brands for the next decade. The IP has unlimited opportunities, and the three main directions are games, content and toys at present. The 3D nature of the character also makes it very suitable for the fields of augmented reality (AR) and virtual reality (VR), where Meebits also have potential for development as these technologies advance.

Team (Rating 9/10):

Founder and CEO Sergio Silva is aggressive and passionate about Meebits. He worked at Fireblocks and founded Popset. His main skill is to promote Meebits and build partnerships to expand the ecosystem. He is full of positive energy and outstanding in ability. He will be responsible for forming teams and developing products.

Product (Rating 7/10):

The current products are works of art, and there are no other products besides that. The company's main task is to develop products that can enhance Meebits' visibility and value. It is still unknown what it will be, and it will depend on Sergio and the team's execution capabilities. The path Meebits has taken may be similar to how the Pudgy Penguins team revives its series.

Community (Rating 9/10):

There are currently more than 6,000 holders in Meebits, and the strong community is the most critical asset we have. What’s unique about Meebits is that the series is relatively affordable (the floor price is around $1,400 at the moment), but also has high-end artistic attributes (a double-nose pig sold for over $2 million). One of the priorities of Sergio Silva will be to grow the community from 6,000 to 100,000 as quickly as possible.

Token mechanism (not applicable yet):

There are currently no homogeneous tokens, but there is a possibility of issuance in the future.

Key Risks:

1. Execution Risks: Although there is an excellent series of works and a strong community, there are currently no products that have been formed. The team must focus on the right product and launch it. It is not clear whether the final product will be a game, a content series, a toy, or a combination of these, or something completely different.

2. Time and appreciation space risk: NFT is not favored by the market at present. We believe they will return on a larger scale, and projects that are creative and have strong long-term communities (community members aren’t just for making money) will lead the way, but we can also make the judgment missteps.

Summary (Team + Product + Community + Token Mechanism, Comprehensive Rating 8.33):

For us, this investment is unique because we areCo-founded this new entity with Sergio Silva, and the company has no clear product direction yet. But we believe that the combination of creativity and community makes Meebits one of the best investment opportunities in the current NFT space, and we are excited to make this investment from the 1confirmation NFT fund. We firmly believe that soon the world’s largest consumer brands will be owned by the community and believe Meebits has the potential to be one of them.