Why Did We Invest in Hooked Protocol? — A&T Capital

01. Financing Information

Hooked Protocol, a Web3 social network, has completed its seed round of financing. Investors include Binance Labs, Sequoia Seed Fund and A&T Capital. The fund amount is undisclosed.

It is reported that Hooked Protocol aims to build a community-driven social network with token economics design, and users can get a gamified experience. The team is currently integrating wallets and DIDs.

The Hooked Protocol will first be launched on the BNB Chain and will be expanded to other Layer 1 networks in the future.

According to news, Binance announced the 29th project on Binance Launchpad, Hooked Protocol ($HOOK). The token sale for Hooked Protocol will follow the Launchpad subscription format, with the recording of user $BNB balances starting on November 24th at 0:00 UTC.

02. Why Did We Invest in Hooked Protocol?

1 ►The Logic of Investment

1. The Application Layer May Be the Main Theme of the Next Cycle, in Which Customer Acquisition Will Be an Extremely Important Part.

Application Layer Trend: looking back on the past year and a half, application products such as Axie and Stepn have had a strong spillover effect in a short period of time, although it has not been able to gain a firm foothold in the long run; if you eye on the next crypto cycle, they have attracted a massive amount of funding with the help of the infrastructure and are getting better and better. The next cycle is expected to see more applications adopted by the mainstream crowd.

Acquiring Customers Is a Key: in a market full of new application products built on the new bottom layer of blockchain, how to acquire customers is bound to be a problem that must be considered & solved for every application.

2. The Hooked Team Has Excellent Capabilities, and There Is Lack of Customer Acquisition in the Binance Ecology. the Cooperation of the Two Parties Has a High Probability of Success.

The Hooked Team: The core team has rich experiences in 2C marketing, and also has strong product capabilities, which will enhance the Hooked;

The Weak Point of Binance Ecology: In the current Binance ecology, neither the Binance Exchange nor the BSC chain ecology has established Learn & Earn products, and such products are bound to be urgently needed for Binance in the application cycle. So, there will probably be a win-win situation for the cooperation of two parties.

2 ►Industry Status

  1. There Are More and More Attempts at the Application Layer & Product Power Is Getting Higher and Higher

Compared with the cycle in 2017, the proportion of application projects in this cycle started from 2020 has increased significantly, and there are a large number of spillover cases, e.g., NBA Top Shot, Axie, Stepn, and Yuga Labs.

Compared with CryptoKitties, Axie and Stepn have obvious innovations in the model, and there is great improvement in the product integrity and usability.

03. The Business Briefs

1. The Development Stage:

Phase 1: Single Product Platform: The goal of the first phase of Hooked is to first establish a crowdsourcing application with a built-in incentive mechanism. Through the combination of entertainment applications and incentives with gamified experience, the Hooked guides users outside the circle to enter Web3 smoothly and attract traffic for Web3 applications;

Learn & Earn Task Cases: Integrate key concepts of cryptocurrency such as staking & claiming and NFT minting into casual games. Users play games on the one hand, and answer questions to earn rewards for participating every day on the other hand;

Phase 2: X-to-Earn Aggregator: As more and more users participate and learn on the Hooked platform, other types of x-to-earn are also willing to cooperate with Hooked, which further expand Hooked’s user base, and eventually the platform will have the ability to direct these users to other web3 projects, including exchanges, Gamefi, NFTs, DAOs, and so on.

04. Comparable Companies and Valuation

About A&T Capital:

A&T Capital is an early-to-growth stage venture fund for emerging disruptive technologies. Led by three founding partners based out of Berlin, Singapore and Shanghai, we are supported by a global dynamic team of researchers and analysts. Our varied backgrounds in high tech, TradFi and venture capital help us understand what is essential for a startup to succeed. In 2021, we raised 100M pool of funds. Our portfolios include Amber Group, Cobo, Gnosis Safe, Nestcoin, Infstones, Consensys, and Commonwealth.

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A&T Capital

A&T Capital is an early to growth stage venture fund for emerging disruptive technologies mainly in web3.