Wednesday, April 23, 2014

Problems I see for Arkadia Underground Deeds

Problems I see for Arkadia Underground Deeds

While I think the idea for underground is good and also the releasing of Land Area where everyone can buy small share and get profit is also great I’m starting to think that investing in those deeds is not such a good idea. I also went to Arkadia and bought some of those deeds. And don’t get me wrong they have good side too.

Let’s start briefly with the positive side of the Arkadia Underground Land Deeds:

-The ROI is good, very similar to that of the Calypso Land Deeds. Sometimes I wonder how the fuck MindArk knew what will be the payout (and player activity) before they release Ark Deeds, so they make their price exactly where the ROI will be very close to CLD ROI. (ROI is Return of Investment)

-50 PED per deed. Low price so everyone can participate.

-5% tax from Arkadia Underground is way easy to understand than what 50% of Planet Calypso revenue means. The payouts of Arkadian Underground Deeds depends only from the activity in Arkadia Underground. The payouts of Calypso deeds depends from many factors and probably even the running costs of the planet. What if Calypso team buy new office in real life for 1 000 000 dollars? Is this going to lower the payouts of the deeds?

Basically this is the good side and now let’s try to systemize the negatives:

-Overpriced Land Area. Now this part is confusing for me too. There are Land areas for 10 000 – 20 000 - 30 000 USD, but this LA cost 1 000 000 USD (1 million American dollars). Some people said the first day its way overpriced. I tough what do you care if it gives good ROI and you don’t have to do nothing or invest in fertilizers, advertizing, events and such. Pure passive income. Just like CLD. But it is still over priced which leads to the next problem.

-Oversupply. We can only guess here, but it is very possible that Arkadia Underground Deeds (200 000 deeds, 5 USD each) will never sell. There will always be more people selling then buying and you can always get one for 50 PED from the deed broker. So you can’t expect to make money buying AUD for 50 PED and selling them for more, like it was with CLD. In fact today I sow people selling for less than 50 PED which means it will be hard for you to sell your deeds for even 50 PED. But if they valued the underground for less than 1 million dollars, let’s say they released 100k deeds for 5 USD each, that means the ROI of the AUD will be double that of the CLD and drop the CLD value to half. And make CLD and AUD best investment in the world.

-Not suitable for mining. At first I read that Arkadia Underground will have indoor mining logic, some sort of mining for skilled miners, like it is on FOMA. Where big players drop thousand of PEDs each day risking it big. Big risk – big reward system. This would guarantee big payouts of the deeds for long long time. But then I went to the underground to try mining. And I sow so many mobs there it was hard to drop a probe. I watched 2 YouTube videos of PigBenis and he was mining in sea of monsters. I don’t think heavy miners will like that.

-No future development of the land. This is also my guess, but I think it is reasonable to take the underground as it is now and not to hope for big improvement in the future. They build it – they sold it for 1 mill USD – they move on to the next project. This is probably the same for CLD. They got to the point where revenue of the planet was maxed and sold the CLD for 6 million USD knowing there won’t be more upgrades to the planet. By upgrade I mean more land where more people can play and spent more money contributing to the CLD payouts.

-Not uniqueness. I don’t know if there is such word, but what I mean is that once all AUD are sold (or even before that) Ark team can just build Underground 2 or Overground 1.

-Only ROI. Arkadia Underground Deeds may have ROI similar or even better than CLD, but CLD will offer 2 more candies for their owners. Landgrab and voting rights. And less important symbolic citizenship. While they are not even implemented in the game after 5-10 years they will be important part of the game. (If the game still exists).

In conclusion my personal opinion is to buy some Arkadia Underground Deeds, but not too much. If you have PEDs to invest – better buy CLD.

Disclaimer: Every line in this post is my personal opinion and may be very wrong. Investing big amount of money in video game is a huge risk. If you lose all your money following some of the advices on this blog all AxeMurderer can offer is a hug.

1 comment:

  1. well, it's 2017 and look how wrong you were. oversupply of auds? 200 k will never sell? :)


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