The first time I heard of SonicSVM was when I saw an interview conducted by Ni Da with CEO Chris Zhu. It was last November. My first impression was that the CEO was very young but had a rich resume.
—— This interview is summarized based on my memory:
1️⃣ SonicSVM is a game L2 based on Solana
2️⃣ Q4 plans to launch the mainnet TGE and be listed on Tier1
3️⃣ Pay attention to the Chinese-speaking community and provide incentives
4️⃣ The CEO is a Chinese Canadian born in Shanghai, and his name is CZ 🤣
When we invest in a project, we will first look at its CEO and its core team.
SonicSVM's CEO and co-founder: Chris Zhu, once worked at Bilibili and ByteDance as a product manager. He was born in a big company and his ability to control products has been recognized to a certain extent.
The last paragraph of ByteDance’s experience is particularly consistent with SonicSVM’s development strategy. The core of Sonic’s growth strategy is to attract traffic from overseas Tiktok, and the data is very impressive:
—— Data as of December:
The test network has activated more than 8.7 million addresses, 94% of which are in North America. More than 2 million addresses have been activated through TikTok, and the monthly active users of the four TikTok mini-games used for traffic generation have also reached more than 2 million.
We can see that perhaps thanks to the CEO who was born in ByteDance and understood the product characteristics of TikTok, the strategy of attracting traffic to Douyin was implemented very well. By screening and retaining users through mini-games and then directing users to the Sonic ecosystem, there were almost no landmines.
🧵 (1/4) Tiktok’s natural advantage in traffic
It is not unprecedented for Web3 projects to draw traffic from Web2 social products. UNLINK has previously tried to launch a mini-program on LINE to draw traffic, and the TON ecological project has drawn traffic through Telegram.
However, unlike LINE and Telegram, and even Line which has "region-locked" and private traffic, Tiktok's traffic is targeted at all overseas users. There is no barrier between users, so it is easy to generate fission, and it is content-driven, so user stickiness is also stronger.
1️⃣ Telegram has 950 million users, TikTok has 1.35 billion users
2️⃣ Video users have higher stickiness and conversion rate than text.
3️⃣ TikTok users have completed a certain degree of KYC, while Telegram is non-KYC, and the authenticity of TikTok users is guaranteed
4️⃣ TikTok is public domain traffic, which is easier to generate connections and fission between users than Telegram's private domain traffic.
5️⃣ TikTok has a higher percentage of users in developed countries, and its user base is better than Telegram’s huge Southeast Asian and North African user base.
—— SonicSVM has a complete set of mature processes to seamlessly introduce TikTok’s high-quality traffic into Web3.
🧵(2/4) Is Solana L2 necessary?
We know that Solana is a high-performance public chain and does not have the various historical problems of Ethereum. So is it really necessary to build L2 for Solana?
I think the underlying logic of Solana L2 is quite different from that of Ethereum. The original intention of Ethereum L2 was to solve various historical problems, while Solana L2, in my opinion, is more about the liberation and specialization of Solana's traffic and performance, unlocking more capabilities for different APP scenarios.
👉🏻 SonicSVM is positioned as the first TikTok App Layer
Providing on-chain support for more and more TikTok mini-programs/mini-games
Currently, SonicSVM has 2 million TikTok users and is the first project to introduce web3 to TikTok. Currently, SonicSVM will airdrop $SONIC to eligible TikTok users.
💡 Worth mentioning:
SonicSVM is not only a gaming L2, but also has functions similar to OP Stack, which allows developers to easily generate application chains based on SonicStack.
🧵 (3/4) SonicSVM’s financing background
The most recent round of financing was on June 18, 2024, with a valuation of $100 million, and it received $12 million in Series A funding.
—— Participating Entities:
1. Galaxy Interactive, a subsidiary of Galaxy Digital: Galaxy is one of the largest compliance service providers in the solana ecosystem
2. Bitkraft: manages $1.1 billion in assets, one of the largest gaming industry funds in Europe and the United States
3. BigBrain Holdings: Early supporter of Solana
4、Republic Crypto
5、OKX Ventures
6. Mirana Ventures
7. Lily Liu: President of Solana Foundation
🧵 (4/4) $Sonic Token Economics
Total Supply: 2,400,000,000 $SONIC
Initial circulation: 15%
30% Ecosystem and Community
7% First claim
20% Sonic HyperGrid bonus
20% Basic
8% Early Supporters
15% Investors
$SONIC will be distributed over 6 years, with the majority going to the community within the first 12-18 months from launch.
The tokens of any team or investor will not be unlocked, and the locked tokens cannot be staked. The pattern is still very large.
💡 SonicSVM Summary:
L2, a game based in the TikTok ecosystem, has a huge traffic platform and a conversion rate of 20-30% from user clicks to Wallet activation.
It also has a chain-issuing function similar to OP Stack. SonicSVM is uniquely positioned and has no other competitors.
Based on the above information, we can give a rough estimation range. It is more reasonable for $Sonic to be around 600m ~ 800m.
—— SonicSVM is expected to be launched on Bybit for the first time during TGE on January 7th. Let us wait and see.
