"SAGA——L1 Quick Start Chain Protocol" Investment Research Report-with Trading Recommendations
Binance will open SAGA token trading at 22:00 UTC+8 on April 9, 2024.
At the same time, SAGA is also the 51st project launched on Binance's new coin mining. Use BNB and FDUSD to mine Saga (SAGA)!
SAGA Launchpool has been successfully opened at 08:00 (UTC+8) on April 5, 2024.
It is important to note that Binance will be the first launch platform for SAGA and qualifies for the “seed” label.
Financing background:
In May 2022, SAGA completed a $6.5 million seed round of financing with a valuation of $130 million.
This round of financing was led by Samsung NEXT, with participation from Polygon Studios, Hypersphere Ventures, HashKey Capita and many other institutions
In November 2023, SAGA completed a $5 million expansion seed round at an undisclosed valuation.
This round of financing was led by Placeholder, and participants included previous investors and new investors such as Multicoin Capital.
In March 2024, SAGA completed an $8.5 million Series A financing round at a valuation of $212.5 million.
This round of financing was led by Paradigm, and participants included previous investors and new investors such as Coinbase Ventures and Haun Ventures.
Team Background:
Rebecca Liao:
Women
Co-founder and CEO, Saga.xyz
Co-founder, Advisor and Former COO of Skuchain
Sommelier Protocol Advisor
Fellow, Stanford University Program on Law, Science and Technology
Jin Kwon：
Male
Co-founder and Chief Strategy Officer (CSO) at Saga.xyz
Co-founder and Chief Operating Officer (COO) of Gemini Trust
Jacob McDorman：
male
Co-founder and CTO, Saga.xyz
Bogdan Alexandrescu：
male
Unknown resume
Token Economy:
SAGA Features
SAGA token is the native utility token of the Saga protocol.
1. Pay Chainlet Fees
2. Participate in governance
3. Incentivize ecosystem development
4. Staking
5. Cross-chain transactions
6. Future Applications
SAGA Token Economy
Saga’s token economics divides the token flow into two parts: the front end and the back end.
Frontend: Token flow between users and developers
Frontend: Token flow between users and developers
Total Token Supply: 1,000,000,000 SAGA
TGE: 90,000,000 (9.00% of total tokens)
Binance Launchpool Amount: 45,000,000 (4.50% of total tokens)
Ecosystem and Development Fund: 30.00% of total tokens
Airdrop: 15.50% of total tokens
Foundation Reserve: 10.00% of total tokens
Core Contributors: 20.00% of the total tokens
Investors: 20.00% of total tokens
The total amount of tokens unlocked after the token is launched:
Initial circulation + Binance Launchpool (4.5%) + Ecological and Development Committee (0.004%) + Shorts (1.5%) + Fund Reserves (0.002%)
Total: 150,060,000 SAGA
Core technology and comparison:
Saga is a Layer 1 that allows developers to develop parallel, interoperable, specialized chains called “Chainlets” for different virtual machines, providing unlimited scalability for applications.
To put it bluntly, it is to launch a chain with one click, and the project party’s own positioning is the sector of games and entertainment.
As for the same type of L1, the comparable projects that have been implemented are
Near Protocol 、Avalanche 、Polygon、 Cosmos 、Polkadot，
These have all made excellent cases in their respective fields in terms of architecture, scalability, security and interoperability.
SAGA also has these characteristics. The modular structure provides the convenience of one-click chain issuance. The sharding method makes the scalability more stable and efficient, and also more secure. It is also verified for security through Tendermint, the same type as the algorithmic stable currency. Finally, CosmosSDK is used to improve its interoperability.
The overall structure includes games, finance, and social media. SAGA has clearly defined the game track for itself at the current stage, and its intention is profound. As for the reason, I will talk about it later.
We compared similar blockchain projects and found that SAGA has the same technical foundation as Near, but is different from traditional POL and Polkadot. The main purpose of Saga is different from the DOT architecture. One is modularization, which is also the current trend, and the other is the traditional relay chain. At the same time, in terms of scalability, sharding is safer and more efficient than cross-chain.
Price Prediction and Future Expectations:
In this section, we will use SAGA's financing situation and the market valuation at the time, and refer to NEAR, which has the highest similarity with the same type.
After the third round of A financing, SAGA's latest valuation is 212.5 million US dollars. The total issued tokens are 1,000,000,000, with an initial circulation of 90 million. That is to say, according to the valuation, the price of each token is about 2.36 US dollars.
Referring to NEAR's financing situation and token launch situation at the time as a reference, NEAR's market value was US$2,457,709,030 when it was first launched in 2020. Based on NEAR's project situation and investment background, it is similar to SAGA. We refer to NEAR's market value when it was launched for comparison.
NEAR will initially circulate 100 million tokens, with a market value of between 118 million and 169 million. The initial token price range is between 1.18 and 1.69 USD.
The initial circulation of SAGA tokens is 90 million, based on which the price of SAGA tokens is estimated to be 1.3-1.87 USD per token.
Based on the launch environment, financing environment, economic environment and blockchain development status of the two projects, the launch price of SAGA tokens may be higher than the reference price again.
At the same time, according to the project financing situation, the expected price of SAGA tokens may increase further. At the same time, according to the initial unlocking of tokens, SAGA will soon exceed 300 million in market value.
PS: The price reference is only an expectation of the market and cannot be used as an investment reference. Because there are many irresistible factors, please understand objectively.
Personal summary:
My personal opinion on SAGA is that it has great ambitions and is careful in its choices, which shows that the project owners are prepared for the current and future expectations of the project.
The ambition is not small because SAGA chose the L1 field. At the same time, according to the content of the white paper, there are many future possibilities that it wants to cover and expand. The future expectations are high enough, but whether it can actually be fully implemented depends on technology and subsequent development.
Moreover, based on the current technological situation, the more you want to do and the more blockchain projects you cover, the more challenges you will face in the future.
The main core of SAGA is to launch a chain with one click, and use sharding technology to ensure that the project retains most of the security of L1 while providing fast response and scalability. The auction mode is also enabled, which is more or less affected by human factors.
According to SAGA's current plan, if the number of projects and users increases in the short term, it may put pressure on data transmission and verification. Although the data will be packaged and sent to a third party, it will also test the data storage capacity. In order to ensure safety, the speed must be reduced. In order to increase the speed, data packet loss must be considered. And once there is too much data, there is also the risk of downtime.
Therefore, the pressure and technological updates that SAGA will face in the future may be more severe.
However, SAGA gave up its own multi-dimensional selectivity and only anchored entertainment and games. It may have taken into account the problems that current technology will face in the future. A single game entertainment track may make subsequent interoperability and scalability relatively simple, and not developing the financial field for the time being will also reduce the data pressure on the chain itself in the short term.
Simply put, it means that the family knows their own business, drawing big pictures and doing specialized things may be more conducive to the smooth operation and development of the project at present and in the future. Choosing the game track, the game itself did not fully exert its strength in the last round of bull market, so there is still room for explosion in this round of bull market, and the large number of game projects launched and the fast preparation may make SAGA active faster. In addition, the data foundation of many game tracks is similar, which reduces various risks in data transmission and enhances the responsiveness of data processing.
This is much better than many similar projects and reduces the possibility of technical risks.
As for the development team and financing situation, with the current global economic situation, the difficulty of financing itself has increased. The project parties themselves all come from venture capital backgrounds and may be good at financing, but the technical aspects may have to go through the test of the market, and they need to pay more attention to technical maintenance and subsequent development work.
Trading suggestions:
Although there are only 90 million SAGAs in circulation initially, there will still be a lot of Binance mining tokens and short tokens released and unlocked later. Therefore, it is inevitable that a wave of bubble digestion will occur when the new coins are launched, so spot positions need to be built with caution.
After the token is listed on Binance, whether you can grab low-priced chips is the key, but this may be difficult for many people to do, so you can wait for the cool-down period after the token price fluctuates. After the token opens high and then falls back and stabilizes, consider a position to open a position after a 20%-30% correction.
Of course, nothing is absolute. The specific pricing and when to build a position depend on the project's own operational capabilities and should be judged based on the actual situation after the opening.
Regarding SAGA, my personal opinion is that the project has considerable value for speculation. As mentioned above, the project parties have experience in venture capital. In the process of operating the project, they may be more adept at creating market hotspots and hyping up market heat to drive the market value of tokens.
However, as retail traders, we need to pay attention to whether the project will have technical problems. Good narrative and operation need to be coordinated with temporarily stable technology. If major technical problems arise during the operation of the project, it may be detrimental to the subsequent narrative plan and operation plan.
For SAGA, I will continue to follow up and update after the token is launched.
Finally, thank you all for following Uncle Cat and thank you for your continued support.
