An interview series spotlighting global tech influencers, disruptors, visionaries, and of course, innovators.
After reading the following statistics from this past December’s Harper’s Index— Number of slot machines on American military bases overseas: 3,141. Estimated revenue these generate annually for the Department of Defense: $100,000,000. Minimum number of active-duty U.S. soldiers who have a gambling problem: 56,000— gambling and gaming has been top of mind. The timing to interview CoinFantasy CEO & Co-Founder HarishKarthik Gunalan couldn’t have been better.
Backed by investors including Polygon, Avalanche, SL2 Capital, Signal Ventures, Pools Ventures and Magnus Capital, CoinFantasy launched in April 2021, claiming to be the world’s first decentralized investing gaming platform for crypto-stock markets based on a P2E model. Said to be a NO-LOSS game where users can earn money while playing, CoinFantasy aims to gamify the experience and nullify the risk of financial loss while giving investors the cutting edge opportunity to participate in primary markets. The project’s objective focuses on gamifying cryptostock markets through multiple categories of games, acting like a layer 2 platform on top of primary markets. Through the portfolio management fantasy gaming, anyone can build a line up of crypto/stocks and win rewards. As users level up on the platform, CoinFantasy said that they will be able to mint rare NFTs that will act as bonus points to the game. According to CoinFantasy, users holding these rare NFTs will be able to start making passive income on the platform. CoinFantasy’s metaverse financial hub consists of bitcoin club, polygon club, solana club, ethereum club, and avalanche club. As users level up, they will be able to access these hubs for exclusive events, merchandise and collectibles.
I caught up with Gunalan via email to learn more about his views including topics regarding founding CoinFantasy, entrepreneurship, gaming and ethics, flexibility and sector innovation. Our interview follows.
EKMH: What led to your founding CoinFantasy?
HarishKarthik Gunalan: In 2021, we observed global users frantically buying cryptos and stocks due to FOMO. We also realized that they were investing without understanding the financial implications of their actions. That's when the ‘Robinhood saga with Dogecoin’ happened.
In the traditional space, users were investing in Dogecoin simply because there was a buzz, without anticipating what lay ahead. That was our eureka moment for creating a platform in which users can get exposure to the primary assets without any losses.
We believe that the perfect way to solve the problem would be to take the fantasy gaming route. Today CoinFantasy is a decentralized invest-gaming platform that gamifies the financial markets through multiple categories of games. In addition, it is a unique NO-LOSS gameplay in which users earn money by playing more games on the platform.
EKMH: It’s no secret that gaming is as addictive as it is profitable. How do you think about CoinFantasy from an ethical standpoint? How do these considerations influence your business plan?
HarishKarthik Gunalan: From an ethical standpoint, the potential for gaming to be addictive is a concern that should be considered when creating and operating a gaming business. CoinFantasy views gaming in a different light. We are building a platform that will incorporate gamification into investment processes. It is viewed as a place where users are exposed to the financial markets without the risk of any financial loss. Here players get a taste of every financial market in the industry, and they will be able to experience the complete journey of the investing system for real.
But by commenting on general game statutes, businesses should be committed to self-regulation and industry standards, including implementing policies and procedures to protect players and collaborating with other stakeholders to promote responsible gaming. It's imperative to remember that the gaming industry should be responsible and considerate of the potential adverse effects of gaming, while still providing an enjoyable and entertaining experience for players.
EKMH: What essential advice do you have for future entrepreneurs?
HarishKarthik Gunalan: Start by identifying a problem that you are passionate about solving. This will help you stay motivated and focused on your goal.
Conduct thorough market research to understand the needs of your target customers and how your product or service can meet those needs.
Develop a solid business plan that outlines your goals, strategies, and projected financials. This will help you secure funding and stay on track as you grow your business.
Be prepared to take risks and learn from your mistakes. Entrepreneurship is not a linear process and there will be obstacles along the way.
Surround yourself with a strong support network of mentors, advisors, and peers. This will help you gain valuable insights and stay motivated.
Be willing to pivot or change course if something isn't working. Don't be afraid to try something new.
Lastly, be persistent and don't give up easily. Building a successful business takes time, effort, and a lot of hard work.
EKMH: Please share some lessons learned from your most incredible failure(s) and/ or most significant breakthrough(s).
HarishKarthik Gunalan: One of the biggest lessons I’ve learned from my failures is the importance of being adaptable and flexible. Many entrepreneurs start out with a specific idea or plan in mind, but when that doesn't work out, they are less likely to change course. Being able to adapt and pivot when things aren't working is crucial for success as an entrepreneur.
It is also critical to be resilient. Starting and growing a business is not easy and there will be many obstacles and setbacks along the way. Entrepreneurs who are able to bounce back and keep moving forward despite these challenges are more likely to be successful in the long run.
Team CoinFantasy
EKMH: What challenges and new innovations do you anticipate for CoinFantasy and the DeFi gaming industry in the next 2-3 years?
HarishKarthik Gunalan: When there is innovation and growth, there are challenges indeed. But the trick is to make sure the development oversteps the hurdles in between. Similarly, in the gaming industry, especially in the crypto P2E landscape, various issues happen occasionally. Since the crypto market is highly volatile and there is no certainty on regulations, sustaining in this ecosystem seems a bit demanding.
Fortunately, CoinFantasy takes these pain points and transforms them into purposes. After observing extreme market swings, for instance, we realized that people need to learn more about cryptocurrencies' past, present, and future before investing in the market. That is why CoinFantasy is disrupting the way people invest by creating a niche market called "Invest Gaming." The goal is to make investors more aware of the volatility in the financial markets while providing hands-on experience in a gamified way. In contrast to actual investments, the game does not require the players to use real money. Instead, CoinFantasy provides a space where investors can improve their trading skills without spending a penny. But we do give rewards to players and let them cash out.
EKMH: How does CoinFantasy set itself apart from other P2Es?
HarishKarthik Gunalan: Most P2E platforms are inflationary. However, CoinFantasy has inbuilt deflationary elements within the game. In addition, users are required to stake CoinFantasy tokens to play the game. Finally, we have developed a novel Tokenomics model that allows no-loss gameplay that will serve as a standard for several gaming projects. We want to holistically grow the gamification of numbers to create a butterfly effect in young minds to drag them into financial markets!
EKMH: Which cybersecurity regulation recommendations do you have that would help CoinFantasy and the industry better safeguard against fraud and hacks?
HarishKarthik Gunalan: Safety and security should be the priority for the DeFi gaming companies. Trust is the foundation of blockchain gaming. KYC and AML regulations at the fiat touchpoints could help prevent fraud and money laundering by ensuring that players are who they say they are, and that the money they are using to play the games is not from illicit sources. Smart Contract Auditing ensures that the code used in blockchain gaming platforms is secure and free of vulnerabilities that could be exploited by hackers.
EKMH: Which book and/ or podcast would you recommend to readers?
HarishKarthik Gunalan: The Alamnack of Naval Ravikant: A Guide to Wealth and Happiness by Eric Jorgenson and the Lex Fridman Podcast.
*Disclaimer: The views and opinions expressed in this series are those of the interviewees and do not necessarily reflect the views or positions of any entities they represent.
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