Sriracha Inu: The Dog King

**A Meme Chain Capital Analysis**

ABSTRACT

What if someone says you can have it all; would you spend the next ten minutes learning more about it? If the answer is yes, then throw on your tinfoil hat and let this Finance Bro attempt to provide a cogent explanation of why this particular project on the Binance Smart Chain can make all of that happen. Keep in mind, DO YOUR OWN RESEARCH!!

To start, imagine you’re a part of this large gaming community. In this community, you’re greeted with this unbelievably adorable Shiba Inu pup. And for some reason, this pup loves the taste of the Sriracha sauce. You can relate because who doesn’t like the slightly spicy, tangy, and sweet red sauce? More importantly, can you appreciate how tens of thousands of people around the world would be delighted if this was their reality?

Honestly, there are thousands of similar visions like this one being played out every day. Some will continue to stay a dream, while others are chased after as if some cur is on its heels. The gaming industry’s golden gates are wide open. Before we go through, listen to what Mr. Storu Iwata had to say before Nintendo transitioned into the “Blue Ocean” strategy, “We do not run from risk. We run to it. We are taking the risk to move beyond the boundaries of the game industry to reach new players and current players.”

PROJECT

History

Back in January of this year, a buddy introduced this Finance Bro to an exciting project he’s been keeping an eye on called Sriracha Inu. We decided to reach out to the developers of this project. Throughout the process, the developers decided to dox themselves to us, providing incredibly transparent details of their project and community. For many crypto projects on the Binance Smart Chain, this is a major testament to their legitimacy.

Since First Date

It’s been over a couple of months now, and SRIRACHA has grown so much. Their roadmap bullets are constantly getting knocked off. The setting of a new all time high (ATH) for their market capitalization was also an exciting milestone. Three lofty accomplishments during this rise are the website redesign, release of whitepaper, and an easy-to-use reward tracking dashboard. Although there’s the unlikely possibility of hitting the 5K holders checkmark for Q1 objectives, 6/7 bullets from the roadmap is still very applause-worthy effort.

Operations

Tokenomics: Every coin has unique tokenomics that bring some type of value to their project and investors. SRIRACHA decided to start with 1 quadrillion tokens, although 50% of the supply was sent to the burn wallet on launch day. By creating a 15% transaction tax on every buy, sell, and transfer, the team was able to create a neat way to continuously burn the SRIRACHA tokens indefinitely.

To elaborate, the 15% transaction tax is broken into 8% rewards, 5% marketing, and 1% for liquidity & burn. Thanks to tens and hundreds of thousands of dollars in daily volume, SRIRACHA has managed to burn an additional +18 trillion tokens. In addition, their investors have earned more than $400 thousand worth of ETH in passive income due to the 8% rewards. For a Binance Smart Chain token, this ETH reward is a very attractive value proposition for potential investors due to the Ethereum cryptocurrency’s characteristic attributes.

Remarkably, the higher the volume, the more capital goes into the marketing and liquidity wallets. These are important things that enable a project’s continued success. No project in crypto can survive without getting their brand out there or winning potential investors over. And as projects grow, they need liquidity to potentially get listed on even bigger exchanges.

Play to Earn: This is arguably SRIRACHA’s most crucial product offering to its community. The first P2E game coming out will be called “Superpack Smash,” an homage to the many partnerships between Sriracha Inu and its partners. In that, the characters will be the different mascots of these other partner projects. As the game evolves, different maps and features will be updated. For example, the game can be Unity-based, multiplayer, or even cross-platform. One key aspect to keep in mind is the possible use of the SRIRACHA tokens in the game where some type of tokenomic can be implemented. Overall, the timbre of the game is that it will speak to all game lovers, not just crypto or SRIRACHA supporters.

NFTs: This is another product offering within SRIRACHA’s ecosystem. A tangential addition to the P2E game, multiple series of NFTs will be released for different characters with their own inimitable looks. One strong additional application of the NFTs is an in-game “skin” feature.

Other Products: Sriracha Inu is slowly, but surely carving out a whole ecosystem of its own within the crypto world. To differentiate from thousands of competitors, it’s planning on bringing forth a Sriracha sauce of its own to your local supermarket. A medium to long-term goal, the sauce is a way for SRIRACHA to connect with its community physically and build long-lasting loyalty. The ambition here is to find ways to continue to grow the brand far into the future.

ANALYSIS

The Art of War

Sun Tzu once wrote, “Let your plans be dark and impenetrable as night, and when you move, fall like a thunderbolt.” Though meant for war, this famous quote from the great strategist can be applied to most situations, even in business. This Finance Bro knows because I have assessed many businesses and how they apply different strategies to their operations. For Sriracha Inu, there’s much more to the story than meets the eyes.

The first thing I want to point out is the strategic reward system the developers of SRIRACHA implemented. Instead of paying out in its own token like most other reward projects, it decided to pay in ETH — a competitor blockchain of the Binance Smart Chain. Most do not know this, but typical Ethereum investors are currently more robust than BSC investors. Examples of this are things like the high gas fee ETH investors are accustomed to (not as price sensitive), fewer scammer projects when compared to BSC, less barrier to entry since more users hold ETH than BNB — and many more. The 8% reward of ETH is a marketing tool to attract these investors over to SRIRACHA and ultimately BSC.

The next thing any sagacious analyst should notice is the slow and steady approach the developers are exercising. This is a very deliberate maneuver since the developers still haven’t reached out to their extensive list of contacts. It’s plain to see that they’re attempting to grow the community base organically to a certain level before reaching into their well of connections. Another thing worth noting is that the team has been able to form many strong partnerships, even before their launch. Therefore, the personal connections could be used as gasoline, once the community reaches a certain target point.

Everything discussed is leading to one word — ecosystem. Apple Inc. is a great example of how powerful ecosystems can be. By having various networks and platforms of interactive hardware and devices that function seamlessly together and take advantage of each other, Apple was able to attract and keep their customers from leaving for the competitors. SRIRACHA is attempting to build the same thing. The road is a long one, but they’re making strides towards their first major milestone with Superpack Smash. This P2E game could be the equivalent of the iPhone for Apple.

Here’s the big picture. Number one is to have a strong following and brand recognition before the launch of the game. The second is to capitalize on the success of the game by converting these gamers to investors. Next is to continue to upgrade the game with new features and pair them with other SRIRACHA products (NFTs, SrirachaMask wallet, marketplace, etc.). Rounding out the cycle will be products that can tie SRIRACHA to investors physically, like the Sriracha sauce and other merchandise.

Risks

I imagine most would find this project quite appealing by this point. To comprehend the project’s potential, let’s also dissect its risks so we can build up a bulwark against unexpected surprises.

Let’s start with the most impalpable risk of them all — time. When it comes to investing, the farther out or longer it takes to materialize, the greater the risk. The reason is that you are subjecting yourself and the business to more uncertainties. If SRIRACHA takes too long to build up their community (i.e., leading to a flop for the game) or the game took longer than expected (i.e., leading to a shrinkage of the community), then the whole project might have to get on life support. This is the reason why knocking off 6/7 bullet points on the road map is such a big deal. It shows the core team’s capacity for success as time moves into the future.

The other material risk worth paying attention to is competition. Although there are many bullish trends for crypto, it still doesn’t change the fact that there are competitors in every corner of this emerging technology. According to an article by the NYT, there exist around 70K tokens and approximately 100 new tokens are created every day. This means SRIRACHA has been competing against 12K brand new projects and 58K existing ones since its launch back in mid-November, 2021. Whether these projects are rug-pulls or not, SRIRACHA still has to compete against these tokens for potential investors.

THESIS

Trends

When it comes to projecting, this Finance Bro understands that the future is like a knuckleball. It comes at you slowly and seems predictable, but in the end, it’s too unsettled to know for sure. Therefore, I stay up-to-date with current trends and am always adapting according to the latest data. Two current trends to keep an eye out for are free-to-play P2E games and NFTs.

For the P2E game industry, 2021 was a very explosive year. Multiple projects got listed while the industry’s pride and joy, Axie Infinity, surpassed the $10 billion market capitalization. The momentum for P2E will most likely continue in 2022, making the release of Superpack Smash in Q3 or Q4 such a crucial moment.

Then there’s the NFT trend. Currently valued at approximately $40 billion (based on the Financial Times), this technology’s potential lies in its ability to verify if something is the genuine article or an original work of art. The previous year saw an increase in NFT utilities and adoption from many prominent brands and celebrities. The tokenization of things trend is only getting started and this Finance Bro doesn’t see it stopping any time soon.

Actions

Working for Meme Chain Capital has given this Finance Bro many insights into different crypto projects. The most practical of them all is the ability to answer the question, “Should we invest or not?” Please understand that not every investor’s situation and circumstances are the same as ours, so DO NOT TAKE THIS AS FINANCIAL ADVICE!!

At Meme Chain Capital, we believe in the capacity for success of the developers of Sriracha Inu. Our team agrees that their expertise, connections, and vision will allow SRIRACHA to continue to provide some of the highest returns on investment (ROI) in our portfolio indefinitely. Understand that we do not bother trying to time the market for our long-term investments. Rather, we use fundamental investment techniques like dollar cost averaging (DCA) to get into a position over time.

That’s all for our weekly analysis paper. All this SRIRACHA talk is making me hungry for some spicy Fruity Pebbles. A must-try according to a Sriracha sauce lover.