A Smallcap Deep Dive on ($MICRO)GPT

Hey folks, with the bull market now in full effect, part of my attention has re-shifted towards IDOs — which from the height of last bullmarket were insanely profitable, that is if you were to get in on one of their launchpads.

In today’s article, I’m going to be doing a bit of a deep dive on one IDO in particular that has caught my attention — MicroGPT and their soon-to-be native token, $MICRO.

First of all what is MicroGPT?

In a nutshell, started back in January this year, MicroGPT is an AI-assisted extension that essentially can help developers/coders in real time facilitate and perfect the coding process. According to the extension’s description page, code can be analyzed in real-time and “offers suggestions, spots errors, and boosts quality.”

Now personally if I were a coder or even have simply owned Visual Studio (which I do not), I would have downloaded this and messed around with it myself, but seeing as I’m not and I don’t, the best I can conceptualize as to what MicroGPT does — it sounds very much like what Grammarly does writers, except now there’s a “grammar-check” for coders.

Revenue

As I mentioned before, MicroGPT was founded in January 2024, and like most tech startups, there’s still a bit of speculation on how much MicroGPT may actually be worth and whether or not it can truly turn a profit. Here’s some details on their two reported sources of revenue — Code Ninjas and SaaS:

Code Ninjas: In October, they announced an acquisition of a Code Ninjas center in Canada giving them access to a reported 80,000 students. Although at the time of their post they reported that AI was not yet being leveraged at that center, it could be lucrative seeing as how Code Ninjas as a whole generates a reported annual revenue of $559.4 million dollars a year. Doing some quick napkin math, given that there’s roughly 400 different Code Ninja locations over the world, that would make each center gross approximately $1.4 million dollars a year.

SaaS (Software as a Service): I couldn’t find specific pricing plans on how much it costs to use their extension, but there is a free tier that you can check out, and paid plans which I assume offers even more and more features. Yet considering that there’s only 649 different installations since time of writing, I can’t imagine that there’s been a whole lot of revenue generated yet (if at all)

A second arm of SaaS that I am much more excited about is MicroGPT’s ability to integrate with other coding programs. If it proves it’s value, MicroGPT could be integrated through both Web2 and Web3 platforms — more so than it already has:

Partnerships and backings

Although there doesn’t appear to be any significant revenue streams (yet), it’s clear that they’ve got a lot of industry backings, which according to their pitch deck include:

Most notably, according to Ape Terminal they were one of the few AI-related projects to win a Google Cloud Protocol grant. (Although this statement may be more than its worth at face value, considering that Google hands out dozens, if not hundreds of grants every year varying from just hundreds of dollars to the millions).

Tokenomics

Token Supply : 1 billion
Blockchain : Ethereum Mainnet
Contract address: 0x8CEDb0680531d26e62ABdBd0F4c5428b7fDC26d5
IDO Price: $.0035 USDC
FDV (at launch): $3.5 million

Although I hate the fact that it’s launching Eth Mainnet, according to chainbroker.io and apeterminal the token distribution doesn’t appear to be that bad. Angel/KOL and Seed investors were only able to get in at a $0.003/$0.004 token price respectively where as from public sales you could get them for $0.0035 albeit at a slightly shorter vesting schedule.

The above Ape Terminal graphic shows a raise of $1.54 million, but this assumes that the public sales will actually sells out…which at time of writing, I’m skeptical that’s going to happen (on Seedify at least).

Code & Earn: If you take another look at Ape Terminal’s breakdown, you’ll notice that there’s a 5% allotment towards something called Code & Earn. If you have some coding skills already, you will actually be able to earn some $MICRO by coding yourself, my guess for when you assist in MicroGPT in doing so machine learning.

Utility: Although there’s no specifics to the anticipated metrics, there are a few different utility options that the $MICRO token will reportedly have. These include discounts to paid subscriptions services, such as on their AI code checking extension, voting rights, and the ability to stake it to “secure the network.”

My take: unless they incorporate UMA’s oSnap’s gasless voting, there’s no way I’m going to pay mainnet gas fees to vote. Also in the same vein, staking rewards would have to be significantly high in order for me to want to pay the gas to stake/unstake or keep claiming rewards.

Listings: $MICRO will be listed on both MEXC and Gate.io, both approximately at the same time on 2024–11–20 @ 7pm UTC.

Conclusion

Even if you were lucky enough to qualify for their public sale round on either Ape Terminal or Seedify, in my opinion, unless you’re trading significantly in size, it’s probably a better bet to straight up buy the tokens on either MEXC or Gate.io once the token gets released. Although I don’t generally recommend doing business on CEXes unless you absolutely have to, just doing the math — If you were to get $100 dollars in the public sale, considering that you’d have to pay $20–30 dollars in gas fees, in order to simply break even this means that the token would have to go up 20–30% in value, and that doesn’t even account for slippage or transaction failures to extreme price volatility during a TGE.

Personally, I think that $MICRO should easily be valued at more than $3.5 million dollars (its TGE FDV), but I’m going to be keeping an eye on the prices during it’s TGE later this week to see if I can catch it in a dip on expected volatility.

Are you planning on getting into $MICRO? Or is there anything that I missed in my analysis? If so, I’d be interested in hearing about it in the comments below.

REKT journal to cheer them up!And as always thanks for taking the time to read this and be sure to follow me on twitter (https://twitter.com/CryptosWith) to get all my latest updates. Also, looking for a gift for your Crypto-loving/hating friend? Give them a

Disclaimer: This is not financial advice and this is for educational and entertainment purposes only. Please as always, do your own research and find what investments are best for you. Cheers everyone!