Date
Aug 4, 2025
Following the news of Datagram Network's node sale starting on August 10th, I'd like to organize some considerations when investing in DePIN projects. Since Datagram's CEO, Jason "Bitbender" Brink, was formerly the Blockchain President at Gala Games, let's analyze what aspects we should examine through the case study of Gala Games, which had a similar structure.
Gala Games Case Study: Lessons Worth Referencing
Situation Summary
During the NFT and metaverse boom of 2021-2022, Gala Games was a prominent blockchain gaming platform. As a project involving Eric Schiermeyer, co-founder of Zynga, it garnered considerable attention.
Characteristics of Gala Node (Founders Node) Sales Structure
Price Structure
Started at $2,000 initially and increased gradually
Nodes eventually sold for up to $71,000
Tiered structure where prices increased every 100 nodes sold
Token Distribution
50% of total tokens allocated to node operators
Remainder used for team and ecosystem development
Business Expansion
Started with gaming and expanded to Gala Music, Gala Film
Aggressive marketing including large-scale offline events (Galaverse)
Current Situation and Implications
Issues Faced
Legal disputes between co-founders in 2023 ($130M scale)
Eric Schiermeyer vs Wright Thurston lawsuit battle
Issues raised about using company funds for private jet purchases
Impact on Investors
Early participants may have gained some profits
However, investors who participated at high prices later suffered significant losses
Gaming-related NFT price drops and project delays
Datagram Project Status Analysis
Project Overview
Claims to be an AI-based Hyper-Fabric Network
Aims to build real-time communication infrastructure
Claims to have 200+ enterprises and 1.2M users
Node Sale Structure
August 10th: Preferred Whitelist
August 11th: Pre-sale Whitelist
August 12th: Public Sale
Total of 25,000 nodes for limited sale
Plans to allocate 50% to node operators
Notable Investment Background
Participation from Avalanche Fund, Animoca Brands, etc.
Completed $4M pre-seed funding
Plans to build own L1 chain based on Avalanche
Considerations When Investing in DePIN Projects
Technical Review Points
Actual Implementation Status Check
Whether the promised technology actually works
Performance verification possible through demos or testnets
Real advantages compared to existing cloud services
Investment Decision Checklist
✅ Pre-Participation Checklist
Team Transparency: Identity and background disclosure of core members, actual performance from past projects, level of community communication
Technical Feasibility: Working prototypes or testnets, specificity of technical roadmap, external technical audits or verification
Token Economics Rationality: Sustainability of node operator rewards, clarity of token value appreciation drivers, excessive inflation risks
Personal Risk Management: Participate within amounts you can afford to lose, risk diversification through diversified investment, consider potential long-term liquidity restrictions
⚠️ Warning Signs
Excessively flashy marketing compared to vague technical explanations
Repeating problem patterns in team's past history
Too-good-to-be-true promises (high returns, no risk, etc.)
Evasive responses to community questions
Following the news of Datagram Network's node sale starting on August 10th, I'd like to organize some considerations when investing in DePIN projects. Since Datagram's CEO, Jason "Bitbender" Brink, was formerly the Blockchain President at Gala Games, let's analyze what aspects we should examine through the case study of Gala Games, which had a similar structure.
Gala Games Case Study: Lessons Worth Referencing
Situation Summary
During the NFT and metaverse boom of 2021-2022, Gala Games was a prominent blockchain gaming platform. As a project involving Eric Schiermeyer, co-founder of Zynga, it garnered considerable attention.
Characteristics of Gala Node (Founders Node) Sales Structure
Price Structure
Started at $2,000 initially and increased gradually
Nodes eventually sold for up to $71,000 (approximately 95 million KRW)
Tiered structure where prices increased every 100 nodes sold
Token Distribution
50% of total tokens allocated to node operators
Remainder used for team and ecosystem development
Business Expansion
Started with gaming and expanded to Gala Music, Gala Film
Aggressive marketing including large-scale offline events (Galaverse)
Current Situation and Implications
Issues Faced
Legal disputes between co-founders in 2023 ($130M scale)
Eric Schiermeyer vs Wright Thurston lawsuit battle
Issues raised about using company funds for private jet purchases
Impact on Investors
Early participants may have gained some profits
However, investors who participated at high prices later suffered significant losses
Gaming-related NFT price drops and project delays
Datagram Project Status Analysis
Project Overview
Claims to be an AI-based Hyper-Fabric Network
Aims to build real-time communication infrastructure
Claims to have 200+ enterprises and 1.2M users
Node Sale Structure
August 10th: Preferred Whitelist
August 11th: Pre-sale Whitelist
August 12th: Public Sale
Total of 25,000 nodes for limited sale
Plans to allocate 50% to node operators
Notable Investment Background
Participation from Avalanche Fund, Animoca Brands, etc.
Completed $4M pre-seed funding
Plans to build own L1 chain based on Avalanche
Considerations When Investing in DePIN Projects
Technical Review Points
Actual Implementation Status Check
Whether the promised technology actually works
Performance verification possible through demos or testnets
Real advantages compared to existing cloud services
Tokenomics Transparency
Accurate token distribution ratios and schedule
Team token lockup period and vesting schedule
Sustainability of node operator reward mechanism
Team and Governance Analysis
Past Track Record Review
Team members' performance in previous projects
Whether they actually delivered on promises
Communication methods and transparency with community
Risk Management System
Robustness of decision-making structure
Conflict resolution mechanisms
Response plans for regulatory risks
Market Environment Considerations
Competition Analysis
Differentiation from existing AWS, Google Cloud, etc.
Advantages over other DePIN projects
Potential for securing real enterprise customers
Timing and Market Receptivity
Current DePIN market maturity
Matching actual user needs
Potential regulatory changes
Investment Decision Checklist
✅ Pre-Participation Checklist
Team Transparency
Identity and background disclosure of core members
Actual performance from past projects
Level of community communication
Technical Feasibility
Working prototypes or testnets
Specificity of technical roadmap
External technical audits or verification
Token Economics Rationality
Sustainability of node operator rewards
Clarity of token value appreciation drivers
Excessive inflation risks
Personal Risk Management
Participate within amounts you can afford to lose
Risk diversification through diversified investment
Consider potential long-term liquidity restrictions
⚠️ Warning Signs
Excessively flashy marketing compared to vague technical explanations
Repeating problem patterns in team's past history
Too-good-to-be-true promises (high returns, no risk, etc.)
Evasive responses to community questions
Personal Perspective and Conclusion
I believe DePIN is certainly one of the important directions for future internet infrastructure. However, it's still uncertain which projects will actually succeed.
In Datagram's case, the team's past experience and investor lineup are positive factors. On the other hand, how to interpret the experience at Gala Games may vary from person to person. It could be lessons learned from failure, or patterns that may repeat.
Personally, I recommend the following approach:
Start Small: Consider participating with a small portion of your overall portfolio
Continuous Monitoring: Observe actual performance after mainnet launch
Multi-angle Verification: Fact-check through multiple information sources
Avoid Emotional Decisions: Make decisions based on rational analysis rather than FOMO
The future promised by DePIN projects is attractive, but the path may not be smooth. I hope wise investors will make their own judgments by considering both opportunities and risks in a balanced way.
Most importantly, investment is your responsibility, and I urge you to participate only within amounts you can afford to lose. is your responsibility, and I urge you to only within amounts you can afford to lose.
This article contains personal analysis and opinions, and is not investment advice or recommendation. All investment decisions should be based on sufficient personal research (DYOR).