Forbes: Could GameFi be another crypto scam?

Since the decline of the ICO market around 2017, and a cooling-off period of about two years in the cryptocurrency hype, the Crypto investment community has ushered in a moment of flashbacks. Developers and tech entrepreneurs have created new industries aimed at attracting investor interest. If the ICO market is dead, a whole new class of risky assets will have to be created for the Crypto market to transcend the boundaries of a few blockchain platforms like BTC and ETH.Decentralized finance and staking markets are one, new blockchain protocols are another.

And over the past few years, GameFi has become the newest category in the crypto economy.

Of course, this isn’t just for gamers. If only gamers are involved, the investment space is limited. But there are enough blockchain gaming and NFT-backed projects out there to give investors a new place to gamble the dollars in their Coinbase accounts.

GameFi, like cannabis ETFs or venture capital funds, isn’t an investor prank. Consistent with the creation of new businesses, some projects are bound to fail.

It’s a real market, with billions in it, primarily designed around the massive rise of blockchain-based video games in the Web 3.0 universe (or Web3), where developers can enter and Create your own world. and make money this way. If you don’t know about it, they call it “play to earn”.

GameFi has a market cap of more than $11.6 billion and a daily trading volume of about $2 billion, although this number is rapidly declining due to the general sell-off in the market.

Imagine this: you’re playing Minecraft, you can create your own worlds and characters in Minecraft through the creator’s engine, and you sell them for a profit. That’s it for GameFi in brief.

Games are also important. “I should feel involuntarily drawn in, stuck because I love playing the game, not just because I can earn tokens,” said Arunkumar Krishnakumar, chief growth officer at Bullieverse in London. They have their own creator engine for serious gamers looking to build and monetize their worlds in Bullieverse games.

“As a gaming platform, immersive experiences can make players more engaged with the game. When they feel more engaged, they tend to promote the game and become ambassadors for the game,” he said. “That’s where we are right now.”

There are approximately 3 billion online gamers worldwide, with Asia accounting for 55% of the market. By 2024, the mobile gaming industry is expected to generate $116 billion in revenue from players’ online spending.

In the traditional Web2.0 world there are 2.5 billion online gamers, while in the Web3 world it is estimated that there are only around 5 million. Web3’s gamer base is believed to be rising rapidly due to the developer and consumer incentives Web3 provides. In terms of gaming experience, Web3 gaming still lags behind what we’re used to on the X Box, but that’s going to change, and if GameFi is part of the game, that’s where the growth story begins.

Playing and earning the Web3 model is all about creating and extending games that others originally made. Many games are still figuring out the right economic model to accomplish their mission, one that will accumulate more value for gamers, especially loyal high-quality gamers, and bring investors to their tokens.

” From a macro perspective, GameFi is a fusion of video games, gambling and investing, and will be a new form of entertainment, ” said Dan Nisanoff, co-founder and CEO of Silks in Florida . Silks is an online horse racing collection with a GameFi flair. “We’re building a spinoff game-money Metaverse that mirrors the real world of thoroughbred racing. Our vision is to provide the real economical experience of owning a racehorse in real life…just in Metaverse. When your horse wins the $100 jackpot prize in real life, the horse’s owner NFT wins the same prize.

Nisanov said that game theory and token economics attracted him to GameFi a few years ago. He earned a degree in economics from California State University in Northridge. He is also a gamer. “He said: “I’ve dabbled in games like Zedrun and Axie Infinity. “I don’t know of any major traditional game publishers that offer games to monetize, but I can tell you they’re trying to figure out a way to reinvent themselves and their business model to include GameFi before they get left behind. Think about it What Netflix did to Blockbuster,” he said

He likes Axie (AXS) and Pegaxy (PGX), both of which have been in decline recently, though. PGX was trading around $0.2 a month ago. It’s about 1 cent now. AXY was around $67 a month ago and is now close to $30.

“The value of an investment can go up and down, depending on a game’s popularity and its ability to attract new players while retaining existing players,” said Vijay Pravin, CEO of BitsCrunch in Munich, Germany, a firm for NFTs A blockchain analytics company that provides solutions in the ecosystem.

Pravin’s favorites are AXS, True Flip Token, Sandbox, and Decentraland. He owns Gods Unchained, AXY, and MANA, none of which are current gains.

“These games allow users to earn their playtime by acquiring rare items or creating powerful characters with unique looks,” said Pravin, which also includes Silks horse racing. “It’s a potentially lucrative industry. It just requires fine-tuning how deliverables are exchanged between buyers and sellers.”

What is GameFi and is it a broad and profound industry? It’s a real industry that merges with one of the most lucrative ones in reality – video games. Some games fail, and some don’t. Investors will have to choose their spots, and there will undoubtedly be plenty of gambling in GameFi.

GameFi is a more streamlined game monetization model that allows gamers to easily connect with other gamers on blockchain networks and gamer platforms dedicated to trading in-game assets – be it virtual land, Weapons, or thoroughbred horses.

The big publishers of traditional games have items for sale in their games, but mostly it’s just an added value for the publisher, and maybe the platform itself might get a cut too – Microsoft’s X Box, for example.

And blockchain games that allow players to create characters, scenarios, and maybe even entire games will allow for monetization.

For example, I play golf on 2K Sports on the X Box. I made a golf course in Sao Paulo, Brazil. In GameFi, in theory, if it’s popular enough, I could sell the ballpark or charge people. But 2K Sports apparently doesn’t allow me to rely on this to make money. This type of user creation is free, although this may change later.

“We’re still in the early stages of GameFi,” Nisanov said. “The game is monolithic, the experience is complex, and there are a lot of conflicts, because it’s not easy to get players who have never bought Crypto before.” He predicts: “As tools become more streamlined, adaptable and More understandably, this situation will change in the coming years, which will drive a rapid rise in demand, separate the winning projects from the losers, and allow investors to reap a return on their investment.

“I think we’ll see a massive explosion of GameFi next year, Nisanov predicts.” Watch out for big acquisitions in the gaming space. “

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/forbes-could-gamefi-be-another-crypto-scam/
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