Why was the NFT blockchain game so popular in the first half of the year that it raised more than 1.4 billion US dollars?

NFT is an important change in the game world. Because traditional in-game asset transactions are only carried out in the game ecosystem, it is difficult for players to trade or sell their virtual assets outside the platform. At the same time, as capital enters the game, NFT blockchain games, which are born with fairness, community and platform co-building mutually-win genes, may give birth to killer games.

The most popular non-NFT concept in the current encryption circle is none other than NFT blockchain games.

Take the current popular NFT blockchain game project Axie Infinity as an example. Its single-day revenue exceeded $40 million on July 30, which was three times the revenue of the game overlord of the day. And Axie Infinity’s DAU (daily active users) increased from 250,000 on June 28 to 994,000 in one month.

NFT-type blockchain games are also attracting the crazy entry of capital. According to third-party statistics, related financing reached 1.4 billion US dollars in the first half of the year.

Correspondingly, traditional game makers represented by Tencent are increasingly feeling the pressure. While they use blockchain technology to develop virtual props, characters, skins, etc., they use the law to sue players and other platforms that use virtual currency to make money.

Industry analysts told the “Blockchain Daily” that NFT is an important change in the game world, because traditional in-game asset transactions are only carried out in the game ecosystem, and it is difficult for players to trade or sell their virtual assets outside the platform. At the same time, as capital enters the game, NFT blockchain games, which are born with fairness, community and platform co-building mutually-win genes, may give birth to killer games.

On the one hand: Axie Infinity and other menacing

On August 4, French fashion giant Louis Vuitton (Louis Vuitton) announced the launch of its own NFT mobile game. This game is part of the celebration of the 200th anniversary of the birth of its founder and will be launched on IOS and Android devices.

The chairman and chief executive officer of Louis Vuitton said: “The media is developing so fast that every time a new way of communication appears, you have to retell your story. Now, the times are defined by technology rather than age. “

LV’s attempt at NFT games is just a microcosm of the market this year. The hottest NFT game on the entire network this year is none other than Axie Infinity. From the end of June, Axie Infinity is like pressing the accelerator key.

According to the weekly DAU statistics of the third-party platform, Axie Infinity had a DAU of 250,000 on June 28, and a DAU of 350,000 on July 5, a growth rate of 40%; on July 12, a DAU of 500,000, a growth rate of 42.8% ; The DAU on July 19 was about 705,000, and the DAU on July 26 was about 994,000.

In terms of trading volume, Axie Infinity’s 30-day cumulative trading volume reached US$604 million, an increase of 449.5% from the previous month. The historical cumulative trading volume of Axie Infinity increased to US$758 million, ranking first in the volume of NFT projects.

In terms of revenue, according to data from the third platform, Axie Infinity’s revenue on August 2 was about 11.37 million U.S. dollars, the 7-day total revenue was 85.4 million U.S. dollars, and the 30-day total revenue was 216.5 million U.S. dollars. It is worth noting that on July 30, its single-day income exceeded 40 million U.S. dollars, three times that of the traditional game overlord glory.

Senior game practitioner Chen Xia said in an interview with a reporter from “Blockchain Daily” that Axie Infinity, an NFT game with almost zero customer acquisition costs, is redefining the game world based on community users.

Chen Xia analyzed that based on its own game rules, the project is positioned to make money while playing games, bringing economic freedom to game users.

According to the official introduction, Axie Infinity is a decentralized turn-based strategy game, a world inspired by “Pokemon”. Players need to have three Axies to start the game. Each Axie is divided into different body parts, and the corresponding different attributes bring non-homogeneity and scarcity to Axie.

Axies are very complex NFTs. First of all, they can be used for multiple purposes: in-game fighting, breeding and collecting. Second, they have a variety of unique characteristics, such as attributes, types, size, location, and abilities. Axies can have different maturity and reproduction numbers. The rarest Axies have mysterious parts. All these elements can create additional value for NFT.

Chen Xia told the Cailian Community Blockchain reporter that compared with NFTs of art and collectibles, games create usage scenarios and utility for NFTs, and increase the use value of NFTs.

Chen Xia pointed out that the use of NFT in Axie Infinity is more important to make virtual items truly property. The ownership of items in centralized games is actually controlled by the platform, while in blockchain games, due to the transparency and immutability of smart contracts, the player controls the ownership of encrypted assets, and the assets that you own belong to the same you.

On the other hand: traditional game makers such as Tencent sit back and enjoy their success

Facing the menacing NFT blockchain games, traditional game manufacturers represented by Tencent are increasingly feeling pressure.

A few days ago, Tencent sued Amoy Mobile Games. The dispute between the two parties focused on the attributes of the game account and its derivatives and user rights.

Tencent maintains that the account and virtual item ownership of its game product “Dungeon and Warriors” belong to Tencent, and players only have the right to use it. According to the “Tencent Game License and Service Agreement”, game equipment, game coins and other game props are part of Tencent’s game services, and Tencent hereby permits users to obtain the right to use them in accordance with this agreement. The user’s purchase and use of game equipment, game currency and other game props shall comply with the requirements of this agreement and the specific rules of the game.

Tao Mobile Games believes that players should enjoy the free trading rights of “Dungeon and Warriors” accounts and gold coins and props. This is the rights and interests of online virtual property granted to gamers by Article 127 of my country’s “Civil Code”. .

The case was opened in the People’s Court of the Chongqing Pilot Free Trade Zone on July 25, and Tao Mobile Games lost the case. Amoy Mobile Games dissatisfied with the above verdict and will appeal.

A reporter from the “Blockchain Daily” found that as early as April 8, 2021, Tencent and the game prop account trading platform DD373 conducted an online public trial regarding the infringement of the information dissemination rights of the work. The case was also centered on “Dungeon and Warriors”. 》Dissemination of relevant information, account numbers and gold coin transactions, etc. Among them, Tencent asked DD373 to compensate more than 40 million yuan and apologize. The public trial of the case lasted for 7 hours, and the court did not pronounce the verdict in court.

The Guangdong Provincial Higher People’s Court published a ruling (2020) No. 158 of Yuemin Jurisdiction, which shows that for unauthorized rental and transfer of game accounts, Tencent sued the trading cat for compensation of 10 million yuan. In addition, Tencent also sued UU898, 5173 and other trading platforms for more than a dozen game prop accounts.

Game entrepreneur Huang Cancan told the reporter of “Blockchain Daily” that there will not be a strong game manufacturer like Tencent in blockchain games. The biggest difference between it and traditional games is that the player’s stuff is his own, and the time spent in the game And the money is the player’s.

Huang Cancan analyzed that the development of games from end games to page games and then to mobile games is actually a platform exclusive mode; and the Play-to-Earn (P2E) mode can not only play games but also make money, or that users can spend money as well. The hope of returning money and making money is a major change in the game industry.

In addition, NFT blockchain games have many behaviors that users can vote to determine, such as deciding what characters, roles, and mechanisms to create in the game. Players can participate in the construction of the game and be divided from them. Game users are not only users, but also creators and benefit owners. They are very important for attracting loyal fans to promote game development.

The founder of Hash Capital, Ye Ding, analyzed to the reporter of “Blockchain Daily” that the business model of Play-to-Earn (P2E) has a long history in traditional games. Games such as World of Warcraft and Onmyoji have a group of players selling equipment. Or equipment to make money. In blockchain games, this model has been upgraded. Players can earn real money by playing games with cryptocurrency-based assets (NFT). By actively participating in these virtual economies, players can earn rewards, such as assets and tokens in the game, and then trade or sell them on the open market.

However, Sun Hui, a think tank expert on Whale Platform and co-founder of Beijing Ai Investment Capital Management Co., Ltd., believes that the essence of games is entertainment, and other things can only be understood as non-product factors, or marketing methods. Players are still concerned about games. In itself, the others are just extra points.

NFT blockchain game related financing reaches 1.4 billion US dollars

The rapid development of NFT blockchain games has been favored by capital.

According to statistics from Blockchaingamer, as of June 2021, blockchain game-related financing reached 1.4 billion US dollars. About $1 billion of this comes from traditional VCs. Animoca Brands, Galaxy Digital and Hashed are the most active investment institutions in this field.

Take Animoca Brands as an example. Since 2018, it has invested in more than 50 blockchain games or NFT-related companies. Its ultimate desire is to make blockchain games the norm. Its products include “Crazy Defense Heroes”, “Clicker War Game of History” and so on.

The company received US$50 million in financing from Jack Ma, Cai Chongxin’s family office Blue Pool Capital, Coinbase Ventures, Liberty City Ventures and Samsung Ventures in July.

The founder of Hash Capital, Ye Ding, told the reporter of “Blockchain Daily” that for games, what has been changing in the past is the content of the game, but the production and consumption links have not changed. This is a production relationship. Now that the blockchain adds games and changes the production relationship, the imagination of this landing application scenario boundary is an important reason for attracting capital to enter the NFT blockchain game.

Ye Ding pointed out that the introduction of NFT and blockchain concepts is an important change in the game world, because traditional in-game asset transactions are only in the game ecosystem, and it is difficult for players to trade or sell their digital assets outside the platform. At the same time, with the entry of capital, the blockchain field, which is born with fairness, community and platform co-construction and mutual-win genes, may give birth to killer games.


Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-was-the-nft-blockchain-game-so-popular-in-the-first-half-of-the-year-that-it-raised-more-than-1-4-billion-us-dollars/
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