Archives July 2022

In the first half of 2020, the market for non-fungible tokens was worth barely $13.7 million; by the end of the year, it had grown to $2.5 billion in sales. We have observed an over 2,100 percent rise in sales volume year over year since Q4 2020, and the most recent data from NonFungible.com indicates that there are twice as many NFT games buyers as sellers in the first three months of 2021. We anticipate that number to be far greater now that more active communities have entered the NFT market.

NFTs have exploded in popularity as collectibles, with enthusiasts purchasing and selling them for both entertainment and profit with nft gaming. NFTs have developed a market due to their cultural relevance. At the moment, there is an active market in which speculators have simplified the process of determining value, making NFTs appealing to investors. However, we never anticipated NFTs exploding in the game business and assisting players in earning money via the leveraging of their abilities and time. We are now seeing a transformation in the gaming sector, in which all participants have an equal potential to earn money.

NFTs have resolved issues of provenance and duplication, and with the advent of play-to-earn games, we’re seeing them let consumers earn money playing the NFT games they love. In this post, we’ll break down all you need to know about play-to-earn and walk you through the process of getting started in the rapidly growing NFT industry.

What is an earn-while-you-play business model?

We’ve seen NFTs utilized as trinkets, artwork, and other unique characters, but we’ve never seen a free-to-play game used to earn crypto tokens continue. The business strategy for play-to-earn is straightforward: enable gamers to monetize their time and expertise by earning crypto tokens that can be exchanged for their selected currency. In standard video NFT games, no player is granted entire ownership of an in-app item, making it almost impossible to swap it for a greater value.

In the case of NFT games, participants are provided with unique NFTs that may be sold for tokens. As the number of blockchain-based transactions increases, the price of NFT tokens will rise. As a result, gamers now have the option of selling their tokens at a considerably greater price. In contrast to conventional video games, NFT games are based on smart contracts, which means that producers do not have complete control over in-app purchases.

This is a very different game economy, and it is not only because cryptocurrencies are involved; it also produces greater value for other participants. If a player wishes to exit a game, they may sell their tokens to other players via the open marketplace.

True, participants must pay to participate in a game. However, digital goods and collectibles purchased in-game will always have some monetary worth. In conventional video NFT games such as Fortnite or League of Legends, people spend their money on useless skins and items that are difficult to resell. This is when NFT games cause a paradigm shift and alter the whole gaming scene.

Why is the coupling of NFTs and Video Games ideal?

We may make several arguments for why the coupling of NFTs with video NFT games is ideal. The first would be economies that are community-driven and player-owned. The decentralized aspect of these games increases their appeal to every player out there, and when combined with the chance of earning some nice money on the side, no one would say no.

Additionally, it has been shown that individuals collect things for a variety of reasons and place a greater premium on items that are distinctive and original. Each participant or collector has a set of digitally manufactured tokens that are uncommon, real, and simple to exchange. Additionally, it assists in the development of online markets for the purpose of profiting from a valued commodity that was never available in conventional gaming platforms.

NFTs fundamentally altered players’ in-game purchases by giving them actual ownership and control. If this was a multiplayer game, your money would vanish as soon as you get bored or switched to another game.

The nicest aspect about NFTs being integrated into video NFT games is that they can be sold for substantially more on secondary markets as players level up and acquire better stuff. Another unique feature of NFT-based gaming projects is that gamers may sell the rights they own to any game. This creates new opportunities for us, since it enables digital mobility and the right to commercialize in-game materials.

The Future of NFT games

One thing is certain: NFT games will continue to exist. NFTs are making their debut in a gaming industry that is just now coming to terms with the notion of blockchain technology. While NFTs have already established a strong position in the virtual goods trading industry, hurdles remain. If NFTs are to gain widespread acceptance, they must improve their attractiveness and intuitiveness.

We do not see through the hype, but rather through the technology. We understand the potential of Blockchain NFTs and how they can revolutionize conventional gaming. We will continue to see price volatility in the near term, but the core use cases and technology will very certainly persist.

It’s wonderful to see how the blockchain has enabled the creation of a diverse range of NFT games and gameplays, as well as the ability for players to earn tokens. There is a great deal of expectation as the space expands and new NFT games are introduced. Cryptocurrency NFT games are an excellent way to infuse some fun into your crypto earning experience.

NFT games seem to be the forerunners of a wider trend at work: the growing convergence of the physical and digital worlds. And with that, the legendary ‘metaverse’ emerged—a concept that has been at the core of current scholarly disputes as well as the subject of revitalized business agendas, most notably that of Meta (née Facebook). Attracted by visual images from Neal Stephenson’s 1992 novel ‘Snow Crash’ or films such as ‘Ready Player One,’ the majority of discussions of the metaverse focus on technical details, functional characteristics, or end user implementations in the form of high-fidelity 3D and extended reality headsets.

Few industries are immune to the crypto craze, but many game developers have embraced it wholeheartedly. Many gaming-related collectibles can now be claimed as NFTs, but some “play-to-earn” NFT games have gone even further by including crypto and NFT as stakes.

P2E NFT games is a game that you can play for as long as you want

Play-to-earn NFT games, also known as P2E NFT games or simply crypto NFT games, are those that incorporate cryptocurrency and NFTs into the gameplay. Rather than purchasing the game itself, you frequently purchase items within it, such as characters, weapons, and just about anything else.

This isn’t an unusual model; many NFT games, particularly so-called free-to-play (F2P) NFT games like tezotopia, use it. These NFT games allow you to play for free and even earn items through gameplay, but the good stuff is usually hidden behind a paywall—or a long and tedious grind.

Play-to-earn, on the other hand, differs from free-to-play in that you can trade and sell your assets to other players. Because many of these assets are NFTs or can be converted to them, this is the case. Learn more benefits of playing nft games.

Axie Infinity is a fictional character created by Axie

To demonstrate this, consider the system used by Axie Infinity, one of the most popular P2E NFT games (and one that recently lost over $600 million). The game’s concept is simple: players take control of “axes,” small fantasy creatures, and battle them against the axes of other players. It’s similar to Pokémon, but in a more commercialized form.

Axes can be obtained either by purchasing them ready-made from the in-game store or by breeding them. Breeding requires the use of AXS, the game’s currency, and a “small love potion,” or SLP. AXS and SLP can be earned through gameplay (fighting other players, competing in tournaments, etc.) or purchased from the store.

What makes Axie Infinity unique is that you are not only spending money, but also earning it. You can sell your surplus resources and rare axies on the marketplace, for example, if you have bred a rare axie. Whereas in F2P NFT games, all money goes one way—to the developer—in P2E NFT games, some money goes both ways. Some people even make a living by playing it.

The Business Model of P2E

However, not as much as you might think flows back. In a world where everything costs money, the people in charge of that environment have figured out how to adjust things so that they always come out on top. After all, there wouldn’t be much of a business left if they didn’t.

As a result, everything in Axie Infinity is a financial investment. Obtaining an axie will cost you a few Ether—the game’s cryptocurrency—SLPs cost Ether, and AXS costs Ether. Although many of these resources can be earned in-game, they are frequently set on timers, limiting the amount you can earn unless you spend real-world money.

On paper, you could play the game for very little money: buy the starter axees, grind until you have enough AXS and SLPs to get new critters, and then go from there. P2E NFT games, on the other hand, have taken a page from the book of psychological tricks used by F2P NFT games and set up players to buy even more into the game.

For example, there are so many different axies and traits for them that you’re constantly tempted to collect more of them—anyone who has ever collected anything knows how addictive it can be. These characteristics carry over into gameplay, and players who invest in the game are more likely to have better traits for their axes.

As a result, free players are frequently grinded into dust by paying players. As a result, free players are either turned off from the game or are forced to increase their spending in order to stay competitive. It’s a difficult cycle to break, and it can be the start of an addiction.

Additional P2E NFT games

To be clear, we’re only using Axie Infinity as an example; other P2E NFT games, such as Gods Unchained or the upcoming Illuvium, employ similar strategies in slightly different ways.

Gods Unchained, a card-based battle game similar to Magic: The Gathering, is technically a free-to-play game. Your cards are collectible, but they require a special action in order to become tradable NFTs. They’re just game assets until then. However, if you want good cards, you’ll have to spend some money to expedite the process.

Illuvium, which is also about letting fantasy beasts fight each other, pulls back the curtain completely and advertises that it will host betting on player fights as well as allowing you to trade fighters with other players.

Do You Really Have Control Over Your In-Game Assets?

It’s not just the structure of P2E NFT games that should cause concern; it’s also what it promises. The concept is that you play the game or pay to play it, and you own your assets: axes, cards, or whatever else the game has to offer. After all, they’re NFTs, and you’re the owner, not the game studio. On its website, Gods Unchained makes a big deal out of it.

Reality, on the other hand, demonstrates that it isn’t quite that simple. NFTs have a major flaw: if the server that the records are stored on fails, your NFTs will vanish into thin air. This has also happened recently.

F1 Delta Time, for example, was a game in which you raced cars that were tokens in and of themselves. It recently went bankrupt, rendering all associated NFTs worthless. That’s a lot of money up in smoke, especially considering some people paid the equivalent of a house for some of their cars.

There are also more traditional dangers, such as theft. In March 2022, Axie Infinity, for example, was the victim of a security breach that resulted in the theft of $600 million. Given the amount of money held in online accounts, they’re a tempting target for criminals looking for a quick buck.

Final thoughts

Play-to-earn NFT games, also known as P2E NFT games or simply crypto NFT games, are those that incorporate cryptocurrency and NFTs into the gameplay. Rather than purchasing the game itself, you frequently purchase items within it, such as characters, weapons, and just about anything else.

This isn’t an unusual model; many NFT games, particularly so-called free-to-play (F2P) NFT games, use it. These NFT games allow you to play for free and even earn items through gameplay, but the good stuff is usually hidden behind a paywall—or a long and tedious grind.

Play-to-earn, on the other hand, differs from free-to-play in that you can trade and sell your assets to other players. Because many of these assets are NFTs or can be converted to them, this is the case.