Right from time, humans have always had a way to spend their leisure time and have fun. Gaming, among other things, has been a great tool for this. Recall the early days of Mortal Kombat and Mario.
Fortunately, the scope of gaming has been broadened with the invention of blockchain technology. Blockchain technology has introduced NFT games for players to not only play but also get incentivized with non-fungible tokens.
Seeing the profitability of this approach, NFT games have had the influx of a lot of gamers. At the moment, reports have it that NFT gaming platforms often have over 150 million active monthly users - and the numbers tend to increase faster.
Amidst all this, it is shocking to know that there are over 2 billion gamers who have expressed their displeasure towards NFT games and are thus not playing them.
It is often said that all that glitter is not gold. There are more to NFT games than meets the eye. If you had been thinking of coming into play-to-earn NFT Games, this essay goes beyond the hype to give you a holistic explanation of what you should know before deciding if you're ready for it.
To be on the same page, it is essential to have a brief explanation of what NFT games are and how they work - especially for those who are not acquainted with them.
NFT games are games where the players get rewarded with non-fungible tokens when they play them. On the other hand, it is also a profitable business model for game publishers and developers.
Each object in these games can be traded on exchanges and converted to fiat. The value of each object depends on how important it is in the game, and also how scarce it is.
These NFT games are often put on different blockchains networks. For instance, Idle Mystic is a Polygon NFT game, while Black Eye Galaxy is a BSC NFT game.
Beyond anything else, the core reason behind gaming is to have fun. People play games to relax and bond with friends. However, the concept of play-to-earn is not on-par with this fundamental tenet.
Some gamers have opined that the idea of play-to-earn sounds more like a job where people only participate for the sake of one end goal: money. In other words, such people would have distorted psychology towards gaming.
Therefore, some gamers are of the view that play-to-earn NFT games might take away the human side of gaming. Money-making should be separated from gaming if one is to enjoy it.
For example, millions of people in Argentina, Venezuela, and the Philippines are taking play-to-earn NFT games as their full-time careers. When some of them were interviewed, they confirmed that their primary reason for engaging in NFT games is because of the money.
Against this backdrop, NFT games might not be recommended for a first-time gamer who should explore and enjoy the games.
The NFT gaming industry strives on the usual law of demand and supply; the more the players, the higher the prices of NFTs.
CryptoKitties was one of the pioneering NFT Games which has been as far back as 2017. It operates in such a way that the players can breed and trade virtual cats. As of 2017, these virtual cats were traded in thousands of dollars. By the end of that year, TechCrunch reported that the people have spent more than $1 million on virtual cats. In early 2018, the hype was still in the air and each Cryptokitties had a floor price of $140k. 2019 was the year most NFT gamers were having issues with Cryptokitties and they left the game en masse. This made the trading price of these NFTs drop to as low as $65.
Who could have imagined that an NFT game that caused traffic on the Ethereum blockchain could decline so fast within 3 years of launch? If this can happen to the almighty Cryptokitties NFT game, what makes other upcoming NFT games safer?
Bearing in mind that history tends to repeat itself, everyone who wants to engage in play-to-earn NFT games must be aware that the value of these NFTs is tied to how well the game is reigning.
Once the game is declining in users, there will be less liquidity and the value of the NFTs will decline - or even crash as it happened to some.
The NFT space as a whole has received a lot of censorship from regulators. This was due to a lot of NFTs projects or communities that have swindled their members.
Although these rug-pulls are not yet rampant in the NFT gaming ecosystem, they are possible bearing in mind the surge in the number of NFT gamers globally. Squid Game Token, for instance, was a project that was premised on the popular movie called Squid Game. Due to the hype that the movie has garnered, some launched a token for it.
SQUID token made a bullish move that was up to 230,000%. Surprisingly, the developers took away the liquidity, and the project was dumped to zero. While this happens in DeFi, some gamers fear the same thing is possible to happen in play-to-earn NFT games as well.
In a similar occurrence, the Co-founder of Pudgy Penguin—an Ethereum-based NFT collection—was announced to have looted the treasury and the project stands a chance of being illiquid.
Blockchain technology is releasing a lot of greenhouse emissions that would take planting more than 400 million trees to ameliorate. How does this affect NFT Games?
Some environmentalists are not in agreement with the concept of play-to-earn NFT games. They underscored that the process of minting each NFT is consuming power and contributing to the carbon emissions by the blockchain. Thus, they argued that NFT games are not worth the climatic hazards they'd cause.
At further scrutiny, however, some have rebutted that the Ethereum blockchain is a network that is not eco-friendly. They noted that networks like Solana, Algorand, and Polygon don't release excessively harmful carbon.
With this development, even a good number of environmentally-inclined people have deemed it fit to play Polygon NFT games and BSC NFT games.
At this juncture, it is worth mentioning that NFT games are currently in their nascent stages. Therefore, their developments cannot be perfect overnight. It will be a gradual process.
Fortunately, some NFT games have been growing beyond the risks listed above by building a more robust platform that is appealing to both gamers and investors.
A perfect example is Star Atlas. Star Atlas is an NFT game where the players can build cities and manage economies. The platform is building structures to make NFT gaming more fun, scalable, compliant, and eco-friendly because it's built on Solana.
The advent of Star Atlas makes it clear that game publishers are developing more games that are scalable and tend to be more acceptable. Premising on these developments, NFT games would actually be the future of gaming.
As NFT gaming is gaining more popular adoption, NFT gaming projects would need a marketplace to sell their NFTs to the players. However, coding an NFT marketplace from scratch can be too time-consuming or cost-draining. This is the reason every NFT game publishers need NFTify - a platform where they can build stores for their NFT games.
With NFTify, you can easily design and customize your NFT game store in a way that suits your brand identity. What's more? NFTify provides you with built-in marketing tools for your play-to-earn NFT marketplace.
If you'd like to take your NFT game to the next level, create your store here.
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