GameFi, a Wounded Industry
The gaming industry, specifically Play-To-Earn games, has increased in popularity over the last few years. Gamers have been able to enjoy their hobby while collecting cryptocurrencies or NFTs, which can both be exchanged for fiat cash.
According to Absolute Reports, the GameFi industry will grow to 2.8 billion USD billion by 2028, with a compound annual growth rate of 20.4%. However, some believe that this projection might be wrong.
After the sudden crash of FTX, there are some concerns in the crypto community that other platforms and projects might be built on unsteady ground. In terms of the GameFi industry, the foundations on which it is being developed are flimsy.
The current structure of the Play-To-Earn industry is token-centric, which has led to some doubts. Project owners issue their tokens and list them on exchanges, then they announce the project behind it, making the game a utility of the token, rather than vice versa.
Because of this, players are becoming less interested in the game itself, which represents strange behavior in the gaming industry. Now, players are more focused on the returns and profits they can receive from the game, and this type of incentivization is believed to be pushing Play-To-Earn in the wrong direction.
As of February 2023, the crypto market has been in a downward trend for the past few months. The amount of hype that Play-To-Earn gained in past years is now way down and the industry as a whole seems to be heading in the same direction. Gamers have realized that they are not getting the return they had expected when they signed up for these projects. This has begun to create frustration and many people have withdrawn their tokens, leaving the projects – and the industry as a whole – with no support and no money to sustain themselves.
Source: cointelegraph.com
analyst opinion
Zdenda Štěpka
According to Absolute Reports, the GameFi industry will grow to 2.8 billion USD billion by 2028, with a compound annual growth rate of 20.4%. However, some believe that this projection might be wrong.
After the sudden crash of FTX, there are some concerns in the crypto community that other platforms and projects might be built on unsteady ground. In terms of the GameFi industry, the foundations on which it is being developed are flimsy.
The current structure of the Play-To-Earn industry is token-centric, which has led to some doubts. Project owners issue their tokens and list them on exchanges, then they announce the project behind it, making the game a utility of the token, rather than vice versa.
Because of this, players are becoming less interested in the game itself, which represents strange behavior in the gaming industry. Now, players are more focused on the returns and profits they can receive from the game, and this type of incentivization is believed to be pushing Play-To-Earn in the wrong direction.
As of February 2023, the crypto market has been in a downward trend for the past few months. The amount of hype that Play-To-Earn gained in past years is now way down and the industry as a whole seems to be heading in the same direction. Gamers have realized that they are not getting the return they had expected when they signed up for these projects. This has begun to create frustration and many people have withdrawn their tokens, leaving the projects – and the industry as a whole – with no support and no money to sustain themselves.
Source: cointelegraph.com
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