Although the crypto While the games industry remains below 2021 peaks, it still raised significant venture capital last year. But looking to the future, the subsector can look beyond that symbolism to grow and sustain itself for the long haul.
“Tokens are a great way to share ownership of economies. I am a big believer in tokens and think they are a brilliant invention and have done a lot,” Robbie Ferguson, co-founder and president of Immutable, told todaybusinessupdates.com. “But we will certainly see more skepticism and commitment from retailers where they want to see traction in these games.”
For Immutable, which raised $200 million last year at a valuation of $2.5 billion, the key element is “building a great experience for players — the economy has to be sustainable and the user experience has to be great,” Ferguson said. “From there everything will flow.”
“The future isn’t screaming at gamers why they should love NFTs; it shows them with a product they want to play. Robbie Ferguson from Immutable
Since the start of 2022, the top 10 blockchain gaming projects by market capitalization have dropped as much as 95% due to an inability to maintain sustainable in-game economies and player bases, according to Delphi’s The Year Ahead for Gaming report.
For example, the token price for Axie Infinity, one of the biggest web3 games to gain traction, hit an all-time high of $160 in November 2021, but has since fallen 92% to less than $12, according to CoinMarketCap data.
“We believe that most projects should not have live tokens in the market until most of their key game loops are established, which can protect them from speculation and inflated expectations,” the Delphi report said.
There will be a much higher standard for how effectively and efficiently a foundation uses its tokens and the direct return on tokens issued, Ferguson said. “I think a lot of tokens are being misspent right now.”
Shreya has been with todaybusinessupdates.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider todaybusinessupdates.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.