Game Coin: Worth Investing Or Just Another Risk?

Crypto gaming is an emerging model that combines two extremely popular industries: crypto and video games. It is garnering a lot of interest, with 128 blockchain gaming companies receiving investment in the first quarter of 2022. Crypto games allow players to earn cryptocurrency as they play, and to use their rewards and items across different crypto gaming projects. However, it is a risky investment, with a very uncertain future.

Crypto gaming combines two popular industries, but is it a passing fad?

Crypto gaming combines two extremely popular industries: crypto and video games. In crypto gaming, players can use cryptocurrency as the in-game currency to purchase characters and weapons. These games also often use a play-to-earn model, where players can earn crypto by completing tasks.

Blockchain games were responsible for half of all blockchain usage in 2021, and in-game collectibles alone generated $2.32 billion in sales during the third quarter of that year. Despite this progress, the blockchain gaming market is still in its early stages, with a very uncertain future. The bottom line is that gaming coins have the potential to revolutionize the gaming industry, but it is still too early to tell if they will catch on and which games will survive.

Some people argue that the use of crypto in gaming is just a fad. They believe that it is an inefficient technology for something that is already centralized and that regular databases could be used instead. Additionally, they argue that the use of NFTs in gaming is psychologically manipulative, as people dream about getting rich by selling their in-game NFTs without considering the dollar per hour gain.

On the other hand, some people believe that the combination of AI and crypto in gaming is not just a fad. For example, a Singapore-based startup called Ultiverse, which is an "AI-powered" platform for crypto game production and publishing, has secured support from reputable investors and raised $4 million in funding. Ultiverse uses AI to train its in-game non-player characters so that each player has a unique experience when interacting with them. Players can also create their own AI agents to act on their behalf.

Overall, the crypto gaming industry is still in its early stages, and it is difficult to predict whether it will be a passing fad or a force to be reckoned with. While some people argue that the use of crypto and NFTs in gaming is psychologically manipulative and inefficient, others believe that the combination of AI and crypto can revolutionize the industry and provide a unique and personalized gaming experience.

The pros and cons of investing in gaming coins

Pros

• Gaming coins combine two extremely popular industries: crypto and video games.
• They can be used to purchase in-game items such as characters and weapons.
• They often use a play-to-earn model, where players can earn crypto as they complete tasks.
• In-game collectibles alone generated $2.32 billion in sales in Q3 2021.
• Gaming coins are commonly used in gameplay, and there are numerous benefits to investing in them.
• You have the opportunity to earn significantly more money when you play games.
• You can also sell your game coins in exchange for real money.
• Gaming coins are designed to be used as an investment or store of value.
• They are decentralised and not subject to government regulation.
• They can be used to enter game contests or bet on the outcome of a game.
• They can be exchanged with other players.

Cons

• The gaming coin market is very uncertain.
• It's hard to tell if and when blockchain gaming will catch up to the traditional video game industry.
• It's even harder to predict which, if any, of the current games and coins will survive.
• The entire blockchain gaming market fell off in 2022, and several popular projects lost 80% or more of their value.
• Gaming coins are a risky investment, even for crypto.
• The modern cryptocurrency market is complicated and not suitable for those with short-term investment horizons.

The future of crypto gaming

Crypto gaming is on the rise, combining two extremely popular industries: crypto and video games. Gaming coins are a relatively new type of cryptocurrency and have become a popular choice for investors. Blockchain games were responsible for half of all blockchain usage in 2021, and in-game collectibles alone generated $2.32 billion in sales during the third quarter of that year.

Wemix, a subsidiary of Wemade, is one of the platforms leading the charge and shaping the future of blockchain gaming. It offers a seamless experience to gamers and developers, with over a dozen games and millions of active participants. Wemix champions the play-and-earn gaming model, which strikes a balance between gameplay and the prospect of earning money. This approach caters to traditional gamers seeking a fun experience while also attracting non-gamers looking for an alternate form of crypto investment.

The global gaming market revenue is expected to reach $225.7 billion by 2025, with blockchain games expected to play a significant role in that growth. Chang predicts that all games will have their own game tokens, non-fungible tokens (NFTs), and decentralised finance (DeFi) mechanics within the next three years. With blockchain technology, gamers will be able to trade their in-game gains not only with other players but also with people looking to invest.

The best gaming cryptocurrencies to invest in

The rise of blockchain technology has led to the emergence of crypto gaming, which combines two extremely popular industries: crypto and video games. Gaming coins are a relatively new type of cryptocurrency, and their popularity is on the rise.

Players can use the game's crypto to purchase characters and weapons, and some games also use a play-to-earn model, where players can earn crypto as they complete tasks. Blockchain games and in-game collectibles generated billions of dollars in sales in 2021, and although progress has been stop-and-go since then, the industry is still in its infancy and could have serious potential.

Decentraland (CRYPTO:MANA)

Decentraland is a decentralized metaverse built on the Ethereum blockchain and governed by its users. Players can purchase plots of land called LAND and use them for games, art, digital tourism, and more. The native token, MANA, is used for in-game transactions and gives holders voting rights.

Axie Infinity (CRYPTO:AXS)

Inspired by Pokémon, Axie Infinity lets players buy, trade, and battle creatures called Axies, which are non-fungible tokens (NFTs). Players can earn AXS gaming tokens for playing, with some reporting earnings of hundreds to thousands of dollars worth of crypto per month. Early investors saw a massive increase in stock value in 2021, with the price surging by more than 28,000%.

The Sandbox (CRYPTO:SAND)

The Sandbox is a decentralized platform that allows players to create their own 3D game worlds without coding knowledge. Players use SAND tokens for in-game transactions, such as buying equipment and LAND, which is the platform's digital real estate. The Sandbox has also attracted partnerships with gaming company Atari and celebrities like Snoop Dogg and Deadmau5.

Enjin Coin (CRYPTO:ENJ)

Enjin Coin is a cryptocurrency designed to work with a variety of blockchain games. The company, Enjin, offers software development kits for creating digital assets like in-game currencies and special items. Players can use Enjin's wallet to store their inventory for connected games. Enjin Coin recorded gains of more than 1,800% in 2021.

My Neighbor Alice (CRYPTO:ALICE)

My Neighbor Alice is an upcoming multiplayer farm and builder game with a lighthearted design reminiscent of the Animal Crossing series. Players can buy land, farm it, and purchase animals. ALICE tokens are used for marketplace purchases, and players can earn tokens by completing quests or staking crypto. However, the value of ALICE tokens has fallen, and the game is still in a lengthy testing and development phase, making it a riskier investment.

Illuvium (CRYPTO:ILV)

Illuvium is an open-world role-playing game with elements of Final Fantasy and Pokémon. Players explore, hunt for creatures called Illuvials (NFTs), and battle in competitions. It's a play-to-earn game, and players can earn Illuvium tokens for winning. Illuvium's price rose significantly in anticipation of its release but fell with the rest of the crypto market.

Yield Guild Games (CRYPTO:YGG)

Yield Guild Games is a decentralized organization that aims to maximize the value of investing in NFTs used in popular blockchain games like Axie Infinity and The Sandbox. It does this by selling and renting NFTs, allowing owners to profit and other players to rent them. Yield Guild Games is a relatively new project that saw a rapid rise in price followed by a significant loss in value, reflecting the volatile nature of the crypto market.

While gaming coins offer exciting investment opportunities, it's important to remember that they are a risky venture, even within the crypto space. The blockchain gaming market is still in its early stages, and its future is uncertain. It's crucial to do thorough research before investing in this emerging industry.

How to invest in crypto gaming

Crypto gaming is on the rise, combining two extremely popular industries: crypto and video games. Gaming coins are a relatively new type of cryptocurrency that can be used as in-game currency to purchase characters and other items. Players can also earn crypto by completing tasks, breeding characters, minting new in-game items, staking tokens, and trading non-fungible tokens (NFTs).

Earning In-Game Tokens

Most blockchain-based games have an in-game currency and native tokens that can be swapped for other cryptocurrencies or cashed out. For example, Axie Infinity uses Smooth Love Potion ($SLP), which is both the in-game currency and an item used to breed characters.

Minting New In-Game Items

In some metaverse games, players can create in-game objects, wearables, and other collectibles and earn royalties from secondary sales. For instance, players can forge new weapons and sell them on the marketplace or submit NFT collectible designs for approval to be added to the game, earning royalties on secondary sales.

Staking Tokens

Staking involves locking tokens to earn rewards, making them available for other players to make exchanges. This is another way to make money while playing blockchain-based games.

Trading Non-Fungible Tokens (NFTs)

Trading NFTs involves purchasing and selling them. While this method requires upfront investment, patience, and research, it can be lucrative in the blockchain gaming space.

Participating in Tournaments and Events

Some blockchain-based games feature special events and tournaments where players can earn unique rewards. For example, players may enter a tournament with an entry fee, and the top player wins the pot.

Mining Tokens

Mining a token involves hardware "mining" new tokens to put into circulation. In GameFi, the mining phase begins with the release of a new gaming project, and miners add the game's native token into circulation. However, this process is costly and time-consuming and can stress the graphics processing unit.

• Decentraland ($MANA): A 3D VR platform that allows users to interact, share, and monetise content. MANA, the native token, facilitates transactions like acquiring virtual real estate (LAND) and voting on LAND politics.
• Axie Infinity ($AXS): A play-to-earn gaming platform where players can buy, collect, and trade in-game creatures called Axies, which are NFTs.
• The Sandbox ($SAND): A virtual gaming platform that combines DAOs and NFTs to create a decentralised ecosystem. It offers a creative play-to-earn model for users.
• Enjin ($ENJ): A well-established crypto gaming platform with a native token that offers services like the creation and management of virtual goods for game developers and players.
• Lucky Block ($LBLOCK): A new GameFi project and crypto gaming asset that facilitates Lucky Block blockchain transactions. It aims to improve transparency and trust during tournaments.
• ApeCoin (APE): An ERC20 governance and utility token used to manage the ApeCoin ecosystem, serving the Bored Ape Yacht Club community and related communities.
• Metacade: A gaming coin offering a comprehensive platform for gamers and developers, with unique features and growth potential.
• UFO Gaming: A platform allowing the creation, buying, and selling of NFTs, attracting gamers and investors interested in the intersection of gaming and digital art.
• Ultra ($UOS): A gaming platform providing a crypto-friendly environment for game development and monetisation, integrating blockchain technology.

It is important to note that gaming coins are a risky investment, and their future is uncertain. It is recommended to do thorough research before investing in this space.

Frequently asked questions