Summary: In the past years, projects like Axie Inifinity and Sorare have allowed people to witness the huge potential of GameFi --the combination of games and Decentralized Finance (DeFi), which has attracted a large number of young, tech-savvy and entertainment-loving users. However, under the influence of the looming global recession, inflation, and other macro factors, the ...
In the past years, projects like Axie Inifinity and Sorare have allowed people to witness the huge potential of GameFi --the combination of games and Decentralized Finance (DeFi), which has attracted a large number of young, tech-savvy and entertainment-loving users.
However, under the influence of the looming global recession, inflation, and other macro factors, the GameFi market has also suffered a bear market blow.
At the recent 2022 ABGA Blockchain Gaming Summit, hosted by the Asian Blockchain Gaming Alliance (ABGA), ABGA Executive CEO Kevin Shao said that under the weak environment, the crypto industry needs to find ways to let mainstream know what Web3 is, as well as how to use the technology in GameFi.
ABGA ---a non-profit organization co-sponsored by game industry organizations---was established in Singapore on November 25 2021, it aims to provide practitioners with a broader platform and empower industry development and Web3 education.
Speaking of ABGA’s vision, Kevin Shao said, “We are still young, but we have some very experienced founding partners.Web3 is still in its early stages, games are very good places where people can use Web3 technology, so we want to form an alliance to better help our industry and to spread our influence to more places, that is why we set up ABGA and why we wanted to have a big event in Singapore, we want to educate the market, we want to help members spread their influence in the community.”
Mary Ma, the co-founder of Mixmarvel, a blockchain gaming platform and content community, also talked about her view on the bear market and blockchain games at the conference.
Mary believes that both of bear market and bull are a good time to build projects, for instance, Uniswap’s success is one that stems from the team’s accumulation during the 2018 bear market.
Builders within the GameFi space are still constantly improving and developing features within the games. Additionally, the shift from “Play-to-Earn” to “Play-and-Earn” is likely to be the biggest factor in retaining users, because the money-driven needs to return to people’s original intention of playing games--fun.
If blockchain games can have a steady stream of loyal users, then in-game economics or monetization problems can all be resolved.
Mary Ma said, “We proposed the concept of GameFi in 2019, but it is only a new financial service form with gamification characteristics, you cannot treat it as a pure game. In a lot of people’s eyes, the life cycle is very short in GameFi, the game is boring, and tokenomic is not sustainable, but as an experiment, it is successful. We stopped investing in these projects starting last year, now we bring a new concept which is Web3 games, we want to develop more games with high playability, content that is high-quality, tokenomic is mature, have longer life cycles and a better ecology; this is a game that has Web3 functions and is truly fun and will bring new value to users.”
In-game NFTs also face hype and practicality issues.
Gagan Palrecha, CEO of sports metaverse platform NFTSTAR, spoke on the challenges faced by NFT creators at the ABGA conference.
Palrecha believes that will people view NFTs differently in 2023 and beyond; increasing NFT utility is key to adding value. The current NFT is more like an investment, users are willing to buy NFTs because they trust the community and roadmap, and believe that when its popularity rises, they will be able to gain benefits as early holders.
Palrecha said, “We found that there are some blue-chip NFTS that do very well (like CryptoPunks), but there are still many other NFTs that aren’t doing so well; the challenge within is that this is an investment, you must undergo marketing for sales, and a little bit of luck, this is purely marketing NFT.
On the other side, there are NFTs that would provide more utility, the experience of interacting with artists or celebrities, or ecosystem utility. For NFTSTAR, we truly focus on two things: one is celebrity IP, because celebrities have lots of audiences, two is that people easily resonate with celebrities and the things they do, we create IP and fantasy worlds in games, unlocking game and app experiences through NFTs, that is the biggest difference, with the increase of utility and practicality, more meaningful IP comes into play, the value of NFTs will increase.”
Although the crypto market continues to consolidate, GameFi popularity has still not decreased. Dappradar data shows that 60% of the industry wallets belong to GameFi users; this means that more than half of crypto users are still using GameFi.
As developers seek to improve user experience and better tokenomics and monetization methods, the development of the GameFi race track remains promising.
By Katie Lin, Mary Liu
Tags: ABGA,GameFi,NFT,Web 3
Link: 【Bitpush & Formless】ABGA Opinions: Web3 Empowers GameFi, Playability and Utility Are Keys to Long-Term Development [Copy]