If you have believed in the future of cryptocurrencies, this week has surely been difficult for you.
Once loudly heralded as the future of the investment world, the cryptocurrency industry has been hit hard by a series of unfortunate events, including the value of bitcoin plummeting to new lows and withdrawals pausing. of the key trading platform Binance.
One-time crypto billionaires are also losing money.
Finance pundits who were never convinced of the viability of cryptocurrencies in the first place, like global strategist Peter Schiff, were quick to predict that more pessimism is on the way.
Microsoft (MSFT) – Get the report from Microsoft Corporation Boss and well-known billionaire Bill Gates also made it a point to talk about the state of cryptocurrencies in May before the crash, making it clear that he didn’t own any because, as he put it, “I like to invest in things that have valuable output.”
Games that promise financial return
So while all this crypto market dumpster fire might mean that the endless cascade of celebrity NFTs might finally start to wane, there is another group of investors who are still passionate about combining their financial interests with their love of video games.
That led to several blockchain games that actually have a decent sized player base. “Axie Infinity”, a “Pokemon”-style game that uses what is called the Play To Earn (PTE) business model, allows players to collect cute NFT creatures called Axies, which can be collected, bred, and sold in-game .
“Decentraland” is another popular title. Built on top of ethereum and owned exclusively by its users, the game features a metaverse where users can buy and sell property, hang out with friends, and explore. Kind of like the Facebook metaverse, but not owned by Mark Zuckerberg (ugh).
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Many have been drawn to try blockchain games because many games promise potential investors that they can earn money by playing.
But with crypto tanking the way it has been, what does that mean for the future of these games?
Will Blockchain Games Fall Apart?
Many investors may feel that it is time to withdraw from cryptocurrencies, but there are quite a few blockchain players who still feel differently.
In fact, they poured $2.5 billion into blockchain gaming investments in the first quarter of 2022 alone, DappRadar reports.
That said, the blockchain gaming scene has been plagued with its own problems. “Axie Infinity” suffered after an ethereum sidechain built for it, the Ronin Network, was hacked in March 2022, resulting in the loss of $600 million worth of assets.
After heavily promoting the game as a way to make money, the creator of “Axie Infinity” says it was “never about the money,” leading many to feel they had been lured into a crypto-flavored pyramid scheme.
While “Axie Infinity” may be one of the most well-known blockchain games, there is no shortage of both established and new to the market.
Whether any of them make money for their users remains to be seen, though there are plenty of social media evangelists who swear they’ll be billionaires in the very near future.
And it’s not hard to see why. The idea of playing games and getting paid for it without having to compete on an esports team under grueling pressure to win has a lot of appeal to some.
It remains to be seen whether these early Web3 efforts can really go ahead and make the dream come true.