NFT Game – Money From Games? Just A Piece Of Cake

NFT game is attracting attention as a soaring word in 2021. This online game, linked to the blockchain (distributed ledger), is pioneering a new paradigm of not only playing and enjoying, but also earning while playing as an investment target.

While cryptocurrencies related to NFT games are showing an extraordinary surge, various questions are asked, “Is this popularity real?” “Is it really profitable?” “Is it just a temporary bubble trend?” It is also true that they are being thrown.

NFT tends to be preceded by some sensational topics, such as digital art being sold for about 7.9 billion yen, but what is the actual situation? This time, we will focus on the “NFT game” and unravel it.

Why Is the NFT Game Hot?

What exactly is an NFT game? It looks like a normal online game on the screen, but the process and rules for playing it are completely different. Of course, the main body is an NFT.

Various contents such as digital art and videos are traded in NFTs, but recently, the target has also extended to games. And we cannot overlook the fact that we are building a new game market as a decentralized application called a Dapp. So first, let’s take a look at the appeal and notable points of this NFT game.

1. Create Your Own Character

Since NFT is a non-fungible token, the characters of the game traded here will be unique. If you follow the rules in the game and use all the tools and items to grow your own unique character, you can trade this as an NFT. The worldview of the character varies depending on the game. Moreover, its value is clearly evaluated numerically like a stock price, so the grower is not complacent. How to raise a star character loved by the market is a showcase of your skill, and it will be a big exciting point.

2. The More Popular It Becomes, The More Money You Have

(High popularity, high price)

In NFT games, if the character you raise becomes popular, it will be a good investment target. In traditional games, characters are the only target you can control in the game, and they are just a way to earn points and defeat enemies. And if you are a player of that game, many people around the world can operate the same character, and even if it becomes popular, related goods will sell.

However, in NFT games, the character itself is an investment target, and if you sell it, even one will be worth tens of thousands of yen or more, and ownership will be proved. In addition, the price of virtual currency, which is a token used for payment, will fluctuate while being affected by the excitement of the game. Therefore, you can expect the asset value of the tokens you get by selling the popular characters.

3. Enjoy Character Exchange

A notable feature of NFT games is the system that allows you to exchange characters between completely different games. Not all NFT games, and the number is still small, but compatibility is novel. In the real world of art, it may be like bartering. Invite characters raised in a completely different game into the game you play, customize and sell them. Motivation to enjoy the game and motivation to earn high praise in the market. The fusion of two incentives not found in conventional games will be a new attraction unique to NFT games.

4. Hacking? No Problem

A major problem in today’s online and social games is the existence of cheats that make characters unusually strong through fraud. The act of a heartless user ruining the game market would be terrible for those who genuinely want to enjoy the game. However, in that respect, an NFT game systematized by blockchain cannot easily tamper with data, so even if cheating is performed, it can be immediately discovered and quickly eliminated, so it is safe.

Can You Really Make Money from Games?

Since NFT games are a business model that has never been seen before, many people may be wondering if they can really make money. The first NFT game is a game that breeds and raises cats called “CryptoKitties” that appeared in 2017. And since it wasn’t until 2021 that NFT games began to boil in earnest, I can’t help but wonder, “Is it really okay?” However, there are people who actually make money from NFT games, and it is a fact that a very meaningful business model is being built. One of them is the “scholarship system”.

NFT games are attracting attention for their novel profit style of earning while playing, which is called “Play to Earn”. Many young people, especially in Southeast Asia and Latin America, who have lost their income sources due to the corona disaster, are all seriously trying to make a living by “Play to Earn”. However, due to the high price of NFTs, it is very difficult for these young people to buy their own characters and participate in the game.

If wealthy people, investors, and even the decentralized autonomous organization “Yield Guild Games (YGG)” for investing in NFTs rent out the purchased characters and young people play and earn money using them, that is the case. A scholarship system is underway to share the amount (tokens) at a fixed rate. As a result, for example, Filipino users earn an average of $ 50 a day in Vietnam’s first NFT game “Axie Infinity,” which will be described later, far exceeding the average wage of $30.

In addition, game players can earn more assets by earning tokens and not immediately monetizing them, but by holding them and waiting for the tokens to rise in market price. In fact, the price of Axie Infinity Axs tokens has increased 20 times in about 3 months. By the way, some Chinese investors who have paid attention to the asset value of NFT games have already owned more than 100 million JPY in games alone. Recently, transactions related to NFT games have become active, and the transaction volume of NFT in August 2021 of major exchanges marked about 120 billion yen, which is three times that of July in just over two weeks. Therefore, if you trade characters in NFT games and invest in virtual currencies that accompany them, you can expect to make a considerable amount of money.

Axie Infinity

The NFT game “Dapp” is appearing one after another, but the one that is by far the most noticeable is “Axie Infinity” released by a Vietnamese startup in 2018. Axie Infinity is an NFT game where you can grow, breed and battle monsters on the blockchain Ethereum. The protagonists are six types of monsters called “Axie”, each with a different personality. Insect-type, plant-type, bird-type, etc. have various appearances, strengths, and durability, and have their own strengths and weaknesses.

In addition, each Axie has four levels of rarity (rare value), and the rarity value increases in the order of common → rare → ultra rare → legend. Breeding with two monsters will create new monsters that have never existed in the past, and the possibilities are endless. Players buy the virtual currency Ethereum, set up a wallet on the web, deposit Ethereum there, and buy monsters. The condition is to purchase three monsters first, and one is cheap and costs around 20,000 yen, and if it is expensive, it costs 50,000 to 60,000 yen or more, so an initial investment of at least 100,000 to 150,000 yen is required. is.

There are two play styles, “Adventure” like sugoroku and “Arena” where players can enjoy battles with each other, and each player gets a virtual currency SLP token every time they win. If you sell a monster, you can get a virtual currency AXS token, but one unit is about 70 dollars (as of August 2021), it has risen about 15 times in about 2 months, and the market capitalization is 4 billion dollars. Axie Infinity has about 500,000 active users, 60% of whom are Filipinos. Axie Infinity is the first scholarship system I explained earlier, and if it continues to operate smoothly, it is thought that the second and third Axie Infinity will appear.

Also see: Axie Infinity and Ponzi Scheme – Play more, earn more?

NFT Game – Trends and Future

Axie Infinity has increased its profits by about 170 times in just four months from April 2021. This is an astronomical number from a real economic perspective, and it can be said that it is nothing more than a bubble. However, on the other hand, it is also true that NFT games have a mechanism that does not end this boom transiently. Traditionally, in the NFT market, transactions using the cryptocurrency Ethereum required a high fee called Gas, which was a factor that hindered the entry of many people. However, in May 2021, the developers of Axie Infinity built a side chain called “Ronin” that does not require a gas fee, and succeeded in the transition. As a result, the popularity of Axie Infinity exploded at once.

Furthermore, the appeal of NFT games lies in the epoch-making system that allows you to sell characters (real money trading) as mentioned earlier. This is an act that has been strictly prohibited in traditional social games. However, from the perspective of core gamers around the world, the NFT game has made buying and selling in the currency of characters, which was a big admiration, a reality. Therefore, the current situation is that many praises have been raised saying, “You did it well!”. Its appeal has endless possibilities, so if people all over the world are addicted to this worldview and the social significance of the scholarship system is widely recognized, NFT games will never be popular. It doesn’t end with transients, and it may grow by an order of magnitude from here.

However, since NFTs are built on the blockchain, it cannot be denied that they may be targeted by cyber attacks or become a hotbed for money laundering. Moreover, since the way of thinking about NFT is different in each country and the legislation has not caught up, it is unknown what kind of trajectory the NFT game market will take in the future.

Summary

In our company, Relipa, we always try our best to give customers the optimum blockchain Development services.

Taking advantage of the strengths unique to outsourced development, our services exceed expectations at a low cost, with the high technical capabilities and abundant experience from the engineers who are familiar with Japanese and well-qualified Bridge SE, IT Comtor team.

If you have any requests for NFT development or other Blockchain development, please feel free to contact us. We are sincerely looking forward for you.

Also see: Relipa’s NFT Development Service (Japanese – Translated English)