P2E gaming blockchain projects have lost popularity. But does this sphere have prospects for further development? Review by Crypto-Upvotes experts
Rapidly falling token value of most play-2-earn projects has also intensified criticism of these concepts. In addition to several scathing articles. Popular documentaries and stories about Web3-game addiction have also appeared online.
The price of Axie Infinity first-generation P2E project token lost more than 90% of its peak price. The asset was one of investors’ biggest disappointments last season. The situation was exacerbated by the fact that an instant sale of the asset on a breakout of important price levels was out of reach for many. This was due to participation in a 90- or 180-day fixed stack from Binance with “most attractive” conditions of over 100% per year.
Less capitalized p2e projects suffered more than AXS: Aurory (AURY) on Solana lost more than 95% of its peak price. And also SolChicks (CHICKS) also on Solana lost more than 98% of the peak. And the liquidity of this asset almost completely disappeared from all centralized and decentralized sites. Gods Unchained (GODS) on Ethereum fell in price by 97% from maximum. As well as Age of Gods (AOG) on Binance – by 96% of maximum values.
Is gaming addiction dangerous for P2E users?
“At first I was happy, but soon I began to feel weak and insomnia began to appear. That’s how Orias, a Filipino man who is the protagonist of a Time article, described his experience with Axie Infinity.
The story follows the stories of several Filipino families. Who tried to make ends meet with the help of extra income from P2E games. Particularly emphasizing the negative factors for the human psyche and pointing out the randomness factor in gaming, often leading to gaming addiction. However, the dramatic stories of many Filipinos hide the multifaceted nature of the issue and the lack of a comprehensive approach in the study of the phenomenon.
To speak of a specific P2E gambling addiction would be to get to know a large part of the community of gamers. Did they have a predisposition to other gaming addictions before their experience with the game, or was P2E gaming the original factor that formed the addiction? Even without mentioning P2E, new users when encountering the web3 sector. It can be tempting to solve their financial problems with platforms that promise quick prosperity. Cryptocasinos, sweepstakes, and pyramid schemes are very popular in web3.
At the same time, even with the complete “cleansing” of blockchain space from the dangerous sources listed above. New users prone to gambling addiction will be able to use neutral market instruments for unrealistic enrichment. So, for example, futures with high leverage (10X or more). Can be reasonably used by traders to hedge risks of long positions. The same tool can be used for absolutely game-like bets on the smallest rate movements.
From P2E to X2E what next?
Despite multiple drops in P2E-projects’ stock prices. As well as gamers’ exodus from existing projects and a wave of criticism in media. Gaming industry may still be at the very beginning of its upcoming boom. Summer and fall of 2022 saw a tremendous amount of investment in blockchain-related games projects. For example: $500 million to create a Web3 gaming venture fund from Immutable. As well as $200 million for blockchain game firm Limit Break. Or $100 million for Web3 game publisher Animoca Brands and many other deals.
Many developers and investors of this sector agree that the next billion users in Web3 will come exactly through gaming. This topic was actively discussed at the recent World Blockchain Summit in Dubai. Many gamers are already used to lifestyle and behavior close to Web3. This is exchange and trade of in-game items. And also improving the characteristics of your characters by buying exclusive clothing and accessories and collecting them. And joint attendance at major online events in game reality.
Together with the influx of new funds and developers in the sphere of Web3-games, to replace the concept of P2E came the acronym X2E. It means that users should not just play. But to do some action to get desired tokens.
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