Blockchain entertainment is not only fun, but also profitable. What options does play-to-earn open, and what are the prospects for the development of industry GameFi ?
GameFi are blockchain projects that allow profits for gaming experience: users earn profits for participating in game. All player items and rights become their property: characters, land, artifacts, clothing, and more.
Project developers choose the cryptocurrency for payments within the project. However, more often than not, each platform creates its own token. Some projects may require a small investment to start gaming activity, but mostly you just have to play.
There are other options for earning money at GameFi. NFT items can be sold. The price of game items will be higher the more popular a game is. You can also rent your virtual property. Or participate in tournaments or bet on the results of competitions. In some projects, you can put your earned coins in stacking.
Basic earning rules and how GameFi works
The main principle of earning in this industry is Play-to-Earn. Players are paid for what they play, which is either hours spent in the app or specific useful in-game actions. All schemes come down to a developer paying users to use their app. In this case, for the use of a project game. Depending on mechanics of these games, there may be slightly different ways of investing in such projects.
Our Crypto-Upvotes experts gave Axie Infinity as an example. In which to “multiply NFT characters” players need to spend in-game currency SLP. If player numbers continue to increase, it might be enough to buy such a token, in the hope that increased demand will drive up prices.
More critical investors can take part in gameplay. Then their earnings will come from the sale of game currency and newly obtained “characters”. There are many such games, but their principles are similar.
A recent trend on STEPN showed that projects actually create very different ‘something-to-Earn’ mechanics: run, jump, play, breathe and even have sex. But each project is unique in some way, and you have to study its history and perspective individually.
In some projects it is enough to buy control tokens. And somewhere the game will involve the investor in internal processes. For ordinary players everything is simple – they exchange their time for the developers’ money. One only needs to assess the risks if entering the game requires an initial investment to buy a starter set of tokens.
GameFi principles are not new, although the association of projects with blockchain has renewed interest in a whole industry. All principles of generating some profit existed before decentralization of games. In most cases, if a player gets something for free. Then money in this transaction is a player himself – his time, personal data, behavioral information, his attention, etc. All of this can be sold to analysts, advertisers, researchers, etc.
How to choose gaming projects to make a profit
First of all, it is better to pay attention to the major established projects with a large audience. For example: Axie Infinity, Alien Worlds, CryptoBlades and many others. The tokens of these projects have the greatest liquidity, which will reduce risks from investing in them.
Another strategy could be to buy blockchain service tokens. In which most of the GameFi-projects are located. In addition to Ethereum and Binance Smart Chain, it is possible to buy more specific ones: WAX, EOS, KardiaChain, ThunderCore.
Our experts say that it is very dangerous to follow new projects without personal experience. Many of them are created for purposes of scams or financial pyramid scheme principles. Others may close due to bad business processes and external manipulation.
Our Crypto-Upvotes experts named promising projects where there is a strong gamer community with high involvement. This allows brands to integrate into gaming. Coins from game studios and native tokens from the top five most popular games are also worth considering.