Have you decided that GameFi is a good investment? You can get GameFi tokens on Coinbase today.
The gaming industry has started integrating blockchain technology to create a thriving new economy. By turning skins, weapons, bonuses, and other in-game items into non-fungible tokens (NFTs), game companies can create real assets for their users. These assets are tradable on open markets, allowing the market to naturally value them.
In addition to making NFT game items, the game-to-win model has grown in popularity, incentivizing players with tokens redeemable for dollars. With play to win, players are paid by advancing through the game through experience points (XP), winning battles, and other unlimited possibilities.
A number of other crypto sub-areas have taken off, starting with the initial coin offering (ICO) boom in 2017 and followed by yield farming, decentralized finance (DeFi) and artistic NFTs. The next step could be the increased adoption of GameFi.
By incentivizing players with digital assets and a game model to win, all that’s missing is quality gameplay. With billions of dollars entering the GameFi industry, this situation is likely to change. As higher quality projects hit the market, the number of players and monetary incentives will also increase. Being early in this adoption could be very profitable.
Is GameFi here to stay, or just a fad?
Although GameFi probably has a bright future, some players in the crypto industry are using it to make a quick buck. Unnecessary tokens and NFT projects that never deliver an actual game are common themes.
Companies that build behind the scenes rather than promote unproven products have the most potential. For better or worse, crypto is tied to big money, attracting shady players looking to profit.
The good news about the recent crypto market downturn is that it is ridding space of a lot of bad apples. With prices falling, space is largely being left to crypto-natives and builders, like a controlled forest fire clearing away dead undergrowth helping healthy tall trees grow.
The GameFi hype was initially boosted by a game called Axie Infinity. The game is all about training, raising, and battling your Axies – cute creatures that look more like Pokemon. All of this action is in a game-to-win ecosystem.
Axies are also NFTs and are tradable on OpenSea, as well as on Axie Infinity’s internal market. An Axie was sold for a record $820,000. The Axie Infinity Token, AXS, is awarded to players for progressing through the game; it is trading today for just over $14. The better your collection of Axies, the more potential AXS you can earn, which starts to justify the purchase of $820,000.
Another key aspect of the GameFi economy is the channels that host the games. Originally it was Ethereum, the chain supports ERC-20 tokens for the play-to-earn model as well as ERC-721 tokens for NFTs. Today, more and more channels have features specifically designed to support gaming. Many different alt 1 layers compete with layer 2 solutions that are built on top of Ethereum.
Advantages and disadvantages of GameFi
As promising as the GameFi industry is, a few caveats hold it back.
Incentivize players with real money
Gives users ownership of their in-game items
A marketplace for trading assets
Many scams and projects that never get delivered
Difficulty onboarding unencrypted users
GameFi leaders today are cryptocentric, putting much more emphasis on blockchain use cases than gaming. This key indicator shows that the space is early in its development. When the top gaming companies start coming in, the crypto aspect will naturally be geared towards gaming. Users will benefit from seamless integrations with crypto and GameFi.
While games compete for users, blockchains compete for games. Some favorite blockchain games include:
These games run on a number of different channels. Games tend to prioritize transaction speed and low fees when choosing which channel to expand on.
Some of the major channels that support GameFi are:
Binance Smart Chain
How to make money with GameFi
Money is earned in multiple ways in GameFi, the most common being trading game or blockchain tokens. Additionally, staking these tokens to help secure the network can gain yield.
The other way is to play the game, earning NFTs or Tokens as you progress. An interesting pattern that stems from this is a process known as stock market. In the Axie Infinity game, a person can buy the Axie and lend it to someone to play with; Then the gameplay profits are shared between the owner and the player.
How to Buy GameFi Tokens
Many GameFi tokens are sold on Coinbase Global Inc. (NASDAQ: CURRENCY). If you are looking to play the games and not invest in the projects, a non-custodial wallet is necessary. Coinbase offers Coinbase Wallet; another popular option is MetaMask. These wallets can be added as Google Chrome extensions and will give you access to different decentralized applications.
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Coinbase is one of the largest cryptocurrency trading platforms on the internet. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally easy to buy and sell major cryptocurrency pairs.
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Although Coinbase doesn’t offer the most affordable prices or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single transaction.
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Simple platform is easy to use
Full mobile app mirrors desktop functionality
Coinbase Earn feature rewards you with crypto to learn more about available coins
Higher fees than competitors
So, is GameFi here to stay?
GameFi makes a lot of sense, because its incentives are obvious. However, its games will need to be able to easily integrate non-encrypted users, as well as start delivering higher quality gameplay for the masses to start taking it seriously. If GameFi can turn fun-to-play games into thriving economies, then it could be one of the most exciting spaces to come in crypto.
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