Play-to-earn games are the new gaming genre of this era, but how long will they last? Is it worthwhile to invest thousands of dollars in order to play and earn? Is the business still profitable? How can companies that play-to-earn keep the game economy going? Is there another option? Or are these companies just hyping it up, then going rug pull?
In this article, you’ll learn more about play-to-earn games which will help you before investing or spending a lot of money on them.
The article will cover topics such as:
- Are play-to-earn games legit?
- What is Play-to-earn(P2E)?
- How do play-to-earn companies make money?
- How does crypto play to earn games work?
Are play-to-earn games legit?
Play-to-earn games are the new trend in 2020, and many legitimate play-to-earn games are still in operation today. They, like Axie Infinity, began in 2018, but they are still in operation, so that’s 4 more years of operation! But the question is, how long will these p2e games last? Is it long-term? What will happen if no new players join in?
If we’re talking about legitimacy, play-to-earn games are legal as long as they follow the law on SEC regulation in your country and follow the Securities Laws. Because play-to-earn games are subject to abuse due to so-called rug-pulls. As long as the play-to-earn company is doxxed and the game economy is sustainable, there is no need to be concerned because someone will be held accountable if the worst-case scenario occurs.
What is play-to-earn(p2e)?
Users can farm or collect crypto using NFTs in play-to-earn games, which they can then sell on the market. By playing the game on a regular basis, each player can accumulate more items or tokens to sell and earn money. Some players have even begun to supplement or replace their income by playing blockchain games. Some NFT games enable users to store NFTs or cryptocurrencies in smart contracts, which generate rewards by staking their nfts.
Blockchain technology has enabled the creation of digital items that are impossible to duplicate. This gave rise to the concept of digital scarcity. But the question is, are play-to-earn games sustainable?
There are numerous play-to-earn games that don’t give as many rewards as they did in previous months or years due to a large number of players who struggle to get rewards from the rewards pool when playing p2e games. Some “experts” claim that you are too late to join this game, so you will not earn much, or you must spend more than $1000 to have a higher win rate and rewards. Is it truly pay-to-win? Or is it simply pay-to-win and first come, first served? Before we start playing p2e games, let’s think about it.
How do play-to-earn companies make money?
Companies profit from their play-to-earn model by selling NFTs on open-sea, conducting transactions on their own marketplace, and selling lands, items, and packages. But what if there are no players that can purchase their in-game offers? That is why burning mechanisms, such as limiting supply to keep demand high, are important for maintaining cryptocurrency value stability. Because if these play-to-earn items, lands, or NFTs are in unlimited supply, the gaming economy will implode and the game will die because there are no more rewards to give to players. For example, take Axie Infinity; they have many players and the SLP supply is unlimited, but the demand is decreasing; its SLP price is only $0.01 in February 2022.
How do crypto play-to-earn games work?
Players are given virtual items within the game or they can purchase NFTs, as well as the ability to increase their worth by actively playing. In-game assets can now be defined by a unique blockchain marker thanks to the introduction of non-fungible tokens (NFTs). This enables digital items with a monetary value in the gaming metaverse, such as nft attributes, weapons, spells, rarity of items, virtual land, etc.
By participating in the game’s digital economy, players can generate value for themselves, other players, and the game’s developers. In exchange, they may receive a variety of digital assets such as SLP. These could be new in-game items, characters with varying scarcity, or a cryptocurrency token that can be sold in the metaverse marketplace or an NFT marketplace like opensea.