Play-to-Earn Games Are Taking Center Stage: How Can Users Benefit? - Coindoo
Crypto Play-to-Earn games

Play-to-Earn Games Are Taking Center Stage: How Can Users Benefit?

Editorial Team Avatar
Feb 2, 2022
4 min reading time

Billions of dollars are being invested in the creation of an entirely new gaming financial system with the efforts of thousands of developers – this GameFi model is here to stay according to Reddit co-founder Alexis Ohanian, who predicts play-to-earn games will enjoy a 90% share of the gaming market in the next five years.

What Is the Future of the GameFi Model?

GameFi is an umbrella term for a variety of gaming applications leveraging blockchain to issue in-game assets, tokens in particular. This play-to-earn approach is opening up the gaming world for profit-taking, allowing full-time and seasoned gamers to cash-in on their gaming skills. Axie Infinity, a pioneering GameFi, has seen users booking up to $500 in profits monthly.

Perhaps unsurprisingly, big players like Reddit Co-founder Ohanian are betting big on this emerging field. These prospects have rattled venture capital firms that are scrambling to invest early. In January, for instance, Mechanism Capital – a crypto investment firm – launched Mechanism Play, a $100 million fund dedicated to explore opportunities in the Play-to-Earn segment.

Consequently, players, and investors alike, are the driving forces behind the explosion of play-to-earn games. The demand is on the rise and shows no sign of stopping. Even though these games pay out in native token rather than hard cash, these tokens eventually become valuable with the growing popularity of the game and its in-game assets.

NFTs are also making its market in GameFi. These two models combined are looking like the building blocks of the metaverse. Already, popular Netflix series – Squid Game – has inspired a popular game of the same name that rewards users in its native token. This digital assets also allow players to participate in decisions that will impact the future of the game.

Even before the game went live, it generated a cult-like following eagerly waiting to collect its NFTs. This fact could be more evident than the speed at which Squid Game fans minted all its NFT at stage zero, less than 30 minutes into the game. Later stages opened up the game for play-to-earn, letting participants profit from the game.

The NFT collection was by far one of the most valued in the entire crypto gaming market. It consisted of eight hand-drawn classes of NFT from players, guards, VIPs, policemen, player 001 avatars, leaders, salesmen, and dolls. Put together, that’s nearly 20,000 NFT rip for the minting at a gas price of less than $1 on the Binance Smart Chain.

Is There a Secondary Market for Digital Assets?

Times have changed – reselling digital assets is now easier than ever before. In fact, NFT sales on the secondary market totalled more than $15 billion in 2021, according to a study by research firm Messari. The five-year projection forecast the market will continue to grow in value with the growing number of NFT offerings.

Squid Game #Player NFTs is aiming to make its market on this emerging secondary market. The game’s token is already listed on popular decentralized exchanges, which are growing in popularity for NFT exchanges. GameFi and in-game collectible exchanges like TofuNFT, NFTrade, and AirNFTs are other marketplaces where users are buying and selling Squid Game assets.

Getting in the Game Early

One hallmark of the crypto market is that it pays off handsomely to early adopters. Getting in the game early is a sound strategy all around. That explains the rush to join the Squid Game whitelist that featured more than 7000 participants scrambling for the players NFT, only for 500 to be admitted at stage zero.

Minting #player gives a chance to obtain a governance token during the games, and a competitive edge by playing for a while longer than later adopters. Even though the games are yet to be released, adopters rushed to secure positions. The game itself will launch at stage 4, and the rest of the games will be available after stage 5 with rewards of up to $150,000, including $25,000 for the winner.

Most of these games will be modeller like the games on the popular series, which is partly driving the hype as participants seek to stake their character’s lives for a chance to win big. The first batch of bonuses and airdrops of the game’s governance tokens are set to be announced soon on the official Twitter, Telegram, and Discord channels.

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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