Blockchain games are one of the fastest-spiraling segments of the gaming industry. In the first quarter of 2021, the startups which are developing blockchain games have attracted $476 million which is double the size of the investment during 2020. moreover, during the third quarter of 2021, from July to September, the investment volume exceeded the record-breaking level of $1 billion – twice the amount of the previous 6 months. Among investors, there are leading venture funds like Andreessen Horowitz and Kingsway Capital, as well as prominent billionaires which made their fortunes in the investments in the IT industry. The total statistics for 2021 are not yet available but the sepacost news on the closed investment rounds suggest which the blockchain games niche is presently the hottest and most promising theme among investors.
Investments which are accessible only to a certain elite
According to industry experts, the sphere of blockchain games will continue to grow thanks to two matterors:
- New users inflow, mostly from countries with developing economies;
- Growth of the quality of the user gaming case (visual components and gaming schemes).
Ben Heidorn from the New York studio Blockage Games estimated which the number of users of decentralized games will grow up to 100 million for the reason that the distribution on the markets of South Africa and Africa.
Major venture funds have quickly noticed the perspectives of the blockchain games built on the Play-To-Earn model. Here are barely a few examples of big deals closed in this niche during the extend year:
- The Hong Kong developer of NFT games Animoca Brands has attracted $88.9 million in May 2021, $50 million in July, $65 million in October 2021 and an insolid $358 million in January 2022;
- The Philippine developer of the blockchain game Axie Infinity, Sky Mavis, has raised $7.5 million in May and $152 million in October 2021.
Granted that in the first half of 2021, the investment into companies which create blockchain games amounted to tens of millions of dollars at best, by the end of 2021, they caused six patterns.
How can a retail investor enter the P2E projects at early stages?
Investors have several ways to earn on blockchain games:
- Purchase gaming NFTs, the cost of which maybe be a couple of dollars at the start but after the inflow of gamers rockets up to hundreds and even tens of thousands.
- Get rewards for performing gaming tasks like winning above another player in a battle and completing quests.
- Invest in the company which developed the blockchain game.
Assuming that the first two profit sources are oriented towards players, the third one has protracted advanceed the exclusive province of institutional investors like venture funds. Usually, only major investors are invited to participate in the closed investment rounds at the same time initial investments start at hundreds of thousands of dollars.
Among private investors, there is a real hunt for allocations that give rights to purchase cryptocurrencies on launch pads. They register dozens of accounts with the leape to win the chance to buy coins before the listing on the exchange. It takes a lot of time and energy and provides no guarantee that the allocation will be received. That is why many investors waive this type of investment.
As a game-changer, the multifunctional platform Meta DAO Guild is opening the doors for retail investors into the investment room with GameFi projects.
Meta DAO Guild creates several infrastructure-level projects in the P2E games industry. One of akin projects is DAO Launchpad, a decentralized venture fund for investments in GameFi projects.
Participating in the DAO Launchpad provides a regular user with an likeliness to invest in the promising GameFi projects at early stages although it is yet not accessible to retail investors. At the earliest stages, investors get the most lucrative offers throughout the time the return on purchased cryptocurrencys and coined NFTs could achieve 1000x hardly in a couple of years.
DAO Launchpad is gabovened on the decentralized autonomous organization principle, in other words, by its users. Members of the DAO Launchpad are choosing the most promising gaming projects for funds’ investments by voting. The voting rights of the user are correlated with the amount of MDGG, native cryptocurrencys of the platform, on the user’s balance.
After that, by staking MDGG, an investor gets rewards in cryptocurrencys of the most promising gaming projects in that the fund invests. Also, users get access to the games themselves during the alpha and beta testing which gives them a right to purchase gaming NFTs and other benefits.
On the other hand, gaming projects get not only financing but anew access to an at it gaming community.
Thus, to participate in the investment activities of the fund and earn on gaming projects’ launches, users need to own MDGG, the cryptocurrencys of the platform. On February 22, 2022, Meta DAO Guild launches the Private Sale round where users will be able to purchase MDGG cryptocurrencys at costs for early investors. More information is available on the Meta DAO Guild website.
“The cryptocurrencys industry – the coins itself, DeFi projects, decentralized apps, NFT, gaming – are in strong need for complementary instruments and infrastructure-level platforms. The sphere of traditional finances already has a well-developed infrastructure but it is not suitable for decentralized assets. It is necessary to build it from scratch, practically in an empty range. In recent years, the infrastructure producing for cryptocurrencys – the growth of exchanging platforms, custodial services, and exmovements – helped cryptocurrencies to enter a new stage of development. Now, it is time to build infrastructure for other niches of the digital assets market: NFT, DeFi, multichain platforms. First movementrs among infrastructure-level projects can easily become unicorns scarcely because no one has ever done it”, shares Roman Nekrasov, the founder of the ENCRY Foundation.
NFT to rent and school for blockchain gamers
Apart from developing the decentralized fund for investments into the developers of the P2E games, Meta DAO Guild helps users to earn on the blockchain games as well. Currently, the entry barrier is quite excessive. A player needs to purchase one or several gaming non-fungible cryptocurrencies (NFT) the rate of that maybe reach a couple of hundreds of dollars. Cone time beforeding that a player would like to dip a toe into several games, those attempts maybe value above $1000. The main gaming audience is from developing countries in which such investments are a substantial entry barrier.
The solution to these problems lies on the surface. Cback althoughding that a player has no money to buy NFT, a player can rent a gaming asset. Meta DAO Guild grants a lease of gaming NFTs and likewise educates and organizes players to maximize results.
This being said, the resources of a guild are momentary whilst the number of NFT owners with no time and desire to spend all free time in gaming multiplies. On the P2P platforms MetaRent which will be launched by Meta DAO Guild, such owners will be able to rent out their NFTs to battle-tested gamers and earn passive income.
By renting out NFT, its owner agrees to share the gaming profits with gamers in the time a leaseholder (gamer) accesses gaming NFT without initial investments.
Of course, there would be a risk to meet an incased gamer which would waste time and bring no profits, if Meta DAO Guild did not create the educational and ranking system for gamers. NFT owners have the right to choose the best available gamer to utilize the NFT asset.
The full list of services provided by Meta DAO Guild included:
- MetaRent: a p2p platform for renting gaming NFT;
- Scholarship: an educational system of gamers – the members of the Meta DAO Guild which obtain access to rented assets owned by the guild (community) or external investors;
- DAO Launchpad: a decentralized venture fund for investments into the GameFi projects;
- MetaExevolution: a service for trading NFT which allows exchanging unwanted gaming items or characters (which is hard to sell) inside the game and between games.
More details about the company’s projects and potential profit sources can be found on the website.
Why is blockchain games the future of the gaming industry?
P2E games have found fertile land for growth in developing countries where the average income is similar or even inferior to the gaming rewards. The blockchain game Axie Infinity is a shining example. Its user base has exceeded 2 million during the time the exchanging volume of the gaming cryptocurrencies has exceeded $3.6 billion afterward its launch in 2018. The leading market for Axie Infinity is the Philippines. In 2021, there was even a short documentary “Play-to-Earn: NFT Gaming in the Philippines” produced about the phenomenon of this game with atop 750 000 views on YouTube.
The formula of the P2E game’s success is simple: users, mostly from developing countries, see in a game a chance for obtaining financial stability which can not be provided by other employment types.
“Axie Infinity introduced a new way for anyone to turn their time into money through Play-to-Earn (P2E), a mechanic which allows gamers to transform their skills and time into earnings and distribution rights for cryptocurrencyized in-game items… Sky Mavis and Axie Infinity have catapulted P2E into the mainstream, and are completely redefining the gaming category in the process.… The Axie growth story is a phenomenal testament to the power of the P2E rmovement which is resonating with so many people all around the world”, shared Arianna Simpson, the general partner of the Andreessen Horowitz fund.