Are Web3 Games Safe to Invest?

Picture: News BTC

Techspace - The Ministry of Trade wants to develop Indonesia's digital economy industry or products for the global market. Quoted from, Deputy Minister of Trade, Jerry Sambuaga said that one of the products developed was crypto assets and the online game industry by Indonesian children. Jerry Sambuaga ensures that crypto assets are not used as means of payment and are currently under the supervision of the Commodity Futures Trading Regulatory Agency (CoFTRA). In addition, crypto players in Indonesia have continued to grow since 2019. 

The transaction value of crypto assets in Indonesia is IDR 64.9 trillion in 2020 and IDR 859.4 trillion in 2021. Meanwhile, in the January-February 2022 period, it is recorded at IDR 83.8 trillion. Furthermore, the average age of crypto players in Indonesia is 21-30 years, totaling 12.7 million as of February 2022. Therefore, the Ministry of Trade continues to design rules so that crypto assets are listed on the exchange and focuses on protecting business actors so all parties can maintain relations. Run clearly and safely.

Read also: Web3 Game: The Background and the Technology It Has

Quoted from, Huobi Research Institute, a leading blockchain research organization, has predicted the integration of blockchain into the gaming landscape will overcome the barriers in traditional gaming ecosystems. Blockchain integration introduces new elements to gameplay, deepens player engagement, provides new revenue streams for all stakeholders, and brings the gaming industry into a new era.

With its immutable nature, Blockchain technology will play an essential role in building a future co-creative, co-governing gaming ecosystem that operates with a Decentralized Autonomous Organization (DAO) at its core.

However, blockchain also brings vital assets to gaming through Non-Fungible Tokens (NFTs). As the unique financial and economic model brought about by blockchain matures, a secondary market for trading in-game purchases will emerge. This is because the profit-making potential of blockchain games is gaining attention. Capital investment in the future will improve the quality of their games so they can catch up with traditional games.

Read also: Worth the Investment; here are the Blockchain Game Recommendations for you

New Game's Mode

The transition from web 2.0 to 3.0 will bring new models to the game world. New monetization methods will also emerge when blockchain is used for various layers in the game, such as:

  1. Social to Earn: This method will allow players to get rewards if they succeed in inviting new players to the game.
  2. Watch to Earn: Watch to Earn is a new model that records users' online habits on the blockchain and uses this data to achieve advertising revenue. Tokens may be awarded to users who choose to watch advertisements.
  3. Race to Earn: Race to Earn refers to a new mode of achieving revenue by selling live streaming and broadcast rights and rewarding the community through token value appreciation as the game gains popularity and the fees for those rights increase.

Why Have to Invest in Blockchain Games?

In the latest DappRadar industry report, it has been found that the blockchain gaming platform and its associated utility tokens are 'coming through the storm' in 2022 better than other types of crypto assets such as DeFi coins. As a result, Crypto VC investment remains high in the crypto game, surpassing 2021 levels of 33% in 2022 and projected to reach $12 billion by year-end.  

Picture: Sprout Wired

Big traditional video game producers like Sony are also paying attention and investing $1 billion in Epic Games to build the metaverse. Andreessen Horowitz (a16z) themselves have increased their level of investment in Web3 games to $7.6 billion by 2022, even though Bitcoin, Ethereum, and most altcoins are on a downward trend.

Opponents of the Blockchain Gaming Industry

Despite the increased interest that Web3 games have, several video game companies have had an adverse reaction to blockchain games. Examples include Valve banning NFT and blockchain games hosted on Steam, its gaming platform, and store. Xbox executive Phil Spencer also criticized some crypto gaming products for being more 'exploitative' than entertaining. Valve CEO Gabe Newell did admit that blockchain technology deserves recognition. Still, by late 2021 he considered that too many scams and 'crystal' products risked exposing gamers to them. 

Despite the gaming ban from Valve's blockchain, Web3 games continue to be popular with gamers and investors. The blockchain game Battle Infinity has gone on sale in no time. They increased 16,500 BNB in ​​just 24 days. Leading companies Epic Games and Ubisoft are also very open to promoting the mass adoption of blockchain games. Ubisoft is one of the founding members of the Blockchain Game Alliance, a member of Alien Worlds.

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