1.3 The Market Problem
Play-to-earn games is not a simple extension of traditional games, but a new economic system where growth in user base and volume are the top priority. However, the current crypto infrastructure does not suit the need of play-to-earn games.
As the main stakeholders in the ecosystem, both project teams and guilds are facing challenges: For Gaming Projects:
1. Current IDO launchpads are not relevant to in-game economies, and NFT sale platforms are not vertical to the play-to-earn audience.
2. Insufficient methods to put gaming asset NFTs into production would result in a high level of speculation and a surge in the price, which would result in difficulties for later players to join the game.
3. Connecting with guilds and showcasing the in-game statistics to them is time consuming. For Guilds:
1. There are no good solutions to hedge the NFT treasury risk. Guilds might suffer from a great loss in net value if their game asset NFTs inventory floor prices dip.
2. Getting early access to a game asset can be very competitive.
3. Guilds are now assuming the role of ‘fund manager in GameFi’ while they do not have good ways to showcase to potential investors other than off ramp approaches.
For Investors:
The same challenges are also faced by potential investors, mostly from DeFi space who are actively seeking the latest product with considerable long-term returns. Playing games may not be a good option for such audience. What they need is a gateway that helps to financialize their NFT assets.
Last updated