2022 — GameFi is dead?

Why is GameFi losing the heat?

It’s quite easy to find many GameFi project tokens are losing +90% value compared to their last year ATH. Looks like the hype for fast ROI of greedy users have drained all the liquidity of many projects while trying to cash out before the big crypto winter this year.

Example of Negative Feedback Loop

The Biggest Ponzi of All

“The classic Ponzi scheme has also made a comeback,” a report said, “taking advantage of the unregulated market and people’s difficulty keeping up with developments in the crypto and blockchain space.” — Ref: https://www.thestreet.com/

What solution for GameFi?

It might sound silly if I say the GameFi can escape from this ponzi scheme, especially GameFi is often the very first start for the ponzi conspiracy. But I really mean it.

BIG difference between NFT games and Traditional games — the future of the game industry.

If the communities became aware of the bad practices of the Traditional Video Game Industry, then the NFT Game Industry would soon dominate over the traditional game. Normally, a user will try a new game, because of the hype of a community, or because they want to experience the thrill of living another life, or trading, or working hard to gain reputation, or leading their small groups of friends.

Buy — Buy more — where’s the end?

So how do the developers in a GameFi project take profit?

Basically, the developers will earn money from selling their NFTs. Unfortunately, many scam projects in 2021 have relied on that concept to lure people into buying NFTs to make a profit. They never finish the game, and all the sold NFTs are useless so far because there is no game to play.

Conclusion:

If you wanna join a play-to-earn project, please DYOR (Do your own research) about the Team and the gameplay, not about the “ROI” only, except you just want a quick buck or accept taking risk to be a winner in another ponzi model.

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Wanaka Farm

Wanaka Farm

www.wanakafarm.com is an unique NFT P2E blockchain based game where people can own their virtual lands and other NFT items.