Games and Cryptocurrencies
The history of games started a little earlier than that of cryptocurrencies. As early as the 1960s, the first prototypes were being developed in 1972, the Pong arcade was released by Atari and in five years, over a million previous console units had been sold. In 1982, arcades were making more money than the pop music industry and the box office.
Despite the success, perhaps little could have predicted the success that was yet to come. In 2020, the industry reached a valuation of $165 billion and already has 2.9 billion users.
Source: www.visualcapitalist.com
Cryptocurrencies have a more recent and wilder history. Bitcoin was the fastest asset in history to surpass the $1 trillion mark, the milestone being reached in just 12 years. And during this history, numerous cryptocurrency protocols have emerged, not only creating new markets, but also causing disruption and changing the paradigms of existing industries.
And that’s what we’re seeing with Play-To-Earn, a blockchain game mode where players are rewarded with crypto to win, sophisticatedly connecting entertainment with investment.
Source: visualcapitalist
Games have used digital coins for many years to develop their digital ecosystems. However, even if you were a billionaire in a game, it would hardly reflect anything in real life. It was impossible to convert the game’s cryptocurrency into another coin, either digital or fiduciary. The money came in, the developers and company behind the game profited, and players only won with exclusive championships or events for the best players in each game.
The Blockchain Gaming Insurgency
The coronavirus pandemic accelerated by a year, trends that would likely take decades to develop contactless payments, home office, and blockchain gaming.
Due to the shortage of work, people all over the world, but mainly in developing countries, have sought ways to support themselves. In this scenario, play-to-earn games have gained a lot of popularity, with emphasis on Axie Infinity, a game where users fight and breed with fantastic creatures and earn rewards in cryptocurrencies for their victories that exceed the minimum wage in numerous countries.
The success of Axie Infinity was so great that during the general fall of Bitcoin in May, the game tokens, AXS and SLP went up 300% and 1000%, Axie distributed more rewards than all DeFi projects combined, it became the first crypto game to reach $1 billion in sales and reach its first million active players daily and some Filipino merchants prefer payment in Axie’s SLP than the fiat.
In August, Yield Guild Games (YGG), an Axie Filipino scholar with 4,600 players, raised $12.5 million in 31 seconds with the public sale of its new token, the YGG tokens (YGG). Scholars are initiatives in which determined players finance the entry of other players into the game. In the case of Axie, to start the game, you need 3 NFTs Axies, which cost at least US$ 200 each. So, while some users buy NFTs, users play and, in the end, profits earned in the game are split between players.
As Axie, the Illuvium game token rose from $34 to $516 in three months. And a number of other games are making the community abuzz, with players from the traditional gaming industry swooping in on cryptocurrencies. Just like traditional crypto players embarking on the gaming world.
Atari announced a partnership with Decentral Games to develop a virtual currency casino. In early June, cryptocurrency exchange FTX announced a US$210 million sponsorship for the largest e-Sports team in the United States. GTA 6 must integrate native cryptocurrencies for in-game payments and Earth 2 offers a virtual reality experience with real-world properties for sale. Not counting the players who trade in Counter-Strike skins.
Just in the first half of 2021, blockchain gaming companies closed investments valued at $500 million. Just three companies — Forte, Animoca Brands E Mythical Games, conseguiram US$ 349 somados.
The next game that the crypto community is eagerly awaiting is Star Atlas, a metaverse built on Solana’s blockchain that already has Animoca’s partnership.
The buzz of the blockchain game and industry is a reflection of the war ahead for the capture of nearly 3 billion game users.
