NFTs Create a Win-win for Individuals and Companies Alike
The value of non-blockchain games lies with their creators. Publishers press discs and issue digital downloads with all in-game purchases trapped inside individual titles.
Since the advent of non-fungible tokens, however, blockchain games are flipping the script by unlocking players’ earning ability. NFTs represent digital ownership of in-game goods — costumes and weapons, for example.
NFT owners are free to trade their gaming assets with other players in free markets. Because traditional games lack the infrastructure to facilitate peer-to-peer trades, reselling in-game purchases is near impossible.
But in the NFT ecosystem, multiple marketplaces exist to facilitate seamless trading. So, just how many dollars can NFT holders score? Numerous factors come into play, but in the case of one NFT-powered title, gamers have collected nearly 3x as much as the game’s publisher.
Which one is that? Read on to find out…
The NFT industry is still maturing, no doubt. Although we believe that NFT growth will outpace cryptocurrencies, non-fungibles can still benefit from a forward push.
While progression is our aim with KOGS — the world’s first 100% blockchain mobile game — other titles have already enjoyed several years of getting themselves established.
The top five games on the world’s largest NFT marketplace, OpenSea, have seen roughly 177,794 ETH traded against their in-game assets. Now, we’ll ignore ethereum’s volatility as well as its all-time high of over 1,400 U.S. dollars. At today’s ETH price of $229, all those NFT trades account for over $40M.
And these millions were exchanged player-to-player, not player-to-publisher. That’s quite the accomplishment considering the oldest game, CryptoKitties, has only been around since November 2017! And speaking of cat-breeding games, the original NFT sensation holds yet another unique attribute in its digital paws.
Although this article’s charts and graphs come from Messari, nobody would have data if not for in-depth research from Flipside Crypto. The team identified three blockchain games making $1M+ during their first year of operations — CryptoKitties, Gods Unchained, and My Crypto Heroes.
Interestingly, among these games generating millions in revenue, CryptoKitties is the only title that’s pulling in far less than its players.
As of a few days ago, the game’s creator, Axion Zen, has sold nearly $7M in NFTs representing digital cats. The game’s players and traders, on the other hand, have raked in well over $20M.
With figures like that, NFTs elevate the excitement of video games. After all, unless you’re an esports pro, there’s little chance of making a living by playing games.
We’ve covered total gains across entire userbases, but what about individual gamers? Results vary, of course. But some players have done very well for themselves.
In addition to game pieces, NFTs are collectible works of art. And some are much rarer than others, which can lead to astronomical prices.
Back in 2018, one NFT from the CryptoKitties universe sold for 600 ETH — the equivalent of $170,000 at the time of purchase. But eye-popping sales like that are the exception, not the norm.
Although one trader is clocking a higher annual salary than many of the world’s overpaid corporate execs, the average player makes far less.
One CryptoKitties trader has earned nearly $700,000 in less than three years.
The game of breeding digital cats mixes fun with revenue-generating opportunities. Median earnings of $53 are close to the $60 cost of new AAA video games launching on Microsoft and Sony consoles.
Imagine playing your favorite game — something you’d do anyhow — and earning enough to recoup your cost of entry. NFTs allow you to do just that!
The more gamers spend on virtual items inside a traditional video game, the more value gets locked inside. But NFTs capture that value and release it into third-party marketplaces.
We’re not trying to convince you that you’ll make a fortune trading NFTs from KOGS. Under today’s conditions, the average gamer still spends more money than they receive.
But games like CryptoKitties — with more to follow — prove that making more than you spend on a video game is certainly possible. That said, timing, market sentiment, item scarcity, and a little bit of luck all factor into profitable NFT sales.
Most appealing, perhaps, is that NFTs offer this ability in the first place. Skins purchased in Roblox aren’t leaving the game, and there’ll be no monetary ROI for players.
Like cryptocurrencies before them, NFTs are redefining how the world exchanges value. And with the pending release of an NFT-enabled mobile game, RedFOX Labs is thrilled to be entering the non-fungible ecosystem!
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