The Crypto Crash Demonstrates Unwarranted Belief in Web3, NFT, and Blockchain Gaming

The “play-to-earn” concept in which game economies are set up to get players to grind to earn coins with a tangible value. The prime example of this was Axie Infinity, but even before this current crypto crash, the feudalism-style economy of that game all but completely collapsed.

It is impossible to ignore the absolute carnage going on in the crypto market between crashing prices of Bitcoin, Ethereum and most other coins, the shutdowns of exchanges due to volatility with no regulatory bodies to soothe the panic, and now fresh layoffs at crypto staples like Coinbase.

While I do not like seeing anyone suffer the loss of a job or income, this is turning into quite a large “we told you so” moment from the gaming community especially. For the better part of a year now, we’ve been assailed on all sides from evangelists saying that web3, blockchain-based games and NFT-driven economies were the future of the industry.

Now, what’s happening with the larger crypto industry should shatter any real argument that these dime-a-dozen projects are in any position to significantly influence the course of the industry in any way. If they seemed sketchy before, despite allegedly high market caps and big potential returns, what’s become clear is that those can evaporate in an instant, and many of them already have.

There are a few different concepts of web3 gaming that have been pushed the last year or so:

NFT-based game Axie Infinity

The “play-to-earn” concept in which game economies are set up to get players to grind to earn coins with a tangible value. The prime example of this was Axie Infinity, but even before this current crypto crash, the feudalism-style economy of that game all but completely collapsed.

Source: Forbes

 

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