Blockchain games, and the GameFi sector in particular, is probably the hottest topic of 2022. The games based on the Play-to-Earn model, are winning the hearts of people all over the world, while in developing countries it has also become a way to earn a living. For example, in one of such games, Axie Infinity, the trading volume of the NFTs has exceeded $3.6 billion since its launch in 2018.
Venture capital sharks like Andreessen Horowitz and Kingsway Capital, as well as prominent crypto billionaires, have already started acting on the trend. During the third quarter of 2021, a record-breaking sum of $1 billion was invested in blockchain games which is twice the amount of the previous half a year.
Let’s explore why sharks are alert and what is left for a smaller fish, or how regular users can get their share without breaking a bank.
Venture capital sharks smell huge wins
P2E gaming is called a tipping point of blockchain mass adoption not only because it has already a proven record of unprecedented growth but also because of its near-future perspectives. This year, experts forecast significant growth due to the two flows that are coming from opposite directions to strengthen the market.
On the one hand, in 2022, more and more people learn about new opportunities from the media and join the ranks of gamers. The user base of the popular game Axie Infinity has exceeded 2 million while the YouTube video “Play-to-Earn: NFT Gaming in the Philippines” has already reached over 750 000 views. Most of the users come from developing countries that see the rewards distributed in the games as a chance for increasing their quality of life. According to Ben Heidorn from Blockage Game, the user base will reach 100 million due to high-speed distribution in the African market.
On the other hand, industry wheels among game developers like Ubisoft are ready to enter new waters. Leading game developers bring teams that can significantly improve user gaming experience with stronger visual components and elaborated gaming scenarios. Consequently, the growth of game quality will attract new users, further uncurling the investment wheel.
Obviously, the proximity to the tipping point of Play-to-Earn games did not remain unnoticed by venture capital sharks. Investment in the second half of 2021 seems rocket-high, in comparison with its first half. In January 2022, the NFT games developer from Hong Kong Animoca Brand attracted $358 million in addition to $88.9 million in May 2021, $50 million in July, $65 million in October 2021. Sky Mavis, which is behind the popular game Axie Infinity, also started with raising just $7.5 million in May 2021 and reached a $152 million investment already in October 2021.
Arianna Simpson, the general partner of the Andreessen Horowitz fund, shared that “the Axie growth story is a phenomenal testament to the power of the P2E revolution that is resonating with so many people all around the world”. In her opinion, the creator of the Axie Infinity Sky Mavis “have catapulted P2E into the mainstream”.
P2E projects also have big portions for small fish
In traditional finance, while venture capital sharks grab the best deals at early rounds, retail investors have to wait longer and enjoy lesser profits. The GameFi sector started with the same paradigm.
The sharks were invited into closed investment rounds where the smallest bids are usually hundreds of thousand dollars. At the same time, retail investors had to wait in line and register multiple accounts for a chance to get their hands on the coins of the promising projects before listing. Since it took a lot of time and energy, few investors went this way.
But further democratization in the financial industry brings more and more projects that change this paradigm. One of the game changers is the multifunctional platform, Meta DAO Guild. The platform creates several infrastructure-level NFTs, including a decentralized GameFi-focused venture fund DAO Launchpad that allows retail investors to get their share of the pie in the earliest rounds.
DAO Launchpad is a decentralized autonomous organization. It means what projects to invest in are chosen by voting among community members, owners of the project’s native tokens MDGG. This allows retail investors to get access to deals that could potentially bring 1000x profits by staking MDGG. But this is not all, because investors also get access to alpha and beta versions of the games which bring opportunities to buy NFTs as early as possible.
The MDGG private token sale will be held on February 22, 2022. The registration form and more information are available on the Meta DAO Guild website.
Building infrastructure for the GameFi sector
According to Roman Nekrasov, the founder of the ENCRY Foundation, nowadays, the blockchain industry needs “complementary instruments and infrastructure-level platforms” because the infrastructure of the traditional finances is simply “not suitable”:
“It is necessary to build it from scratch, practically in an empty field. In recent years, the infrastructure building for cryptocurrencies – the growth of trading platforms, custodial services, and exchanges – helped cryptocurrencies to enter a new stage of development. Now, it is time to build infrastructure for other niches of the digital assets market: NFT, DeFi, multichain platforms. First movers among infrastructure-level projects can easily become unicorns just because no one has ever done it”
In 2021, due to the growth of the popularity of the Play-to-Earn games, the entry barrier has significantly strengthened. To participate in the game and start earning, players purchase gaming characters and items in a form of non-fungible tokens. The price for a full package for the most popular games with the biggest opportunities for return could reach $1000 which is a substantial amount, especially among players from emerging markets.
To solve this, the Meta DAO Guild team offers the MetaRent platform where motivated players can rent gaming NFTs and start earning without any investments. This mechanism also benefits NFT owners who have money to purchase all the items but have no time to spare on a game. On an industry level, it significantly reduces the amount of idle NFTs which benefits an ecosystem as a whole.
Also, to make it a truly win-win situation, the Meta DAO Guild team also created an educational ranking system for gamers. This way new gamers can perfect their skills on the community-owned NFTs while NFT-owners will be sure that their assets are utilized at maximum potential.
The list would not be full without a place where users can freely exchange NFTs within and between games. For this, the developers launched the MetaExchange.
The decentralized venture fund DAO Launchpad, the MetaRent platform for renting NFTs, the educational and ranking system Scholarship for gamers and MetaExchange form a raw of solutions that makes Meta DAO Guild an infrastructure-level project.
More information about the company’s projects can be found on the website.