“Blockchain Game” How to Make Money in the GameFi Industry?

The sphere of blockchain entertainment allows you to get not only pleasure, but also income. What opportunities does the play-to-earn principle open up, and what are the prospects for the development of the industry

GameFi are blockchain projects that allow you to monetize the gaming experience: the user receives a profit for participating in the game. All items and rights of the players become their property: characters, land, artifacts, clothing and much more.

Project developers choose cryptocurrency for settlements within the project, but most often each platform creates its own token. Some projects may require a small investment to start gaming activity, but in general you just need to play.

There are other earning options in GameFi. NFT objects can be sold: the price of items will be higher, the more popular the game is. You can also rent out your virtual property, participate in tournaments or bet on competition results. In some projects, you can stake earned coins.

Ways to make money in blockchain gaming projects and about the prospects for the GameFi industry

New Opportunities

The main principle of earning in this industry is the principle of Play-to-Earn (play to earn). Players are paid for what they play – it’s either the hours spent in the application, or specific useful in-game actions, it is less common to see a slightly modified income mechanism – the generation of NFT objects based on an already existing collection of non-fungible tokens.

All schemes boil down to the fact that the developer pays users for using his application, in this case games, the expert noted. Depending on the mechanics of these games, the ways of investing in such projects may differ slightly.

How to earn cryptocurrency in steps?

Example of the game Axie Infinity, in which players need to spend the in-game currency SLP (“love potion tokens”) in order to “breed NFT characters”. If the number of players continues to increase, then it may be enough to buy such a token, in the hope that increased demand will drive prices up, the analyst said.

More sophisticated investors can take part in the game process, then earnings will consist of the sale of game currency and newly received “characters”. There are a lot of such games, but their principles are approximately the same.

“A recent trend on STEPN has shown that projects are actually creating very different ‘something-to-Earn’ mechanics: running, jumping, playing, breathing . But each project is unique in some way, and you need to study its history and prospects individually,”

Somewhere it is enough to buy management tokens, and somewhere the game will involve the investor in internal processes. For ordinary players, everything is simple – they exchange their time for developers’ money. it is only necessary to assess the risks if entering the game requires an initial investment to purchase a starter set of tokens.

Projects that have a gaming component are a good guide to the world of cryptocurrency for people who are not yet familiar with blockchains and digital assets, such projects fulfill the role of the “mass adoption” (mass adoption) industry that is necessary.

Earnings in these projects are usually carried out by pumping characters, improving game items and other similar actions. Often, with such updates, a certain amount of game coins is burned and ceases to influence the market, Podolyan specified.

“Game projects like this can shoot big in terms of profits, but usually deflate over time. So far, there has not been a single game that would allow you to earn powerfully for a long time. I hope that such games and the necessary mechanics will appear over time, ”

Good Prospect

The principles of GameFi are not new, although the connection of projects with the blockchain has revived interest in the entire industry, all the principles of getting some income existed before the decentralization of games.

“In most cases, if a player gets something for free, then the commodity in this transaction is himself – his time, personal data, behavioral information, his attention, etc. All this can be sold to analysts, advertisers, researchers and other interested parties,”

The analyst is of the opinion that the outlook for the gaming industry is very positive, and GameFi, as a small part of this industry, will also receive dividends from this. Most likely in the future, more and more projects will switch to the blockchain, and the desire of people to consume such content will continue to bring new institutionalists and developers into the industry.

Game Projects

First of all, it is better to pay attention to large completed projects with a large audience: Axie Infinity, Alien Worlds, Upland, CryptoBlades, Splinterlands and many others, the tokens of these projects have the highest liquidity, which will reduce the risks of investing in them.

Another strategy could be to buy blockchain utility tokens, where most GameFi projects are located, In addition to Ethereum and Binance Smart Chain, more specific ones: WAX, EOS, KardiaChain, ThunderCore.

The fact that it is very dangerous to track young projects without personal experience, since many of them are deliberately created for the purpose of fraud or according to the principle of a financial pyramid. Others may cease to exist due to ill-conceived business processes and external manipulations.

There are hundreds of failed projects, agreed the founder of the international forum for digital mining and trading in the CIS Terracrypto Nikita Vasseva. He is sure that most often the reason for the failure of a startup is an insufficient number of players or ill-conceived tokenomics.

The expert called promising those projects where a strong gaming community with high involvement has been built, which allows brands to integrate into the game. It is worth paying attention to the coins of game studios and native tokens of the five most popular games, Vassev believes.

“If you can see the active dynamics of new wallets, users and the internal growth of transactions in the project, then it is worth taking a closer look,” the expert concluded.