Among the many recently emerged methods of generating income online, one of the most recent and fastest growing has been NFT games, which have become enormously popular due to the great potential they have.
To date, there have been a large number of games that work under the NFT or PTE (Play To Earn) modalityand there are many people who have been able to generate considerable income through this means, although it has more complications than it seems at first glance.
In the next few paragraphs, we will teach you everything you need to know about this kind of gamesfrom the criteria that you should look at to select the right game, to the signs that you should pay attention to to identify any scam.
What is an NFT game?
This class of games is characterized by a part of itself is generated by means of a blockchain, which creates collectibles and items unique to each game, making them valuable within the context of the game. An NFT is a Non-Fungible Tokenwhich is making it a unique and original item, which cannot be replicated. In games, these items can be consumables, characters, weapons, and items, etc.
The appeal of these tokens is their uniqueness within the game world, so you can offer your items to other players, and sell them for a considerable amount of moneydepending on the N.T.F. per se. For these transactions, you must ensure that you have a secure electronic wallet.
What is Play to Earn?
The term “Play-to-earn” applies to video games that reward players with actual monetary compensation for playing the game, or for performing certain actions within the game. In general, this monetary reward comes from items obtained within the game through blockchain technology, which gives them real value which can explode in different ways depending on the mechanics that the game offers for it.
Where does the money you earn from playing NFT games come from?
NFT games generate money using mechanics similar to cryptocurrencies. They use technology blockchain for create an item that becomes a digital asset within the gameand which you can sell in exchange for a sum of real money, which varies depending on the demand for the object in question.
Are NFT games a pyramid scheme or Ponzi scheme?
In the strictest sense of the concept of a ponzi scheme, NFT games can certainly fall into this category. This is because, obviously, money investments made by users reach the creators of the gamegenerating substantial profits for the latter.
With this in mind, NFT games can be considered one of the few pyramids that are not sure loss of money, since there is a record of users who have generated thousands of euros through this means. The truth is that these games work like a pyramid in the sense that the new investors are the ones who feed those who are above them it is the pyramidand as long as there are new investors, the game will be profitable.
But as soon as the flow of new players starts to wane, the game begins to lose value, and the newer ones will start to lose money. So the best advice you can receive if you are thinking of investing in games NFTs en: analyze and study the project before starting to put money into the game.
How do NFT games work?
The NFT games have different mechanics that suit the purpose of the game. The NFTs that are created in these games can take different forms, from character cards to consumable items.
Each game is designed with a purpose in mind, and over the course of in-game events, as you accomplish objectives, You can acquire these items and improve them to increase their value. There are also certain games that, instead of items, they pay the user with tokens for completing certain missions. In summary, the number of methods to generate profit through NFT games is quite large, and varies greatly from game to game.
Benefits of blockchain games
Yes ok many cases can represent certain difficulties for some playersthe truth is NFT games have many advantages which are inherent in the nature of how blockchain technology works.
Among the greatest advantages of blockchain gaming we have the following:
- Decentralization and security: Due to the nature of blockchain technology, games exist with a decentralized and immutable registry, which means that the items obtained are registered under the inviolable property of the user who obtains or buys it.
- Economy: properly analyzed NTF games can generate a respectable return on investment.
- Exchange of goods: it is the central point of most NFT games. Blockchain technology makes sure that these assets are unique, scarce, and truly belong to the users.
- Low risk of fraud: Games that apply blockchain technology to their generated items have a very low risk of fraud, since all transfers of ownership are publicly recorded by the blockchain.
- Access to cryptocurrencies: In addition to non-fungible items, NFT games provide their users with access to cryptocurrencies that, in addition to being a form of payment, serve as a reward for the player’s efforts in game missions.
How to choose an NFT game to earn money?
Some might consider investing in an NFT game as a gamble, since if it is not done correctly it has a huge potential for loss. However, it doesn’t have to be a gamble, as there are factors you can look at to determine if an NFT is worth it.
Here are some tips for this:
Project
The NFT game project is the first thing you should pay attention to, since they are the public bases of what the game will be. Even from such an early stage you can get very valuable information about the feasibility of the game.
At this stage, it is where the developers give a description and synopsis of what the game will be, its history and its game modes. Although it is a somewhat early stage to decide whether or not it is a project that deserves your attention, it offers enough information to know if you should keep an eye on the project.
Economic model of the project
This is a determining factor in the game decision process, which should be included in your White Paper. The economic model is the main reason why most players and investors end up buying NFT games. Basically, must stipulate the method in which game tokens are obtained, the type of token, the amount of method to obtain it, the acquisition rate of the same. All these points are determining factors in deciding whether or not to invest in a blockchain game.
Developers
The game developers appear as the faces of the gamewhich can quickly determine the reliability of a game. A developer with a high profile and a good reputation is able to attract a considerable number of investors to a game.
Although developers may be specialized in different branchesthose who have performed efficiently in their respective fields and join together with other experts for the development of a game can, by their very presence, greatly increase the investment potential of a game.
project sponsors
Of similar way to developers, Seeing well-known brands and companies sponsoring a project does a lot for its image. If high-profile brands offer their vote of confidence to a project through sponsorship, it is highly likely that the game is trustworthy and safe to invest in. There has been a record of a large number of video game and technology companies sponsoring NFT games and players of the same, as is the case of FTX, which sponsored players from Axis Infinity.
Compare with similar projects
Once you have some information about the project and its , it is always a good idea to make comparisons to games with similar themes and mechanics, in order to compare their sustainability.
While most games take place in similar time frames, there are already games that have been on the market long enough to serve as a benchmark for future projects. Similarly, when entering already established games, you can search the history of the game to analyze its performanceas well as that of similar games in the same period to be able to determine the profit potential of the same.
Long-term sustainability
This is the defining factor for many investors, and it is that most expect that the profits generated by the juice can be sustained over time. The reality is that the sustainability of a game is a factor that depends on a large number of variables.
For example, a sudden drop in the flow of investors to the game can lead to profit repercussions. However, the greatest period of risk is the period before recovering the initial investment. Once it has recovered, all that is perceived is profit.
How to know if an NFT game is SCAM?
The chances of an NFT game ending up being a scam are alarmingly highso it is essential that we know how to identify the alarm signals that point to a fraudulent blockchain game.
Let’s see next:
anonymous developers
The anonymity of the developers is a clear warning sign that casts doubt on the reliability of any project. In the recent field of NFT games, in any type of investment project, Developer identification is a key factor in building trust. It should be noted, of course, that the fact that a project comes from an anonymous developer or group does not automatically make it a scam.
There are cases of successful quality blockchain games with anonymous developers, as is the case of Mist, whose token at the end of 2021 was worth €0.13, despite the fact that his team is anonymous. Nevertheless, These situations are an inexhaustible source of mistrust for investorsand in most cases, the games do not represent a plausible investment, being more prone to generate losses.
unsustainable economy
exist many factors that determine the sustainability of the economy of an NFT game, since although non-fungible in-game tokens are created using blockchain technology, their price will always be at the mercy of supply and demand within the game.
Added to this, the number of investors is a primary factor in the generation of gambling profits and, consequently, in the potential of each player to generate income. In short, if too many factors stack up against you, the value of the token will drop to the point that even the minimal investment to actively participate in a game would not be profitable.
Boring game
It is one of the factors that can ruin the career of a game very early…
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