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Don’t waste $6,400 on random gaming — Spend it on GameFi

Today's gamers are going to spend — on average — more than $6,400 on purchases they can't use outside of the platforms on which they were purchased.

Today’s gamers have spent hundreds — sometimes thousands — on in-game purchases that are supposedly theirs to keep. The reality is that they often have nothing that is lasting, and that isn’t fair.

New research shows the horrible reality of the situation. Gamers are set to spend $6,425.13 on virtual items over their adult lifetime without ever receiving anything physical to show for it, according to a study commissioned by Unstoppable Games and conducted by OnePoll.com. The survey asked 2,000 gamers and found that the average gamer will spend $8.74 per month — that’s $104.90 per year — on a total of three purchases. Character skins, weapons and extra lives were the most commonly bought items.

Statistics like these leave gamers feeling furious, or worse, like suckers. Of course, it’s fair to pay for entertainment — for experiences. But if you’re buying the virtual equivalent of a sword, skin, cloak or whatever else, it should be analogous to such an item in a physical game. You should be able to do with it as you wish.

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GameFi studios are booming once again as crypto prices recover

New Web3 gaming projects continue to enter the sector as the price of cryptocurrencies surge.

GameFi projects, the darling of the crypto industry that captivated investors’ attention during the bull run of 2020 to 2022, have made a much-anticipated comeback as Bitcoin (BTC) eyes all-time highs. 

On May 15, Ethereum Web3 gaming studio Immutable announced the release of its flagship title, Guild of Guardians (GOG), on Google Play and the Apple App Store. Guild of Guardians sees players venture into Elderym, a world on the brink of destruction at the hands of the Dread. To save the world, players assemble a team of Guardians to embark on an adventure fighting through dungeons and bosses while earning GOG token rewards. 

According to Immutable Games director Chris Clay, the team is planning to showcase the Immutable Passport and Immutable zkEVM. "The past fifteen months of development have been a whirlwind of laying the foundation for a game and universe we’ve only just begun building upon,” he said. 

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GameFi airdrops are here to stay but won’t save a bad game: Execs

Blockchain gaming tokenomics may have got a bad wrap last cycle, but GameFi execs say it’s not going away anytime soon as it’s one of the key ways to build a player base.

Despite lingering resistance from some gamers over “tokenomics,” gaming studios will most likely continue to use airdrops and other incentives to attract players, according to industry executives.

“It’s a very easy way to get market share, said Kieran Warwick, founder of gaming studio Illuvium in an interview with Cointelegraph.

However, games that fail to deliver on the fun, or gameplay aspect, are still doomed to fail, said Warwick.

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‘FOMO’ once drove GameFi funding, but VCs say it’s different this time

During the last bull run, VC firms were more concerned about missing out on the hype, but they’re taking a much more measured approach this time.

Venture capital firms haphazardly piled into blockchain gaming projects during the last bull run but are taking a much more mature and sustainable approach this time, according to industry executives.

“[It was] insane,” Shi Khai Wei, founder of cryptocurrency-focused VC firm LongHash Ventures, told Cointelegraph, adding that some GameFi projects were receiving up to $100 million with only a few team members and some lofty promises.

Keiran Warwick, founder of GameFi studio Illuvium, who recently raised $12 million in VC funding, said he saw the same thing, with much of the investor fervor then driven by a fear of missing out (FOMO).

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CEO of Bitcoin.com Puts Ethereum on Blast for ‘Woke’ Ideology

GameFi ecosystem makes a comeback amid surging crypto prices

The number of daily active wallets engaging in GameFi has doubled over the past year.

After a dormant 2022 and much-muted 2023, GameFi projects are making a comeback as the bull market rages.

This week, move-to-earn protocol StepN announced it would partner with Adidas for a 1,000 Genesis Edition nonfungible tokens (NFT) drop on Solana. The launch is part of an ongoing one-year partnership between the two firms that will see a mixture of NFTs and wearable sneaker releases in the future. Each NFT sneaker from Genesis Edition will be valued at 10,000 GMT ($2,200).

Created by FSL in 2021, StepN allows users to earn rewards for walking, jogging, or running. Rewards are available after users purchase a virtual Sneaker NFT and link their smartphones. By interacting with the app, users earn GMT tokens, which have an inflationary mechanism, a supply cap of 6 billion and a current diluted market capitalization of $1.2 billion.

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CEO of Bitcoin.com Puts Ethereum on Blast for ‘Woke’ Ideology

How the crypto bull run can impact Web3 gaming beyond play-to-earn

Web3 gaming has remained unfazed by the bear season. But how does the expected bull run impact interest in blockchain-based games?

On-chain data tracker DappRadar recently reported that another $600 million was poured into Web3 gaming projects in Q3 2023, making the total investments surpass $2.3 billion in the year so far. 

Another report from the blockchain gaming community, Game7, indicates a stabilization in Web3 gaming despite the market correction.

The interest in Web3 gaming — a general term used to describe the ecosystem housing blockchain-based video games — is clear and remains unfazed by the so-called “crypto winter.”

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CEO of Bitcoin.com Puts Ethereum on Blast for ‘Woke’ Ideology

Mainstream approval critical for blockchain games — Gaming execs

Three gaming executives believe mainstream audiences will play a factor in the overall success and future of Web3 games.

Web3 game developers have been battling to gain the attention of mainstream audiences for years, and according to three former gaming executives, that market is essential for the industry’s future. 

Video games have become a favorite pastime for a lot of people all over the world and have even evolved into a sport. Overall, there are more than three billion Web2 gamers worldwide as of 2023, according to Exploding Topics. Most are considered casual gamers who play regularly but rarely invest significant time.

Jennifer Poulson, who has worked in the gaming industry for 18 years, including at Web2 gaming companies Bandai Namco (Tekken, Elden Ring, PacMan) and Riot Games (League of Legends), believes mainstream audiences are “absolutely” important for the future of Web3 games.

Speaking to Cointelegraph, Poulson, who is currently vice president of game partnerships at Immutable Games, said in her mind, “Bringing mainstream players into the Web3 space will be essential in the coming years.”

“However, it isn’t so much that we need to entice mainstream players to take the leap into Web3; rather, we need to be building games that are fun to play and will appeal to all gamers,” she added.

Mainstream gamers aren’t particularly fond of crypto, especially when nonfungible tokens (NFTs) are involved.

Blockchain entertainment firm Coda Labs released its Global Web3 Gamer Study in 2022 and found traditional gamers were not fans of crypto or NFTs. Respondents rated their feelings about them at 4.5 and 4.3 out of 10, respectively.

Poulson believes working with mainstream publishers and studios will be crucial for the future of Web3 games.

Because “it’s less about attracting mainstream audiences, and more about working with publishers and studios to understand how and why to integrate Web3 elements into their games.”

Related: Grinding out a living: Can blockchain games really offer a sustainable income?

“The reality is that these are all just games. Some have Web3 elements, and some don’t; as long as they are fun to play, this is what, in essence, determines whether a game is successful or not,” Poulson added.

Web2 gaming companies have also been hesitant to adopt Web3. According to a Nov. 13 State of Web3 Gaming report released by Game7 — a decentralized autonomous organization dedicated to accelerating the adoption of blockchain technology in gaming — six out of 10 Web3 games are being excluded from mainstream distribution platforms.

However, the report found some progress in marrying the mainstream with Web3 and blockchain games. Video game digital distribution service Epic Games Store has been listing more Web3 games every year, peaking at an all-time high of 69 in October 2023.

Could Web3 games survive without a mainstream audience?

Mainstream audiences are important for the future of Web3 and blockchain games, but if the bulk of those players don’t ever make the switch, Poulson believes they will survive and likely “continue as they are today.” 

Related: Web3 gaming investors more ‘choosy’ in crypto winter — Animoca’s Robby Yung

However, she thinks that eventually, all games will have elements of Web3, whether gamers are aware of them or not.

“More than likely, the underlying technology will morph into the mainstream gaming world where the average gamer can finally realize the benefits it offers, especially when it comes to ownership of in-game digital assets,” Poulson said.

“Eventually, gamers will not know they are even playing a blockchain game; the Web3 elements will be so seamlessly integrated into gameplay that it will be a similar experience to what playing a game is today.” 

Daniel Paez, a former senior manager at major gaming company Blizzard (Warcraft, Diablo, Starcraft), also thinks mainstream audiences are critical for the future of Web3 games because of the sheer size of the player base. 

According to an Oct. 9 report from CoinGecko, over 800,000 people play Web3 games daily, regardless of market conditions. However, on average, the Web2 game Minecraft has over 11.9 million daily players.

Paez, the current vice president and executive director for the Web3 card game Gods Unchained, told Cointelegraph that while mainstream audiences are necessary for Web3 and blockchain games to thrive, he is not convinced they are required to survive.

According to Paez, the key to longevity for Web3 games will be to focus more on the player experience instead of blockchain elements.

“This, of course, puts them into direct competition with thousands of other games, but the benefits greatly outweigh the cons,” he said. 

“The market for gamers is significantly larger, and you begin to build out communities of players who share the game experience with each other, as opposed to communities of users who hold assets from the same game.”

Paez says Web3 games in search of “longer lifespans” will need the mainstream audience long term because selling content and experiences to players is the foundation of the games industry.

“The challenge for blockchain games is figuring out how the blockchain element can really improve the perceived value a player has of the game,” Paez said.

“The payoffs from figuring this out are huge!” he added.

According to the online data gathering platform Statista, the traditional gaming market is projected to generate over $400 billion in 2023. It is expected to continue growing and reach $584 billion by 2027.

In contrast, the Web3 and blockchain game market has yet to come close to such lofty heights. According to data from market intelligence firm Grand View Research, it was valued at just over $4.8 billion in 2022, with projections predicting growth in the coming years. 

Ultimately, Paez believes there will always be room for more “GameFi-esque type games,” however, they will be at the mercy of the crypto markets, which are notoriously volatile.

GameFi, short for game finance, allows players to earn rewards in the form of tokens or NFTs. Players can then use these rewards to purchase in-game assets and cash them out for fiat currency.

One breakthrough application will be all it takes

Michael Rubinelli, who has previously worked at Disney, THQ and Electronic Arts, told Cointelegraph he thinks mass market adoption is vital for the future of Web3 gaming.

Rubinelli, who is currently the chief gaming officer at Web3 gaming platform WAX, said that to attract players, there needs to be a “guiding principle” that clearly shows the benefits of Web3 to both Web2 developers and players.

This “breakthrough application” is what Rubinelli says Web3 games are in search of right now.

“Until such a killer application emerges, conventional gaming companies are likely to remain observers, awaiting guidance from those who pioneer the path,” Rubinelli said.

Related: Free-to-play Web3 games hold the key to mass adoption — YGG co-founder

It’s anyone’s guess if mainstream gaming companies will ever come on board with Web3 games. According to a 2022 survey of Web2 game developers by Coda Labs, three out of four expect to work on Web3 games in the future but did not provide a firm timeline.

Overall, Rubinelli thinks Web2 gamers are important but feels a key indicator of whether Web3 games will stand the test of time will be whether the industry can achieve specific objectives.

“It’s not about whether a mainstream audience is drawn in or not; rather, it’s about reaching a pivotal moment that enables all stakeholders to achieve their product and business objectives,” he said.

“Even if the audience doesn’t materialize, the enduring concept remains: players desire ownership and control over their digital assets.”

CEO of Bitcoin.com Puts Ethereum on Blast for ‘Woke’ Ideology

Roblox CEO ‘dreams’ of in-game cross-platform NFTs and digital objects

Roblox founder and CEO David Baszucki expects top brands and celebrities to take charge and play a key role in making the "dream" of cross-platform NFT come true.

The frontman of the popular virtual universe game Roblox, David Baszucki, has said he ‘dreams’ of having the ability to move nonfungible tokens (NFTs) and digital objects across multiple platforms. 

Following the company's Q3 2023 earnings call, Roblox founder and CEO Baszucki spoke about the role major influencers play in fueling the widespread adoption of NFTs and digital collectibles in a recent CNBC interview. He believed in the idea of users being able to move their collections across non-native platforms:

“There’s a bit of a dream here about objects and NFTs moving from platform to platform.”

For example, Baszucki stated that A-list celebrities such as Elton John could sign up on Roblox and make and sell limited edition collectibles like capes for charity. These types of collectibles could go off the Roblox platform as an NFT and could be sold in other marketplaces.

“What we do expect is that creators, whether it’s Elton John or Nike or someone else making a digital item, that they would play a key role and have a fair amount of control in that process,” Baszucki concluded.

Roblox’s latest earnings call revealed a loss in Q3; however, the company recorded a 20% year-over-year growth in booking estimates on higher in-game spending and the total number of users.

Related: MultiversX eyes metaverse scalability as CEO sheds light on spatial computing

Baszucki’s growing interest in NFTs resonates with overall market sentiment as blockchain analytics company Nansen reported spike in November NFT sales volumes.

In terms of NFT collections, Bored Ape Yacht Club (BAYC) had the highest trading volume in the last 30 days. The BAYC collection had a volume of 35,226 ETH, or around $66.7 million. NFTGo’s data also showed that there was a 12% increase in NFT traders during that timeline.

Magazine: Exclusive: 2 years after John McAfee’s death, widow Janice is broke and needs answers

CEO of Bitcoin.com Puts Ethereum on Blast for ‘Woke’ Ideology

Games need decentralized randomness to be fair

Does your RNG have sufficient randomness? Is it secure against tampering? Is it decentralized? These qualities are critical to building a viable metaverse.

Quantum mechanics tells us that what looks like a highly predictable and orderly universe is built on a world of unpredictability and mere probability. While the quantum world looks bizarre, it can be understood and even harnessed for technology like semiconductors, LEDs, and quantum cryptography. Something similar can be said about randomness in the metaverse. What looks like a system built on random values produced by random number generators (RNGs) is, in fact, based on programs with a method behind them that can be understood — for good or ill.

The pivotal role of random numbers

Random numbers are of great importance in a number of applications, including games, security systems, decentralized autonomous organization (DAO) governance, and nonfungible token (NFT) generation. If your game cannot access randomly generated numbers, your starts will become repetitive and stale. If your security system relies on easily guessed authentication codes, it isn’t providing much security. If any system that needs variety isn’t getting it, it won’t be very effective.

Even if these systems don’t look random, they rely on being supplied with randomly generated values to execute important operations. Without access to randomness, well-planned systems can’t operate. However, the random numbers these systems rely on are not always as random as they may seem.

Many RNGs are, in fact, Pseudo RNGs (PRNGs). Instead of producing random outputs, they are providing the results of a fixed equation. The output value results from running a starting value, often called a “seed,” through this equation. The output is then used as a new seed, and the process starts again. While the outcome isn’t random, it can certainly appear random to an outside observer.

For many applications, this is effective. True randomness is not required in every application. In a video game with random encounters, for example, there may only be a limited number of actions the game can take at any given time. A PRNG that provides values outside a given scope isn’t going to be of much use. When the stakes are low, technical requirements often match. However, the quality of a PRNG can vary dramatically. This can be an issue for applications with higher stakes, many people depending on them, or a variety of use cases.

Some PRNGs rely on simple equations which can repeat themselves after a short period of time. This repetition breeds predictability. Others can be influenced by outside factors. This leads to tampering. Additionally, many PRNGs do not provide a way to determine if the number provided is the intended value. This lack of verification opens another door to tampering and can lead to accusations by users that applications relying on these numbers are being manipulated by biased outputs.

While being able to verify that an apparently random number was the one intended by an RNG may seem silly, it is no laughing matter. The ethos of many blockchain systems is based on transparency and trustlessness. Not being able to confirm that a given number was truly randomly produced strikes at the very heart of these ideals. When the numbers are doing work, such as providing winnings in games or reinforcing security, not being able to prove that the numbers were not tampered with can seriously impact community confidence.

Additionally, not every PRNG is suited to every possible application. Some are designed for certain Web3 functions. These are not universally applicable.

True random number generators (TRNGs) compared to Pseudo RNGs (PRNGs). Source: Level Up Coding

The quest for true randomness

However, these systems also have failings. They are often highly centralized, which can again lead to tampering by anyone with access to the machine. True randomness often comes at a much higher price than services by a quality PRNG. Lastly, the centralization these devices rely on means that if anything goes wrong, there is system-wide downtime.

Decentralization and the imperative of reliability

Using an RNG that does not meet your application's decentralization, verification, or security needs can be disastrous. As the collapse of Axie Infinity due to a security breach demonstrated, a technical failure can have major repercussions for even the best applications with the strongest user base. Given how important RNGs are to the applications that use them, the best one for the task at hand must be used.

The perfect RNG would be unpredictable, tamper-resistant, verifiable, decentralized, and continuously available. If you're selecting an RNG, ask:

  • Does it provide sufficient randomness?
  • Can the outputs be verified?
  • Is it secure against tampering?
  • Is it decentralized to avoid single point failures?

As blockchain developers continue to expand their vision, push the boundaries of their applications, and provide more and more opportunities for the public to engage with the technology, it is imperative that the best possible support for their applications be made available.

Felix Xu Crypto geek, early adopter, and NFT collector. Felix graduated from NYU Stern and founded two crypto projects, ARPA and Bella Protocol, among the global top 500 by market cap. Felix previously worked at Fosun Investment, Sackler family office, and Vertical Research in New York and Beijing. Felix loves sailing, kitesurfing and was featured in the Wall Street Journal and The New York Times for his NFT collection.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

CEO of Bitcoin.com Puts Ethereum on Blast for ‘Woke’ Ideology

Latest from Web3 gaming: Gaming Demo Day with Cointelegraph Accelerator, Animoca Brands, BGA, Metaera, Cipholio and Sandbox

Cointelegraph Accelerator, Animoca Brands, BGA, Metaera, Cipholio and Sandbox the second Gaming Demo Day to showcase seven new projects from the Web3 gaming space.

Web3 gaming has become one of the hottest trends in the tech world, and not without a good reason. Using blockchain technology to give more control to gamers turned out to be a fascinating idea and catapulted Web3 gaming to the main stage of Web3 space.

Web3 gaming applies key principles of blockchain technology - including decentralization, true ownership and community - to video games. Blockchain has enabled the creation of concepts such as play-to-earn (P2E), nonfungible tokens (NFTs) and more to cater to the needs of true players who don’t want to escape exploitation by the Web2 monopoly.

Web3 gaming components

The fast growth of Web3 gaming, however, makes it hard to track the most promising projects and chart the map of the blockchain-based gaming ecosystem. To provide a reliable perspective on Web3 gaming, Cointelegraph Accelerator has partnered with Cipholio, Animoca Brands, Blockchain Gaming Alliance, Metaera and Sandbox for the next Gaming Demo Day, slated for Oct. 12 at 2 pm UTC.

Gaming Demo Day: For investors, developers and gamers

By joining Gaming Demo Day, startups can introduce their projects and present their ideas to an engaged audience of interested parties eager to hear about new games, including investors. Developers can capitalize on the opportunity and leverage the event to gain exposure to potential investors actively seeking projects to support.

What’s more, investors attending Gaming Demo Day gain early access to promising projects, enabling them to identify and support projects with high potential. Investors get the chance to witness developers in action and research their potential clients. The “X factor” of the new projects introduced during the event can be measured through the audience's live reaction. These opportunities combined provide direct feedback and ease the process of making investment decisions.

The Web3 startups scheduled to present their groundbreaking projects throughout the event are:

Challenge

Challenge is a decentralized multi-chain tournament platform where gamers can compete against each other, host tournaments and earn rewards. The platform’s reward protocol ensures active participants receive a share of the tournament revenue. Challenge’s software development kit (SDK) facilitates the integration of both Web2 and Web3 games, enabling on-chain tournaments.

JR Studio

JR Studio is a platform designed to empower game creators with the tools they need to create, host, launch, manage and grow their games and communities. The platform serves as a gateway from traditional gaming into Web3 gaming by providing true ownership and effectively managing technical aspects like blockchain integration.

SuperSnappy

SuperSnappy is a cross-platform messaging app with a social network and a gaming portal that allows users to play games. The social network, which boasts 3D avatars, pets, spaces and NFTs, enables users to smoothly transition between games and create profiles featuring friends lists, feeds, achievements and digital assets.

Isotopic

Isotopic is a software distribution service that utilizes blockchain technology to advance the metaverse towards a sustainable Web2.5. The service also hosts the first decentralized cross-platform game store.

Worlds Beyond

Worlds Beyond is a creator platform that lets creators craft immersive virtual experiences fueled by the power of artificial intelligence (AI). The platform aims to become the definitive Web3 destination and aspires to be the Roblox of Web3 for grown-ups.

The Unfettered

The Unfettered is an AA-quality story-based Web3 action RPG game with elements from the soulslike genre. The team is dedicated to presenting an immersive adventure that provides true ownership to players using virtual assets.

MetaFight

MetaFight is a digital trading card game and social entertainment platform for fighting sports. The platform stands as the world’s premiere globally-licensed gamified platform for mixed martial arts, featuring collectibles of fighters.

Investors, gamers, and startups who want to witness exceptional projects, explore investment opportunities and build connections within the Web3 gaming industry’s key players in a single place can mark their calendars for Oct. 12 to be a part of the Gaming Demo Day.

Registrations are now open for investors who wish to secure their spots at this exclusive event. Attendees can guarantee their place in the event and become a part of the flourishing blockchain community by registering here. One of the startups attending the event will also receive a 12-month basic membership to the Blockchain Gaming Alliance after pitching their projects to frontrunning industry backers. Check out the registration page here.

CEO of Bitcoin.com Puts Ethereum on Blast for ‘Woke’ Ideology