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

April 16, 2024 Coin Telegraph

Illuvium raises $12 million ahead of its ecosystem launch

March 27, 2024 The Crypto Briefing

Analyst Sees Ethereum Gaming Altcoin Gunning for Highs, Says One Solana-Based Coin To Do Big Numbers in 2024

March 11, 2024 The Daily Hodl

Blockchain game Illuvium goes mainstream with looming Epic Games Store listing

November 8, 2023 Coin Telegraph

Blockchain

Blockchain games have historically battled to gain mainstream attention, but Illuvium’s listing on the Epic Games Store could change the narrative.

Blockchain-based game Illuvium is set to tap into an audience of millions of PC and mobile gamers with its upcoming listing on the Epic Games Store, which is home to massively popular titles like Fortnite.

Illuvium, an interoperable blockchain game developed by Illuvium Labs, will feature on Epic’s store from Nov. 28, following several months of background work to get the title to meet its standards.

Speaking exclusively to Cointelegraph ahead of the Epic launch, Illuvium co-founder Kieran Warwick outlines the evolution of the game in order to cater to a mainstream audience and comply with the platform’s legal and compatibility requirements:

“The result of these efforts has not only earned Illuvium a place on a leading gaming platform but has also evolved our product.”

The game was developed using Unreal Engine 5 on the Immutable X network. Its beta launch on Epic Games will feature three different game genres set within the Illuvium universe.

This includes Overworld, an open-world exploration game and “creature capturer reminiscent of beloved classics,” an auto battler strategy game called Arena and Zero, and a mobile and desktop city-builder that ties into the other titles. Warwick says its approach of building separate genres and game modes aims to attract a wider audience of gamers.

“By launching three different games in three different genres, we have significantly increased our addressable market. The only issue is it has taken much longer to get to this point,” Warwick adds.

Given that blockchain games featuring nonfungible token (NFT) elements have struggled to break into the mainstream, Warwick’s team has adapted its approach to onboard more users. He highlights the barrier to entry for non-Web3 native gamers as a key reason for the slow adoption of blockchain games:

“One of the most frustrating things about NFT games is the notion that you need a wallet and a ton of money just to try out the game. We have removed the need for wallets, and it’s free to play. We think this is the only way to get mainstream adoption.”

As Cointelegraph recently reported, Web3 venture capital firms like Animoca Brands have highlighted the hesitance of mainstream game publishers to list games that incorporate Web3 infrastructure.

Animoca Brands CEO Robby Yung previously suggested that mainstream players remain uncertain about the inherent implications, fearing that Web3 integration would bypass existing business models that rely on fees for distribution.

Warwick echoes these sentiments, saying that this prevailing attitude is influenced by a variety of factors. One factor is game design integrity, with some critics suggesting that including NFTs could lead to pay-to-win mechanics or negatively affect the game design by prioritizing monetization over player experience.

Regulatory concerns are another consideration, with Warwick highlighting that blockchain technology and NFTs remain “in a gray area in many regions.”

“Games with NFT functionality could run into trouble with regulators that could affect their viability and legality.”

The volatility of cryptocurrency markets and NFTs is another hurdle that concerns mainstream publishers, as well as the perceived prevalence of fraud.

Nevertheless, Illuvium’s upcoming listing bodes well for the wider blockchain gaming industry. Warwick describes it as a major milestone as their title steps onto the same platform as some of the most popular mainstream games in recent years.

“This is a huge step forward. People have been saying for years that Web3 gaming is the next big thing in the crypto space,” Warwick concludes.

Web3 gaming investors have adopted a more measured approach to backing early-stage studios building blockchain games over the past year. This has been necessitated by the effects of a lengthy cryptocurrency bear market, which has called for greater due diligence from industry venture capitalists.

Magazine: Blockchain games take on the mainstream: Here’s how they can win

Illuvium’s collapsing token represents the problems with GameFi

August 15, 2023 Coin Telegraph

Coin Telegraph

GameFi developers have been focused on raking in money — and they've forgotten that they need to make games fun in order to win over players.

Blockchain games began as a means to effectively test technology’s true potential. However, making sure they reach that potential remains a challenge. While Illuvium was one of the most highly anticipated crypto game releases in history, the price of its ILV token has fallen significantly since 2021 — to the tune of 97%.

The project’s developers have not released anything substantial for quite some time. The immersive gameplay and impressive graphics are not enough to stop the game’s token from plummeting. The same can be said of most GameFi tokens.

Blockchain games have been largely underwhelming to date because they do not focus enough on ensuring a quality user experience. Ultimately, the task of creating these games is underestimated. When GameFi emerged, it had a lot of potential, but it has been largely underwhelming. It’s not an easy task to build quality AAA games (those released by top publishers). It is a complex, expensive process with intense competition.

Developers and publishers are now also engaging in many tired tropes and poor practices. Many games have been rushed or poorly designed. Some have featured no meaningful entertainment value, and the earning potential is the only reason people play them. This is usually due to a lack of budget or rushing out unfinished games. Additionally, some companies have released games that do not match the gameplay in the trailer, causing players to lose trust in the industry.

With all this in mind, it’s fair to say that many of these games may not prioritize their players. Audiences wait months for the arrival of new games — only to find that they are low quality, poorly designed and lacking in entertainment.

Illuvium: Overworld is still beautiful on the low settings of my laptop. @illuviumio #Illuvium #web3game pic.twitter.com/6AGu5tcC2W
— Gringo HodL // (@GringoHodl) August 15, 2023

Illuvium raised funds by issuing its ILV token and selling land nonfungible tokens (NFTs) for $72 million before the game’s launch. Despite this, the public beta launch is being delayed. This highlights one major disadvantage of AAA games: Focusing on earning can potentially take the enjoyment out of the game. The very same issues occurring with Illuvium are happening with other AAA blockchain game projects.

Pixelmon stands out when discussing AAA blockchain game projects that did not meet the mark. The play-to-earn game inspired by Minecraft, Fortnite and Pokemon sold a collection of 10,000 NFTs in 2022, earning approximately $70 million simply from hype — but then the game’s launch failed all expectations from players. Some characters were standard Unity models, and one user got an invisible character. This was not the sort of project that was worth $70 million.

Players weren't impressed by Pixelmon's $70 million valuation. Source: Twitter

Developers could prioritize unsustainable economic models over implementing features to create a more exciting experience for players. This has been a trend in the GameFi market, neglecting engaging gameplay.

In Illuvium’s tokenomics, 45% is set aside for the team and investors. Just 10% is assigned to game rewards, a minuscule figure compared with the investors’ share. All of the token investors’ allocations will be available and can be sold before the game’s launch, meaning the Illuvium team and investors have the benefit of an early exit.

With these kinds of games, there is a massive risk of losing money. Users might have to spend long periods in the game before they receive any significant monetary return. It should also be noted that token prices fluctuate rapidly.

With blockchain gaming, there is also a high cost of entry — greatly hindering the mainstream adoption of GameFi. There must be additional value added other than a monetary return that takes significant time to build up. The user experience needs to be rectified. This factor not only turns off players but also investors. The ultimate purpose of token issuance is to increase its value with the team, investors and players.

However, with Illuvium, there is a risk for retail investors and players, given that 45% of the tokens could face selling pressure before the game even launches. Token investors have an incentive to sell when the demand for ILV rises, but this is at odds with game players, who are hoping for a decent return on investment from playing the game.

So far, Illuvium is profiting from the buzz generated by tokens and NFTs — and retail players and investors bought the excitement — but it has not yet shown real value. The game’s “token first, make the allocations available, and game later” strategy creates a situation where investors and players have diverging interests. The game was primarily made for investors rather than gamers.

While it has some impressive designs and ideas, the game is still missing a lot of features, and there is significant room for improvement.

Investors represent too many of the game’s users, making its success a product more of marketing than the quality of the game. Illuvium’s current nature is akin to an initial coin offering project, hyping the creation of an AAA blockchain title that hasn’t been delivered. Even if a $100 million title is successfully produced, the question remains: Are there enough blockchain gamers to support it?

Takuya Tsuji is the founder of Eureka Entertainment Ltd, a gaming company set to release an upcoming blockchain game, Coin Musme. He previously founded Techcross Inc, a company he established in 2009 as a student at the University of Tokyo and grew to $70 million in annual sales. He also worked as a top developer on DMM Games, a gaming platform in Japan, and has been involved in the development of more than 50 game titles.

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

GameStop NFT back in the spotlight after partnership with Illuvium

June 5, 2023 Coin Telegraph

Coin Telegraph

The partnership will debut 20,000 nonfungible tokens in its inaugural collection.

On June 5, Ethereum blockchain game developer Illuvium announced a partnership with video game and consumer merchandise retailer GameStop to debut a 20,000 nonfungible token (NFT) collection starting June 12. As told by developers:

According to developers, the "Illuvitars" NFTS are "dynamic collectable works of art, representing a specific avatar of an Illuvial with a distinct expression. Each Illuvitar carries a power rating, determined by its rarity, which helps you climb the leaderboard."

Each "GameStop x Illuvitar D1SK NFT" will contain a unique GameStop-branded "Illuvitar," which developers say possess "108 potential combinations based on six different Illuvials, three expressions, three background stages, and two finishes." D1SKs contain random Illuvitars and accessories and can be traded on the Illuvi decentralized exchange. In addition, NFT holders will be entitled to early access to Illuvium's creature collector games, Illuvium Overworld and Illuvium Arena, and other perks.

Cointelegraph reported in February 2022 that GameStop selected Ethereum layer-2 scaling solution Immutable X to power its NFT marketplace. However, by August 2022, the daily fee revenue of GameStop NFT reportedly fell to just $4,000 due to the ongoing cryptocurrency bear market.

The figures represented a significant decrease from the project's first full day of business on July 13, 2022, with an NFT sales volume of $1.98 million, equating to about $44,500 worth of fees. At the time of publication, the NFT collection with the highest trading volume on GameStop NFT is Buck Season II, with $109,213 worth of digital collectibles traded within the past 30 days.

Get ready for a groundbreaking collaboration with @illuviumio for exclusive, branded D1SKs!⁰Stay tuned for sale details and exclusive opportunities to own a part of digital collecting history. https://t.co/85Cq2PZSgT pic.twitter.com/w9Flysaac6
— GameStopNFT (@GameStopNFT) June 5, 2023

Magazine: Gen Z and the NFT: Redefining Ownership for Digital Natives

Under-the-Radar Ethereum-Based Altcoin Flashing Bullish Signal, Says Crypto Analytics Firm Santiment

May 26, 2023 The Daily Hodl

Nifty News: Trump drops more NFTs ahead of presidential run, Meta opens to teens and more

April 19, 2023 Coin Telegraph

Coin Telegraph

Trump’s first NFT collection has seen its value plummet by more than 60% following the latest launch which comes ahead of his 2024 presidential bid.

Trump drops series 2 NFT collection ahead of presidential run

Another round of digital nonfungible tokens (NFTs) trading cards have dropped bearing the likeness of former United States President Donald Trump, with 38,001 minted on Polygon (MATIC).

The collection was launched on April 18 at a price of $99 each, it currently has a floor price of 0.0659 ETH ($145) according to data from NFT marketplace OpenSea and has racked up a volume of 592 Ether (ETH), or over $1.2 million.

Based on the collections creator fee of 10% the sales have generated over $100,000, while the initial subscription generated an additional $3.76 million of revenue based on a sale price of $99.

*A screenshot of Trump's April 18 Instagram post. Source: Instagram*

Posting to Instagram, Trump suggested that he kept the price the same as it was for the first series “because I want my fans & supporters to make money, & have fun doing it,” adding:

“I could have raised the price MUCH HIGHER, I believe it still would have sold well, with a lot more money coming to me, but I didn’t choose to do so. I WILL BE GIVEN NO ‘NICE GUY’ CREDIT?”

The initial series, which was unveiled on Dec. 15, has seen its floor price drop by 61% in the last 24 hours according to OpenSea, although the trading volume has increased by 1,011%.

Meta opens Horizon Worlds to teens in a bid for more users

Teens from the U.S. and Canada can now use the virtual reality (VR) app Horizon Worlds after Big Tech firm Meta opened it up on April 18, it was previously restricted to people aged 18 and over.

The decision comes after Horizon Worlds fell well short of its monthly active user goal for 2022 recording an average of just 280,000 over the year compared to the 500,000 it had targeted according to the data website Statista.

Various advocacy organizations and safety groups have urged Meta CEO Mark Zuckerberg to halt plans to allow minors into its metaverse. An April 14 open letter argued that Meta should wait for more peer-reviewed research on the potential risks of allowing youths in the metaverse.

The letter claimed minors will face harassment and privacy violations on the VR app, which is still in its early stages.

Meta’s Horizon Worlds isn’t safe for kids, and @Fairplayforkids has the receipts. Children’s wellbeing should be a priority, not an afterthought, and Meta can’t even manage that on existing platforms. https://t.co/WhAEnBRo0M
— Tech Transparency Project (@TTP_updates) April 17, 2023

Meta’s announcement appeared to target the concerns as it focused heavily on ways it plans to mitigate these risks through features such as parental supervision tools, and limiting interactions between teens and adults they don’t know.

*The key takeaways listed in Meta’s public announcement. Source: Meta*

Nike kicks off first .SWOOSH digital collection with NFT sneakers

Global sportswear brand Nike launched its first NFT collection through its Web3 community platform .SWOOSH, a digital version of its “iconic” Air Force 1 sneaker from 41 years ago.

Old sole, new story.

The #OurForce1 collection features digital renditions of AF1s past, present and future built for the next generation.

Nike’s first-ever virtual collection is inspired by the AF1 Low, a classic style remixed hundreds of times since it dropped in ‘82. pic.twitter.com/dlq65VNeAb
— .SWOOSH (@dotSWOOSH) April 17, 2023

The Polygon-based NFTs are priced at just under $20 and are available to all .SWOOSH members. According to Nike, the NFTs will have a range of perks such as “special access to physical products and experiences.”

Nike added that it will “introduce other new utilities and benefits” to its virtual creations in the near future.

After Nike announced the upcoming launch of the NFT marketplace in November 2022, its community voted that Nike’s first digital asset collection should be based on its Air Force 1 sneaker.

Smurfs step into Web3 with new NFT collection

The popular cinematic animated franchise The Smurfs are set to launch a new collection of NFTs in association with the Web3 platform, The Smurfs’ Society.

The first public sale for the 12,500-strong NFT collection began on April 18 with 3,000 NFTs depicting various Smurfs characters up for auction with an average bid price of 0.02 ETH ($42).

Our Bucket Auction is LIVE!

You have 48 hours to place your bids and become the owner of a unique Smurf NFT ✨

Only 3000 Smurfs are available so don’t waste any time! ⏰

✅ #builtonRarible @rarible

Click here to start bidding https://t.co/PpU7V6Sw4r pic.twitter.com/Wteo0Ll9T8
— The Smurfs' Society (@SmurfsSociety) April 18, 2023

According to The Smurfs’ Society, the NFTs will allow owners to attend VIP events, get unique rewards, and participate in members-only games.

Some of the bidders appear to be either huge fans of the Smurfs or are speculating that the prices will increase following the mint given the top three bids are for 847 of the NFTs.

*Current bids for the NFT collection. Source: The Smurfs’ Society*

Among the 250 or more characters available are Papa Smurf, Brainy Smurf, and Smurfette. The collection will have over 350 unique traits according to The Smurfs’ Society.

More Nifty News:

A newcomer to the blockchain game Illuvium sold an NFT for over $49,000 after finding a rare NFT inside a digital loot box. The loot box cost just $32 meaning the lucky player made a gain of approximately 140,525%.

Speaking with Cointelegraph, art market economist and academic Magnus Resch suggested “the most important pillar in any NFT project is the community” and believes that some NFT projects have failed because they treated their community like an audience that follows their project rather than contributing to it.

NFT Creator, Sarah Zucker: The Sarah Show’s analog past meets dizzying digital future

Ethereum-Based NFT Gaming Project Explodes More Than 70% This Week Amid Flurry of Updates

February 4, 2023 The Daily Hodl

Nifty News: Porsche ends ‘low effort’ NFT mint early, Oreo dunks into the Metaverse and more

January 25, 2023 Coin Telegraph

Animoca Brands

Porsche’s first foray into NFTs appears to have flopped after recording underwhelming sales and was heavily criticized by the community.

Porsche criticized for 'low effort' NFTs, ends mint early

Car manufacturer Porsche had to cut short a nonfungible token (NFT) mint of its famous white 911 model only two days after the public mint started, saying its “holders have spoken.”

The Jan. 23 launch was seen by some as a huge flop for Porsche with just 2,040 of the 7,500 NFTs available having been sold at the time of writing.

Our holders have spoken. We’re going to cut our supply and stop the mint to move forward with creating the best experience for an exclusive community. More info in the next hours.
— PORSCHΞ (@eth_porsche) January 24, 2023

The mint was widely criticized by the crypto community for being “low effort,” “tone deaf” and overpriced. The price of the NFTs were set at 0.911 Ether (ETH) ($1,417).

Really sad. No community. No comms. No value. Glad our community hasn’t fallen for it. Big brands should take note. This is a valuable lesson for them. Extracting value not gonna cut it.
— Staś May (@haymaker_studio) January 24, 2023

Sales on secondary markets have been undercutting the live mint, with some selling for as little as 0.86 ETH.

After announcing it would cut the supply, Porsche clarified that minting would still be open until 11am UTC on Jan. 25. The collection recorded a surge of FOMO buying which temporarily drove up the floor price.

Crazy sequence of events w/ @eth_porsche

- Tweet on supply cut & stopping mint
- FP swells by .3 ETH
- Everyone realizes mint is still open
- Everyone mints #NFTs & sell immediately
- FP returns to mint price

Winners?

- Porsche for selling ~160 NFTs in <1 hour
- Shrewd traders pic.twitter.com/p1Kch1OrLH
— metaversatile.eth (@metaversatile_) January 24, 2023

Get Stuf’d: Oreo launches a Metaverse…and a really big cookie

Cookie company Oreo launched its own Metaverse, the OREOVERSE, an interactive digital world where cookie lovers can play cookie-themed games and enter into a sweepstake.

Introducing our newest Limited Edition OREO Cookie: The Most OREO OREO This OREO cookie features ‘Most Stuf’ creme with bits of OREO wafer.

With a cookie so meta, it’s only right that we’re dunking into the Metaverse with our very own OREOVERSE: https://t.co/v15kHRyxDu pic.twitter.com/yVfcFCDV7a
— OREO Cookie (@Oreo) January 24, 2023

The OREOVERSE is on desktop, mobile and in Meta’s Horizon Worlds, where users with a Meta Quest headset can enter the Metaverse and experience it in virtual reality (VR).

*A screenshot from the web-based version of Oreo’s new metaverse. Source:* *OREOVERSE*

Oreo enlisted the services of TV personality Martha Stewart along with her gardener and friend Ryan McCallister to endorse the Oreo-inspired digital world.

The grand prize for the sweepstake gives users the chance to win $50,000 amongst a range of smaller prizes.

The Metaverse announcement was paired with the unveiling of its latest limited-edition cookie called the “Most OREO OREO” which has a “Most Stuf” creme center — filled with bits of Oreo.

Nike kicks off NFT marketplace with Air Force 1’s

In its first collection of NFTs on its “.SWOOSH Studio” NFT marketplace, Nike is set to launch a NFT collection influenced by its iconic Air Force 1 sneakers following a community vote.

The Polygon (MATIC)-based NFTs will go live on Jan. 25 according to a Jan. 23 tweet by Jasmine Gao, Nike Virtual Studios’ senior product manager.

.SWOOSH Studio, Nike's home for virtual co-creation, launches this Wednesday 1/25

Last month, the .SWOOSH community voted on their favorite AF1 sneakers to influence the upcoming Our Force 1 collection journey.

Now, get ready to build it with us. pic.twitter.com/to3VyBgbSJ
— Jasminelil.SWOOSH (@jgao) January 24, 2023

Nike announced the upcoming NFT marketplace on Nov. 14 last year, which Nike Virtual Studios general manager Ron Faris claimed would help “onboard the next million” into the “wonderful world of web3 and digital assets.”

It aims to be a community-driven platform for Web3 digital art, with members given the chance to help co-create virtual creations with the global fashion brand through community challenges.

According to the Nov. 14 press release, members who win the challenge will also be able to earn royalties on the virtual product they help create.

Nike also suggested that digital wearables would eventually be usable in games and other “immersive experiences.”

Twitch co-founder's Fractal brings its games to Polygon

The gaming company Fractal will be expanding its F Studio product suite to the Polygon blockchain and is bringing along 30 Polygon gaming partners for the ride.

❄️ FRACTAL IS EXPANDING TO POLYGON ️@fractalwagmi mints, tournaments, marketplace, and studio are now available #onPolygon

Excited to announce the launch with Fractal’s 30 Polygon partners. Watch the video reveal pic.twitter.com/VuIRThkof5
— Polygon Gaming (@PolygonGaming) January 24, 2023

The partners include games such as Phantom Galaxies, Life Beyond, League of Kingdoms, Blast Royale and Sunflower Land.

*Fractal and Polygon launch partners. Source: Polygon Gaming.*

Fractal is an NFT gaming marketplace founded by Twitch co-founder Justin Kan and provides a launchpad for new projects as well as facilitating tournaments.

It also boasts a software development kit allowing developers to build in-game marketplaces where players are able to buy and sell NFTs in-game, rather than needing to go through Fractal’s marketplace.

The platform originally started on the Solana (SOL) network, but according to a Jan. 23 report by VentureBeat, Fractal is expanding over to Polygon due to its speed, scalability and ability to accelerate game development with the security of the Ethereum network.

Polygon Gaming will be making a strategic investment in Fractal for an as yet undisclosed amount according to the report, in an effort to deepen the partnership between the two firms.

More Nifty News:

An up-and-coming NFT racing game called PetaRush sold out all the NFTs available through both its whitelist and public sales. The game allows users to integrate some NFT collections from outside the games' ecosystem by pursuing partnerships that allow them to use the IP of other collections.

In a recent interview with Cointelegraph, the co-founder of the blockchain role-playing game Illuvium, Kieran Warwick, suggested casual gamers are “critical” to the success of blockchain games that utilize NFTs. Animoca Brands Chairman Yat Sui echoed the sentiment, claiming that all it would take is one good game to kick-start a blockchain gaming boom.

Illuvium

Trump drops series 2 NFT collection ahead of presidential run

Meta opens Horizon Worlds to teens in a bid for more users

Nike kicks off first .SWOOSH digital collection with NFT sneakers

Smurfs step into Web3 with new NFT collection

More Nifty News:

Porsche criticized for 'low effort' NFTs, ends mint early

Get Stuf’d: Oreo launches a Metaverse…and a really big cookie

Nike kicks off NFT marketplace with Air Force 1’s

Twitch co-founder's Fractal brings its games to Polygon

More Nifty News:

Share this video