Attracted by success stories, many people entered the world of NF games expecting a quick profit. What has been seen in the last few days was a mixture of panic and hysteria.
The beginning of December was a month of terror for fans of NFT games and cryptocurrencies. Despite the absurd hype, nothing stopped a major correction (fall) of cryptocurrencies related to NFT games and closing of projects that many thought consolidated.
All this turmoil lit up a giant warning signal not only for those who were trying to enter this world, but also for those who have money and time already invested in it.
Are NFT games dead²? Another metaverse turns to dust!
Game-related cryptocurrencies like Mir4, Axion Infinity, CryptoCar, Bomb Crypto and other projects have racked up heavy losses since late November.
Among these projects, one tumble stood out. Crypto Mines’ cryptocurrency Eternal has plummeted from $800 USD to just $4.426 USD. The coin lost 5% of its value. It was a complete disaster for anyone who had money invested in the game and couldn't recover the value of the NFT invested.
For those who don't know, in this type of game there is a time that you have to wait for the ships in the game to earn the money invested. Those who invested little before the crash probably lost a lot of money.
Despite the absurd hype generated by youtubers (including big youtubers like Nerd dos Negócios) and even Globo, with the right to an article in Fantástico about metaverse, it takes calm to avoid falling into traps (commonly called scam).
NFT games you don't play? Like this?
The term does not actually exist. But many gamers look for NFT games where the “player does not play”. What you do is put a character to “play”.
In this type of NFT game, it is common to have a large initial investment value to acquire the NFTs. It takes time for these characters, ships, carts, etc. to make the moves and pay off the amount invested.
The process is known as “burning an NFT”, which is the process of “expending” the character/car/ship/etc.
Like the Crypto Mines, Plants vs Undead and BinaryX games, there are several games in which the player pays for the characters to fight or "mine" the game's tokens.
This is one of the most sought after game types for those looking for quick profit. However, the situation begins to change.
Crypto Mines and Plants vs Undead just died in the last few days. Both games had their cryptocurrencies “melted” and lost almost all of their value. There is nothing more that can be done for these projects.
Their disaster shows how cruel the NFT Games market is and works like an unregulated stock exchange without any guarantee for the player/investor.
Because of the failure of games like this, many NFT game companies are stretching the time players would get their return on investment (ROI). Before it was a matter of days, but several of them are adopting months for this return to come.
This is one way these companies are using to protect themselves from the panic (FUD) that took over the market last weekend.
Play2Earn games are also in danger
Play2Earn games (in a loose translation “play to win”), NFT games that players actually have to play, have not escaped the corrections of the last few days.
Thetan Arena cryptocurrency dropped from $1 at launch to just $20 cents.
Currently, when playing without spending, it is not possible to profit anything in Thetan Arena. It is necessary to accumulate coins (gTHC) and add some real money to try to buy an NFT hero that, then, makes it possible to win more effectively. The problem is that the price of NFT Heroes has skyrocketed.
Mir4, one of the first successful NFT MMORPGs, also accumulates losses in its cryptocurrency. Not even the announcements of the new Xdraco and Hydra tokens excited the market.
It is worth remembering that none of this affects the games. Thetan Arena and Mir4 remain excellent games, working very well. What really changes is the players' relationship with $$$, as many people look for these two games in order to earn some income.
Axion Infinity and MOBOX are exceptions
Not everything was pessimism in the last week. The games Axion Infinity and MOBOX proved to be consolidated projects of NFT games. Despite the turmoil, they dropped very little compared to what happened with other games.
Axion Infinity has tripled the SLP fee charged for creating new Axies. With this the company says it will fix the game's economy. Translating: “it will be more expensive to create Axies of new generations”.
The MOBOX, despite the drop in recent days, remains a very “hyped” project, especially after being listed on the Binance exchange.
Despite the fall, the future is promising
It was 10 months of a lot of hype and success stories with people making thousands of reais. In the last few days it seems that the NFT games have “slapped on the brakes”. However 2022 promises to be a very interesting year for those who want to see some return for the hours invested in a game.
Many market giants have already announced that they will join this wave. Rumor has it that NCSoft is going to make an NFT version of Lineage and that Ubisoft is going to jump right into the Blockchain gaming world.
Very calm for those who think they will get rich overnight. From now on, you have to be patient, as projects with a quick return will be rare.
LEGAL NOTICE: Everything written in this article NOT AN INVESTMENT RECOMMENDATION. I am not a financial advisor nor do I intend to be. I'm just sharing my knowledge and opinions about Crypto Games/NFTs or anything related to this universe. Please manage your risks carefully.
[originally published December 8, 2021]