Couple of questions for GameFI projects

Xal0lex

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Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

Hello,

I have a couple of questions for new and existing GameFI projects:

1. Current Google search yields a lot of existing GameFI projects which were very successful at their launch. My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

2. Is there ANY way to know how long/high the price(s) will reach before shooting down for a long time/permanently?

Thank you.

Because most projects face the same problem. A community that comes to the project to make money, not to develop the project. If you constantly pull liquidity out of a project, sooner or later it will depreciate. If a player does not invest money in the development of the project and does not reinvest, such a project will not live long. Players do not see any utilitarian benefit from all these game projects, they do not see long-term success and are not interested in the development of the project. They are only interested in the short-term benefits of interacting with the project. Dot.

o48o

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Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

-cut-
1. Current Google search yields a lot of existing GameFI projects which were very successful at their launch. My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

Because hype is over and they were overvalued to begin with. If people can get tokens by playing, why would they buy them when they can just mine them with bots or cheap labor and dump them in the markets. Most people were really interested in any of those games.

Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

2. Is there ANY way to know how long/high the price(s) will reach before shooting down for a long time/permanently?
-cut-

If there would be, no one holding that information would say anything about their tactics, because if everyone would know, no one would profit from it anymore.
In short, there's no way to know and if someone claims they know, you should consider them as liars.

Text

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I am one of the players of Axie Infinity. I started in September 2020, and I witnessed how it grew in popularity and suddenly plummeted in July 2022. Well, it didn't completely crash because there are still people playing it until now. It's just that the value of the tokens really took a significant hit, and it hasn't recovered.

One of the reasons I see is the high rate of token inflation. The token supply kept increasing, which caused the value to drop even though the game was still popular. The supply is unlimited, and there are more people selling than buying, so it's really going down.

Perhaps, it's also because of the hype. When the hype disappears, the token price crashes.

Many other GameFi projects followed, promising high returns, but most of them turned out to be scams, similar to the Ponzi schemes that were popular in 2016.

Unfortunately, there's no way to predict the price of a cryptocurrency or any GameFi token.

jossiel

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Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

1. Current Google search yields a lot of existing GameFI projects which were very successful at their launch. My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

It's because the hype died for those projects.

Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

2. Is there ANY way to know how long/high the price(s) will reach before shooting down for a long time/permanently?

The market is volatility and even these gameFi projects are good as they are right now. You'll never know how long they're going to stay. Maybe through the charts if you're a trader, you'll get to see some signs of it when they're going down from it.

But if you're asking about certain signs, from its community and the news that circulates around it could give you some sign.

Cryptoababe

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I think the corona virus boost axie infinity game and token value then. Because most people are at home and one of the easiest way to earn from home is to play this game. So, it became popular. I cant say its dead cos its once the most popular GameFi on Blockchain or lets say the first and no one can predict where the price is going cos there might be some great development going on which we don't know.
I still buy gamefi tokens though, But the ones with lowcaps like Mcade which is Listed on Bitget and Uniswap. But i invest the amount I can afford to give out.

libert19

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Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

2. Is there ANY way to know how long/high the price(s) will reach before shooting down for a long time/permanently?

If such thing was possible, everyone would be printing money, yet I see few options stated henceforth : 1) Have enough capital to manipulate that particular gamefi token's market 2) Go to people who can predict the future. 3) Observe the project and get a good judgement. Your judgements get better as you go through trial &error phase through several projects.

Feasible way appears to be 3rd one, and yet your success rate won't be 100% even with that since there are so many factors involved. A smart contract hack and likely the whole ecosystem of that game will come falling down.

GreatArkansas

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Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

(....)
1. Current Google search yields a lot of existing GameFI projects which were very successful at their launch. My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

For me, it is also because of the use case and the bear market.
While we are in a bear market, no one is really excluded from the bloody market even how quality your project is. During the bear market, we will see a lot of projects disappearing like bubbles or turning to scams while others still continue to deliver their product which is the best.
But the answer about their token decreasing, is that a lot of people is selling because some are afraid of bear market.

serjent05

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Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

Hello,

I have a couple of questions for new and existing GameFI projects:

1. Current Google search yields a lot of existing GameFI projects which were very successful at their launch. My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

These projects that were once sucessful and hot eventually died down because their reward systme is unsustainable. Their system works like a Ponzi scheme where the early investors relies heavily to the next investors in order to get profit. they do not have a real life use case for other source of funding. Aside from that, they have too many incoming coins/tokens to the circulating supply that saturates the market.

Quote

2. Is there ANY way to know how long/high the price(s) will reach before shooting down for a long time/permanently?

I believe only insiders know, aside from these people, no one knows how long or high the price will be before it shoots down to oblivion.

cryptoaddictchie

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Quote from: lightsun47 on September 24, 2023, 01:15:07 PM

Now if a project has 'X' amount of percentage allocated to burn those tokens whenever there are transactions to create and keep the scarcity of those tokens AND to increase the value of available tokens, then is it safe to say those tokens may/will keep increasing the price in the future because of the scarcity created to the token holders?

Possible it can but its not that simple. Burning is sometimes the way of project to see some potential investors or users. Cause we all knew that when a certain project keeps buzzing about burning the people are becomes active of course they are familiar with the supply and demand quote but like I said if theres nothing special about the project X or ways users will keep their interest evem though supply is intact its still gonna go down. Developing a project is hard and its a working progress even though they are succesful already cause theres a lot of fishes out there, why would certain users focus on your project isnt it?

lightsun47

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Quote from: cryptoaddictchie on September 24, 2023, 11:01:39 AM

Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

Well like the case of Axie Infinity, the supply has been saturated with a lot of tokens making its worth less valuable. Also many players have played and comes along. Of course the supply would increase in due time and selling is inevitable. Also the market plunge that badly which affects other altcoins too like axie infinity. Only if they manage to maintain a system for axie this wouldnt happened. A lot has changed since then which also other players become uninterested.

Thanks.

Now if a project has 'X' amount of percentage allocated to burn those tokens whenever there are transactions to create and keep the scarcity of those tokens AND to increase the value of available tokens, then is it safe to say those tokens may/will keep increasing the price in the future because of the scarcity created to the token holders?

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Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

1. Current Google search yields a lot of existing GameFI projects which were very successful at their launch. My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

Because their reward model is mot sustainable for example Axie, This game rely too much on players purchasing tokens to be spend on the game. The token value will decreased too much once no one is already buying and everyone is earning tokens passively in the game without spending. The end goal will be the liquidity on the exchange orderbook will just be emptied in the long run.

Axie owner doesn’t have way to get profit to be distributed to players aside from the players money itself or other investors. Think about this, the team reserves is limited while the amount of players that farming is unlimited that keeps selling their farmed tokens.

Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

2. Is there ANY way to know how long/high the price(s) will reach before shooting down for a long time/permanently?

NO

crwth

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For the questions that you have, I think it can be thought of hard. Sos for example: The reason why the tokens price is because there's a selling pressure and having projects to not have developing things that could increase value would lead you to be always selling hence the decrease in price of the asset.

To "know" how to say that an asset will increase in price can never be done in anyway, it's always going to be unpredictable. You should know that already.

Why are you interested in the GameFi projects? Can you list all the things that you think of?

cryptoaddictchie

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Quote from: lightsun47 on September 24, 2023, 10:43:04 AM

My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

Well like the case of Axie Infinity, the supply has been saturated with a lot of tokens making its worth less valuable. Also many players have played and comes along. Of course the supply would increase in due time and selling is inevitable. Also the market plunge that badly which affects other altcoins too like axie infinity. Only if they manage to maintain a system for axie this wouldnt happened. A lot has changed since then which also other players become uninterested.

Bitstar_coin

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How are you certain that those games are being played on a day-to-day basis?
what number of users are playing the game daily?
Is the number enough to drive the demand of the tokens?
What is the token utility towards the entire game play? Are they required for in-game purchase or not?

To be honest, this is usually the the case of many projects not just gamefi only. Once the initial hype has died down, investors have successfully dump their bags for the next hype, the project will struggle (more so during the bear market). If there are no strong utility tied to the token that will drive demand, don't expect price to suddenly fly back to ath except there comes a bull season.

If you want to know how high the price can shoot before dumping then get yourself familiar with charts, study it extensively to be able to track the market movement. And most of all, never fomo in altcoins and buy at the top. This is always the end result.

lightsun47

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Hello,

I have a couple of questions for new and existing GameFI projects:

1. Current Google search yields a lot of existing GameFI projects which were very successful at their launch. My question is, why their token/crypto prices decreased/died after a certain amount of time, despite those games still being played on a day-to-day basis? E.g. Axie Infinity.

2. Is there ANY way to know how long/high the price(s) will reach before shooting down for a long time/permanently?

Thank you.

Topic: Couple of questions for GameFI projects (Read 112 times)