Topic: Why has GameFi hype died down? (Read 296 times)

people are playing these games just for the sake of reward and that's it.

they don't play it because it's fun, when it comes to fun aspect of playing the game I think we can pretty much say that people out there are willing to shell out some money to play a game that's actually fun but the opposite is happening to these gamefi projects.
they pay people to play their game to grow their userbase and then get funding from investors, in a nutshell it's just a business scheme where the player are the product.

therefore that's why these game never sustaining in the first place, because the game itself was made not to be a long term product, most of the game also just reskinned dead game that doesn't sell before.

When cash flow only switches between cash and assets, when finances are in an unstable state, they may have to limit short-term gamefi play or will have to liquidate and convert cash for other issues, in general the decline of gamefi and many other aspects, defi, metaverse… is a normal state for the cycle and suitability.

Ultimately the underlying reason for almost all the dying in the cryptocurrency field seems to me to be the simple fact that almost everyone, almost all of the time, fails to remember, or fails to keep in mind, that MONEY IS AN IOU / MONEY IS IOUs.

Bitcoin is probably a lot to blame for this, or more fundamentally Proof of Work is probably a lot to blame for it, because Proof of Work coins can become so ridiculously expensive to "mine" that Proof of Work based blockchains can become a ridiculously expensive medium with which to represent your IOUs.

Bitcoin is the first and foremost exemplar because it is SO ridiculously expensive that it can very easily be regarded as not actually being money at all but, rather, a commodity.

A commodity that happens to be a ridiculously expensive medium to use for representing IOUs, possibly even if you use newfangled techniques like inscribing satoshis to represent your IOUs.

Failure to keep constantly in mind that money is IOUs tends to lead to massive failure to HONOUR the IOUs.

An important aspect of IOUs, immortalised in fiction by Lazarus Long burning the IOUs the community his frontier trading post issues them to uses as money.

Do you see it?

The point here is that as a character in Game X, which issues Currency Y, you are Game X, issuing currency Y.

Or as a citizen of civilisation A, which issues currency B, you are civilisation A, issuing currency B.

Your currency is YOUR IOUs !

AS a {citizen | character | player | etc} of {Game X | Civilisation Y | etc} you should be HONOURING your IOUs, not DUMPING them.

When you manage to get hold of some of your IOUs, your objective ought not to be to re-issue them again back out into the wild but, rather, to "keep them off the market", since only when every last one of your IOUs has been "honoured" - bought back - taken off the market - dare say, even, destroyed - will you finally be "out of debt" and thus in a position to begin to EARN...

-MarkM-

First it was Defi and what happened later after all the hypes and the trend many people were doing here with different projects launching on this forum, just go through the coin market cap and Coingecko and you will be surprised how these Defi coins are abandoned and similarly with Gamefi tokens, they are just another cashout trend in crypto, didn't you notice that meme coins and AI coins are no longer making trend again, it's because there time has passed.

Another thing that contributed to most of this project failure is because the Gamefi promises were too realistic to be true. When you go through some of this project Whitepaper, you will be skeptical about these things they mentioned to do but as soon as the token launch, it becomes another useless idea and investors keep jumping from one projects to another until the trend is no longer making money again. This problem need to be addressed.

Airdrop is just one thing that's keeping most of them together, if not some of those projects, DeFi. GameFi don't have real something that they are offering to the community; no one wants to invest where they can't expect something to profit from again, just like in the era of NFT, those who made good use of the trend took advantage of it and enjoyed it while some are counting their losses now, unless there is some introduced massive earning and reward on the GameFi system, which is what I think can bring people back to it again.

You need to understand that everything has it own trend. I could remember when NFT was a big trend then when project team were making huge amounts of money from there project because of the hype and the trend then making huge numbers of investors subscribing. Now, we can see that the hype we heard then has reduced even in play to earn game.  Cryptocurrency market is mostly based on hype and we'll have to be very careful how we make investment because the market is very volatile and anything can happen at any time. Even in the coin market, price depreciate and appreciate at anytime.

Not all GameFi is "flash in the pan"...

Take a look at the historical (back to 2012) tables and plots of game assets linked to from http://galaxies.mygamesonline.org/digitalisassets.html

A good starting place for background info on those results is https://MakeMoney.Knotwork.com/

-MarkM-

I've been seeing counterfire tending lately. Bybit, bingx, gate are offering opportunities for traders for CEC. What's so special about this gamefi token though? Will do a deeper diver. And since I have a Bitget account. I'll likely check this out. Their launch pool seem like a safe bet for accumulation. Thanks..

Where you in crypto during axie infinity uprise? People got into gamefi. But the hype just died down. Some of the tokens too. Axie got to triple figures in price. But where's it now?.

When people were making 5-10 dollars a day from each account, and could have endless accounts, they were willing to spend money on it, sure you pay 300-500 now, but you make 10 a day for a good time, and then when you get enough money for another one, you spend that money again, and you earn. Basically as you can see in this calculation, people were both earning but also spending and that kept it going.

The moment bear market started in the crypto world, it was clear that you couldn't keep it high, but people spent thousands, so if it goes down they all lost and that meant that the interest was lower. It's just a bear market period it's that simple, in 2022 bitcoin was very low, every coin was very low, and that meant that people didn't really made that much money from crypto, this resulted with games to not be paying a lot, and that meant that it didn't worth too much like it used to.

This type of drop caused it to go away, but these are not regular coins or tokens, these are games, if you stop and be low then there is no recovery, while it has been two years since they are down, the game kept going, now you cna2t put in too much to recover it, they are just fully gone at this point.

Their economy always unsustainable one, the user who've played the game before TGE never coming back because the main reason they play in the first place because they want to receive airdrop from TGE.
entire concept of gamefi is flawed in my opinion. Basically from day 1, the game maker incentivizing people to play game so that they can gain some players and inflate the active player counts, but these people will flock as long as there's reward, take the reward aspect and they'll be gone in 1 second.


it reminds me of one of the most successful gamefi which is axie infinity, at early stage it was so popular everyone is making money, few years passed and the game showing signs of dying, the characters NFT dumped in price too.

It seems like people never really got into GameFi. From what I can tell looking at different projects, it seems like they were running on investor funds and trying to pay people to use their inferior games, which led to ultimately nothing. I think gaming and blockchains are a match made in heaven, but I think Microsoft will need to lead the way.

Actually, there are many reasons, current projects are making developments and implementations to combine gaming and finance. Now, since there is less interest, there are also fewer investments in the sector. I think that the sector is still new and the GameFi sector will attract more users, players, in the future. A good ground is needed for this, and it actually started on the date you mentioned.

Maybe now because their hype have died down already but before, many people are interested on them even though many are not genuine but only got influenced by the hype. This is the reason why we are always advised to not join a project that are only based on hype because we don't know their duration and they can suddenly died out causing us to lose our money instantly.

Crypto is a business and like any other business, there will always be competitors, so business owners should try their best to improve their projects in order to maintain their momentum. The problem in cryptos is that devs are greedy and only after the short-term profit. They don't have long-term commitments. IDK why but maybe they think it's a hassle. They didn't realize that they can still earn much better if they do.

All your guesses are correct, there's not a single miss . Starting from tokenomics which can't be sustainable, look at how Axie Infinity used to be and compare it to now, it's hard to realize that the P2E which was once the most played is now no longer attractive because of the decrease in prizes, it's a kind of ponzi, whoever joins first, is the one who benefits. This is also followed by boring, in contrast to conventional games that don't involve crypto, P2E in crypto is boring, there's no fun there, most players only play to earn money, as the name.

There could be a couple of factors that contribute to this. It’s going to be the attraction, loyalty, and continuous playing of the members. It’s not always going to be about tokenomics, but it contributes a big part of the supply and demand.

Are the projects you mentioned the only ones you think have gone down?

I could remember when axie came out in 2020, this same look like no lack of interest are filling the air, until when axie brings billions into its market cap.

We are in a bear market, the reason why we saw that pump was because of the rumour that web3 games are going mainstream, it was not a fade.

Later zilliqa introduced their gaming consoles, the thing is, behind the close door gaming is growing very big, don't listen to people saying there are lack of interest.

Sony PlayStation already introduced their layer 2 project called Soniuem, let people sleep on this, they will be shocked very soon, gaming will grow far bigger than anything else.

For those that are not familiar with gamefi and how it went before, it was crazy hype. And so,

Gamefi = Play-to-earn games.

Let's just say that gamefi is another form of the trend that we've got like in ICO. Basically, trends like that don't really last and that's why if someone is able to take advantage of a current hype and made a lot of money.

Reinvest it to something better like bitcoin that will always be at the top of the game of this market.

GameFi hype happened with the end of the lockdown period where everyone was at home and there was more time to do more things but with the economic developments and the increasing possibility of recession and things like memecoin hype, AI hype SOL hype all of which will make investing in GameFi less compared to the past.

It got hyped because it was something new, and a couple of games that were initially released boomed since there were a LOT of projects that gave people rewards that could be translated/sold for irl money. Then the devs failed to manage the economy (and I don't blame them, it's pretty hard to balance it when it's influenced by a massive amount of bots that they can't stop lol) and it just spiraled down from there. Then again even if they did fix it, subsequent games never really had the appeal modern games had, unfortunately. Even adding strategic elements has its limits imo, especially if you want a LOT of people to play it.