Axie Infinity media kit
Play-to-earn games like Axie Infinity and Decentraland are blowing up across the crypto world.
They seem to be revolutionizing the gaming industry with a new, highly engaging format with huge appeal.
What is the source of the money?
The value across all play-to-earn games comes from the currency that players earn within the platform. But not every game has the same model, and some small names are only looking to cash in on the metaverse craze.
Most games have native tokens for in-game purchases and trading between players. They derive value through the use of their tokens which users and cryptocurrency traders deem valuable, according to blockchain developer James Bachini.
For instance, the model used by Axie Infinity counts on players making a chunky upfront investment in game-specific NFTs (or Axies, in this case). Gamers can then trade their in-game digital assets — earned from playing — at an appreciated price with other gamers, who continue the loop to inject value into the gaming economy.
«If everyone decides to leave and exchange their Axie tokens for other digital currencies, then the token value collapses,» Bachini said. «If the game continues to be successful, then demand for the token continues.»
The game's owners and investors have the belief that people will continue playing and funneling money into it. That's because digital asset ownership is gaining mainstream acceptance.
Indeed, Axie's axs cryptocurrency gained an eye-watering 18,000% over the course of 2021, while Decentraland's mana token rose by 4,000%, ranking the two of them among the best performers overall last year from the crypto space, all thanks to the popularity of play-to-earn games and the metaverse.
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