What Is Crypto Gaming?
The global video game market is expected to reach $195 billion in 2021. Some games integrate crypto directly into their gaming economies.
The advent of the blockchain technology has created opportunities for crypto gaming developers to add an element of real-world economics to their games. In some cases, in-game digital tokens can be exchanged for stablecoins on centralized or decentralized cryptocurrency exchanges.
There are a variety of business models in crypto gaming. Some games earn money via advertising or sales of in-game items. Other games pay players in NFTs for completing quests. BitStarz, 7bitcasino and mBitcasinos are among the most popular crypto gambling platforms.
The global gaming token market is worth more than $12.8 billion.
ApeCoin (APE) is the most valuable gaming token with a market capitalization of $2.23 billion. It is a collection of non-fungible tokens built on the ETH blockchain. Third-party developers have incorporated Ape coin into their games.
Mana is the native token for Decentraland, a virtual world built on the ETH blockchain. It can be used to buy and sell digital real estate, interact with other users and play games.
Sandbox is another metaverse, or digital world, running on the Ethereum blockchain. Sandbox (SAND) tokens facilitate different gameplay transactions, including purchasing plots of digital land called LAND.
In-game rewards are small paychecks that gamers receive for completing quests or other requirements. In- game items such as weapons, armor, skins and other equipment can hold tremendous value. RuneScape players received digital Party Hats for free in 2001. The most sought-after color of party hat sold for 57 billion gold pieces (close to $6,700).
There are risks associated with crypto games and tokens. The games are new and their staying power has not been proven. Criminals are always looking to take advantage of crypto gamers via hacks and scams. Earlier this year, hackers stole $617 million in Etherum and USD Coin from the users of the crypto game Axie Infinity. In June, the developer Sky Mavis said it would reimburse only about a third of that amount. Axi Infinity is considered the most popular play-to-earn game.