GameFi refers to games built on a Blockchain platform. Unlike traditional games, Blockchain games not only have entertainment value but also come with an economic model which allows players to make money. This explains why it is called GameFi, the combination of ‘games’ and ‘finance’.
Many people now have a negative view of GameFi, especially after some swindling cases in which game developers raised funds but could not launch products as expected.
Talking about the GameFi market, Duong Tran Phuong Dong, CEO of NFT Atlantis Universe, said there is a shift from a traditional game environment to a Blockchain world.
“The market capitalization value of GameFi is estimated at $11.6 billion, which is just equal to 1/10 of the value of the traditional game market ($180 billion). We can see that there’s still much space for GameFi to develop,” Dong said.
In addition to earning money, GameFi players are given more power as they can own characters and items as NFTs.
Blockchain technology brings transparency in the game economy model. In other words, GameFi can solve problems that traditional games have. Dong believes that GameFi will develop strongly.
Asked if players have lost interest in GameFi following swindling cases related to GameFi projects, Dong said that not all people turned their back onto GameFi, but they became more cautious about avoiding swindling and projects which don’t have long-term strategies and development resources. Good GameFi projects can attract players and supporters. This can be seen in the development of Decentraland and Sandbox.
According to Dong, when the market is in a downtrend, many investors who don’t have knowledge and experience may incur losses, and this will disappoint the entire crypto market in general and GameFi in particular.
Regarding the comment that GameFi is just a temporary trend, Dong said GameFi doesn’t just mean ‘play to earn’, and it is unreasonable to equate the setback of the ‘play to earn’ movement with GameFi.
He said GameFi is not a fad but is the evolution of traditional game, bringing players ownership and transparency in game asset management. It is also easy to have transactions safely all over the globe.
However, there are always failed projects during the development of new technology platforms. So, this doesn’t mean that the entire GameFi industry will die.
Trong Dat