GameFi in 2022: This Report You HAVE TO SEE!! 🎮

There are three things that drive crypto Adoption The first and most powerful force is Price speculation the second is Necessity in the absence of traditional Financial services and the third is Well just for fun Now this third factor of fun is why There’s been so much investment in nfts Metaverses and blockchain games and a Recent report by cointelegraph revealed Just how large these crypto niches could Grow Today i’m going to give you a bit of Background about coin telegraph and its Game fire report summarize what it says About this crypto niche and what it Could mean for game five related crypto Currencies [Music] Before we get on with the show there’s Something you need to know if you’re Here for financial advice the answer i’m Afraid is no Education and entertainment are the only Things i bestow please contact a Financial advisor for help with your Portfolio If this is your first time at the Channel my name is guy and i know crypto Can be a hassle That’s why i explain complex crypto Concepts in ways you can handle Coins tokens news and reviews are just a

Few of the topics i tackle If you want to join me in my crypto Battle the subscribe button and Notification bell are where you must Travel That’s all you need to know from my side Let’s dig into cointelegraph’s recent Report about gamefi If you’re unfamiliar with cointelegraph You must be very new to crypto That’s because coin telegraph is one of The most popular crypto news sites out There but besides news coin telegraph Also publishes crypto reports and since 2020 it has published over 20 in-depth Reports about different crypto topics However it seems most of them flew under The radar Now this might have something to do with The fact that cointelegraph only Announced the launch of its dedicated Crypto research terminal about two weeks Ago What’s awesome is that most of coin Telegraph’s crypto reports are free There are of course paid crypto reports Too and even paid databases about crypto Regulations and crypto vc companies The about section of cointelegraph’s new Research terminal reveals that its In-depth crypto reports are written by a Team of about a dozen crypto researchers Many of whom have earned a doctorate Degree

Coin telegraph’s research team is headed By dr demelza hayes a forbes 30 under 30 Recipient with over a decade of Experience working as an advisor for Crypto projects like dash serving as a Crypto fund manager and even two stints With the united states department of State The crypto report i’ll be talking about Today was released just two days after Cointelegraph announced the launch of Its crypto research terminal and as You’ve probably gathered by now It’s about blockchain gaming Now most of the findings in the report Come from the coin telegraph research Team’s analysis of five of the most Popular play to earn crypto games Specifically axii infinity splinterlands Bomb crypto alien worlds and defy Kingdoms The researchers cite the massive amounts Of money that are still being poured Into blockchain gaming as evidence that Some game fi oriented crypto projects Could continue to see significant growth During the crypto bear market hence why They wrote the report I’ll quickly note that coin telegraph is One of the resources we use as part of Our own crypto research and if you’re Curious about what other research Resources we use check out the link in The description

Now sit back and relax while i unpack Coin telegraph’s game fi report note That you can find a link to the full Report in the description as well as a Link to cointelegraph’s research Terminal The first part of the report gives a Definition of game fight which the Authors describe as quote the Combination of games with financial Incentives made possible by Cryptocurrency specifically tokens on Smart contract cryptocurrency Blockchains like ethereum The authors predict that current and Future metaverse worlds will have their Own in-game economies and credit defy Developer andre cronier for popularizing The term gamefi after tweeting about it In september 2020. The authors also emphasize that Gamefight does not Mean gambling This is because the financial incentives In game fight are related primarily to Skill and to effort rather than to luck Though luck does play a role depending On the game 5 project in question The authors then identify the two Essential features of game 5 which are Play to earn mechanics and robust Tokenomics that can cause the coins or Tokens involved to appreciate in value As the blockchain game becomes more

Popular The second part of the report provides a Brief history of game five Now the authors begin by saying that Game phi has technically been around for Thousands of years since playing a game For money is nothing new and is Commonplace in many cultures to this day However the ability to actually earn Money while you play a game is something That seems to have begun with an online Game called second life which was Released in 2003 The authors note that a british real Estate agent managed to make over 1 Million pounds buying and selling plots Of land in second life in 2006 bravo sir Now in the case of crypto game fight has Its roots in the crypto kitty’s nft game Released on ethereum in late 2017. As some of you will know the Cryptokitties were so popular that all The nft transactions brought ethereum’s Blockchain to a screeching halt shortly After the game launched This is why the company behind Cryptokitties ultimately decided to Create its own smart contract Cryptocurrency blockchain called flow And you can learn all about it using the Link down below yo Anyways the third part of the report Covers the economics of game fine and The authors start by saying quote

Blockchain gaming is turning the Traditional gaming model on its head This is simply because game five users Actually own their in-game assets and Are able to do anything they want with Them often these in-game assets also Allow users to vote on the future of the Game The authors point out that there are Quite a few parallels between game phi And d5 notably things like staking nft Fractionalization and liquidity mining The authors also drop a crazy statistic From bloomberg and that’s that in November last year 50 of crypto users Were playing blockchain games and only 45 of them were using d5 protocols in Other words the popularity of blockchain Games exceeded the popularity of all Other decentralized applications for the First time in crypto’s history which is A big deal to say the least The authors then pivot to explaining how Players make money and put the spotlight On axi infinity now if you’ve watched Any of my videos about axiom infinity You’ll know that players primarily make Money by battling and breeding Pokemon-esque characters called axes Which can also be loaned out to players Who can’t afford to buy axes for Battling as a form of passive income Landlords am i right Now jokes aside this has become a

Legitimate business model and a number Of gaming guilds have proliferated to Serve this demand more about them in the Description The authors go on to highlight the more Than four billion dollars in nft sales That have taken place on axi infinity’s Marketplace so far a figure that’s Nearly double that of the second most Traded nft collection that’s crypto Punks for anyone wondering The authors seem to be pretty bullish on Axiomfinity’s axs token its slp token And the ron coin used on axiomfinity’s Ronin sidechain because quote axi Infinity is becoming a digital nation With a real economy while use cases for Axs slp and ron grow The author specified that the reader Should be on the lookout for axia Infiniti’s upcoming land releases as They could offer an opportunity to get In at a good price they said it not me The authors then turn to another Blockchain game called defy kingdoms Which i’m admittedly not all that Familiar with but i can’t deny that it Sounds pretty damn cool That’s because defy kingdoms apparently Involves representing liquidity in d5 Protocols as nft gardens with quote Blooming plants that grow in accordance With their yields Now unbeknownst to me defy kingdoms was

Built on the harmony blockchain and the Authors note that it briefly became the Top ranked dap by users according to dap Radar which makes sense given that defy Kingdoms still sees tens of thousands of Users per month to this day if you want To learn more about harmony you can Check out my most recent video about the Project using the link in the Description Anywho after going over alien worlds Splinterlands and bomb crypto the Authors compare all five games on a Series of metrics the first metric is The number of daily active users and as You can see alien worlds and bomb crypto Are in first and second places with axi Infinity in third Now there seems to be something wrong With this statistic because at its peak Axi infinity had over 700 000 users per Day well above what both alien worlds And bomb crypto were seeing at their Peaks I suspect this has something to do with The fact that most of the activity on Axii infinity is occurring on the ronin Side chain which apparently isn’t being Tracked as accurately as other Blockchains In any case the second metric the Authors assess is total value locked or Rather the total amount of money that’s Been invested in each game by its

Players As you can see players of axe infinity And defy kingdoms each spent over two Billion dollars with the other three Blockchain games requiring their own Separate chart to be visible I again suspect that something is off With this statistic because the market Cap of harmony itself maxed out at Around 4 billion and the total value Locked in harmony’s d5 protocols maxed Out at 1.5 billion The third metric the authors assess is Volume or rather the amount of money Coming into each blockchain game on any Particular day Not surprisingly axia infinity and defy Kingdoms take the medals and the sheer Difference in volume between these two Suggests that axe infinity is in fact Leading by a wide margin on all these Metrics The fourth metric the authors assess is Transactions or rather the number of Daily transactions associated with each Blockchain game This is where things get interesting Because alien worlds and splinterlands Saw the most daily transactions by a Wide margin despite placing well below Axe infinity on other metrics This anomaly can be explained by the Fact that alien worlds exists on the wax Blockchain and splinterlands exists on

The hive blockchain both of which can Handle thousands of transactions per Second It seems the authors missed this Important detail but they did manage to Remark that more than the third of all Transactions on polygon and the binance Smart chain are related to blockchain Games What’s also odd is that the authors Don’t really provide any details about The last two metrics they assessed which Were gameplay and tokenomics then again It sounds like these sections are Intended to explain why the authors Talked about these five blockchain games Now if you’re wondering which blockchain Games i’m bullish on you can check out My video about them using the link in The description Anyhow the fourth part of the report Examines the problems with game phi and The first problem the authors identify Is the massive advantage that early Adopters of blockchain games have and The barriers to entry this can create For any new players The authors focus on the fact that Becoming an axi infinity player has Become prohibitively expensive Particularly for those in developing Countries looking to sustain themselves Through in-game gains This is why axey infinity’s

Aforementioned scholarship program was Created This makes it possible for axi holders To lend out their axes to players who Can’t afford them as a means of Generating passive income The second problem with gamified that The authors identify is regulations and They cite a series of regulatory reports Including one by the president’s working Group on financial markets which i Actually covered in another video that Will be in the description the bigger Concern the authors have in the context Of regulation relates to the fact that Cryptocurrency is accessible to anyone With an internet connection and this Means children can participate in play To earn economies now this opens a whole Series of questions around child labour And taxation The authors also believe regulators Could take issue with any elements of Play-to-earn games that involve too much Luck as they could be classified as Gambling especially here in the uk where Regulators absolutely love to rant and Rave about the evils of cryptocurrency And then they wonder why all the crypto Companies leave only to change their Tune with pro crypto statements to try And convince them to stay i digress The third potential problem with game 5 That the authors identify is

Environmental concerns which they Rightfully point out as being unfounded Given that proof of work mining uses a Fraction of a percentage of the world’s Energy and accounts for an even smaller Fraction of carbon emissions The authors also underscore the fact That quote industries need energy period And that quote demanding that this new Industry just use no energy at all is Nothing but a death wish that is legit The fifth part of the report relates to Property rights in blockchain games Which is again one of the primary Selling points of game 5 projects The authors commence by calling out one Of the criticisms of cryptocurrencies And that’s that the value of most Cryptocurrencies is based on nothing but Speculation The authors commence by calling out one Of the criticisms of cryptocurrencies And that’s that the value of most Cryptos is based on nothing but Speculation They then counter with the point that The derivatives market which is Estimated to be worth more than one Quadrillion dollars Essentially consists of nothing more Than speculative bets on whether the Prices of assets will go up or down This means criticism can’t be levied Against cryptocurrency

The authors then present this image from Another research paper by the hobie Cryptocurrency exchange which identifies Two so-called degrees of freedom that Game5 provides free trading of in-game Materials and free trading of in-game Currency The authors elaborate that the financial Restrictions built into regular video Games meant the only way users could Freely trade among themselves in real Life was to set up elaborate black Market economies which was not only Difficult to do but also not ideal Unfortunately there were no alternatives The blockchain technology that underlies Cryptocurrency offers an alternative and The authors even throw in the famous Quote from vitalik buterin who Reportedly created ethereum after world Of warcraft moderators modified one of The characteristics of his in-game Character What a way to respond Regarding virtual worlds the authors Clearly state that quote virtual items Lead to sustainable economies when Coupled with strong property rights and The basic economic freedoms of price Setting an unhindered exchange The authors conclude the section with Quote Game gamefi is a textbook case study for How free markets outperform their more

Regulated counterparts and create more Wealth for all involved The sixth and final part of the report Gives some predictions about the future Of game five with the size of the Traditional video game industry sitting At around 150 billion dollars the 10 Billion dollars of revenue brought in by Game fight projects suggests that the Game fire industry could grow by up to 15x in the coming years or at least this Is what the authors seem to imply That said they seem to be uncertain About this since quote blockchain games Will not replace traditional gaming but Quote the size of the gaming industry is Not the total addressable market for Game five Naturally they believe it could be much Larger Another comment that caught my eye was Quote the gaming industry as a whole Shrunk for the first time ever in 2021 Which could be very bad news for Gamefight if this trend continues As for what the authors forecast for Game fi over the next five years they Predict the sector will improve on three Fronts The first is the quality of the content Which includes stuff like immersive Quests better graphics and a Frictionless user experience The second is business models which

Presumably includes stuff like Decentralized autonomous organizations And robust tokenomics And the third is regulatory compliance Where the authors anticipate that Blockchain gaming companies will work Proactively with regulators The authors emphasized that nothing in Their report is financial advice sounds Familiar and the last page of the report Is a long disclaimer that basically says None of the crypto projects discussed by The report are recommended by Cointelegraph or its researchers better Safe than sorry And now for the big question what does This all mean for game 5 related Cryptocurrencies well one thing’s for Certain and that’s that it’s ultimately The smart contract cryptocurrencies that Underlie current and future game fight Projects that will stand to gain the Most in the long term The thing is that there are dozens of Smart contract cryptos and even more Layer 2 scaling solutions for said smart Contract cryptos some of which are Trying to cater to game fi Now You’d think that game 5 projects will Naturally gravitate towards the fastest Blockchains with the largest communities And though this is logical it’s not Entirely correct

That’s because the most important thing For developers and users alike is Security and as we’ve seen the fastest Cryptocurrencies haven’t exactly been The most secure this is why ethereum is Still the go-to smart contract Cryptocurrency for so many game five Projects as expensive and slow as it is It is still the most secure smart Contract cryptocurrency by a wide margin Being on ethereum means developers and Users alike can be certain that their Cryptocurrencies and crypto projects Will still be around five to ten years From now This certainty makes it possible to Build for the long term and that Long-term vision is what gives value to Almost every crypto project out there be It game five or otherwise This is also why there’s a bullish case To be made for all the game fight Projects that have built ethereum Scaling solutions Ones that are custom built for the Developers and users of their game The elephant in the room here is Axiomfinity but there are many other Game fight projects that are planning to Do the same such as apecoin On that note it’s quite likely that Every successful gamefi project will Eventually be forced to create its own Blockchain to support its growing user

Base This internet of blockchain’s idea is The core thesis of cosmos and that could Be a sign that cosmos based game five Projects could be some of the most Successful in the long term as they Exist on their own chains out of the Gates you can learn more about cosmos And what it’s been up to by using the Link in the description And that’s all for today’s video about Coin telegraph’s game fi report if you Found it insightful smash that like Button to show your support Be sure to subscribe to the channel if You haven’t already and remember to ping That notification bell so you get a Heads up when the next video is ready In the meantime you can check out coin Bureau clips to look behind the scenes Or tune in to the coin bureau podcast to Hear more about crypto from mad mike and Me You can also find me on twitter tiktok And instagram and get crypto market Updates in real time on telegram I must say that my weekly newsletter is One of the best and not just because i Share my crypto portfolio and which Cryptos i’ll be covering next If you want something that’s better than A bet check out our custom deals page if You haven’t yet You can find out about that and all the

Other things i just mentioned here using The links in the description click them Fast Thank you all so much for sticking Around until the end i’ll catch you Later just around the bend till then Take care my friends this is guy bidding You Goodbye [Music]