NFT games

GameFi and Metaverse least affected by Terra debacle: Report

Blockchain games and NFT-related Metaverse projects “managed to sidestep the ensuing bear market” by posting transaction count increases of 9.5% and 27% respectively in Q2.

Blockchain gaming and the Metaverse have managed to “sidestep” the “Lehman brothers-like” collapse of Terra in May — though decentralized finance (DeFi) and nonfungible tokens (NFTs) haven’t been so lucky, a report says.

In a Friday report from decentralized application (DApp) data aggregator DappRadar, the collapse of Terra in May was similar in scale to the 2008 subprime mortgage crisis — causing DeFi, NFTs and firms such as Three Arrows Capital (3AC), Celsius and Voyager to cop the brunt of Terra’s destruction:

“It is becoming clear that the Terra debacle has become a Lehman brothers-like event that has sent shockwaves across the entire breadth of the crypto industry and aftershocks that will affect us for many months.”

However, DappRadar noted that blockchain gaming and metaverse projects showed either minimal drawbacks or even positive signs of growth in the same period.

Weathering the storm

The report compares different metrics to show how the Terra collapse (during mid-Q2) impacted the performance of various sectors in crypto between the first two quarters of this year.

One key metric the report looks at is transaction count, or the total number of completed transactions, which essentially shows user engagement. DeFi and NFTs saw the biggest drops with 14.8% and 12.2% apiece, while blockchain games and NFT-related metaverse projects “managed to sidestep the ensuing bear market” by posting increases of 9.51% and 27% each.

The report also added that while the average amount of activity from unique active wallets (UAWs) in NFTs dropped by a hefty 24% in Q2, blockchain gaming saw a drop of just 7%, suggesting that users continue to interact with gaming DApps “at a more or less the same rate as before the Terra incident.”

The trading volume for metaverse-related NFT projects was also described as a “beacon of hope,” as volumes increased by a whopping 97% since in Q2, despite the overall NFT sector posting a 32.66% drop in Q2.

In a separate DappRadar report from July, the firm suggested that blockchain gaming may have been able to hold up better than other crypto sectors last quarter due to the non-speculative aspects of the games themselves.

“This bullish activity indicates that engagement with the virtual worlds is not predicated on their profitability to the end-user. It shows virtual worlds are intrinsically fun to the end-user as the communities remain active despite the devaluation of native tokens,” the report read.

DappRadar also said there was sustained institutional investment in both blockchain gaming and the Metaverse, highlighting that many top companies see the potential for strong economic growth in both sectors moving forward.

The report went on to emphasize that amount of investment into blockchain gaming and metaverse projects remained consistent during Q2 despite the Terra carnage:

“Despite a financial blow and undermined trust in the industry, investors remain bullish as the number of investments into blockchain games and metaverse projects has remained constant quarter-over-quarter, with $2.5 billion invested in both Q1 and Q2.”

Minecraft ban ‘hypocritical’ and NFTs are inclusive: Animoca’s Yat Siu

“They did not cite evidence, they didn’t even correctly point out what NFTs are, nor did they talk to NFT Worlds,” noted Animoca Brands co-founder Yat Siu.

Yat Siu, the co-founder of crypto/NFT venture fund giant Animoca Brands, labeled the recent Minecraft NFT ban as “hypocritical” and emphasized that nonfungible tokens (NFT) can be inclusive, despite arguments to the contrary.

As previously reported, Minecraft developers Mojang Studios announced a ban on all NFT integrations in the game on July 20. The firm stated that NFTs were against its values, as they foster price speculation, scarcity, exclusion and potential rug pulls.

Speaking with Cointelegraph, Siu expressed his frustration at Mojang Studios given the context in which NFTs were being integrated with Minecraft before the ban.

Projects such as NFT Worlds were utilizing Minecraft’s open source servers to host a metaverse platform that had crypto and NFT ecosystems built around it. The project appeared to be relatively popular, given that it has generated more than $80 million worth of NFT trading volume and claims to have around 100,000 players.

The Animoca Brands co-founder noted that he found it hypocritical that Minecraft would exclude a small portion of the user base, considering that the company’s stated that it values “inclusion” and suggested NFT integrations in games drive exclusion.

“The general perspective is that this is hypocritical, NFTs have not hurt anyone at Minecraft, it’s very clearly a minority. This was not a decision of actual evidence of harm, this was a preference decision, purely based on an opinion.”

“They did not cite evidence, they didn’t even correctly point out what NFTs are, nor did they talk to NFT Worlds,” he added.

While Siu acknowledges many in the traditional gaming community want nothing to do with NFTs, generally out of fear of games becoming over-monetized and “even less fair.” In this instance, users had the choice to play in NFT-affiliated servers or not, and there were no NFT integrations forced on regular Minecraft users.

Siu stressed that excluding minority views means “you actually hurt the whole community, and you stifle its growth.”

In terms of NFTs being inclusive, Siu argues that NFT tech or the digital property itself doesn’t foster inclusion or exclusion, and instead, it’s all about how the tech is deployed to drive community value.

He noted that in the right contexts, NFTs in games or the Metaverse can offer users a redistribution of the platform’s economy and power. In Siu’s point of view, NFTs enable users to own a tokenized stake in their favorite platforms which can then be utilized how users see fit, as opposed to the Web2 model in which users are not offered ownership over their content and data.

“What NFTs do is redistribute the economics of the players who add value to the game which then also has the same effect of decentralizing and redistributing the power dynamics inside games. [Therefore] allowing for more freedoms and power to the community instead of just a community.”

“Property rights and freedoms are intertwined, the next natural evolution is digital property rights to either enhance or actually produce true digital freedom,” he added.

Minecraft ban ‘hypocritical’ and NFTs are inclusive — Animoca’s Yat Siu

“They did not cite evidence, they didn’t even correctly point out what NFTs are, nor did they talk to NFT Worlds,” noted Animoca Brands co-founder Yat Siu.

As previously reported, Minecraft developers Mojang Studios announced a ban on all NFT integrations in the game on Wednesday. The firm stated that NFTs were against its values, as they foster price speculation, scarcity, exclusion and potential rug pulls.

Speaking with Cointelegraph, Siu expressed his frustration at Mojang Studios, given the context in which NFTs were being integrated with Minecraft before the ban.

The Animoca Brands co-founder noted that he found it hypocritical that Minecraft would exclude a small portion of the user base, considering that the company stated that it values “inclusion” and suggested NFT integrations in games drive exclusion:

“The general perspective is that this is hypocritical, NFTs have not hurt anyone at Minecraft, it’s very clearly a minority. This was not a decision of actual evidence of harm, this was a preference decision, purely based on an opinion.”

“They did not cite evidence, they didn’t even correctly point out what NFTs are, nor did they talk to NFT Worlds,” he added.

Siu stressed that excluding minority views means “you actually hurt the whole community, and you stifle its growth.”

“What NFTs do is redistribute the economics of the players who add value to the game which then also has the same effect of decentralizing and redistributing the power dynamics inside games. [Therefore] allowing for more freedoms and power to the community instead of just a community.”

“Property rights and freedoms are intertwined, the next natural evolution is digital property rights to either enhance or actually produce true digital freedom,” he added.

34% of gamers want to use crypto in the Metaverse, despite the backlash

According to Globant, 34% of gamers are interested in conducting crypto transactions in the Metaverse, while 16% have purchased NFTs in the past.

Despite a backlash from a vocal part of the gaming community, a new survey has revealed one-third of gamers have expressed interest in using crypto in the Metaverse.

And, more gamers than not believe that the Metaverse will have a positive impact on gaming.

The survey was published on Wednesday by institutional software developer Globant. It was conducted by YouGov and polled 1,000 adult PC, console and/or mobile gamers last month, with 34% of respondents indicating an interest in conducting crypto transactions in Metaverse.

The concept of play-to-earn (P2E) in the Metaverse is also relatively well received by gamers, with 40% of respondents stating that they are “interested in pursuing a mix of both the ‘playing’ and ‘earning’ aspects of the Metaverse.” While 11% indicated they are more interested in earning, and 49% stated they are only interested in playing.

More than half (53%) of respondents also stated that they would happily work in virtual game worlds if they were able to earn digital currency from their labor.

In terms of nonfungible tokens (NFTs), 16% of gamers stated that they have purchased at least one in the past. However, it was unclear whether they were gaming related NFTs.

More than half (52%) of gamers believe the Metaverse will change the video game industry and “a plurality of 41% think that the Metaverse will have a positive impact on the industry (vs. 25% who disagree).”

Notably, however, despite 40% of respondents associating blockchain tech with Metaverse, only one blockchain-native platform made the list of the most recognized Metaverse brands.

The most recognized is Meta at 73%, followed by Fortnite creators Epic Games at 27%, Roblox at 21%, Ethereum-based The Sandbox at 15% and Pokemon Go developers Niantic at 10%.

Some die-hard gamers have voiced distaste for crypto and NFTs on numerous occasions, often in response to major companies and brands announcing such integrations into their product lines.

They criticize the environmental impact of the technology and suggest that it negatively impacts the gaming experience, but the core rationale appears to be a belief that companies are just looking for cash grabs in a similar vein to the controversial in-game microtransactions.

Recently, video game developer Mark Venturelli launched an attack on NFTs during Brazil’s International Games Festival in a presentation titled “Why NFTs are a nightmare.”

Venturelli argued that the introduction of speculative economic activity via NFTs will end up ruining the experience for people who just want to play games for fun, as “organized groups” will take over as they work to profit at scale.