Essentially, NFTs are “one-of-a-kind” digital assets that can be bought and sold like any other property. However, NFTs don’t have a tangible equivalent and are instead comparable to certificates of ownership for physical or virtual assets.
Despite this, there’s an overwhelming amount of support behind these new digital assets. In fact, Reuters reports that the market for NFTs reached new heights during the second quarter this year, with total sales amounting to $2.5 billion. This has inspired more creators and crypto enthusiasts to join the NFT craze. In fact, an article on AskMoney discusses how artworks are being sold as NFTs. This demonstrates how across media platforms NFTs are becoming the future. So with that in mind, let’s discuss what you need to know about NFT games.
What are NFT games?
Unlike holding crypto-collectibles in your wallet, NFT games actively use NFTs in their game mechanics and player interactions. For instance, your avatar or character in the game can be represented as an NFT. Another in-game asset that can be represented as NFTs is digital assets that you acquire as you play the game. The NFTs that you collect in the game can be traded and sold to other players for profit.
There are also play-to-earn NFT games that allow players to generate profit simply by playing the game. The more a user plays the game, the higher their chances of receiving tokens and occasional NFT, which can then be traded to its equivalent in crypto on an NFT marketplace.
Axie Infinity – one of the most popular NFT games today
To illustrate, let’s talk about Axie Infinity, one of the most popular NFT games today. In the game, players collect animal characters called Axies, which can be groomed and enhanced through PVP battles. Players can also gain rare Axies by breeding them to create new offspring. Each Axie that a player owns is a non-fungible token and has a corresponding value in crypto — the rarer an Axie is, the higher its value. Blockworks also outlines that players can earn a token in the game that acts as their share of the platform. With that token, players can create and vote on proposals that directly affect all aspects of the game.
Pros and Cons to NFT games
There are a ton of other similar games that are available right now, and their earning mechanics can largely differ. The amount of money that you can potentially earn by playing an NFT game also depends on the market demand of the game and how much other users value the in-game NFTs and digital assets. The value of NFT games is mostly derived from the collectability of the NFT collectability or in-utility, which make NFT game tokens and collectible speculative assets.
However, you should still take extra precautions when playing such games. Losing money is a real possibility with such games, due to the in-game tokens and collectibles being speculative assets. This doesn’t necessarily mean that you’re being scammed though. The crypto market is known for its extreme volatility, with this also extending to the NFTs and other similar assets.
NFT games are a fun way to get into crypto and earn some money on the side. For more insightful tech and digital marketing content, check out our other posts here on Bizznerd.