Column: Don’t Get Hoodwinked Into A Coin - Sam Barberie

Column: Don’t Get Hoodwinked Into A Coin - Sam Barberie

Sam Barberie | 08 May 2024 09:43 UTC

Beware game funding pitfalls: False promises of coins & alternative financing. Learn from mistakes & the allure of game coins. 

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Two truths and a lie:

  1. Game development costs a lot of money
  2. Money from game publishers is hard to get 
  3. Launching a coin is a great way to fund a game 

Bravo if you sniffed out number 3 as the boldfaced lie that many of us in blockchain gaming have fallen for over the past few years.  

You might say, “But Sam, it’s 2023. The jig is up and we’ve all realized that coins aren’t a good idea.” You say that now, but…

There have been dozens of ICOs/IDOs over the past year, despite macro conditions. And many more gaming coins are on hold, awaiting a theoretical bull run for such things. The bull is coming, but not for those. Even without the regulatory uncertainty, coins aren’t only a massive distraction and significant threat to a gaming company’s business, but are proving themselves to be long-term bad bets. 

[Obviously none of this is financial advice.] 

First, let’s take a look at why coins seemed so attractive a few years ago: 

  1. For developers, they were a relatively easy way to raise money from a mix of institutions and consumers hopping on the hype train. They were also a way to cash out on vesting faster than traditional equity. 
  2. For investors, the theory was, they were an immediately-liquid form of investment, as opposed to traditional equity which requires some kind of exit (acquisition or IPO). 
  3. For consumers, it was another bout of get-rich-quickery and, not as often, a feeling of “investing” in a game’s future. The degen crypto trader crowd weren’t die-hard gamers, but were willing to make money off them. 

These coins also exposed some odd hypocrisy. In lots of cases, the developers insisted that they would be “utility tokens,” i.e. usable in-game for purchasing items, etc. Which was kind of bizarre coming from a crowd that was against the idea of web2’s closed ecosystems where Fortnite Vbucks had no value in Roblox, for example. These tokens are fungible, and while SAND can be swapped into GALA, each coin universe was essentially saying, “It’s our currency or nada.” Not exactly an open world of seamlessly transferable assets. 

But very quickly, developers and investors alike realized some uncomfortable truths: 

  • Regulations make it incredibly hard to bake in usage for a coin in-game.
    • Not much utility when you can’t use the coin for anything.
    • The investor-y language around the launches puts these coins in even greater regulatory peril as securities.  
  • Coins move relative to the macro crypto market (up until now, we’ll get into this more) and not the usability of the token.
    • The value lives and dies by forces that are uncontrollable. Unlike a stock, where macro conditions can be amazing for some, poor for others (like how leisurewear companies thrived during the pandemic but hotels certainly did not), when crypto winter occurred, every coin went with it. 
  • Coin management and investor relations take significant time away from more important things.
    • A Discord filled with angry consumer investors asking, “Wen moon,” or a marketing plan focused more on pumping token price and not the game, is not a good use of anyone’s time. 
    • If you’ve got good VCs, they normally give you money, provide guidance, and then wait in the wings to offer support when needed. Those are investors game developers want. But consumer token investors want the world, and they want it now. A great way to kill anticipatory excitement. 
    • Lots of developers also set up DAOs or DAO-like structures that would allow for the community of holders to make decisions on game design. Nothing says “this game will be horrible and never launch” quite like design by committee. 
  • Coins don’t reflect the fundamental value of a company.
    • When your company’s market cap is wrapped up in a coin you can’t easily control, compared to equity, it sets up a trough of despair that’s hard to work out of. 
    • Teammates whose compensation includes worthless tokens aren’t going to be extra motivated. 
  • Price fluctuations turn people off.
    • There’s a reason why $1 doesn’t equal 1 Vbuck. That’s just F2P economics 101. 
    • So players already don’t want to see something cost $10, but—even if the coin is doing well—don’t want to see it cost 0.000947 Ape either. One layer of price abstraction is fine. Two is not, especially when it comes with daily changes that users will have to convert themselves (or the developer risks exposing fiat values which won’t be in their economy’s best interest). 

And even as the prices of Bitcoin and Ethereum have started to rally, sentiment still seems sour on early gaming coins, who have all followed similarly poor trajectories in underperforming the market.  

Even if the token price stays decent, coins complicate later investments, exits, and consumer choices:

  • Reducing options for other outside investment.
    • Traditional investors in later rounds might not want to compete with supposed carve-outs for token holders, while coin holders will push back against a two-tier system. 
  • Cutting off acquisition routes.
    • Public companies, especially, don’t want to acquire studios with regulatory baggage. 
  • Consumer expectations.
    • As many games increasingly support multiple chains or use tech like LayerZero, games that stick to their coin economies will be behind the curve of what players expect to see.
    • Likewise with fiat on-ramps and direct purchase trending to the norm, many users won’t expect to see a crypto currency at all. 

Coins aren’t the only alternative fundraising route that developers have tried. Pre-product mints of NFTs, while having some benefits over coins, have largely followed similar trajectories: 

  1. They’re normally bought by investors, not real players.
  2. Their floor prices mimic the larger NFT trading market cycle, not anticipation for the game. 
  3. High initial mint prices always fall dramatically as they converge on a normal game access pass, angering holders. 
  4. Mints also come with the same community management challenges of coins. Lots of TLC for angry voices, not a lot of true community building or development focus. 

But NFTs have some key differences: 

  1. Their regulatory standing (not as likely to be considered securities).
  2. They’re much easier to bring in as fundamentally utile pieces of the game. 

More and more, however, we’re seeing free mints—both limited and unlimited—as a powerful way for developers to rally a community and earn some money through secondary trades. While free or extremely low cost mints don’t net developers the amount of building funds they want, they’re strong indicators of interest that can be put in front of publishers or other investors (similar to web2’s email signups). They also go a long way to build goodwill with future players, reach a larger potential audience in the pre-product phases, and don’t come with the same outsize expectations and distracting maintenance needs as high-priced drops and/or coins. 

The loss of coin launches as a viable option will mean the end for some new studios, full stop. As harsh as it sounds, however, that’s not only expected but also probably as it should be. The world’s best games haven’t been greenlit through speculative investment vehicles. And crowdfunding in general has a dicey history, like Star Citizen’s wildly successful Kickstarter and subsequent $500M in funding, which still hasn’t gotten anyone any playable game in a decade.   

I’m a firm believer that good games can come from anywhere and should have multiple ways of getting made, but I’ll leave you all with this: coins ain’t it. 

Column: Don’t Get Hoodwinked Into A Coin - Sam Barberie
Column: Don’t Get Hoodwinked Into A Coin - Sam Barberie

Sam Barberie is a gaming and web3 exec based in NY. He was part of the founding team of SuperData Research, which was acquired by Nielsen in 2018; an executive at Animoca Brands; and a consultant and advisor to several blockchain gaming companies. 

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Defitankland: MMO Tank Game on Arbitrum Blockchain - Review

Defitankland: MMO Tank Game on Arbitrum Blockchain - Review

The Defitankland is an exciting MMO tank game that leverages the power of the Arbitrum blockchain to deliver an immersive gaming experience. It aims to build a global player community focused on collaboration and epic tank battles, catering to both new and experienced gamers with user-friendly controls and mechanics. Players can form guilds, engage in cooperative missions, and participate in thrilling PvP battles while honing their strategies. The game introduces innovative monetization through NFT tanks, guild NFTs, and item NFTs, allowing players to collect, trade, and potentially profit from these exclusive assets. The in-game economy offers various ways to earn currency and valuable rewards, with DFTL serving as the core token. Defitankland offers diverse game modes, including PvP battles, cooperative missions, exploration, and quests, ensuring an engaging experience for all players. Customization is a key aspect, allowing players to tailor their tanks to match their preferred strategy and style, with upgrades in armor, firepower, speed, and abilities. Effective resource management, terrain utilization, and team coordination are essential for victory. The tokenomics of the game revolve around $DFTL, which is used for trading NFTs within the ecosystem. Defitankland introduces three main NFT categories: Tanks, Factories, and Guild Items, each representing players' progress and commitment within the game. Tanks are customizable NFTs crucial for gameplay and potential trading, while Factories fuel the in-game economy and produce resources and items. Guild Items, specialized NFTs tied to guild gameplay, enhance members' abilities and bonuses, evolving with guild progress. The community response to Defitankland has been positive, with enthusiasts showing excitement for its potential within the DeFi ecosystem. Some users are cautiously waiting to see how the game evolves before making decisions, while others highlight the promising tokenomics system and mechanics. Overall, Defitankland promises unforgettable adventures for players ready to dive into its thrilling world.

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Metagear - Game Review

Metagear - Game Review

Metagear is a play-to-earn game that combines the excitement of cyber sports with the thrill of car collisions, offering players the chance to earn rewards as they compete in high-energy matches. Developed by Rocket Studio, a subsidiary of Onesoft, in collaboration with Onepad technology, Metagear is the world's first pixel-based blockchain combat game. In Metagear, players can customize their cartoon characters and vehicles with accessories purchased from the in-game marketplace. The game is available on PC, Android, and iOS platforms, so players can enjoy it on their preferred device and take the action with them wherever they go. With its 2D animation and engaging gameplay, Metagear is a fun and immersive game that is sure to keep you entertained for hours. Join the ranks of devoted fans and experience the excitement of Metagear today. Metagear Gameplay: Metagear provides players with three default drivers at the start of the game, with the option to add more drivers with unique appearances and features as they progress. To participate in battles, players will need to purchase vehicle parts such as Chassis, Gadget, Wheels, and Weapons, which can be upgraded and traded on the non-fungible token (NFT) marketplace. With immersive gameplay and customizable characters and vehicles, Metagear is a must-play for fans of cyber sports and car collision games. Metagear offers a variety of gameplay options with four battle modes to choose from, including Quickfight (player versus player), Campaign Mode, Tournament, and Guild-building. The game is developed using BSC technology, which ensures the safety and security of the tokenomics. Players can enjoy immersive and exciting gameplay in a variety of modes and have peace of mind knowing that their progress and collectibles are secure. In Metagear, GEAR is the governance coin that can be used to participate in the campaign mode and purchase accessories for vehicles and characters. As players progress through the game and earn rewards, they can use their GEAR to enhance their gameplay experience and customize their characters and vehicles to their liking.

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Baby Shark Bubblefong Friends - NFT Blockchain Game - Review

Baby Shark Bubblefong Friends - NFT Blockchain Game - Review

In Baby Shark Bubblefong Friends, players must aim and shoot bubbles at a group of similarly colored bubbles in order to burst them and earn points. The objective of the game is to progress through various levels by matching the right sequence of bubbles and using special power-ups to clear them more efficiently. The game features a cast of adorable Baby Shark characters and is designed to be easy to pick up and play for all ages. It also incorporates blockchain technology and NFTs, allowing players to collect and trade unique in-game items. Those familiar with arcade games will absolutely fall in love with the game. Players can collect and trade NFTs featuring characters from the popular "Baby Shark" song and use them to boost their gameplay and earn rewards. The game is available on both iOS and Android devices, and players can earn in-game currency and rewards by completing levels and participating in special events. The developers of Baby Shark Bubblefong Friends aim to create an immersive and engaging experience for players of all ages. In addition to the traditional bubble-popping gameplay, Baby Shark Bubblefong Friends also includes NFT elements that allow players to collect and trade unique in-game items and characters. The game is built on a blockchain platform, which allows for secure and transparent trading of these NFTs. Players can also earn rewards for completing in-game challenges and participating in multiplayer matches. Overall, "Baby Shark Bubblefong Friends" offers a fun and engaging casual gaming experience that combines bubble-popping gameplay with the excitement of collecting and trading NFTs.

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Time Shuffle Game - Game Review

Time Shuffle Game - Game Review

Time Shuffle Game is a turn-based RPG set on the Avalanche blockchain, offering players a unique experience in a multidimensional time-traveling universe where heroes engage in battles across historical eras. TimeShuffle is an ambitious Play and Earn game that operates on the Avalanche Blockchain. It immerses players in a multi-dimensional universe featuring time travel, squad-based battles, and competitive player-versus-player (PvP) elements. The game places a strong emphasis on gameplay and aims to pioneer the Web3 Play and Earn gaming space by redefining traditional gaming norms. In TimeShuffle, players strategize in battles, evolve and crossbreed heroes to create powerful, one-of-a-kind super units, all while enhancing the value of their non-fungible tokens (NFTs). The Hero Skill Tree adds complexity through professions and AI-driven skill development. The Time Shuffle team boasts over 30 years of experience in the gaming industry and has received substantial support from Avalanche ecosystem partners. TimeShuffle aims to offer players an exciting time-travel narrative where historical figures like Einstein and Cleopatra evolve into formidable entities. Additionally, it introduces players to NFT and token elements within a free-to-play framework. The game's storyline is set in a future where time travel has become a reality, leading to a conflict between two factions. One faction seeks to reshape the past for personal gain and global domination, while the other strives to preserve the timeline. A breakthrough discovery by researchers, led by HEXAGON Corp, involving an ancient artifact with extraterrestrial elements and quantum particles, leads to significant advancements like flying cars, gene editing, and renewable energy sources. However, a rogue scientist from HEXAGON Corp abuses time travel to alter history for his own rule, sparking chaos as others join his quest for power and wealth. In response, HEXAGON Corp forms the "Time Keepers," an elite time travel unit tasked with thwarting the scientist's agents, known as "Time Breakers," and safeguarding the timeline. Gameplay in TimeShuffle promises to be user-friendly. Players find themselves in an alternate universe populated by intriguing replicas of historical figures, each possessing unique powers guided by TimeShuffle's advanced algorithms. Character breeding and fusion add depth as merged heroes grow stronger, offering limitless possibilities and potential NFT sales on TimeShuffle's marketplace. This dynamic system creates a wide array of NFT assets, heroes, and skill enhancements, ensuring an engaging journey for players. Strategy plays a pivotal role in both player-versus-environment (PvE) and player-versus-player (PvP) encounters, from base construction to soldier development and battle leadership. Gamers have the flexibility to engage in AI-controlled or real-time conflicts. The choice of faction at the beginning of the game influences in-game progress and fosters community competition. NFT holders can enter the PvP Arena and stake their assets in battles, adding an exciting competitive dimension to the experience. In terms of tokenomics, TimeShuffle's foundation includes the $TIMS governance token and the $GOLD in-game token. These tokens empower users to shape the game and its evolution through forum-based governance. The community response to TimeShuffle's alpha version and the introduction of gold skins for founders has been positive, with users expressing enthusiasm for the game's character design and features. However, it's important to note that the article does not specify whether the game has been released at the time of the review.

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Gran Saga: Unlimited - Game Review

Gran Saga: Unlimited - Game Review

The adventurous MMORPG flagship, Gran Saga: Unlimited game is an anime-inspired open-world game which is presented by METAPIXEL and powered by Aptos. Within Gran Saga: Unlimited's expansive virtual realm, players venture into diverse classes and roles, forging collaborations and competitions. This MMORPG transcends the screen by weaving personal experiences into its narrative, resulting in an evolving saga of player-driven intrigue and drama. In contrast to its precursor, Gran Saga, which offered a predetermined tale, GSU infuses reality, granting players a realm that extends beyond mere pixels. The experience is enhanced through cooperation and rivalry, as players band together for mutual success or vie for prestige and rewards. GSU ushers in an unparalleled MMORPG journey, where destinies intertwine and the metanarrative takes form.

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Striker Manager 3 - Game Review

Striker Manager 3 - Game Review

Enjoy the Nextgen of football manager video games, where the passion for football meets the innovation of web3 technology. Striker Manager 3 is a unique football manager game that offers players a whole new level of gaming experience. The game is designed as a Play to Earn multiplayer game that provides users with the chance to earn rewards while enjoying the fun of traditional online football games. In Striker Manager 3, players own their in-game NFTs assets, which they can trade and evolve for greater rewards. However, as the owner of your assets, you get to take possession of your plot of land in the game's world, where you can build and customize your club, team, and facilities to your liking.

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The Sprawl - Game Review

The Sprawl - Game Review

The Sprawl is a WEB3 simulation game that lets you earn money and pay bills while living a virtual life. Introducing The Sprawl is a huge Web3 sandbox city that takes you to a virtual world that is always changing and connected. In its massive multiplayer environment, every character you meet is a real player. This persistent city makes sure that your actions have long-term effects and that you move forward. Also, you can walk or drive around its many different neighborhoods, which range from gated communities to urban decay, trendy areas to suburban havens. If you have the money, you can make a place you love your home. The story is written from the first-person point of view. You wake up in the middle of a busy city in a run-down motel. When the sun comes out, it means the start of a new day. Hank, the rough motel owner, is waiting for you in the lobby. He tells you about a way to make money. He gives you the keys to his van and tells you to go to King of Zees and get a new bed. As you walk out, a jumble of tow trucks, speeding taxis, and smoking wrecks appears in front of you. After you get the bed, Hank will give you money and tell you to go to Garry's Cut'n'Shut to get cheap wheels.

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Hoppers Game - Game Review

Hoppers Game - Game Review

Hoppers Game NFT Game Hoppers Game is an idle game where players stake their Hopper NFTs in different adventures to earn $FLY. 10,000 randomly created, unique NFTs called Hoppers NFTs with on-chain Attributes will be used in the Hoppers Game. Hoppers are as lovely as they are practical thanks to yellowbrah's creation of over 120 hand-drawn assets with a variety of skins, backdrops, and features! Five levels of rarity, from Common to Legendary, will be available.

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Axie Infinity Game Review: Gamer Play Guide

Axie Infinity Game Review: Gamer Play Guide

Welcome to the enchanting world of Axie Infinity, where the blend of gaming and cryptocurrency creates an experience that's both financially rewarding and ridiculously fun. Picture this: cute, unique creatures known as Axies, each with its own set of stats and abilities, are waiting for you to collect, train, and battle in a vibrant digital universe. It's a world where strategy meets creativity, and where your gaming skills can actually turn into real-world earnings. Let's explore this fascinating crypto game that's captured the hearts of players globally! What Is Axie Infinity? A Brief Introduction to the Game: Axie Infinity, developed by Vietnamese studio Sky Mavis, is more than just a game; it's a thriving digital ecosystem. Based on Ethereum and Ronin blockchain technologies, it's a place where you can breed, raise, and battle fantasy creatures called Axies. Each Axie is an NFT (non-fungible token), making them unique digital collectibles. The game has garnered a reputation for its addictive gameplay, charming art style, and an engaged community that’s both friendly and competitive. The Unique Economy of Axie Infinity: What sets Axie Infinity apart is its player-driven economy. Players can earn in-game cryptocurrencies like AXS and SLP through various activities, which can then be traded for real money. This has created a whole new way of gaming where your time and effort can actually pay off. How to Play Axie Infinity: Starting Your Journey. To begin, you'll need at least three Axies. These can be bought from the marketplace, and each has its own set of abilities and traits. Think of them as your digital pets that you can train, breed, and battle with. Gameplay Mechanics: The game is a fusion of TCG (Trading Card Game) and RPG (Role-Playing Game) elements. You form a team of three Axies and engage in battles, either against computer-controlled enemies (PvE) or other players (PvP). Each Axie has four cards representing different abilities, and battles are a mix of strategy and luck. Modes of Play There are two main modes: Adventure (PvE) where you explore and battle against AI, and Arena (PvP) where you test your mettle against other players. Winning battles earns you experience points and in-game currencies. Making Money in Axie Infinity Yes, you read that right – you can make money playing Axie Infinity! By participating in battles and breeding Axies, you can earn tokens that can be exchanged for real-world currency. However, remember that the value of cryptocurrencies can be volatile, so there's an element of risk involved. The Community and Economy A Thriving Digital Society The Axie Infinity community is incredibly active, with players from all over the world participating in tournaments, sharing strategies, and trading Axies. It's a welcoming space for both newbies and veterans. Understanding the Economy The game's economy is built on supply and demand. New players need to purchase Axies to start, injecting fresh funds into the ecosystem. Veteran players earn by breeding and selling Axies or winning battles. It's a fascinating model of a self-sustaining economy. Risks and Considerations Volatility and Investment Cryptocurrency markets are known for their volatility. The value of your in-game earnings can fluctuate, so it's important to be aware of the risks involved in this type of investment. Time Management and Addiction As with any game, especially one as engaging as Axie Infinity, there's a risk of spending too much time playing. It's important to balance gaming with other aspects of life. Getting Started with Axie Infinity Setting Up First, you'll need to set up a digital wallet and buy some Ethereum. Then, purchase your starter Axies from the marketplace. From there, you can start exploring the different aspects of the game. Learning the Ropes The community is a great resource for beginners. There are numerous guides and tutorials available online that can help you understand the basics of gameplay, breeding strategies, and managing your Axies. Axie Infinity: Not Just a Game, But an Experience Axie Infinity is more than just a game; it's a gateway into the world of NFTs, blockchain, and cryptocurrency. It offers a unique blend of gaming, investment, and community, making it an intriguing prospect for anyone interested in the intersection of technology and entertainment. Final Thoughts Axie Infinity represents a new era of gaming where virtual experiences have real-world value. Whether you're in it for the fun, the community, or the potential earnings, Axie Infinity offers something for everyone. So, why not dive in and see what all the fuss is about? Remember, in the world of Axie Infinity, your digital adventures can lead to real rewards!

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Nova Battles - NFT Multiplayer Shooter - Game Review

Nova Battles - NFT Multiplayer Shooter - Game Review

Nova Battles is a multiplayer online shooter game that can be played for fun with friends or as a way to earn rewards. Whether you are just looking to have a good time or want to put your skills to the test in a more competitive setting, Nova Battles has something to offer players of all types. To play Nova Battles, players must first select a Champion, which is an avatar represented by a non-fungible token (NFT). There are many different Champions to choose from, and all of them are free to use. Once a Champion has been selected, players can participate in any game mode and on any map, competing against other players for the chance to emerge victorious. The Champions in Nova Battles are unique and powerful characters, each with their own distinct characteristics and abilities. These abilities can be used to support the primary Champion in battle, making the Champions well-suited to different roles and playstyles. Players can choose to engage in either PVE (player versus environment) or PVP (player versus player) combat, depending on their preferences. This adds an element of variety and replayability to the game, as players can mix and match Champions and game modes to create a wide range of different gaming experiences. After each battle in Nova Battles, players are rewarded with Battle Rewards for their actions and contributions. These rewards can take the form of in-game currency, experience points, and other valuable items. The Nova Battles ecosystem is largely driven by Nova Soul, an energy resource that players use while engaged in combat. Nova Soul can be purchased through various channels, including the Marketplace, and is often made available through sales and other special offers. Nova Souls can be obtained in a variety of ways in Nova Battles. Players can purchase them outright from the Marketplace, or they can rent or lease them for a shorter period of time. It is also possible to craft Nova Souls using certain items that can be obtained through gameplay or by trading with other players. This allows players to customize their use of Nova Souls and choose the option that best suits their needs and playstyle.

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Play To Earn Games: Best Blockchain Game List For NFTs and Crypto

Play-to-Earn Game List
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