Move over, Kickstarter: NFTs are the newest way for indie games to fundraise

Spread the love

When NFTs and crowdfunding meet, game developers and players can both win

On December 6th, just two days after the start of a NFT-backed “card pack” sale for their blockchain-based video game Alien Worlds, the 15-man team behind development studio Daococo sold out of packs after having successfully raised $250,000.

While a quarter million might seem like a pittance in a world where a single NFT critter can fetch six figures and more established games like The Sandbox and Decentraland routinely raise millions, for a smaller studio it’s the kind of raise that can ensure success for a project — and, according to Play To Earn editor-in-Chief Robert Hoogendoorn, the unique set of incentives for buyers means it might well become part of a larger trend.

“Finding smaller games, investing early and hoping they blossom is very similar to cryptocurrency investing,” Hoogendoorn said. “You hope to find that game that grows into the next Minecraft and makes that investment go 100x.”

Where traditional crowdfunding efforts for videogames allow early believers to pledge their money in exchange for rewards like in-game characters named after them or invitations to launch parties, NFT-backed games potentially turn the same concept into a real investment.

“For centuries, land ownership has been a privilege of the upper classes,” says Alien Worlds co-founder Michael Yeates. “Now in crypto, everyone has the chance to earn passive income by owning land which is truly theirs.”

In-game items and resources backed as NFTs can accrue significant resale value if a game becomes more popular, and according to the Alien Worlds team, complex game economies can even turn them into yield-bearing assets.

RECOMMENDED READ:  Apple now preventing iPhone users from updating to iOS 14.4.1.

“The [Alien Worlds] NFTs are unlike pure collectible NFT cards because they have actual characteristics that are recognised by the gaming smart contracts,” explains Alien Worlds co-founder Saro Mckenna. “One NFT might yield you more Trilium (Alien Worlds’ in-game currency) when you use it, another might be capable of being used more frequently […] This is pretty sophisticated by blockchain standards, where oftentimes functionality is still somewhat basic even if immutability and decentralisation are in place.”

Alien Worlds, which pitches itself as ‘DAOs and DeFi in space,’ is among a handful of titles at the forefront of monetizing in-game NFTs for players, but Hoogendoorn thinks there will be more to come.

“For developers it might sound weird to give players ownership over assets. But what if developers receive 5% over every in-game / on-chain transaction? They will create a new revenue stream. On top of that they create a community that has a stake in their game world. Engagement will be much higher because of the economical incentive.”

However, developers looking to cash in on the new trend might want to do so research first, cautioned Hoogendoorn.

“Understand scarcity, and build the game’s economy around that, and [make sure] you’ve got a game economy that’s interesting for players to put lots of time and effort in.”

 551 Interactions,  6 today

READ ALSO:
Why mayor of Miami claims that 90 percent of Bitcoin mining is driven by ‘dirty energy.’

According to Mayor Francis Suarez, the United States should resolve the environmental concerns associated with Bitcoin mining by providing clean Read more

RECOMMENDED READ:  In a longevity test, Lenovo's Legion Phone Duel 2 snaps alarmingly easily.
SEC vs Ripple lawsuit’s highlighted effect on XRP

Ripple and XRP have had an eventful few months, with the two at the forefront of a controversial litigation brought Read more

According to Crypto.com CEO, the NFT craze and institutional capital will get the next 100 million crypto consumers.

According to Crypto.com CEO Kris Marszalek, the two key forces behind mainstream acceptance are convergent. The video below reveals the Read more

How Cardano’s Alonzo testnet, UTXO model blends the best of Bitcoin and Ethereum combined.

The Cardano team has had a busy few weeks and months. Cardano's latest mainnet upgrade, dubbed 'Mary,' went live on Read more

Soros Fund exec on why Bitcoin no longer a fringe asset

With Bitcoin and the broader cryptocurrency industry seeing good times in recent weeks and months, many well-known and renowned institutional Read more

Why SEC’s Hester Peirce advises that selling fractionalized NFTs can violate the law.

According to SEC Commissioner Hester Peirce, fractionalized NFTs and baskets of non-fungible tokens could easily be called investment contracts under Read more

RECOMMENDED READ:  Andre Cronje’s yCredit project hit by "Exploit" a day after launched
Analyst, Jason Pizzino on two secret NFT crypto assets likely surge time 20 this cycle.

Crypto analyst Jason Pizzino has identified two non-fungible token (NFT) properties that he claims have the ability to generate huge Read more

IOST to Focus on NFTs, DeFi, and Global Growth

The IOST blockchain—an enterprise-grade, extremely elastic, and open network—will now prioritise NFTs, DeFi, and regional extension. IOST has already established Read more

Buterin helping to strategize against Ethereum 51 percent attack potential

Ethereum co-founder Vitalik Buterin is working proactively to address blockchain vulnerabilities. Ethereum developers recently suggested an update to the network Read more

NFTs (Non Fungible Tokens), new crypto craze explained

NFTs are authenticating the originality of digital products If you've been watching tech or financial news late, you may have Read more

CEO of Ripple insists XRP must trade on, even though Ripple ceases to exist

Brad Garlinghouse, CEO of Ripple, once again discussed the SEC case against his firm. In a recent interview, Garlinghouse countered Read more

Why institutions quickly got high interest in Ethereum

It's fair to say that Ethereum is no longer playing Bitcoin's second violin. Although there might be a huge gap Read more

Leave a Reply

Contact Us