Virtual money. It’s been a major mainstay in the wonderful universe of gaming ever since it first arrived. Who among us can name a game that doesn’t use some kind of token as an internal currency, whether that’s shells, sci-fi creds, or just the much-beloved classic of the Gold Piece? They’re everywhere and a few years ago you might have been justified in thinking that there was nothing new coming in this space! Now, however, the advent of blockchain technology has turned that assumption on its head and the world of currency in games may never be the same again.
By racking up wins or even just devoting chunks of time to their favorite titles, crypto gamers can scoop up digital assets such as non-fungible tokens (NFTs) or cryptocurrencies, which then become the player’s property. These digital assets can be sold or traded on online market platforms or converted directly into fiat currency!
How crypto gaming works
Crypto gaming is based on several different business models. P2E games offer users various means of earning or purchasing tokens in the game. Users can make money by obtaining these tokens early in the game, hoping to see the community of gamers and the value of the tokens grow.
Some crypto games use ads and in-game item sales – e.g. certain weapons, skins, or even virtual land – to make money. Developers also incentivize users to spend as many hours on the game by doling out cryptocurrencies or NFTs when they complete certain missions. These are usually simple tasks to complete during games, such as defeating a certain number of enemies or accumulating a certain amount of resources.
Other crypto gaming platforms offer cryptocurrency enthusiasts the opportunity to use crypto in different ways. An online casino is one great example of how this can work. For example, you might use your crypto to play real casino games such as roulette, poker, slot machines, and much more. These platforms operate on blockchain technology, which ensures secure, transparent, and anonymous transactions. If you are seeking privacy and faster processing times, crypto casinos are the best choice, and they have tons of games on offer for you to choose between! Also, keep in mind that blockchain-based payments typically come with lower fees and quicker withdrawals, making this even more attractive for casino enthusiasts.
The most widely used tokens in crypto gaming
The global market for crypto gaming tokens is huge right now. In many cases, these tokens are exclusively usable within a particular game or gaming ecosystem, although the top tokens also have high value in the real world. The top three by market capitalization are as follows:
ApeCoin (APE)
ApeCoin (APE) is the highest-valued crypto gaming token. It’s the native currency of Bored Ape Yacht Club, a collection of non-fungible digital tokens based on the Ethereum blockchain (ETH). Many independent developers use ApeCoin in their titles. For example, the user community of Benji Bananas, the P2E game for mobile devices, can accumulate special tokens that can be easily exchanged for ApeCoin.
Decentraland (MANA)
MANA is the native token of Decentraland, a virtual world based on the Ethereum blockchain (ETH). Players can use MANAs to buy virtual land plots in Decentraland’s NFT or exchange them for other goods and services within the game.
Sandbox (SAND)
Sandbox is another metaverse, or virtual world that is based on the Ethereum blockchain. Sandbox (SAND) tokens facilitate several transactions within the game, including the purchase of plots of virtual land called LAND.
How to earn with crypto gaming
We can think of the tokens that crypto gamers receive within the game as small rewards for completing quests or other requirements. Items that can be accumulated within the game – such as weapons, armor, skins, and other tools – can have enormous value in the real world. DMarket is one of many online platforms for selling NFTs and other virtual items that are obtained through gaming.
Just as with investors who buy stocks, crypto gamers who get engaged early in a successful game are the ones who have the best chance of success. In 2001, RuneScape’s user community received free virtual party hats as part of a Christmas promotion launched by the game. Twenty years later, Jaffer explains, these party hats have come to be worth billions of Gold Pieces (the game’s currency). It would not be a surprise if history were to repeat itself and the early players in crypto gaming platforms and currencies were repaid for their foresight with concrete gains in the real world!
The risks of crypto gaming
Unfortunately, at least at this stage, there are still many risks associated with crypto games and their tokens. One of the main risks is that they are subject to the same dynamics that govern supply and demand and affect the popularity of the game. If players abandon a particular title en masse, for example, the demand for the currency it uses can dry up completely and deprive the tokens of any value.
Given the novelty of these kinds of video games, we do not fully know the elements that can contribute to their continued success. No one can guarantee that their assets will maintain their value in the long run, but still, the outlook for now is good, and more and more people are starting to play and get into crypto games.