The conventional online video gaming mechanism offers only the game developers the opportunity to profit. Players, on the other hand, spend money to purchase in-game assets. Play-to-earn has changed the narratives.
Gamers get rewarded with incentives for spending hours in the virtual gaming metaverse. The play-to-earn game model allows ownership of in-game digital assets. That means all the in-game assets you own in a game are all yours. You can do anything you like with them. You can sell or exchange them on NFT marketplaces.
How Play-to-earn Generate New Wealth Opportunities
P2E games are built on blockchain technology, and the mechanisms are designed to reward players for specific actions. These actions may include completing tasks, spending specific hours on games, or winning challenges, among others.
The play-to-earn mechanism works in a way that players can earn digital items or assets while playing the games. The digital assets are often in the form of NFTs or crypto tokens. They can also earn through a process referred to as staking.
Several of these blockchain-based games reward players for their time by offering them any of these digital assets. For instance, players in Axie Infinity metaverse earn $SLP tokens for playing and completing certain activities in the game platform.
Players can then sell these tokens on marketplaces for stablecoins or fiat. They can also trade and sell other in-game digital assets, such as weapons and land as NFTs to other players in a marketplace. These items are usually tokenized. They are unique and cannot be replicated.
Use Cases of Wealth Creation through Play-to-Earn Games
Play-to-earn rewards players, giving them full ownership of virtual assets that can be monetized. Decentraland is one of the top play-to-earn game platforms where players can buy pieces of digital land called LAND. Players have the opportunity to buy and sell virtual plots of land.
These plots can be traded for fiat, which is the conventional money in our world. It may interest you to know that a plot of the virtual land on Decentraland was recently sold for $1.3 million by an owner. That is how wealth is created through these game platforms.
The good thing about these digital assets is that they are securely stored on a blockchain. That means you have nothing to worry about when it comes to the security of your digital asset. The assets belong to the holder 100% and the developer or publisher has no claim over it, irrespective of the appreciation that has gone over the assets.
How to Build Wealth in the Game Metaverse
There are over 800 blockchain-based games on the internet that offers players the chance to earn rewards with NFTs or cryptocurrency. From these 800 games, over 200 are already live and available to players. Currently, the leading play-to-earn game is Axie Infinity with a $4 billion valuation.
Players that invest in these games have the chance to build wealth by earning in-game assets. Currently, the price of each Axie Infinity NFT is between $40 and $100. At launch, a token was sold for less than $5 but today, the price has skyrocketed.
That means players that bought some tokens a few years ago would have more than triple their investment by now. Now, you do not necessarily have to play the game to build wealth in the game metaverse. You can invest in NFT games and guilds. What does this mean?
Before a developer list its token on a public exchange, they offer a pre-sale round to the public on Launchpad. You have the opportunity to invest in such tokens at their pre-sale value, which is often lower than the initial offering in the marketplace.
Although it is very competitive and there is no guarantee that you will get an allocation, it is an option worth looking into. Another way you can invest in NFT tokens is to buy them from the exchanges and wait for them to gain value.
Without a doubt, play-to-earn games are building new wealth opportunities in the world. However, you should not throw caution to the wind and start acquiring every token that you come across. It is recommended that you do your research about a token before you invest in it.