Certain types of investors are attracted to GameFi, a combination of gaming and decentralized finance (DeFi), and tend to choose projects based on their use cases rather than their ability to generate revenue, Cointelegraph notes. increase.
GenZ investors and gamers are drawn to the GameFi ecosystem. As a result, it serves as a starting point for many novice investors. According to ChainPlay’s poll, which included 2,428 of his GameFi investors, 75% of the participants first became interested in cryptocurrencies as a result of his GameFi. He entered the GameFi market with about half of the investors intending to make money first, but 89% of GameFi investors lost money as a result of his Crypto Winter 2022, of which 62% out of 50 of their initial investment. Cointelegraph said it lost more than 10%. .
However, investors believe weak in-game economic design is the main cause of losses. According to polls, investors around the world will spend an average of 2.5 hours a day on his GameFi in 2022, down 43% from 4.4 hours a year earlier. The main reason for the lack of funding for new GameFi projects is not only bad visuals, but also concerns about rug pulling and Ponzi schemes. As a result, 44% of investors believe that the participation of traditional gaming businesses is essential to the development of his GameFi.
According to DappRadar’s analysis, the blockchain gaming and metaverse ecosystem was largely unaffected by the Terra (LUNA) debacle.
(Including insights from Cointelegraph)