In mid-May, several announcements of web3 game closures were made, from smaller projects, projects that had airdropped not long ago, and old games that the community already had some confidence in. Along with this, we have the tokens of large projects like Illuvium that fell more than 90% from their all-time high, going from a few thousand dollars to a few dozen. All these events lead us to the following question: Are NFT games disappearing?
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[ENGLISH VERSION]
Web3 Games Closing!
On May 16th and 17th, OG Magazine announced the closure of three web3 games. The first of them, which even had an airdrop event not long ago (if I'm not mistaken) was Nyan Heroes, completely surprising players and taking everyone by surprise. Soon after, two other games announced their closure. The first was Blast Royale and according to the post they would leave the game open source for the community. Finally, there was also Rumble Kong.
On May 21st, the end of the MMORPG Ember Sword was announced, justifying the closure due to insufficient funding, even though they had raised a few million from investors and NFT sales. This game had many players who waited a long time for the game's release and were surprised by this announcement.
Web3 Game Tokens Have Already Dropped Over 90%!
Even some of the biggest NFT games in the crypto ecosystem like Axie Infinity and Illuvium have been suffering. In their case, the economy of token inflation, issuing and distributing to the community without creating burn mechanisms that have incentivized the community to burn more tokens and sell less, has caused the tokens to drop a lot. In the case of the Axie Infinity token (AXS), according to data from Coingecko that shows the historical price, we have that the current value is in the range of $3, when compared to its historical maximum in November 2021 of $164.90, the token fell 98.2%.
And this is not exclusive to Axie, because it also occurred with several other web3 games, such as Illuvium (ILV). Currently, one ILV is $14 while at its peak the token reached almost two thousand dollars $1911.26 according to coingecko, which represents a drop of 99.3%, that is, almost all of its value.
Are web3 games disappearing?
When we consider that the tokens of two of the biggest web3 games have fallen a lot, and several games and studios related to blockchain are closing, everything leads us to believe that there will be no future for Crypto Games. However, this shows us that the current model of inflating useless tokens, not having an engaged playerbase and the difficulty of using blockchain tools for a normal player, may not be the best strategy. Therefore, rethinking the entire rewards system is essential for there to be a future in this segment.
We have an example that can be a guide for other games, which is the use of blockchain in the NFT games that Wemade makes. Night Crows used blockchain mainly in the backend, giving players the possibility to mint tokens in crypto and their character in NFTs, but allowed access to the game in a simple way, just with a common email, reducing the barrier to entry as much as possible, while still making this path possible with blockchain and cryptos. Additionally, it is important to design in-game economies that utilize in-game materials and tokens, which entice players to continue progressing and developing.
