A non-fungible token (NFT) is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio. Because each token is uniquely identifiable, NFTs differ from most cryptocurrencies, such as Bitcoin, which are fungible. As the crypto and NFT industries have grown exponentially over the past few years, new niches in the market have opened up, including NFTs or play-to-earn crypto games. And while profiting and having fun may seem like a dream come true, there are several risks that come with these new types of games.
As we are getting information, one of the most likely possibilities is the possibility of the NFT game coming to a complete halt. So do players leave empty handed when this happens, or is there a more promising alternative?
What is an NFT game?
Before talking about the topic of closing NFT games, let's give a brief overview of what it is. A non-fungible token (NFT) is a non-exchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. NFT games (or play to earn) involve using NFTs as in-game currency. While many traditional games have in-game currencies that are completely fictitious and have no real-world value, NFT games give players the opportunity to earn money by buying and selling non-fungible tokens.
For information, let us tell you that often these games also have their own tokens. Take Axi Infinity, for example. This very popular NFT game includes two basic tokens, the Smooth Love Potion (SLP) and the Axie Infinity Token (AXS). SLP is earned by farming in the world of Axie Infinity, while AXS can be earned by climbing the player's leaderboards.
Additionally, each character (known as Axi) within the game is an NFT itself. These have different features and prices and can be purchased for sale on third party marketplaces such as OpenSea. But there is a big risk that every player has to face when he invests his money in NFT games like Axi Infinity. Like all games, there is always a chance that a particular NFT game will be locked out.
The instability of NFT games and projects
But it is also true that the NFT gaming industry is still in its infancy. Developers and players regularly make mistakes, so it's no surprise that many NFT games have already been closed or canceled before launch.
And this is because NFTs are so controversial, with many companies announcing a new NFT game or adding NFTs to an existing game, there has been a huge public backlash. For example, British game developer Team 17 received a lot of heat in early 2022 after announcing the new Metaworm NFT project in conjunction with the successful Worms game series.
As you may have also experienced, this surge of backlash prompted Team 17 developers to scrap the Metaworm NFT project, and it may be a while before we see them delve deeper into the decentralized world again.
While the cancellation of projects ahead of launch could drain a significant portion of a company's portfolio, fortunately no player or client remains in the dark. However, when an NFT game already has a player base and then you pull the plug, things can get a little chaotic. We saw this happen in April 2022 with the NFT Formula 1 based Ethereum game.
Official F1 NFT Game Shuts Down
When in 2019, Chinese game software developer Animoca Brands launched F1 Delta Time. Then F1 Delta Time incorporated racing into its gameplay, but the cars themselves came in the form of NFTs.
And as the game became more popular, the prices of NFT cars have also gone up. In 2020, one of the NFT cars produced for the 70th anniversary of Formula 1 was sold for $265,000. Another car sold for an incredible $288,000, although the price increase is believed to have been driven by the fact that the proceeds would be used to help with the Australian bushfires. In any case, it is safe to say that F1 Delta Time NFTs have become a valuable asset, with players investing huge amounts of money in the game.
But one important thing you need to note is that Formula 1 did not develop the game itself, which is a separate product from watching F1 live. Animoca Brands was required to license the F1 trademark for the game, and all licenses have expiration dates. It was the expiration of Animoca Brands' F1 license that led to the announcement that the sport would cease on March 16, 2022.
It's frustrating when a widely loved game is shut down, but things get even more complicated when players have already invested hundreds of thousands of dollars of their money in the game. Since the value of NFTs is subjective and often depends on exclusivity and demand, the closure of F1 Delta Time has put its players in a precarious position.
At the end of F1 Delta Time, all NFTs became worthless, as their value was entirely dependent on the game itself. So, what should players have done when they dumped thousands into something that no longer costs at all?
But, Animoca Brands knew they couldn't pull the plug and move on. Its players had to be compensated to avoid widespread backlash and possible legal action. Therefore, the company announced that they will "ensure that existing owners of F1® Delta Time assets are rewarded for their loyalty and support." But what exactly does this mean?
Animoca Brands has listed some of the ways players will now be compensated, including issuing optional cars that can be used in other games, airdrop access or exchanging their NFT car for a "race pass". -Providing and swapping other delta times. Property to dealer's property. These assets can be used to purchase future NFT products within the Polygon REVV eco system.
Most players prefer compensation in the form of a refund, but it does not appear to be part of the Animoca Brands process. In short, the closure of F1 Delta Time is a lesson in how hard the NFT world really is to predict.
NFT games can be lucrative, but not a sure thing
As everyone thought, everyday people can be made millionaires through buying and selling NFTs, and NFT games make the process more interesting and interactive. But the NFT market is not based on a solid foundation. There are still many ways to lose money in this industry, and NFT games are not free from this risk. This is why it is very important to be extremely careful while investing any amount in NFT games.
Hope you will be satisfied with this article. Don’t forget to bookmark our page if you want to read more game updates and news
Disclaimer: The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.