PlayDough Technologies has received $2 million in finance in order to capitalize on the rapidly growing “play-to-earn” gaming market. The platform bills itself as a “conduit that democratizes access” to the NFT games economy, which has become a lifeline for millions of people worldwide, especially in emerging economies.
While Western gamers may be unfamiliar with the NFT games concept – at least beyond the top tier of competitive e-gaming — such NFT games are gaining traction in a number of emerging regions by exploiting blockchain technology. The concept is that players are rewarded for their time spent playing with virtual money that can be spent inside the tezotopia game, transferred to other NFT games that accept the currency, or converted for other currencies. They may also obtain non-fungible tokens (NFTs), which allow players to permanently keep prizes and accomplishments earned in the game – such as a new weapon or outfit – for use or sale elsewhere.
The genre’s most well-known example is Axie Infinity, in which players must assemble a team of three monsters dubbed Axies after axolotls and then utilize them to perform tasks and combat fights. Each Axie is digitized as a non-fungible token (NFT), and users earn Ethereum-based cryptocurrency as they play. Axie Infinity has garnered a sizable player base across Asia, most notably in the Philippines, where it now accounts for a significant chunk of some people’s income.
The disadvantage of this concept is that players must make an initial expenditure to begin playing — in the instance of Axie Infinity, PlayDough co-founder Mehul Khati notes that it currently costs around $3,000 to get started with three Axies. This is where PlayDough comes into play – it has made a direct investment in Axie Infinity, purchasing Axies and breeding more of them. PlayDough customers may then use its Axies to play the game, dividing the revenue produced; PlayDough retains around 30% of the revenue generated.
“We believe our sector is at the epicenter of many significant developments,” Khati continues. “We’ve seen the emergence of gaming, collectibles, the metaverse, and decentralized money, with this at the hub of it all.”
PlayDough functions well as both an investment platform, letting users to develop portfolios of gaming NFTs, and a facilitator of the gig economy, guaranteeing that new players can overcome the initial fees associated with making money from the game.
It is a fast-paced field in which many questions remain unanswered. For instance, some have compared the idea to gambling; unavoidably, the value of a virtual currency in a game fluctuates, exposing players to volatility that might be harmful if they depend on the revenue. Additionally, like with other blockchain applications, there is worry about a lack of regulation in the industry; for example, game providers are not required to address anti-money laundering or know-your-customer regulations.
Nonetheless, Khati is sure that this is a sector that is poised for substantial expansion in a variety of locations. “Gaming seems to be accelerating the adoption of cryptocurrency’s borderless ideas,” he argues. “While establishing a community around PlayDough has been rewarding, the ability to view play-to-earn as a strategy for yield generation has also motivated the trader in me – we have developed valuation models, breeding strategies, and training programs to enable our community to generate the highest yield possible.”
PlayDough customers will eventually have access to a far broader selection of NFT games through the platform, which has already started collecting inventory in titles such as Sorare and Gods Unchained. Khati sees enormous potential for “cross chain worlds,” in which currencies and NFTs may be transferred across NFT games.
Investors in the firm are also pleased. “We believe that PlayDough is developing at the crossroads of four of the greatest trends in the blockchain industry,” says Shamyl Malik, managing director of Westridge Markets, the primary investor in PlayDough’s fundraising round.
With the popularity of crypto NFT games increasing, so has the NFT gaming industry. Crypto gaming received an update in the first quarter of 2021 with the introduction of NFT NFT games, which evolved from NFT games to collectable games based on the Pay to Earn premise. The gaming business has always been driven by trends, and the newest trend in NFTs is no exception. While it is no secret that the NFT sector has grown to be a billion-dollar industry, NFT games are unquestionably one of the strongest applications for NFTs. Much of the NFT sector is now centered on gaming, which offers great opportunity for players to accumulate unique in-game items.
Although the phrases crypto gaming and non-financial trading (NFT) gaming are commonly used interchangeably, they have a substantial distinction. While crypto gaming focuses on the usage of crypto currencies to trade with other players, NFT gaming makes use of native tokens to produce or accumulate NFTs. Through NFT gaming, any in-game item, such as utility, armor, or land, may be converted to NFT and simply owned, transferred, and sold on the blockchain. Additionally, the NFT gaming platform provides players with access to NFT marketplaces where they may purchase and trade one-of-a-kind NFTs. Axie Infinity is a popular online video game based on NFTs. It is presently the most expensive collection of NFTs, with over $42 million in sales as of June 2021.
Additionally, a new sort of blockchain gaming is gaining popularity that blends decentralized finance (DeFi) elements with gaming; this is referred to as GameFi. MOBOX, a BSC-based game that combines NFT collectibles with yield farming and other DeFi services, is one such game. We should see a slew of supporting products centered on GameFi (Game Finance), which will provide additional dimensions to crypto NFT games. For instance, users may use their game assets as collateral to get loans or just borrow an item for in-game activities to generate more assets. There are several inventive methods to generate money.