In recent years, blockchain gaming has developed rapidly, with many people seizing opportunities in the early stages to achieve wealth growth. You may have heard of an industry bigwig making tens of millions by participating in a 'sneaker' project or a certain executive earning hundreds of thousands through (BigTime). Many people chose to enter the blockchain gaming track because of these 'wealth effects.' However, blockchain gaming is not a shortcut to easy wealth; it requires continuous learning and gradual enhancement of your understanding and experience in the industry. Below are key knowledge points essential for blockchain game investment.
1. Understand the history of blockchain gaming development and representative projects.
To delve deeply into the blockchain gaming sector, you first need to familiarize yourself with its developmental trajectory and landmark projects. Blockchain gaming has not come about overnight, but has gone through several generations of trial and error and evolution to form today's diversified pattern. You need to understand the characteristics of each generation of projects.
Distinction of game genres: Blockchain game types are diverse, some focus on strategy and gameplay complexity, some lean towards simple pixel styles, and others combine real-world elements to create unique augmented reality experiences. For example, games like (Pixels) adopt a retro pixel style, with a simple visual presentation that lowers the technical threshold, attracting a large number of users who are new to blockchain gaming. In contrast, (StepN) introduces real-life scenarios, allowing players to complete tasks through actual movement data, bringing an innovative 'move-to-earn' model that seamlessly integrates real and virtual blockchain gaming experiences. Early blockchain game projects mostly focused on simple turn-based gameplay, but as technology and demand grew, they gradually developed complex economic systems and NFT trading, such as (Axie Infinity), which centers on unique pet nurturing and combat gameplay while introducing NFT pets and a trading market, creating a playable loop that attracts a large user base.
Evolution of gameplay and economic models: Early blockchain games often relied on a single token system, but today, the dual-token model is gradually becoming mainstream, even incorporating NFT items, allowing players and investors to manage assets more flexibly within the game. For example, (Axie Infinity) initially adopted a single token model but introduced a dual-token model after optimizing the economic model to mitigate the impact of inflation on the in-game economy, enhancing long-term sustainability. Additionally, games like (BigTime) not only feature tradable NFT equipment but also employ a unique 'time-space distribution' mechanism, allowing players' rewards to extend beyond virtual assets to include exploration and interaction within the game. Industry researchers need to master these changes and analyze which mechanisms genuinely attract users and support long-term development.
2. Clearly understand the current state of blockchain gaming.
The current state and pattern of blockchain gaming are highly challenging. You need to accurately assess these characteristics, classify games, summarize the basic features of different game types and economic models, and conduct detailed analysis of the market situation.
Game type classification: Blockchain games can typically be divided into PVP and PVE based on gameplay and interaction types. Within specific classifications, blockchain games can further be divided into RPG, FPS, SLG, etc. Different types of blockchain games attract significantly different user groups, target markets, and acceptance levels. For example, RPG projects like (Bigtime) and (Seraph) attract players who focus on character growth and exploration; FPS games like (Matr1x Fire) and (Nyan) cater to users who enjoy intense competition; while SLG games like (Castile) lean towards strategy players. The differences among these games are reflected in gameplay, user needs, market strategies, and on-chain design, with each type performing uniquely in the blockchain gaming market.
Pain points in blockchain gaming: The current blockchain gaming industry faces multiple pain points.
High threshold: The user experience of blockchain games still poses a high threshold for players transitioning from Web2 to Web3. This includes understanding the use of blockchain wallets, token management, NFT operations, etc. Many traditional gamers encounter learning obstacles when trying blockchain games. Therefore, lowering the entry threshold is the biggest pain point the blockchain gaming industry needs to overcome.
Low user numbers and insufficient liquidity: The overall user base of blockchain games remains relatively small, directly leading to insufficient liquidity in the in-game economic system and secondary market, making it difficult for many game assets to be quickly liquidated or traded. Low liquidity reduces players' economic interactions, thus affecting user retention rates.
Economic model 'death spiral': The economic models designed for blockchain game projects often fall into a 'death spiral' dilemma. When the value of tokens declines, players and investors tend to sell off their assets, leading to further token devaluation and creating a vicious cycle. This situation is particularly evident in some P2E (Play-to-Earn) games that overly rely on token rewards.
You need to deeply understand these pain points in the blockchain gaming sector and assess whether a project has measures to address these pain points.
3. Research combined with methodology.
Blockchain game investment requires establishing an analysis framework. The following dimensions can help systematize the judgment of a project's lifecycle and development prospects:
Project stage judgment: Blockchain game projects typically go through early, mid, and late stages. By comparing the development paths of similar projects, combined with market acceptance and user growth, you can assess the current stage and profit potential. Early-stage projects are highly innovative, high-risk, and have significant return potential; mid to late-stage projects tend to mature, with clear profit models and lower risks.
Team background and economic model: The team's background impacts technology and market expansion, while the economic model determines profitability and user stickiness. You need to examine the team's experience and the rationality of the economic model (such as dual-token mechanisms and NFT designs) to evaluate its sustainability.
Players and user groups: The user positioning, stickiness, and growth rate of a project reflect its potential. Understanding user activity and feedback can help evaluate the project's long-term attractiveness and expansion potential.
Operations and market popularity: Pay attention to promotions, social media activity, and the impact of market events. High-popularity projects often attract more capital, while sustained operations indicate the team's ability to handle pressure and crises.
Data and resource support: On-chain data, active user counts, and transaction volumes provide a reference for a project's market performance, while resource reserves (such as partnerships and funding situations) help the project cope with market fluctuations and support its long-term development.
4. Ability to respond quickly.
The blockchain gaming industry is changing rapidly and competition is fierce, so you must have the ability to respond quickly.
Information gathering and networking: By using social platforms, industry connections, and news information, you can promptly grasp first-hand information. You need to accurately filter benchmark projects and assess their opportunity size. For instance, when a new blockchain game project emerges, whether you can quickly identify the success factors of similar successful projects and predict its growth potential is crucial.
Sharp event judgment: In the blockchain gaming industry, every important news event is often accompanied by business opportunities or risks. You need to have a high sensitivity to quickly identify potential impacts on the industry or specific projects, providing a basis for decision-making.
5. Review and summarize experiences.
Any research cannot be limited to data and tables; you must also be good at reviewing and summarizing experiences.
Regular reviews and methodology updates: For each project you participate in, you need to conduct a review when the project reaches a certain stage, analyzing the gains and losses in decision-making. These accumulated experiences not only help enrich your personal methodology but also continuously optimize the analysis framework and strategies, enhancing future success rates.
In blockchain game investment, continuously enhancing your professionalism and insight can more accurately judge a project's potential and risks. Familiarity with industry development history, understanding current situations and pain points, systematically analyzing projects, and maintaining rapid information response and regular reviews will help you grow steadily in the blockchain gaming track.
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