Altcoins related to #metaverso projects, whether virtual worlds, aggregator tools or video games integrated into blockchain, have represented a revolution in the Web world 3. Now, its value seems to have been diluted...
Axie Infinity, the departure of many in the "Rat Race"
Axie Infinity $AXS is a strategy game based on #Blockchain that allows players to collect, raise and fight creatures called Axies. #axies are non-fungible #NFT tokens that can be bought, sold or exchanged on the market. This token is available on the #Binance platform among others.
In one year it has gone from having 3 million active players to 300,000 per month and, at least for now, the furor over this game has ended.
The ATL of Axie Infinity (AXS) was $0.022 on August 27, 2020. The ATH of Axie Infinity was $165.37 on November 6, 2021. The difference between the ATL and ATH is 7,990.45 dollars, which represents a potential profit of $7,968.43 for each AXS purchased from the ATL. For example, if an investor had purchased 1,000 AXS at the ATL of $0.022, they would have invested $22. If that investor had sold his AXS at the ATH of $165.37, he would have made a profit of $7,968.43.
This game had a real impact on many people around the world and among them, a success story is this one, a 22-year-old young man who was able to buy 2 houses in the Philippines thanks to the game.
The game went viral, especially in countries with greater poverty and fewer job opportunities, as well as having the worst economic situations. For this reason, among the countries with the highest number of players were:
The game allowed families to face the crisis, still persistent in Venezuela. One man described how he shopped for his home with earnings from playing Axie Infinity, an example followed by many others. Of course, especially these countries, detected the attempt to leave many players from the "herd" and got to work.
First they warned of the platform's type of scam scheme and then continued with the tax return threats. Keep in mind that you could earn $400 a day in countries like the Philippines where renting an apartment can cost $200 a month.
But this did not last too long and losses came:
Everything quickly turned into a ponzi scheme, where the first in are the first out with huge profits. A few put money in, encourage the crowd to buy through different strategies or based on market sentiment, and when the stock market is full enough, they reap the benefits and, being the largest holders, having taken advantage of its low prices, their holdings become a much higher value, means that when liquidity is collected, the fund remains dry.
In this way, where there was wheat, only a desert wasteland remains. Of course, as an investor, if you do not have a large amount of money, it is difficult for you to move the market. This is where the "whales" come to life. They are the ones that can move the market and make its price fluctuate. They normally play with two advantages, their capital and their knowledge, something that the remaining 90% of merchants do not possess.
A house of cards with many corpses
Axie Infinity set a trend and after it, a lot of video games appeared, if you can call it anything, homemade rehashes of a study made by two friends, looking more like a mobile video game for an old Nokia, being true copies of others like Brawlstars, Clash of Clans, card or turn-based games with 2000s graphic performance.
The worst thing was that everyone looking for their lost Lamborghini began to put their money, their savings, their pension and their unemployment income into all these projects, completely ignoring things as essential as tokenomics, game mechanics, viability or scalability of the same.
On the one hand, once the token was launched, the vast majority fell into losses within 48-72 hours as the largest holders sold all their wallets, filling their pockets and bleeding out the most novices. Others directly focused on launching an idea or a half-finished project and the development team itself went to a rug pull and took all the money without leaving a trace.
For those who do not know the term "Rugpull", this is a type of scam in which the creators of an investment project, usually cryptocurrency, suddenly abandon the project and take all the investors' money. It refers to the practice of withdrawing funds from a project quickly, as if pulling out a rug from under investors.
The losses were enormous, without raising any of the existing project tokens at all. They all accumulate losses above 90% of their ATH value.
And this is where most of the news about cryptocurrencies has come from, especially related to video games with blockchain integration. The malpractice of the sector has turned something useful into a cloud of smoke in which true value, digital identity, digital assets owned and economic returns based on tests of effort or progress within a video game are left aside.
Despite all this, there are international development teams known to everyone who have made their efforts and attempts to bring this afloat.
Ubisoft Quartz y Rainbow Six Siege
Ubisoft launched an NFT platform called Ubisoft Quartz, which allows players to buy and sell unique cosmetic items (NFT) for the Rainbow Six Siege game.
These cosmetic items, called Digits, are based on blockchain technology and can be purchased with $XTZ a cryptocurrency.
Digits are exclusive cosmetic items that can only be purchased from Ubisoft Quartz. They cannot be obtained in-game in traditional ways, such as through packs or challenges. They have a unique serial number and are linked to the player's Ubisoft account. This means that Digits can be resold to other players on the Ubisoft Quartz marketplace.
Some players have argued that NFTs are a scam and that Ubisoft is just trying to make a quick buck. Other players have criticized the negative impact that NFTs have on the environment but Ubisoft also spoke out saying that they would continue to release more NFTs.
The truth is that I have been following them from the beginning and I personally like it.
Of course, although there are many attempts, some turn out "relatively" well and this is the case of NBA TOP SHOT, a platform that allows fans to buy and sell NBA moments in the form of NFTs. NBA Top Shot moments are short videos of NBA highlights and this reminds us a lot of traditional physical collectibles, such as Pokemon cards, Magic the Gathering or Yu-Gi-Oh among other collections. Going even further back in time, soccer or baseball cards, only in this case, they are digital, not tangible by the buyer.
✔️ The true usefulness of Altcoins ✔️
Once the project is developed with fundamentals, we can make way for the use of altcoins, where it is one more way to both finance a project and to provide an internal economy to it through the community of players/investors.
Some of its advantages are:
☑️ Paid ☑️
🔸 Make payments
🔸 Purchase/Sale of goods and services
🔸 Service subscription
🔸Money transfer between players
☑️ Microtransactions ☑️
🔸 Purchase of cosmetic items
🔸 Participation in special events
🔸 Voting on community decisions through DAO
☑️ Immersion ☑️
🔸 Purchase of land
🔸 Object construction
🔸 Participation in games of chance
☑️ Management ☑️
🔸 Voting on Governance decisions
🔸 Resource allocation
🔸 Purchase of goods and services
An Altcoin without a good teacher is probably a bad decision
Still, it is worth remembering that all of this will not work properly without incorporating a good candidate into your development team specialized in tokenomics.
A good candidate to develop tokenomics in a blockchain project is a person with knowledge of economics, finance, blockchain and cryptocurrencies. This person must be able to understand the economic principles that govern the behavior of tokens, as well as the implications of blockchain technology in the financial market.
And you must have:
Knowledge of economics and finance: You must have a basic understanding of the economic principles that govern the behavior of prices and markets. You should also have knowledge of finance, including concepts such as market capitalization, cash flow, and profitability.
Blockchain Knowledge: You need to have a proper understanding of how blockchain technology works and how tokens can be used in this context.
Knowledge of cryptocurrencies: You must know the different cryptocurrencies that exist, as well as their characteristics and operation
In addition to these technical requirements, a good candidate to develop a tokenomics must also have the following skills:
Analysis Skills: Must be able to analyze data and extract relevant information.
Communication Skills: You must be able to communicate your ideas clearly and concisely.
Teamwork Skills: Must be able to work with others to develop effective, comprehensive, and hole-free tokenomics.
If you had thought that this was a bed of roses, it is not. But if you investigate very carefully, you will avoid falling into scams or losses and I am sure that this article will not give you profits, but perhaps it will save you trouble.
See you in the next article !
