Fun and profit: GameFi’s gateway to cryptocurrencies

Games are the fastest growing part of the global entertainment industry. So it makes sense that GameFi is the biggest draw for cryptocurrencies.

According to a new study published by ChainPlay, three out of four investors worldwide are joining cryptocurrencies because of GameFi (where games meet decentralized finance), also known as play-and-win game.

GameFi took off in a big way in 2021, albeit largely as a concept and investment opportunity rather than an industry that can boast captivating, fully realized games. All of that is yet to come, according to project founders and leaders including Kieran Warwick (Illuvium), Kent Byers (Civitas), and Don Norbury (Shrapnel).

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GameFi related projects like Axie Infinity (AXS), The Sandbox (SAND); deluge (ILV); STEP (GMT); Gala (GALA); Immutable X (IMX) and more cubes saw big gains and momentum at various times in the last bull run, leading to the market peak late last year.

In fact, ChainPlay’s survey reveals that much of the 68% of GameFi investors who joined the market in the last 12 months joined at the end of last year.

Like everything else in crypto, things have cooled down drastically since then, but here are some other notable revelations from the report, which, by the way, received responses from 2428 crypto game investors around the world.

Benefits, sure, but not without fun.

• The “Fi” side of GameFi is, unsurprisingly, the biggest motivator for those investing in crypto games, with 51% of respondents citing profit as their #1 reason for getting involved.

• That said… 81% said they would prioritize the fun factor of gaming over the financial benefits when it comes to upcoming or ongoing GameFi projects.

• Respondents appear to believe that projects should prioritize improving game quality, with profit as a secondary goal.

• Again, with that being said… with 62% of these investors in the last six months experiencing more than 50% loss of their GameFi earnings, the blame for this is primarily attributed to poor design of the game economy .

• “Poor game economy design” is the #1 reason for GameFi’s revenue decline, according to 58% of respondents.

• GenZ crypto investors allocate an average of 52% of their net worth to GameFi, while 43% of female investors said they participate in GameFi out of curiosity.

• Some 44% of investors believe that the entry of traditional gaming companies into the crypto space is the key driver for GameFi’s growth in 2022.

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Animoca makes inroads in Japan

Animoca Brands, as Stockhead has mentioned almost too many times to count, is an investment powerhouse in crypto and NFT gaming.

The Sandbox owner has his fingers in the GameFi pies all over the space, across various ecosystems and countries, particularly in the Asia-Pacific region.

It is also trying to make a dent in the Japanese market through its subsidiary Animoca Brands Japan.

The company revealed that it had raised US$45 million at a US$500 million valuation, to help it focus on all things metaverse as well as web3 infrastructure.

The metaverse and GameFi have a strong correlation, with many crypto games trying to build vast digital worlds.

According to the announcement, Japan’s largest bank MUFG Bank and parent company Animoca Brands (which is valued at around $5.9 BILLION last time we checked) supported the funding.

One of the Japanese team’s goals will be to help grow the Japanese NFT ecosystem, which will presumably focus on GameFi, one of the largest current use cases for NFTs.

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Originally Published As GameFi Appeals To Most Crypto Newbies: Report; Animoca Brands Japan raises $45 million

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