How much do blockchain games depend on the cryptocurrency market?

October 6, 2023

As you know, WARLANDS is a remunerative eSport video game project. This means that, first of all, we are a video game oriented to fun and competitiveness. At the same time, on a parallel level, it is a project that boosts the player’s remuneration, this is possible thanks to the blockchain layer.

In a bear market, such as the current one, the influence of the market situation is obvious, however, to what extent it affects blockchain games in general and Warlands in particular.

How the crypto market affects blockchain games

It stands to reason that NFT games will be affected by the crypto market. This means that the market will influence both for good and bad. We have been able to experience this very clearly in the last year.

The last quarter of 2021 saw probably the highest point of interest and value of NFT propositions. A highly speculative market, full of projects and in which investors of all types abounded: including people with little experience who, in the end, were probably the ones who accumulated the greatest volume of losses.
From the first months of 2022, begins what comes to be known as crypto winter, blockchain gaming projects plummet, the market suffers and, in fact, the vast majority of existing and future projects begin to crumble.

It’s a truly punishing time for the market. However, we must pause the article here and point out that market developments cannot be blamed directly for the disaster that befell NFT games in 2021, or at least not exclusively.

A combination of failed, ill-conceived, or simply unfeasible projects, mainly based on the click to earn concept. It was the result of many factors, among which the market situation also played a role.

The direct influence in any case is obvious: when the market is bearish, the value of assets tends to decrease. However, the fundamental problem was the lack of value creation of the vast majority of projects. And that is really where the heart of this issue lies.

nft games

How the crypto market affects Warlands

To begin with, you should note that our project has been in development for two years. This means that we have gone through both bullish market periods and bearish periods. However, while it may affect us from the point of view of a pessimistic picture of the markets, actually, on a structural level, our project has not been affected that much.
The fundamental reason is that the market has never been the central paradigm on which we have built the project. We have not turned to the market for funding, we have not issued fundraising tokens, and in fact, our funding to date is private.

On the other hand, we are also not a project with huge market exposure going forward. The reason is simple: we are able to create value. When an NFT gaming project is based exclusively on zero-sum systems, it is obviously very difficult to create value, even more so when the approach is a win-win for all investors.

In this case, our project proposes a very different game model. Some win, but others lose. If we had to make a simile (of the way of understanding this game model) we could talk about poker, i.e., playing has an entry cost in exchange for which you can get a return depending on your skill and ability to play.

If you think about it, this is the best way to fight the bear market and take advantage of the bullish moments. In the first case, we never stop generating internal value, our internal currency, non-convertible, will maintain its value regardless of the market, on the other hand, as long as there are two players willing to compete, the model will always be sustainable. All this, if we add the great amount of added economic income values.

On the other hand, in bullish moments, the potential attractiveness of the remunerative layer is undeniable and we have already seen it in the recent past.


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