Earning from chain games? It might actually be a trap of coin speculation.

Question

In the past few months, I have participated in the airdrops of several dozen chain games such as Nyan Heroes, Mavia, and Nifty Island, and I have come to one truth. The essence of current chain games is not the games themselves, but is infinitely close to a Ponzi Scheme using NFTs and Tokens.

GameFi is an ideal, but reality is a money game

In theory, GameFi is great. Earning money by playing (Play-to-Earn), true ownership of assets, decentralized DAO governance… it sounds good, but what is the reality?

The core contradiction lies here: For the token price to continue rising, the buying volume must always exceed the selling volume. However, the current quality of chain games is overwhelmingly lower than that of Web2 games, and the players are mostly those who are forced to play to make money. There are hardly any users who genuinely enjoy the game. In other words, it is a pyramid structure where the game will collapse if new users do not continually enter.

It is clear at a glance when looking at the relationship diagram between NFT and Token.

Almost all chain games follow the same pattern:

①Before the game launch→Mint & sell NFTs (promising high benefits in the white paper)

②At game launch→A large amount of Tokens will be airdropped to NFT holders.

③After the game becomes serious→

NFT holders hold a large amount of Tokens → sell while the market is high
New users buy NFTs → NFT prices peak
The game is not interesting → Decrease in new users → NFT prices plummet, token prices also plummet in tandem.

Key Point: When the price of NFTs reaches an inflated level, it is almost certain to plummet. At that point, the project side has already made enough profit, so they do not take responsibility.

Don't Follow in the Footsteps of STEPN and Axie

"Remember “Move to Earn” STEPN? Early users made a fortune, but what happened afterward? New users needed to support the price of shoes, and there was always a need for new entrants. As the token price fell, the recovery period lengthened, ultimately leading to a complete collapse. This is exactly the same logic as Luna and USTC.

The Reality of Game Quality

To be honest, the current chain games are:

Graphic: Poor
Game Balance: Too Simple
Server: Frequently freezes
Gameplay: Almost non-existent

If chain games are truly excellent, why do they need to rely on issuing NFTs or Tokens? Super popular games like Honor of Kings and Fortnite have succeeded without any blockchain elements, right?

So, how should we engage with chain games?

The Safest Strategy:

Participate only in free Airdrops (time is the only cost)
Never buy NFTs (the probability of losing capital is high)
Cash out immediately when you make a profit (reinvesting is not allowed)
Sell when the Token price is high.

In other words: If you are playing a chain game, it is the same as engaging in short-term speculation of cryptocurrency, rather than playing a game. Long-term holding is not recommended.

Finally

The current chain game market is a system where early entrants suck money from latecomers. While it's fine to participate for free through Airdrop, be cautious with NFT purchases and reinvestments. It is the game company that counts your funds, not you.