Is Gamefi the next Silicon Valley for investors?
Is Gamefi the next Silicon Valley for investors?
- The video game industry currently has a price of $ 178 billion, with the Gamefi sector $ 21 billion
- Gamefi is not just another opportunity for VC funds-it changes how and who can invest in new projects
What happens if you open the Gamefi owner of the ownership for a gaming industry that can attract a larger audience than the Super Bowl? You will receive a new class of creative entrepreneurs and VC funds from the Silicon Valley that are ready to invest-or almost eagerly.
The price of the video game industry is currently at $ 178 billion , whereby the Gamefi sector is compensating for US dollar. If web3 is about revolutionizing the industry, as web2 did in the 2000s, then risk capital fund managers have many reasons to pay great attention to the gambling sector.
The big question for these managers will the gaming community-the people behind the income of the industry-want to combine the game with work? My last article explained the difference between the Gamefi monearization models and why the play-and-earn system Gamefi could make more attractive for the rest of the video game industry.
The jury is still pending. But regardless of the direction of the gaming time spirit, Gamefi not only attracts funds and talents from the Silicon Valley. It changes the overall financing model.
The venture capital managers have investments in Gamefi an
Last year Andessen Horowitz invested $ 4.6 million in a leading gaming guild. From a relative point of view, no enormous amount, but with a crypto fund of $ 2.2 billion, the risk capital company based in Menlo Park is actively investing. At that time, Arianna Simpson (who heads the fund) was "" sketched a largely unused economy in thresholders, To create jobs through the establishment of a virtual economy in the digital world. ” She pointed out that this sector puts all of us to rethink and redefine employment.
Arianna alludes to see the gaming time spirit in one direction that takes on a work-and-play mix. It is a step that will undoubtedly leave the saying "down from the couch and a job". The definition of human productivity will question - something that is already questioned because automation threatens to disturb the most professions.
In February,FTX announced a new gaming division as a crypto-as-a-service platform that is aimed at game developers. Department manager Amy Wu recognizes the chance of the industry before her initial reluctance is overcome and explains: "Yes, there are gamers who do not believe in NFTs in games, but there were also no free-to-play and mobile gaming. It will take examples of exceptionally designed, innovative games to show players the future."
WU alluded to the more than two billion players who have bought digital assets (in the form of in-game items) for years, with the decisive difference that they can now own them properly.
Wu and Simpson talked about the enormous possibilities that Gamefi offers. Play-to-ear is only the preamble. The switch to play-and-ears-which focuses on the gameplay in addition to the blockchain-based property dynamics-will attract the over two billion players to which WU has referred to. While Defi has a greater depth from the perspective of the total assets, the incredible size of the gaming audience is an indicator of the comparatively oversized opportunities that exist for investors in this area.
The new decentralized investment model for IGOS
Gamefi is not just another opportunity for VC funds. It changes how and who can invest in new projects - or what IGOS (initial game offerings) are called. The gaming guild Unix-Gaming Last round This offers community members the opportunity to invest in games and even play them before they are made publicly available.
The community members of this guild are similar to the VCS and Angel investors in the sense that they have access to shares before a company goes to the stock exchange. But instead of equity, guild members have access to game nfts and game marks. In contrast to the traditional model, however, the fund is managed decentrally via a DAO (decentralized autonomous organization) and operated by its own unix token. This makes investments through the innovation of off-chain smart contracts more accessible and transparent. And in one step to make more crowdfunding projects available, Unix switched from Ethereum blockchain to polygon. This decision enables games that were created over several blockchains to be approved for which final rounds are approved.
like Play-and-Earn is a revolution in consumer participation
How Gamefi iTerated and developed to earn to playing and earning , it also finds a way to improve the user acquisition. Axie Infinity has inspired some brilliant game developers to switch to web3. Creative, independent developers were put under pressure by handing over significant capital to technologies such as Facebook and Google to acquire a user base.
The economic incentives behind Gamefi promote the participation of the community and consumers. For this reason, the team behind Axie Infinity was able to enlarge its community incredibly quickly without having to hand over a cent to the tech giants. In 2021 Axie grew with a rate of 30 % per week. It was one of the Income worldwide without presence in app stores.
guilds create brand evangelists
Together with the incredible growth of the Axie players, gaming guilds were created and have increased communities at a similar speed. Guilds such as Z Unix-gaming have contributed significantly to create brand ambassadors more effectively than any other industry. In addition, they lower the swell of participation by eliminating considerable preliminary payments for potential participants.
unused potential in sports
eSports is another vertical industry in the industry that offers exponential potential. It is forecast up to a market value of $ 1.62 billion. It is estimated that League of Legends tournaments have recorded the number of spectators that exceed that of the Super Bowl and NBA final.
The competitive character and the monetization of the gameplay in eSport make it a forerunner of play-and-ear guilds. While these games and communities are developing, their players and creators will find ways to merge with eSports.
Instead of pursuing a more conventional approach to influencer marketing, Gamefi projects include live stream gamers than influencers. Unix Gaming has accumulated 23 million viewers through its stream partners. With economic incentives, the gaming guild has a target of 150 million viewers. The use of this level of community engagement is incredibly effective to bring new games onto the market.
The overall market capitalization of Gamefi is currently $ 21 billion. Gaming is generally expected to achieve a value of $ 268 billion by 2025. We are experiencing a relocation of publisher-first economy to player-first economy, which will probably be a killer application of blockchain-based games. Armed with this knowledge and an understanding of why Gamefi is ready to disturb traditional gaming, it is easy to understand that Gamefi is the next Silicon Valley for investors.
This content is sponsored by Unix-gaming .
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The Post Is Gamefi the next "Silicon Valley" for investors? is not a financial advice.