The crypto industry, blockchain projects, and Gamefi took a solid right jab to the face in 2022. It didn’t bode well for crypto and all its related domains when we compared them to 2021. To take a broad view of all domains, Web 3.0 had more than a trillion dollars in revenue at the start of 2021. However, 2022 was a miserable failure. How about 2023? What should we expect from Gamefi in 2023? Will we see further collapses like Terra, FTX, and Axie Infinity? Or will 2023 see a shift in both Gamefi and cryptocurrency? Let’s try to analyze what we can expect this year in Gamefi and subsidiary projects.
The 2022 Hard Fall and the Ripple Effect in Crypto and Gamefi
The FTX collapse was the largest of all collapses in 2022. Once celebrated, Sam Bankman-Fried is now under harsh criticism and facing arrest. The lies, deceit, leverage, and loans have done nothing better for crypto as a whole. It not only led to more rules from the government, but it also hurt cryptocurrency as a whole because of the bad news. Now, in 2023, the investigation will continue from the ruins of FTX and could lead to rules for all other crypto domains, especially Gamefi.
Gamefi, Axie Infinity, and the Regulation Debate
Gamefi is a domain where financial rewards meet gaming. Players participate in games to earn digital assets such as cryptos, tokens, and NFTs that have real-world value. It is the only crypto domain that hasn’t faced any kind of regulation or investigation. The only limitation is that gambling laws prohibit games from offering monetary rewards. So, GameFi is still up for regulatory debate. However, Gamefi wasn’t immune to the frostbite of the raging crypto winter in 2022. Axie Infinity, the apple of the eye gamefi, suffered a massive collapse due to a variety of factors, including hacking, the crypto bearish trend, and the collapse of its own financial system.
Consequently, the investors, especially those who got in late, lost every single dime. As it stands, Axie Infinity was down more than 90% when 2022 was coming to an end. So, we may see regulations hitting the gamefi, but how soon? What about the gamefi?
Gamefi Regulation in 2023?
According to the majority’s opinion, gathered by Forbes, the regulations won’t come for Gamefi coins anytime soon. Also, the people who make blockchain games and the people in charge of them don't like regulation. The idea is simple if you want to keep out the speculators from the games: make games fun, challenging, and rewarding for gamers only. So, the majority of the tokens and in-game digital assets will be held by gamers only and not by speculators. The game model needs to be changed so that the focus moves from tokens to fun gameplay.
However, whenever finance makes it to a new market, investors need transparency, fairness, and a fair bit of protection. So, the gaming community, trade, finance, and online safety may as well join hands to create a better place in blockchain gaming. Also, governments all over the world have tightened the rules around crypto, and Gamefi will be no different. There were, are, and always will be people who will exploit the absence of regulations. Such entities may be filtered out of gamefi by regulators. If that is the case, then the regulations in gamefi aren't as bad as they sound; they won’t cripple the gamefi march.
Gamefi's Current Standing and Expectations in 2023
Gamefi didn’t do well in 2022. Those game-related projects that haven't released their games yet and are still looking for funding are on the safe side. While the majority of the game-related projects that have launched their games haven’t made considerable profits, The most difficult challenge is still developing a working tokenomics or financial model for in-game tokens. However, there are several game-related projects that are putting a lot of effort into developing AAA games.
In 2023, such AAA sci-fi projects with a strong emphasis on gameplay rather than tokens or a quick cash grab scheme may enter the market. There are games coming in from the likes of Gala Games, Animoca Brands, and several other big names that will roll out solid game-related projects in the near future. Check out some of the promising blockchain games and their reviews on our website. Some of the promising game-related projects, that we covered some, are Medival Empires Ertugrul, Spider Tanks, Apeiron, Illuvium, Alien Worlds, Angelic, and many others.