Binance CEO Changpeng Zhao, in his posts recently, said that play-to-win (P2E), staking and airdrop launches should be supported by qualified business models. Projects that do not produce real tools and products are doomed to collapse, according to CZ…
Critical market analysis from Binance CEO
As the DeFi market plummeted earlier this year, crypto investors flocked to GameFi to grow their portfolios. Subsequently, the number of metaverse and NFT focused games projects increased by 103% from 693 to 1,406. Some of the successful projects operating in this field are: Axie Infinity (AXS), DeFi Kingdoms (JEWEL) and Crabada (CRA). One of the reasons these projects are successful is because players can earn money by playing. Developer teams are stepping into the market with various staking and airdrop events to reach more players. Changpeng Zhao, CEO of Binance, said on this subject today:
Play-win, staking, airdrop, etc. Incentives like this are great for attracting new users. But if the project does not have a larger “revenue” model than “incentives”, the token price will eventually collapse due to oversupply. The key is this: create products that people use.
For example, Axie Infinity (AXS) wants to generate additional income due to hyperinflation home to thousands of Venezuelan players. The “Axie Infinity Scholarship” or “Axie Infinity Scholarship”, which allows players who want to play Axie Infinity but do not have sufficient financial resources to play games from other players’ accounts, fits well with CZ’s phrase “create products that people use”. On the topic of revenue, in the continuation of the tweet above, CZ says:
Revenue is generated by users spending tokens, paying developers for virtual goods, network fees, etc. Sustainability: Revenue > incentives
What can I consider when choosing real projects?
- Does the team have a long-term development plan and financial support?
- If the project is backed by a recognized venture capital firm, it can add a lot of credibility to the project.
- It is also important whether the founders and the team have experience in Blockchain, especially in the gaming industry.
- The amount of funding is important. For example, in a bull market or a bear market, the financing amounts for different projects are also different.
You can reach the metaverse guide that we prepared as Kriptokoin.com here (section-1, section-2).
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