Skip to main content

New free-to-own GameFi model is ‘high risk,’ according to CZ

The blockchain gaming firm in question raised over $200 million on Monday to further its NFT operations.

Changpeng “CZ” Zhao, CEO of Binance, criticized the creation of a novel “free-to-own” business model in the GameFi space on Tuesday, writing:

“If everything will be free in the world, why do we have to work so hard...”

The Binance CEO then explained that nothing is absolutely free, pointing to how the exchange can offer zero trading fees for Bitcoin (BTC) and Ether (ETH) pairs because of the adequate revenue generated from other trading pairs. He added that new projects that allow players to sign up for free can be high risk for early adopters.

The firm facing the brunt of CZ’s criticism is gaming startup Limit Break, which raised $200 million in venture capital funding on Aug. 29. The project gained popularity with the launch of a free-mint NFT collection called DigiDaigaku.

At inception, the community is able to begin for free, possessing ownership of NFTs that, in turn, act as factories that generate new NFTs for gameplay and cosmetics. The idea is that since the NFTs are given for free, players aren’t pressured to recoup the cost of their investment as quickly as possible, and can therefore stay and play the game for much longer.

Ryan Foo, a game economist at Delphi Digital, said that Limit Break only takes a 10% transaction fee on NFTs. In the weeks since the NFTs’ release, approximately 3,900 ETH worth of collectibles has been traded, resulting in a book revenue of over $600,000.

In recent months, blockchain games have faced severe criticism from gaming industry veterans for their focus on “making money” instead of enjoyment. For example, Mojang Studios, creator of Minecraft, said that it would ban NFT integrations, citing the “speculative pricing” and “investment mentality” that take away from the game experience.



from https://ift.tt/rwZcGx7
https://ift.tt/JEMYm1l
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

Five Bitcoin Price Charts Analyzing The Dramatic Q1 2022 Conclusion

There are only hours remaining until the Q1 2022 close in Bitcoin price action. With the important quarterly candle set to close tonight, let’s look at what technicals might say about the direction of the next quarter. Q1 2022 Comes To A Close For Bitcoin The first quarter of a year, often sets the tone for the year to come. In investments, a poor Q1 performance is indicative of a bad year ahead. Considering the fact that Bitcoin price is now above $45,000 after touching $32,000 this quarter, it is tough to say the performance has been “poor” by anything other than crypto standards. Related Reading | Bitcoin Weekly Momentum Flips Bullish For First Time In 2022 The cryptocurrency has recovered nearly 40% from the low, leaving a long wick behind. Such a long wick suggests that before the quarter came to a close, buyers stepped up in a major way. Buyers were able to step up in a larger capacity in Q1 2022 than bears were able to in the final quarter of last year. The bearish wick to cl...
Post a Comment
Read more

FTX hacker reportedly transfers a portion of stolen funds to OKX after using Bitcoin mixer

On-chain activity suggests that the hacker has sent at least 225 BTC (4.5 million) to OKX so far. Hackers who drained FTX and FTX USA of over $450 million worth of assets just moments after the doomed crypto exchange filed for bankruptcy on Nov. 11, continue to move assets around in an attempt to launder the money.  A crypto analyst who goes by ZachXBT on Twitter alleged that the FTX hackers have transferred a portion of the stolen funds to the OKX exchange, after using the Bitcoin mixer ChipMixer. The analyst reported that at least 225 BTC — worth $4.1 million USD — has been sent to OKX so far.  1/ Myself and @bax1337 spent this past weekend looking into the FTX attacker’s deposits to ChipMixer. It appears they’ve likely been transferring a portion of the stolen FTX funds to OKX after withdrawing from CM So far we’ve accounted for at least $4.1m (255 BTC) sent to OKX pic.twitter.com/C46JZWtktn — ZachXBT (@zachxbt) November 29, 2022 According to ZachXBT, the FTX h...
Post a Comment
Read more

2 metrics signal the $1T crypto market cap support likely won’t hold

Despite the 8.5% weekly rally in cryptocurrencies, the lack of stablecoin premiums in Asia and futures markets activity shows buyers’ lack of confidence. Cryptocurrencies broke the $1 trillion market capitalization resistance on Oct. 26, which had been holding strong for the previous 41 days. Despite Bitcoin’s ( BTC ) modest 5.5% weekly gains, the aggregate value of 20,000 listed tokens increased by 8.5% between Oct. 24 and 31. Total crypto market cap, USD (in billions). Source: TradingView The cryptocurrency market was positively impacted by a 6.3% weekly rally in the Russell 2000 mid-capitalization stock market index. Some encouraging news accompanied the positive tailwinds from traditional markets. For instance,  55,000 BTC was withdrawn from Binance on Oct. 26, a record high. Typically, analysts consider the reduced number of coins deposited on exchanges a bullish indicator, as the immediate selling pressure eases. Moreover, exchange and wallet provider Blockchain.com ...
Post a Comment
Read more