GameFi, the fusion of gaming and decentralized finance (DeFi), attracts a set of investors who tend to choose projects based on their use case rather than money-generating potential.
The GameFi ecosystem attracts GenZ investors and gaming enthusiasts. As a result, it is an entry point for many first-time investors. A ChainPlay survey participated by 2428 GameFi investors revealed that 75% of respondents joined the crypto space solely because of GameFi.
While around half of investors initially joined the GameFi space for profits, 89% of GameFi investors succumbed to Crypto Winter 2022 – 62% of them losing more than 50% of their profits.
However, investors believe that the poor design of the game economy was the main reason for their losses. Consistent with this sentiment, the survey found that in 2022, investors around the world spent an average of 2.5 hours per day participating in GameFi, down 43% to 4.4 hours from the previous year. ‘last year.
Fear of rug draws and Ponzi schemes coupled with sub-par graphics are among the major factors preventing investment in new GameFi projects. As a result, 44% of investors believe that the involvement of traditional game companies can be key to GameFi’s growth.
Additionally, when it comes to future GameFi projects, 81% of GameFi investors are moving away from the traditional mindset and prioritizing the fun factor in favor of seeking positive in-game experiences.
Related: GameFi and Crypto “Natural Fit” for Game Publishers: KBW 2022
Blockchain gaming and the Metaverse were the ecosystems least impacted by the Terra (LUNA) debacle, a DappRadar report has confirmed.
Additionally, sustained institutional investment has been seen in both blockchain gaming and the Metaverse, highlighting that many large corporations see the potential for strong economic growth in both sectors in the future.