A top crypto executive shares why GameFi is so popular right now and lists 2 reasons why “play to win” games like popular altcoin project Axie Infinity are taking the market by storm. Details now cryptocoin.com‘in.
Pointed altcoin
According to Jeff Mei of Huobi, “GameFi” can change gaming business models and strengthen the digital economy. Investors are fueled by the rapid use of decentralized finance and the enthusiasm for monetizing NFT games like Axie Infinity. With a $10 million fund, Huobi aims to scale startups running on blockchain-based gaming integrated with GameFi or DeFi mechanisms. GameFi is one of the newest technologies in the crypto ecosystem, and early investors can expect gaming-related collectibles to power virtual economies, according to Jeff Mei, global strategy director at crypto exchange Huobi. “Users want the hottest, most innovative, most creative, most promising assets on the market,” Mei told Insider in a recent interview.
GameFi, the intersection of decentralized finance and the gaming industry, is receiving a lot of attention from the crypto community and the largest gaming network in the industry. The business model allows players to get a share of the dividends from game development, and the most common feature is to “play to win”. Mei cited two reasons behind the rise of these games: the evolution of financial mechanisms in games and users who like to earn money by playing. He said Huobi, which has $10 million in funding devoted to emerging GameFi projects, has invested in coaching and incubating several early-stage projects, “this is going to be a very hot industry.”
Huobi’s funding will support GameFi projects in their early stages to make an impact in the blockchain world through marketing and PR support, financial and legal advice, and promotions to potential partners. “Our investment teams and research teams are always working to find these products,” Mei said. Supernova, Immutable and Rangers Protocol are some of the first projects that Huobi’s investment arm has funded. Mei says:
“We want to help users find the best projects that can have value, find the best projects that can have some kind of innovation, find some kind of rapid adoption. There are too many projects out there that are “on the smoke” – they are fake. They just want to make money and run away.”
Huobi’s activities
Founded in China in 2013, Huobi no longer operates in its country of origin. The exchange is now looking to expand its presence in countries with high crypto adoption rates and a large base of individual transactions, including India, Vietnam, and Turkey. Mei explained that the rationale behind Huobi’s expansion strategy, which appears to be concentrated in Southeast Asia, is that GameFi has great potential in the region: “We will focus more on its individual use. For example, one of the most popular GameFi projects in Vietnam right now is Axie Infinity,” he said.
Created by Vietnamese developer Sky Mavis, the Ethereum-based game saw its daily active users surpass 1 million for the first time in August, just three years after its launch. The main characters of the game are axolotls called Axies, which are non-exchangeable tokens or NFTs that can be sold or bought. NFT collections have skyrocketed this year due to the growing demand for play-to-win games, or GameFi as some call it. According to NonFungible.com, the NFT market stood at just $13.7 million in the first half of 2020, with a record $2.5 billion in sales by July 2021. Huobi is preparing to open its own NFT market in November.
This boom is due to the emergence of layer 2 scaling solutions for the pioneering altcoin Ethereum, which allows crypto enthusiasts and web 3.0 players to trade and print NFTs without exorbitant transaction fees. Mei said, “In Southeast Asia, for example, in Korea and Japan, the game has always been hot. This is the kind of field we want to enter.” While Huobi itself is building some unique projects, it’s mostly testing the waters with new, cutting-edge players.
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