Following the popularity of Metaverse and other NFT assets, play-to-earn or P2E games seem to have the potential to be the next digital megatrend that will revolutionize the gaming space for creators, investors and gamers alike. Andrew Kiguel, CEO and co-founder of Tokens.com, has invested millions in Bitcoin and altcoin projects. The famous CEO says that play-to-earn games will be the next big cryptocurrency trend, but he also reminds that there are risks to investing. Andrew Kiguel’s comments cryptocoin.com We have prepared for our readers.
The new trend: ‘play and win’ or ‘play to win’
For the uninitiated, the difference between P2E games and traditional games can be compared to the difference between Pokémon cards and traditional board games. Unlike a regular board game, the Pokémon leaves an entity to the player and asks to collect additional cards. Just like with Pokemon cards, Blockchain technology allows players to collect in-game rewards in e-wallets. These rewards can be converted into cryptocurrencies and fiat for real-world use. In other words, crypto gaming allows gamers to earn real money while playing video games.
NFTs of assets in games like Axie Infinity, a Pokémon-like game in which cute animated monsters duel, routinely sell for more than six figures. But unlike Pokémon, players need to invest at least $200 to purchase an in-game character to play. They can also earn the cryptocurrency AXS, which can be exchanged for fiat money, while playing the game. Unlike Pokémon, the average Axie player can earn up to $500 a month playing the game. Even today, there are career players who make their living from it.
Which altcoin project the famous CEO invested in?
But the high cost of entry and the digital economy of gaming have also fueled an industry of creative investment opportunities for institutional investors. It was none other than VC firm Andreesen Horowitz, who invested $4.6 million in Yield Guild Gaming, which lends Axie characters to players without the startup capital to play the game. Andreesen Horowitz also invested $152 million in Series B for the game’s producer Sky Mavis, a game studio based in Vietnam. Investors like Andreesen Horowitz see P2E as the future of gaming and want to capitalize on this segment before it goes mainstream.
Andrew Kiguel states that Tokens.com, which he co-founded and co-founded, was the first (and possibly the only) publicly traded company to invest in P2E by acquiring AXS. Individual investors can join this trend by purchasing tokens without having to play the game. Saying that they have purchased 175,000 tokens of approximately 1,000 AXS and altcoin project Smooth Love Potion, Andrew Kiguel states that these are a utility token that is also used to create new characters in the game. Famous CEO makes the following statement regarding his investments:
Our investment in AXS is currently over $100,000. Our bet is that we can participate in the profits of the game as more users play. As more players join the game, the price of the cryptocurrency is valued accordingly.
AXS currently has around $6 billion. AXS gained roughly 55 cents at the start of 2021 and rallied as high as $160. It is currently trading around $107 and has given early investors around 20,000 gains. The famous CEO also says that they are keeping an eye on other fast-growing P2E games such as Cryptoblades, Mobox, Illuvium and Splinterlands:
Web 3.0 enables investors and gamers to share lucrative revenues with the game’s creator. We are seeing gamers transition from traditional games to P2E and we want to join this evolution.
“Attention! There is a future, but these altcoin projects are risky too.”
“But the risk is in finding the right games that will engage and protect players,” says Andrew Kiguel, as there will be hundreds of these gaming tokens available, but beware, because they are highly volatile. The famous investor warns:
Player interest can quickly shift to new hot games, causing the tokens from yesterday’s hot game to depreciate significantly. In the future, we will see celebrities and brands throw their names behind P2E games to get a share of the profits, just like you see in the traditional gaming market. When that happens, the path to the mainstream audience will be set.
In the early days of blockchain, people thought it would revolutionize supply chain management and many other areas of corporate life that were not fully realized. “We are now starting to see the incredible impact that blockchain can have in gaming,” says Andrew Kiguel, noting that video games built on top of blockchain technology enable not only gaming, but the ability to earn, store and resell crypto and NFTs. The famous CEO makes the following predictions:
The demographics are global and huge. What started as a hobby blockchain gaming system is moving into Silicon Valley corporate boardrooms as investors seek to capitalize on games that can not only be fun to play but also be very profitable. Expect P2E to be one of the hottest topics in crypto in 2022.
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