NFTs Drive Digital Land Conquest in Video Game Worlds

NFTs work on the blockchain, like cryptocurrencies such as bitcoin. The difference is that each bitcoin can be exchanged for another bitcoin while an NFT cannot be exchanged for an identical NFT. The craze has attracted basketball fans and art lovers. This month, a digital collage by artist Beeple sold at Christie’s for $ 69.3 million. Rob Gronkowski, Mark Cuban and Twitter CEO Jack Dorsey have all started selling their own NFTs.

The digital real estate market has recently been bolstered by a rise in the pandemic in electronic games and investor enthusiasm around cryptocurrencies. Many see NFT-enabled games as a potential boon to the multi-billion dollar video game industry.

Gamers for years have spent a lot on gear – like weapons, armor, or tools to empower their characters – in games like Fortnite, Minecraft, and World of Warcraft. NFT-enabled games now allow players to exchange game assets for cryptocurrency, selling them for a coin that can be converted into dollars when they score something better or move on to a new adventure.

In some games, players can purchase digital titles for real estate in the form of an NFT, which proves the authenticity of a certain plot in a specific game. Real estate will appreciate as more players join the game and rare earths are sold to other players who need the plots for certain tasks and missions. Players can then rent their land to other players, charge others to use it, or even sell it – either in-game or on a third-party exchange such as OpenSea. Transactions are usually backed by a game’s unique cryptocurrency, which can be converted to Ethereum and then to US dollars.

Digital land purchases have already brought in millions of dollars.

Last month, a group of people paid $ 1.6 million for Citadel of the Stars, a great kingdom in the unreleased fantasy role-playing game Mirandus, said Eric Schiermeyer, co-founder of Zynga and now CEO of the creator of Mirandus. Gala Games. This purchase exceeded the $ 1.5 million paid for nine adjacent plots in the Axie Infinity virtual pet universe.

Last month, virtual world The Sandbox sold for around $ 2.8 million worth of land in a pair of well-received sales that now see the company valuing its digital properties at around $ 37 million. Players of the game can purchase plots of five different sizes, the smallest of which is 9,216 square meters, or approximately 2 acres, and 128 meters high.

The land of this virtual world is home to different games in each plot and players can switch between plots, changing the game they play as they explore the world. Digital land owners can create games within their borders using The Sandbox’s game creation tool. Sandbox virtual world games will be playable for early adopters when the team releases the product in April.

“The first landowners and games of The Sandbox, and which are playable, are also potentially the ones who are most likely to monetize from the start,” said Sébastien Borget, co-founder and COO.

Mr. Russo, of Polyient Games, said his company has invested $ 800,000 in Sun Citadel of Mirandus, another gaming realm, which is expected to release a test version later this year.

Polyient Games plans to charge players who pass through their kingdom on a mission – the digital equivalent of a toll road. They also plan to divide the digital territory into smaller plots that the company can sell to other players, which those players can then monetize, Russo said.

Gamers have collectively invested billions of dollars in video game loot, but NFT-enabled games are different because gamers actually own their assets in the game, said Jeffrey Zirlin, co-founder of Sky Mavis, the company. who created Axie Infinity.

“It doesn’t matter what watch you have for a lot of people, what car you drive, what shoes you wear – we can’t even get out,” Mr. Zirlin said. “What’s more and more important are your digital items. And identity.”

Several analysts have said that the long-term viability of NFT-enabled digital games requires attracting mainstream users who are not deeply familiar with cryptocurrencies or NFTs.

Valentin Negron, who runs a cryptocurrency-focused YouTube channel called Crypto Val, said he paid two Ethereums for an outpost in Mirandus. This was equivalent to about $ 1,000 at the time of purchase.

A similar outpost, which is now sold out in the gaming market but still available in the secondary market, has been listed on the third-party NFT exchange OpenSea for around three Ethereums or around $ 6,000 at the time of publication.

Mr. Schiermeyer of Gala Games said that two dedicated players in the Philippines are buying a home – in the real world – with their winnings from another Gala NFT compatible game, Town Star.

“I see a really exciting opportunity to provide significant income for people all over the world to tap into the gaming market,” Mr. Schiermeyer said.