GameFi Investors Are Becoming Less Interested In Profits

GameFi, the merging of gaming with decentralized finance (DeFi), attracts a specific type of investor who selects initiatives based on their use case rather than their revenue potential.

The GameFi ecosystem draws Gen Z investors and gamers. As a result, it serves as a starting point for many first-time investors. According to a ChainPlay survey of 2428 investors, 75% of respondents entered the crypto world only because of GameFi.

While about half of the investors initially joined the GameFi market to profit, 89% of GameFi investors perished in the crypto winter of 2022, with 62% losing more than 50% of their profits.

Investors believe that the main cause of their losses was inadequate in-game economy design. According to the poll, in 2022, investors globally spent an average of 2.5 hours per day playing in GameFi, a 43% decrease from 4.4 hours the previous year.

Fear of rug pulls and Ponzi schemes, as well as poor visuals, are among of the major factors restricting investments in new ventures. As a result, 44% of investors feel that traditional gaming businesses’ engagement will be critical to growth.

Furthermore, when it comes to future GameFi initiatives, 81% of investors are shifting away from the old approach and prioritizing pleasure over profit in order to provide excellent in-game experiences.

Furthermore, institutional investment in both blockchain gaming and the Metaverse has been sustained, indicating that many top corporations see the potential for great economic growth in both industries moving forward.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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