The FTX collapse had an effect on the entire crypto industry, but given the connections between Solana and FTX, Web3 gaming may have felt it the most.
While some say GameFi depends on centralization to draw Web2 gamers, others predict the collapse will draw greater attention to decentralized ventures.
FTX and Gaming Twitter Space
Tegro Earn organized a Twitter Space on November 24 to discuss the effects of the FTX collapse on Web3 Gaming. Participants included Footprint Analytics, Tegro Earn, KCC Games Guild, and Earn Alliance.
These are the main points that came out of the discussion.
- More investors and market participants are beginning to lose faith in centralized crypto companies. People have started to reevaluate how they store and stake their tokens in light of the collapse of an exchange that had appeared to be reliable and successful and had strong linkages to the GameFi ecosystem as well as major marketplaces and blockchains.
- Web3 initiatives will have less access to funding in the near future, although this will gradually alter as long as funding companies still have funds accessible for usage.
The Trust Issue
Tegro’s founder, Siddharth Menon said that the major setback the industry has been trust into is a trust thing. In his opinion, all players must go back to why bitcoin was created in the first place, the lack of trust in centralized financial entities. In Menon’s view the collapse of FTX is a big challenge but people have not lost in crypto as a whole.
Earn Alliance reacted by saying that lots of Web3 projects would lose funding opportunities, especially small games that were funded by Web3. Earn added that though great potential will be lost, a lot of Web3-related scams would disappear as well.
How Does this Affect the Gamefi Protocols?
- The last few months have seen a fair amount of stability in GameFi protocols despite the weak market. A reduction in participants and investors will most likely result from the failure of FTX and its impact on Solana and the larger crypto market.
- The cost of NFTs and tokens also decreased, lowering the anticipated revenue for players.
According to Alex Cooper from Footprint Analytics;
“Based on our October GameFi report, not much changed since September going to October. The amount of funding is about the same, and the number of daily users are the same. But I think the FTX issue is going to drastically change our stats for the November report, especially for funding.”
With tools to assist developers, researchers, and investors in obtaining unequaled GameFi, DeFi, and NFT insights, Footprint Analytics is developing the most thorough data analysis infrastructure for the blockchain.
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