Entertaining Through Blockchains: NFT Video Games – Fin Tech

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In addition to NFT contests and NFT fantasy sports contest type games, companies are developing various gamified NFT collections or “NFT video games”. In these games, coiners use NFTs in a number of ways, including as rewards for player participation (e.g. completion badges) and as a means of game entry (e.g. tokens that users can insert digitally to play a game). NFTs that provide holders with additional benefits, such as the right to play certain video games, are also known as “utility NFTs”. It’s important to note that companies selling utility NFTs can face serious penalties if they refuse to follow through with advertised ownership benefits, including regulatory investigation and potential litigation.

NFT video game platforms

While major video game companies have proposed incorporating NFTs into existing web games, the most popular mechanism that mixes NFTs into games is through the use of NFT dApps (short for “decentralized applications”). dApps are applications that run automatically through smart contracts on a blockchain. NFT dApps integrate the use of NFTs into their software. User activities are transmitted on the corresponding blockchain via Internet service providers to other users.

It is important to note that NFT video games have been banned from some mainstream platforms, including Steam.

NFT video games

Well-known NFT video games include Splinterlands, Sorare, and CryptoBlades. One of the most successful NFT video games to date is Axie Infinity. The Axie Infinity dApp is a Pokémon-style game where Pokémon-like battle characters take the form of NFTs. To play the Axie Infinity NFT game, NFT characters must be in players’ crypto wallets in order to participate and raise NFT characters.

Beyond creating a singular NFT video game, some companies are creating video game ecosystems that use and allow players to earn shared cryptocurrency. In these ecosystems, players can earn digital currencies or NFTs for their achievements in applicable video games (otherwise known as “play to win” mechanics). For example, Netcreeper Media Limited has created such an ecosystem of NFT video games (named “FEAR”), which consists of several horror games, including Crypt, Clucking Hell, Araya and Undead Neighbor. These games reward players with Fear Tokens for completing specific goals, which can be used to purchase FEAR NFTs that, among other things, unlock characters, certain abilities, and the pay-to-win feature in Undead Neighbor.

Over the past few months, NFT minting controversies, including controversial launches (e.g., NBA’s NFT Collection), phishing scams, and rug pulls (e.g., the Frosties Scheme), have flooded the news cycle. In view of the above, it is advisable to seek advice from lawyers experienced in NFT marketing before offering NFTs to the public.

Similar blog posts:

Leveraging National Basketball Association NFT Marketing Efforts

NFT Minters Arrested in Alleged Frosties Utility NFT Scheme

Get Ready to Play: Appeals Court Upholds NYC Fantasy Sports Law

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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