Why is making money with NFT games so popular in emerging economies?
NFT has become a global craze since March 2021, when the Everydays: The First 5000 Days digital collage by artist Beeple (USA) was bought for a record price of 69 million USD. According to data from Google Trends, the number of NFT searches even surpasses hot topics such as virtual currency, metaverse. At the end of 2021, Collins Dictionary also declared NFT the Word of the Year 2021, showing the explosion of this trend in the currency, technology and art industries.
So what is NFT that has such great appeal? NFT (Non Fungible Token) is a type of virtual asset that cannot be replaced or copied, usually tied to a real asset. Instead of buying a piece of art in real life, users can own them on the Internet. Thanks to blockchain technology, each NFT item is assigned a unique authentication code that cannot be modified and ensures that there is only one owner at a time.
Unlike the cryptocurrency system, users cannot exchange one NFT for another. The value of the NFT is based on rarity and uniqueness. Not only images, NFT can also represent audio, GIF or video.
Technologically, the creation of an NFT is quite simple. It only takes a few minutes for experienced people to “mint” an NFT item, that is, to put it on the blockchain network.
Specifically, in addition to items such as audio clips, movies or photos, creators also need to prepare a digital wallet with a small fee to mint and choose a blockchain to create a non-fungible token. On some exchanges, the process to create a non-fungible token is similar to uploading an image, video or audio file on social media.
Noah Davis, head of digital sales at Christie’s, is optimistic about the future of NFT, especially for young artists and creators entering the NFT space. “This is a space that really values the community and the identity of the artist behind the project, which was previously largely ignored,” he said, “The future is here.”
With its huge appeal and flexible approach, the cryptocurrency market has seen many NFT collections worth millions of dollars. Bored Ape Yacht Club (BAYC) is currently the most attention-grabbing and expensive collection today with the cheapest photo priced at $280,000. The collection’s total market capitalization is over $2.8 billion.
Anyone from any age can make money from the NFT market. Among them is Mr. Cam Rackam, a 42-year-old artist from California. If $11,000 is the most he’s made from a traditional work, in the digital market it’s over $738,000 from 10,000 NFTs that sold out in just 32 minutes of its release.
Mr. Rackham is not the only successful individual. Benyamin Ahmed, a 12-year-old boy who doesn’t even have a bank account, has sold his digital art collection “Weird Whales” for nearly $400,000. By the end of 2021, digital asset sales have reached $17.6 billion.
In addition to creating NFT work, investors also make money by buying and selling NFTs. A report by Cointelegraph revealed that sales of NFTs on Ethereum – the blockchain that powers smart contracts – surpassed $9 billion in 2021, up 2,500% from 2020.
Players of NFT titles can also earn millions by building characters, virtual buildings or trading unique items. Because with the emergence of blockchain and GameFi, the revenue of the game industry will no longer flow to the hands of manufacturers. Instead, players can generate their own income through NFT.
After the success of million-dollar collections, the NFT trend has spread to Southeast Asian countries, although this market still has many potential risks. According to Nikkei, despite many negative reviews, NFT is also contributing to changing the lives of many Southeast Asians. Many workers as well as artists have gained additional income thanks to this new type of property.
Specifically, according to Mr. Gabby Dizon, founder of Yield Guild Games group specializing in NFT gaming for money, more than 80% of Axie Infinity players come from emerging economies.
“Those are places where inflation is high or it’s hard to get a job. Many people turn to these games as a way to get extra income or even to replace their main job,” said Mr. Dizon.
According to Nguyen Thanh Trung, developer of the billion-dollar game Axie Infinity, NFT can also be applied to in-game characters and assets.
Although many people make money, experts still warn players to be careful when participating in this market.
“NFT’s liquidity is a potential risk. If you buy for the purpose of collecting, you won’t have too many problems. However, if buying NFT for investment purposes, the low market liquidity will put you off. cannot sell them when needed,” said a representative of Digital Entertainment Asset.
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