FTX’s demise affected the entire crypto ecosystem, but this could have been deeply felt in the Web3 game due to Solana’s relationship with FTX.
Some believe the collapse will increase interest in decentralized projects, while others believe GameFi will rely on centralization to attract Web2 gamers.
On November 24th, Tegro Earn hosted a Twitter space featuring Footprint Analysis, Tegro Earn, KCC Games Guild, and the Earn Alliance to talk about the impact of the FTX demise on Web3 Gaming.
The key points are:
What does this mean for the big picture?
- More and more investors and market participants are losing faith in centralized entities within cryptocurrencies. The collapse of a seemingly stable and prolific exchange with strong ties to the GameFi ecosystem and major blockchains and marketplaces has caused people to rethink how they store and wager their tokens.
- In the coming months, the Web3 project will miss out on funding opportunities, but this will eventually change.
Tegro founder Siddharth Menon said:
there is a setback. You have complete trust issues. Let’s get back to why Bitcoin was created in the first place. We don’t trust centralized entities. It’s not that people have lost faith in cryptocurrencies in general. “
Alliance Notes:
“Many projects, especially small games funded through Web3, will miss out on funding opportunities. I am losing it.”
Will this lead to more distributed projects?
- Bitcoin, and the virtual currency industry in general, began as a way to decentralize the financial system and later expanded into gaming and other industries. However, many centralized companies thrive due to the ease of use that the ecosystem offers.
- Centralized entities are great at attracting and retaining mainstream users in cryptocurrencies, but they are inherently more risky than decentralized options.
Alex Cooper, Community Manager at Footprint Analytics, said:
“Everyone is withdrawing money from centralized exchanges, and centralized exchanges are becoming unreliable, so will people start storing and staking tokens in DeFi projects? Will we see another wave of DeFi protocols?”
Earn Alliance community manager Juan Jose Martinez said:
“Most games are trying to get players from Web2, but the easiest way to do that is to make them easily accessible, and that way is centralization. and on the other side we see the rise of decentralized gaming, but for those who are already part of the ecosystem.”
What impact has this had on the existing GameFi protocol?
- Despite the bear market, the GameFi protocol has remained relatively stable in recent months. However, the collapse of FTX and its impact on Solana and the broader cryptocurrency market will most likely cause a downsizing of players and investors.
- Prices of NFTs and tokens have also fallen, reducing expected income for players.
Footprint Analytics’ Alex Cooper said:
“According to the October GameFi report, there is not much change from September to October. The amount of funding is about the same, and the number of users per day is the same. I think the stats about fundraising will change significantly.”
Kyle of KCC Games Guild said:
“There are 20-25 projects that were actually funded by either Alameda Research or FTX Ventures. We will also lose, so we will have to seek funding elsewhere.”
Contributors to this work are footprint analysis community Until November 2022 [email protected]
Footprint Analytics is building blockchain’s most comprehensive data analytics infrastructure, with tools to help developers, analysts, and investors gain unparalleled GameFi, DeFi, and NFT insights. increase.
This engine indexes, cleanses, and abstracts data from over 20 chains and counts. Users can create charts and dashboards without code using a drag-and-drop interface or SQL or Python.
Footprint Analytics also provides unified data APIs for NFT, GameFi, and DeFi across all major chain ecosystems.
