5 Factors Which Affect The Price Of A NFT Gaming Coin
Almost everything evolves, and the evolution is often faster than our own beliefs. We’ve been raised by industrialists where we are encouraged to maintain status quo. Do the safe thing. Don’t stray out of line. Don’t lead, simply follow. Don’t invent, simply comply. Don’t ask what is possible, ask what is correct. I have zero doubt that this mentality works. But as the world is shifting from competing against each other to cooperating with each other, I’d like to believe that the rules are gradually changing. For starters, some of the multi-trillion cryptocurrency right now are projects with no one in charge. There is no single entity, but a vast community of people, ideas and initiatives meshed into singularity. This is why blockchain technology will succeed in the long run. Enough big talk, let’s dive into the topic of the day, shall we?
Previously, I mentioned 7 conditions we can use to determine a good NFT game. If a NFT game fulfills the 7 conditions well, there is a good chance that the NFT game is unlikely to fail. However, it is imperative to note that it doesn’t mean there is no chance for the game to fail. It simply means there is a better chance of it succeeding. Hence, it would be a wiser choice to invest in it as compared to a NFT game which fails to rise up to the occasion. In order to maximise potential gains, we can also look into 5 other factors which affect the price of a NFT governance coin (E.g. THG, AXS and the list continues). These 5 factors should be milestones on a project’s roadmap (If they are not, do consider to run as far away from it as possible), and for each milestone reached, there will be substantial confidence boost in the project. With more confidence in the project, the more people will buy into it. If you’re conservative, it is better to wait till all these significant milestones are completed before you pour money into the project. If you’re a risk- taker.. yeah you get the point.
Official In-Game Marketplace Launch
This comes almost hand-in-hand with the Official Game Launch. Ideally, you’d want to see the in-game marketplace launch a week or so before the official game launch. Aside from testing any potential bugs to be exploited, the emphasis would also be stress-testing to see if it can handle tremendous sales volume at one go. If players are able to transact securely with confidence in the marketplace, there will be a boost for the game’s governance coin.
Official Game Launch
For the veterans out there, you’ll realise that I skipped past the mention of alphas and betas, and immediately sink into the official game launch. From my experience, alphas and betas with a small group of testers do not move the price needle much. However, it is important for game developers to stress-test the capability of the game server too. We’re not talking about hundreds to ten of thousands of users. We’re talking about onboarding onwards of 100k active daily users. Once the game server can manage that, the volume of users will boost the price of the governance coin.
Major Exchange Coin Listing
Some of us are more comfortable with buying coins from well-known centralised exchanges such as Binance, Coinbase and FTX. Until these exchanges give the greenlight, we’ll regard the coin as trash. On the flipside, some of us believe in decentralised exchanges more. So, we’re perfectly okay with buying coins on platforms such as Uniswap. There is no right or wrong to go about this, we can have unique preferences. However, we cannot deny the fact that there is a lot more volume going on in centralised exchanges as compared to decentralised platforms. When a coin is listed on a major centralised exchange, it is much more accessible to the masses. Also, the coin becomes more validated and recognised due to the scrutinised check from the exchange. The volume and confidence piles on to the price of the governance coin.
Available on Google Play Store, Apple App Store and PC
It is easy to onboard a player who has been dealing with crypto for quite some time. They know how to deposit and withdraw crypto in various wallets. They know about gas fees. Most of it all, they feel secure doing so. But, it is ridiculously difficult to onboard a player who knows nothing about crypto. I believe one of the ways to onboard such a player is to make the downloading process as seamless as possible. If the game is available on the app store, they can simply download the game and start playing with a free character. If they find the game fun, they’ll naturally want to find out more about it and learn how to go through the various crypto-related processes to redeem their in-game earnings. When the game is easily accessible to the masses, that is when mass adoption happens.
Let’s look at Illuvium and Axie Infinity as prime examples. When a game comes out with its staking model, players can stake the in-game coin and earn rewards on it. Think of it as planting an apple seed. Staking cryptocurrencies is a process that involves committing our crypto assets to support a blockchain network and confirm transactions. The coins are still in our possession when we stake them. We’re simply putting them to work. Why would we do that? Two reasons. Firstly, staking offers high interest rates. Secondly, we believe that the value of the coin will go up eventually. On a bigger picture, the staking model gives investors a choice to stake the coin rather than to sell the coin. If the APY is attractive, more people will want to stake the coin than to sell it. As a result, the price of the coin will be maintained at a certain value.
The earlier you get into a project before these milestones are completed. the riskier it is. The later you get into the project, the lesser profits you’ll potentially earn. You’ll need to weigh it out for yourself as to when is a good time for you to step in or to step in or not. If for some reason you believe this is some sort of investment advice, it isn’t. It is dangerous out there in the crypto world, and I implore you to do your own research. If you’re not confident of a particular project, chances are you’re right.