This photo taken on December 10, 2021 shows couple Eugene (L) and Ginger Arboleda giving a … [+]
Chalk it up as the latest blockchain failure. The roughly four-year-old GameFi market, a sector of the cryptocurrency economy, has been another dud for investors. Axie Infitity (AXS) has lost almost all of its value, down more than 92% year-to-date. By comparison, bitcoin is down around 55%. Cool graphics and buzz don’t last long if no one is going to plug themselves into the Axie game all day and trying to make some coin.
“It is clear that the original mass-market play-to-earn promise of Axie Infinity and StepN looks today to me like nothing but a Ponzi scheme. The whole sector needs a drastic rethink,” says Oleg Fomenko, co-founder of Sweat Economy, which is another token-backed endeavor that tries to get people paid for walking, hiking, jogging, and being physical in general. He is based in London. “There are still niches where a convergence of gaming and blockchain is beneficial — gambling and casino-style games, for example. I think it’s going to take a lot more time and money than most people anticipate to develop the next wave of breakthrough projects in this area….
