It was about the third quarter of 2021 since Non-Fungible Token (NFT) games rose as another form of living as NFT are exhibited that can be converted into real cash. However, certain questions are still ongoing on how these virtual currencies are qualified to sustain the needs of the public as well as the worthiness of investing in these kinds of games.
Before such deliberation, it is recommendable that we are aware of the definition of these so-called “play-to-earn” games and how they work.
NFT, a collectible digital asset, is similar to the normal cryptocurrency circulating in the virtual world such as Ethereum (ETH) and Bitcoin (BTC). But the only difference is that these tokens cannot be exchanged among equals (therefore the term non-fungible).
Usually, these NFTs are collected in games developed to produce these tokens such as Defi Pet, Plants Vs Undead, Block Farm Club, and the well-known NFT game Axie Infinity. These games have their original collectible token namely DPET, PVU, BFC, and SLP respectively.
Most of the time NFT games require players to invest money by converting real cash to cryptocurrencies to start the journey of collecting these tokens that can also be converted again into other cryptocurrencies or real cash.
Its convenience is enough, especially since it does not require players to leave their homes during such community quarantines. Somehow, the development of these games resulted in wide demand for most people under the restrictions of the pandemic.
But set aside from the so-called “easy money” for people, these games create certain drawbacks that must be considered especially in the time of need to sustain life during the never-ending pandemic.
NFT games may be hyped and exaggerated through various social media platforms such as Tiktok, Facebook, and many others. However, the lack of knowledge of cryptocurrencies and the market is dangerous enough for the majority of people following such trends.
Most of the time these games require people to invest an amount of money that potentially may have a chance to produce a profit. However, this only applies when the value of cryptocurrencies that these NFT rose to a large equal to Philippine currency.
To exemplify these, DPET, BFC, and SLP tokens had their values depending on the marketed value of Bitcoin and Ethereum respectively wherein most of the time are unstable depending on the demand and supply of the market and the situation of the developers.
This means that there is no exact assurance that the money invested can profit to a larger scale in an instant.
To support such claims, in the present quarter of the year 2021, such NFT games recorded their all-time low value due to the sudden modifications of such games. PVU token that was originally ranging from 1000 PHP – 1500 PHP drops to 50PHP, SLP token that was hyped from 10 PHP- 21 PHP drops to 2.88 PHP, and DPET from 300 PHP – 400 PHP downgraded to 70 PHP – 100 PHP.
These sudden drops in token values are a result of the uncontrollable supply of such tokens that the developers were unable to solve.
As a result, if we use the relationship of supply and demand relationship, a large supply will cause less demand in the market, which leads to a lower value of the marketed price.
NFT games may surely give us another way to earn money for our daily living but it can already be seen based on statistics and facts that in this time of need, it can be another scam that we may feel especially of its exaggerated hype promoted online.
However, this sudden drop in value may easily change depending on the new updates of these NFT games which many say can again go back to its “to-the-moon” value. So if someone may already be keeping their mind to invest money in these games, I can only advise what the crypto-experts always say, “Invest only what you can afford to lose.”
