Although the initial motivation for roughly half of the GameFi space investors was profit, Crypto Winter 2022 made them prioritize the fun factor over profit-making
A ChainPlay survey asked 2428 GameFi investors about their perspective on the sector. The study revealed that 75% of the respondents joined the crypto space solely because of GameFi. Moreover, as most of investors lost profits amidst the crypto winter, today 81% of them are prioritizing the fun factor over money-making.
GameFi is the fusion of gaming and decentralized finance (DeFi). Its ecosystem attracts GenZ investors and gaming enthusiasts. They often focus on use cases rather than profit opportunities. As a result, the sphere attracts numerous first-time investors. Namely, 68% of GameFi investors joined the market less than a year ago.
Whereas almost half of the investors initially joined the GameFi space for profits, 89% of those investors bore losses amid the crypto winter of 2022. Moreover, 62% of them lost more than 50% of their profits.
As for their insights, investors shared that the fears of rug pull and Ponzi schemes prevent investments in new projects. Therefore, 44% of investors believe that the involvement of traditional gaming companies can be key to GameFi’s growth. Since sustained institutional investment exists in both blockchain gaming and the Metaverse, these two sectors were the least affected ecosystems by the Terra debacle, a DappRadar report confirms.
Furthermore, when it comes to future projects, 81% of GameFi investors seek positive in-game experiences rather than profitability. A whopping 43% of female investors said they participate in the sector out of sheer curiosity.
Although many top companies see the potential for strong economic growth in Blockchain gaming and the Metaverse, the GameFi sector has a number of development issues. Those discourage potential investors. For instance, 58% of investors worldwide stated that “Poor In-game Economy Design” is the number one reason for declining GameFi profits.