Video gaming comes into focus for NFT industry as interest in cartoon avatars cools

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As global fervour for cartoon avatar non-fungible tokens (NFTs) cools, more companies are betting on video gaming as the NFT market's next potential growth driver even though some analysts have questioned the sustainability of such a business model. Magic Eden, a marketplace for NFTs based on the Solana blockchain, is hoping that US$27 million (S$36.8 million) of fresh funding raised...

Reuters file

Last month, it launched Eden Games, which hosts mini-games made by third-party creators who want to sell their game assets as NFTs. But NFT-based games, often dubbed as play-to-earn games because they encourage players to earn money through trading game NFTs and game currencies, are still attracting huge player numbers.

"The kind of behaviour of owning digital assets is already [present] in gaming without cryptocurrency, because gamers buy in-game items already," Lu said. "We think that could be really big, to bring the gaming community into crypto." Co-founded by Australia-based Chinese entrepreneurs Jerry Huang and Yawn Rong, the game has been gaining traction in markets including Japan and the US. Launched in December, the game turned a US$20 million profit in the first quarter, largely through taking a cut from transactions, Rong told the Post last week.

 

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