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Token creation and its expansion on the gaming industry

Sep 26, 2021

           Every person has a reason for getting to know about tokens, and for many that reason is video games. This isn't unexpected, knowing that the global video game market size was valued at USD 151.06 billion in 2019.

In that year alone video games outsold movies and sports in the United States and, during 2020, reached sales of USD 174.9 billion, with projections hovering around USD 256 billion by 2025. We all Imagined that by the end of 2021 there would be more than 2.7 billion gamers worldwide and that is about to be true. More so with the strong inclusion of cryptocurrencies inside the gaming industry.

Even Japanese multinational video game developer and distributor SEGA announced the launch of several NFTs (non-fungible tokens) featuring characters from its classic video games and future titles this April. However, for many normal people, tokenization has become a way of living.

Tokens and gaming

          Every year video game developers who love the world of cryptocurrencies have created new challenges. Now it is possible to play video games that allow you to earn bitcoins while discovering how to mine other cryptocurrencies, exchange NFT tokens, or prepare an epic battle in a virtual world.

Other games have created their own token to make trades and hold the market in favor. Such is the case of games like Axie Infinity. A role-playing game where your characters are collectible NFT cards from the Ethereum network. The profitability of this game has increased as it becomes more popular, and so has its cost, due to the high commissions paid on the Ethereum network nowadays. The platform uses a governance token called Axie Infinity Shards (AXS, an ERC-20 token), which can be exchanged on exchanges such as Uniswap and Binance.

There are many examples of games that have created their own token to build their empire and developed a great variety of ways in which people can earn them and trade. Expanding more every day, supported by strong wallets such as MetaMask, OpenSea, and others such as Trust Wallet, MyEtherWallet, and more. Which ultimately opens market opportunities never seen before for gamers.

The mutual benefit of gaming tokens

          Even though games have always been an amazing source of entertainment for the masses the truth is that the gaming industry would have continued to grow across all markets while remaining structured in a way that primarily benefits game developers and perpetuates a one-directional flow of value if it wasn’t for blockchain technology and tokenization.

Usually, players were the ones to spend money to unlock access to in-game assets and gameplay configurations. This is indeed a big contrast with the now blockchain-built games and decentralized applications (dApps).

Now players can capture the utility and value of in-game purchases and asset acquisitions more effectively. With a gaming system that is driven by non-fungible tokens (NFTs). Allowing a more balanced and easier way to participate equally and promote personal growth through monetary rewards.

Tokens, as a representation of digital assets living inside the game, are unique, rare, and cannot be copied. Holding the infallible stamp of the player's ownership, and prompting scarcity. All of these extraordinary characteristics have the potential to drive mainstream adoption and boost the value of the modern gaming business model.

Token creation from scratch

          What is more surprising of this all is that now anyone can create a token. Even though the development of an idea takes time, effort, and knowledge, today with just a few clicks a new token can be launched into the blockchain and become the representation of an asset whose value will remain forever, safe inside one of the most secure networks ever created.

Although the adoption of gaming tokens comes with a lot of benefits, it also presents significant obstacles to overcome. Most notably, tokens need to be made more appealing and intuitive to mainstream consumers who might not be technically oriented. This is something that token creation at MintMe can help overcome because platforms such as MintMe have made it easy for the masses to create a token in a code-free environment.

However, token creation and games don't necessarily come together inside the game. It is also possible for the gaming industry to fund or sell special features and items through token making, allowing players to trade with other kinds of rewards that go way beyond just playing.

Mary Schwartz