5 Things to Know before Joining GuildFi
GuildFi is a Thai GameFi platform that aims to elevate NFT gamers’ experience by creating an interconnected ecosystem for NFT games and gaming communities. The token raised funds through a public auction on December 1, 2021 and for those who are interested in starting their NFT gaming journey, GuildFi is a great place for helping them get onboarded. But before they jump in, here are 5 things they need to know.
1. What is GameFi?
GameFi is the combination of Decentralized Finance (DeFi) and gaming that lets people enjoy gaming while earning rewards. With the Play-to-Earn model, players can earn coins or tokens from playing games and trade them on the secondary market. These rewards can include both fungible tokens like the game’s currency and non-fungible tokens like in-game items.
2. Every NFT game is different.
Due to GameFi’s widespread popularity, a large number of NFT games have sprung up. However, it is important to note that each game is different. For example, Aixe Infinity and Cyball let players battle their team of in-game characters, while The Sandbox and Star Atlas are sandbox style and let players explore the metaverse.
Players should also be aware that some games can have relatively high startup costs. For example, in Axie Infinity, players have to buy 3 Axies, the in-game characters, before they can start playing. A report from Naavik, a gaming consultancy firm, suggests that the minimum startup cost is 350 U.S. dollars or around 11,745 baht at the time of writing.
Therefore, people who are interested in playing Play-to-Earn games should carefully study the details of the games first so that they can choose the game that is right for them in terms of money, time, and gaming skills.
3. Players should stay informed about the game they are playing.
The tokenomics of NFT games can change rapidly. If the game creators cannot create a sustainable and balanced economy, inflation could occur and affect players’ earnings or the value of their digital assets.
Naavik's report on Axie Infinity found that players who have a low MMR (in-game ranking score) have been earning less than 7 U.S. dollars or around 235 baht since September. Players who have a higher ranking see a decline in earnings as well. Naavik suggests that the decline is caused by the inflation of SLP, which is the in-game currency that most players earn from playing the game. Sky Mavis, the game’s creator, has tried to fix this by not paying players with MMR lower than 800, according to an announcement on October 29. This caused a slight increase in income for players with higher MMR but zero income for those players with MMR lower than 800.
This is why it is crucial for players to learn about the tokenomics of the games before they start playing and stay updated on any related news.
4. Digital assets are known for high volatility.
The coins or tokens players earn from NFT games are digital assets and they are considered to be extremely volatile. For example, according to Coinmarketcap, SAND, the in-game currency for The Sandbox, made an all-time high at 283.67 baht. However, at the time of writing, the price is hovering around 172.40 baht. A similar case of volatility is also seen with SLP, Axie Infinity’s in-game currency since it once made an all-time-high at 14.08 baht and now the price is around 1.02 baht. This volatility could make GameFi unsuitable for some people and it is recommended for players to study the game’s risk and assess their own risk preference before making a decision.
5. Security is extremely important.
In order to start playing some NFT games, players have to connect their cryptocurrency wallet to the game. Moreover, in most cases, players have to transfer their in-game coins or tokens and convert them into fiat currency to make money. So, it is important to thoroughly understand digital assets and how to keep them secure. Before playing any games, people are encouraged to learn about how cryptocurrency wallets work, the differences in each type of token, the blockchain that the tokens run on so that their rewards are not lost or stolen.
GameFi is one of the most talked-about topics in the cryptocurrency space and GuildFi aims to make it easier for those who are curious to join the GameFi world. However, before they start playing, it is important that they do their research on several aspects of the game, including how to play it, how its tokenomics works, how much risk is involved, and how to secure their digital assets. This is so that they can make an informed decision whether the game is right for them or not.