Play to earn is a new category of games combining the use of blockchain, wallets, digital currencies and various types of gameplay. Play to earn models have been built for any model of game, including action, RPG, racing and fantasy sports. The central idea is to accrue in-game rewards, which can then be moved and exchanged for a real payout.
Most of the recent play to earn games use one of the user-friendly cryptocurrency wallets, most often the MetaMask browser extension. Games will usually include a user-friendly prompt to connect the wallet and receive rewards.
A wallet is also used to pay any initial fees or buy starter pack items, cards or players. Not all games require an initial purchase, but for some play to earn models, this investment is necessary.
Lightweight wallets do not require significant downloads or any understanding of the blockchain. However, when using Ethereum and ETH tokens, the wallet also reveals the expected fees to be paid. Wallets support alternative networks like Solana, Binance Smart Chain, Polygon and others, where fees are much lower. Each game will signal the network it uses and users can make a decision if the upfront costs are worth it.
NFT are one of the keys to fantasy sports. The game type is very amenable to listing players. The very popularity of athletes has sparked a thriving industry for sports-related NFT cards. Some of the most popular collections include NBA Top Shot and Sorare, focusing on European soccer players.
An NFT is also known as a non-fungible token. This means the item is protected by a smart contract on the blockchain, and has a unique identity. Critics of NFTs will say the image can always be saved and copied. However, an NFT grants access to a market which concentrates value and liquidity. A saved JPEG cannot be resold on that market – but an NFT can be listed and command high bid prices.
NFT can be resold within game marketplaces or using platforms like OpenSea. This is one of the chief sources of earnings from games, though perhaps the most unpredictable one. However, for fantasy sports, it is also an intuitive choice, as it is an extension of sports card collections and fandom items.
Cashing out of play to earn games may require additional steps. After winning tokens, acquiring NFT items or other rewards, there are options to sell those assets for fiat. To do this, players must also have a verified account with an exchange or a brokerage. Availability of those services may vary by region.
Some in-game tokens are also not immediately convertible to other assets, especially if the game is new and the token is not widely traded. Usually, tokens can be exchanged for ETH through wallets, offering limited swapping opportunities. It is much easier to cash out ETH, as well as BTC or other more widely traded assets.
An account with Binance or Coinbase can serve players in most countries and territories. While play to earn games are borderless, cashing out may be restricted. Other options include exchanges like UniSwap, PancakeSwap and others, which can be addressed directly from the cryptocurrency wallet. However, those exchanges will be riskier.
Using a crypto wallet for NFTs has several risks that became known only in the past year. One of the risks is to be sent a faked link and pay for an NFT that is not a real collection item. More subtle attacks feature links to automated smart contracts, which can send a call to the wallet and empty all crypto coins, tokens or NFTs contained within.
To have a problem-free experience, it is best to only access the official links of games or collections. Also, since an infinite number of wallets can be created, it may be best to generate a new wallet with limited assets just for one game, to avoid potential losses.
The most active and in-demand marketplace for sports collections remains Sorare. For fantasy soccer teams, the most well-developed game is Soccer Manager Elite by XAYA Games. Soccer Club is also among the running fantasy club manager games.
There are also dozens of sports games currently in development or just before their product launch. Participating in projects before the game release can also count for a high-risk, high return investment. Some games will sell tokens and NFTs beforehand, but it is up to the player to decide if they can wait for months or years for their investment to appreciate. Play to earn games are more often the work of small independent teams and studios, and may face unexpected delays.
Play to earn games are a growing sector that attracts more players in the past year. However, personal research is needed for every game, to avoid technical or market risks. Game reviews are not financial advice, and it is best to perform a personal risk profiling before engaging with any game, token or NFT collection.
This is a paid guest post.
Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.
