Surprising reason why most people invest in crypto

According to an new study released by ChainPlaythree in four investors worldwide join crypto because of GameFi (where gaming and decentralized finance come together), also known as play-and-earn gaming.

GameFi took off in 2021, albeit largely as a concept and investment opportunity rather than an industry boasting compelling, fully realized games. All that is yet to come, according to founders and project leaders such as Kieran Warwick (illuvium), Kent Byers (Civitas) and Don Norbury (shrapnel).

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GameFi-related projects such as Axie Infinity (AXS), The Sandbox (SAND); Illuvium (ILV); STEPN (GMT); Gala (GALA); Immutable X (IMX) and buckets more saw huge gains and momentum at various times over the past bull run, leading to the market’s peak late last year.

In fact, the ChainPlay research shows that many of the 68% of GameFi investors who hit the market in the past 12 months got on board late last year.

Like everything else in crypto, things have cooled down dramatically since then, but here are some other noteworthy revelations from the report, which incidentally received responses from 2,428 crypto gaming investors worldwide.

Profit, sure, but not without fun

• Unsurprisingly, the “Fi” side of GameFi is the biggest motivator for those investing in crypto games, with 51% of respondents citing profit as their top reason for getting involved.

• That said… 81% said they would value the fun factor of gaming over financial returns when it comes to future/developing GameFi projects.

• Respondents apparently believe that projects should prioritize improving game quality, with earning as a secondary goal.

• Again, that being said… 62% of these investors have experienced more than 50% loss of their GameFi profits in the past six months, blame for this primarily being attributed to poor in-game economy design.

• According to 58% of respondents, “poor in-game economy design” is the main reason for declining GameFi profits.

• GenZ crypto investors allocate an average of 52% of their assets to GameFi, while 43% of female investors said they participate in GameFi out of curiosity.

• About 44% of investors believe that the entry of traditional gaming companies into the crypto market is the main driver for GameFi’s growth in 2022.

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Animoca penetrates Japan

Animoca Brands, as Stockhead almost too many times to count is a powerhouse for crypto and NFT gaming investments.

The Sandbox owner has fingers in GameFi pies all over space, in different ecosystems and countries, especially in the Asia-Pacific region.

Through its subsidiary Animoca Brands Japan, it is also trying to make a dent in the Japanese market.

The firm revealed it had raised $45 million at a $500 million valuation so it could focus on all things metavers as well as the web3 infrastructure.

The metaverse and GameFi have a strong correlation, with many crypto games aiming to build massive digital worlds.

According to the announcement, Japan’s largest bank, MUFG Bank, and its parent company Animoca Brands (valued at about US$5.9 BILLION the last time we checked) both backed the funding.

One of the Japanese team’s goals will be to help grow the Japanese NFT ecosystem, which will presumably put some emphasis on GameFi – one of the largest current use cases for NFTs.

This content first appeared on stockhead.com.au

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Originally published as GameFi brings in the most crypto newcomers: report; Animoca Brands Japan raises $45 million