HomeSports 2.0KreedOn Case StudyWhat happens when gaming meets finance? Know What are Sports NFTs & their...

What happens when gaming meets finance? Know What are Sports NFTs & their connection with gaming?

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In simple words, NFTs can be described as non-fungible tokens that allow users to earn money as they play and invest simultaneously. In the gaming world, sports NFT are often present in all the games with peculiar digital collectables on the blockchain. They are a unique feature appropriate for representing characters, avatars, digital items, consumables, etc. Moreover, they give each digital asset a real-world value due to their distinctness.

Over the years, sports NFTs have grabbed the attention of people worldwide along with seeking popularity in the GameFi world. It is a trending way of earning income via games and enables gamers to sell their in-game NFTs to other gamers and players for earning profit. They are also rewarded with tokens and NFTs while playing through P2E NFT games. They can earn more depending on the duration of the game, the longer they play more they earn. Besides that, the tokens are often utilised for the game’s crafting process. The most renowned and acclaimed P2E games are Decentraland, CrytoKitties, the Sandbox, and Axie infinity. 

Pransh Khemka: A beneficial investor

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Isn’t the world of gaming a fascinating ride when you can earn profit and win rewards? A young and aspiring Mumbai-based gamer, Pransh Khemka pitched into the gaming world of Sports NFTs and blockchain gaming last May. He passionately followed the footsteps of an influencer to gain mining knowledge. For doing so, the 21 years Khemka invested Rs.35,000 in the blockchain-based games that were being operated on play-to-earn (P2E) models and played CryptoMines and Farmers World for the same. According to Khemka, the transparency of games make the investment worthwhile as they can review the actions of gamers and developers. 

The developers of NFTs create smart contracts to create, swap, and implement smooth transactions of sports NFTs within the game. They are self-executing devices of codes present on a blockchain that forge rules for the sports NFTs used. Another astonishing quality of blockchain games is that they allow gamers to track and analyze their actions and moves along with that of others too. 

READ | Top 10 Most Effective Sports Marketing Campaigns of all Time

Know the right way to invest in the games and sports NFTs

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There is a chain of popular blockchain games that include Farmers World, Axie Infinity, Splintyerlands, Alien Worlds, CryptoKitties, CryptoPop, Gods Unchained, and The Sandbox, and so on. The multiverse of gaming allows gamers to make an initial investment in the form of buying NFTs in the P2E model by conducting some actions simultaneously. Let’s study the investment process with an example of CryptoMines in which the gamer buys spaceship NFTs and earns rewards in-game tokens through expeditions. The in-game token can be swapped for mainstream cryptocurrencies BNB, Ethereum, etc. 

In addition, the game has its pros and cons that in very rare cases also lead to a loss. When Pransh Khemka first started playing CryptoMines, the in-game token was trading at $250, which accelerated to $400 within a week and $800 in the upcoming week. Many influencers were readily posting videos as a guide to play the game and it was being hyped by everyone but no sooner the trading price dropped to $9 in just two days. The reason for a huge sinking of the value was that the developers decided to shut the game and relaunch it with a revised version. Even though the previous version of the CryptoMines was shut down last December and in no time was relaunched with a revised version in April 2022 that is still being played by Khemka. 

READ | What is iGaming? Future of i Gaming in India – Prospects of gambling

Sports NFTs and gaming: An era of rising opportunities

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NFT gaming and NFT firms are budding in the Indian subcontinent by grabbing the attention of a huge chunk of the population. As reported by RedSeer, the base for gaming and well as NFT-based gaming is expected to reach 235 million by 2025 from its initial 80 million in 2020. A gamer usually spends $16 on average on gaming annually whereas real-money games account for an average monthly expenditure of $3.50. 

In a report, Harsh Savergaonkar and Aditya Kasibhatla said –

Users are the most important part of any gaming ecosystem. They make the game what it is, and for all their loyalty, time and money, they get very little in return.” In 2019, they both co-founded a cricket data analytics app called CricInShots that turned into fantasy gaming in the following years and at present is evolving into making the first Web3 play-and-earn game cricket game strategy. 

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The fans have limited access to engage in the game. Consequently, if the game is shut down the time, money spent on games, assets collected, coins and rewards earned, all amount to zero in Web2. However, Web3 games allow other developers and the community to build experiences around assets owned by the users of the game. 

READ | Drones in sports: Evolution of sports through digital eyes

What are Web3 games? 

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In this era of transforming technologies, Web3 is characterised as the third generation of the internet. Many people expect it to be supported by a machine-based understanding of data and decentralized infrastructure. According to a report, about 55% of the traffic comes from blockchain-based games. In October 2021, DappRadar a blockchain tracking firm accounted for 2 million daily unique wallets active worldwide. 

Moreover, the gap between sports teams and fans can be abridged through the innovative power of NFTs, sports tokens, metaverse and gamefi. Another blockchain-based startup game was established in April 2021 known as Sportzchain which has combined the casual and fantasy gaming world with the blockchain world. They are using digital assets with an aim to bring fans closer to their favourite teams and sports legends creating a money-can’t-buy-experience. 

One of the three founders and CEO of Sportzchain, Siddharth Jaiswal said “India will probably become one of the fastest-growing markets in Asia, probably only behind Vietnam and Indonesia. We have a vast user base for this, but the projects would not only need to be attractive and fun enough for the players, but they would also need to provide routes for players to convert their winnings.” 

In a recent report by the finder, it was revealed that 34% of Indian respondents have played P2E games while Hong Kong and UAE were ranked second and third with 29% and 27% respondents respectively. 


For more latest updates and stories on Indian sports (and athletes), subscribe to the KreedOn network today – KreedOn: The Voice of #Indiansport 

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