The Illusion of Ownership: How Crypto Gaming Exploits Players

Crypto gaming has been gaining traction for several years by merging video game excitement with cryptocurrency. These games promise a shift in traditional gaming by allowing players to truly own in-game assets and earn real money. At first glance, it seems like a win-win—gamers can profit from their passion. However, there are significant issues. The line between playing for fun and playing for profit can become blurred, leading to potential exploitation and disillusionment.

The Promise of Ownership

Crypto gaming is built around the concept of "play-to-earn" (P2E), where players are rewarded with cryptocurrency or NFTs (non-fungible tokens) for their in-game efforts. These digital assets, unlike those in traditional games, are theoretically owned by the player. Through blockchain technology, these NFTs and tokens can be traded, sold, or used across different platforms, giving players the sense of true ownership. In contrast, traditional games typically lock assets within their ecosystems—if a game shuts down, everything players have earned or bought is lost forever.

This promise of decentralized ownership and financial empowerment has drawn millions to the space. For many, it’s an opportunity to break free from the limitations of traditional gaming models and potentially make a living while having fun. But this narrative often overshadows the critical flaws embedded within the system.

The gameplay itself

Take for example Axie Infinity, hailed as a trailblazer in blockchain gaming. Playing this game often feels more like a nostalgic trip back to the early 2000s than a revolutionary gaming experience. The game’s adorable Axies, which players collect and battle, look like a cross between stuffed animals and poorly drawn doodles, conjuring images of a kindergarten art project gone digital. The gameplay itself is a repetitive grind that feels as exciting as watching paint dry, with battles that resemble a slow-motion chess match where the pieces occasionally twitch. Despite grandiose claims of earning real money, the actual experience can feel more like shuffling through a tedious checklist than embarking on an epic quest. In the end, Axie Infinity delivers a charmingly old-school vibe wrapped in blockchain hype, leaving many to wonder if the real game is just how much time and money they’ll end up spending.

The Exploitative Economics of Crypto Gaming

While crypto games market themselves as a financial opportunity for players, they often function more like speculative investment schemes than genuine gaming experiences. Many crypto games are designed with a primary focus on tokenomics—creating systems that encourage players to buy in early and keep spending to maintain their position. The gameplay often takes a backseat to financial incentives, leading to experiences that feel hollow and repetitive.

Prominent figures in the crypto space, such as Alex Becker and his associate Elliot Trades, have been heavily involved in promoting various crypto projects, including those in the gaming sector. Their promotional strategies often emphasize the potential for high returns and financial freedom, attracting a significant number of investors and gamers eager to capitalize on the latest trends. However, their approach can sometimes gloss over the inherent risks and unsustainable economics of these ventures.

Alex Becker, known for his high-profile endorsements and aggressive marketing tactics, has been criticized for promoting projects that may prioritize hype over substance. His involvement in the crypto gaming sector often highlights the financial gains rather than the actual gaming experience, leading to questions about the true intentions behind these endorsements. Critics argue that his promotions can create unrealistic expectations and contribute to a speculative frenzy that benefits early adopters while leaving average players at a disadvantage.

Elliot Trades, another prominent figure in the crypto space, has similarly been associated with promoting various crypto gaming projects. His endorsements, while often framed as expert opinions, can sometimes obscure the volatile nature of these investments. The focus on potential financial rewards rather than the quality of the gaming experience can mislead players into viewing these games as more profitable ventures than they are, exacerbating the issues of exploitation within the sector.

The Myth of True Ownership

One of the most seductive aspects of crypto gaming is the idea that players "own" their assets. However, this ownership is often more illusory than it appears. While blockchain technology allows players to hold and trade NFTs or tokens outside of the game, their utility and value are still entirely dependent on the game’s developers and the health of the ecosystem. If a game shuts down or changes its rules, the assets can become useless.

The volatile nature of the crypto market further complicates the notion of ownership. The value of NFTs and tokens can fluctuate wildly based on market trends, developer decisions, and external factors. What was once a valuable asset can quickly depreciate, leaving players with little recourse. The supposed ownership of digital assets becomes meaningless if their value collapses or the game associated with them fails.

The Loss of Gaming’s Essence

Perhaps the most troubling consequence of the crypto gaming trend is the way it shifts the focus away from what gaming is supposed to be about: fun and engagement. Traditional games are built with gameplay, narrative, and player experience at their core. Crypto games, on the other hand, often prioritize financial mechanics over meaningful engagement, leading to shallow experiences that are more about grinding for rewards than enjoying the game itself.

For many players, the joy of gaming is getting lost in a compelling story, competing with friends, or exploring fantastical worlds. Crypto gaming, with its emphasis on financial rewards and ownership, risks turning gaming into a transactional experience. This shift could alienate traditional gamers and reshape the culture of gaming into something more akin to financial speculation than creative entertainment.

What to look for in crypto gaming projects

Whitepaper and Technical Documentation: Review the project’s whitepaper and technical documents. A legitimate project will have a detailed, clear, and professional whitepaper outlining the game’s concept, technology, tokenomics, and development roadmap.
Team Credentials: Investigate the backgrounds of the project’s team members. Look for a team with verifiable experience in both the gaming and blockchain industries, along with relevant achievements and LinkedIn profiles.
Partnerships and Endorsements: Check for partnerships with reputable companies and endorsements from credible industry figures. Strong, established partnerships can indicate a project's credibility and potential for success.
Community Engagement: Assess the project's community presence and engagement. A genuine project will have an active, engaged community on platforms like Discord, Twitter, and Reddit, with transparent communication from the team.
Technology and Development: Look into the technology behind the project. A legitimate project should use established, secure blockchain technology and have a transparent development process, often demonstrated through regular updates and public GitHub repositories.
Regulatory Compliance: Verify that the project complies with relevant regulations and has measures in place to adhere to legal standards. This includes appropriate KYC/AML procedures and adherence to local and international regulations.
Tokenomics: Examine the project’s tokenomics model, including the distribution of tokens, use cases, and any mechanisms in place to prevent inflation and ensure long-term sustainability.
Audit Reports: Look for independent audit reports from reputable firms. These audits can provide insights into the project's security, smart contract functionality, and overall integrity.
Roadmap and Milestones: Analyze the project’s roadmap and past milestones. A credible project should have a realistic, transparent roadmap with achievable milestones and a track record of meeting deadlines.
Red Flags: Be wary of common red flags such as exaggerated promises, lack of transparency, anonymous teams, or high-pressure tactics to invest quickly.

Even if a project meets all the criteria listed above, investors should stay sceptical at all times. Remember, this checklist is just a starting point, and you should be cautious about investing in any coin that doesn’t meet all these criteria. If the process seems too daunting or if you’re unsure how to proceed, don’t worry. At CoinGems, we do the heavy lifting for you by publishing daily articles with comprehensive research. We dive into Telegram groups, interact with the community, connect with developers, and ask the critical questions. This guide is intended for those with technical know-how who don’t mind a bit of investigative work.

Follow the herd, lose money

Crypto gaming presents itself as the future of digital ownership and financial freedom, but the reality is far more complex. The illusion of ownership, the exploitative economics, and the hollow gameplay models reveal a sector that, in many cases, prioritizes profit over genuine player enjoyment. Jumping in and throwing money at coins

It’s crucial to remain critical of the promises being made. True ownership in digital spaces is a worthy goal, but it should be pursued in a way that doesn’t compromise the very essence of what makes games enjoyable.

"I don't have time to research every project"

If all of this seems overwhelming, consider upgrading to a premium CoinGems membership. As a premium member, you'll gain access to our exclusive "Alpha Research" and "Ultra Low Cap" categories, where we handle the research for you and deliver all the essential information. These specialized articles will give you a clear understanding of which tokens are worth your attention and which ones might be scams. Our aim is to equip you with the knowledge needed to make smart investment choices and maximize your gains with the right coins.