Blockchain games are becoming increasingly popular. However, there are ongoing debates in the gaming community about the benefits of NFTs. Some see it as a form of exploitation, while others see it as a legitimate utility. Nevertheless, we cannot say that some investors have made money from NFT games.
Given this, how can you invest in NFT games without burning your hands?
What is an NFT game?
Simply put, NFT games are games that use non-fungible tokens. They are more than just a way to store crypto collectibles in your wallet; they include player interactions, the purchase of avatars and weapons, and the ability to generate revenue from NFT games through the play-to-earn model.
NFTs are expected to play an important role in the growth of the gaming industry. They allow developers to profit from their work while allowing players to earn simply by interacting with them. Additionally, NFTs use blockchain ledgers to validate unique digital collectibles, which is critical to the operation of NFT games.
CryptoKitties, released in 2017 on the Ethereum blockchain, was one of the first games to feature NFT characters. It allows players to buy virtual cats, add them to their collections, breed them and sell them. The project is one of the first attempts to leverage blockchain technology for recreation and leisure activities.
How do NFT games work?
NFT games blend conventional game designs with traditional game architecture to give users greater control over game assets such as characters, weapons, skins, virtual territories, and more. These games are built on blockchains and run on digital assets. Having an NFT token standard for in-game assets also helps developers retain their rarity and uniqueness.
NFT games are comparable to classic video games. The main difference is that prizes and loot won in an NFT game do not have to be kept in the NFT game. You can instead transfer your items to another game or exchange them for cryptocurrencies.
The NFT play-to-earn model allows users to develop revenue streams. The more you play and the longer you play, the greater your profit potential. Accordingly, the reward is not only competitive but also monetary.
An NFT has no intrinsic value; it is valuable in how much value it offers its holders and how much people want to own it. The value of an NFT can also fluctuate based on factors such as its content, usefulness, and rarity.
NFTs keep track of who owns which in-game assets. They are also crafted in set quantities and cannot be changed. NFT games are built on a blockchain, which means all players can view and interact with the game.
Understand How Scam NFT Game Projects Work
Many NFT game scams use social media accounts. Scammers hack or buy verified social media accounts or accounts with thousands of followers, usually on Twitter or Discord, and use them to impersonate popular NFT game projects. They usually have an army of accounts that they tag to make comments supporting the project. They also use bots to send automated replies, retweets, and tag other users.
These scam projects offer high compensation to lure you in and sometimes send links containing malware designed to help them hack into your computer. Then, after a series of attacks, they often block access to their website or comments on social networks.
Some NFT game scams use the carpet pull scam technique. Promoters use marketing to attract buyers or investors and suddenly stop business activity, running away with the money from the sales. One of the most recent examples of this is the Squid Game Token scam. The digital token was inspired by the popular Netflix series “Squid Game”. First, it advertised itself as a gaming cryptocurrency for earning, then game developers earned over $3 million.
The many other NFT-related scams raise the need to be careful when getting involved in NFT games.
5 Ways to Spot a Scam NFT Game
Below are five things you should check to avoid getting involved in an NFT gambling scam.
1. The project team
It is important to understand who is behind the project and how long they have been involved in the NFT community. You can determine this by looking at how long the founders’ or developers’ accounts have been active. A well-known project may be more reliable than a project involving strangers.
If project team information cannot be verified, this could be a red flag. Although the NFT system promotes anonymity, even the most anonymous NFT developers leave a paper trail in the community. However, not knowing who the developers are does not automatically imply that a project is a scam.
What people say about the project matters. Checking the reviews will allow you to see what others think of the project and even the developers.
Unfortunately, reviews may not be entirely accurate. Companies pay experts to post favorable reviews of their products and services. Some have created hundreds of accounts to create these reviews to create a false public image. For this reason, you should not rely solely on reviews.
3. Engagement on social networks
Twitter and Discord are key platforms for building NFT communities. You can monitor projects on these official social networks to see how people are interacting with them via comments and chats. But, of course, this is not an absolute standard for verifying the authenticity of a game project.
People buy fake followers and fake engagements to make their social media accounts look bigger. Therefore, you should beware of an account that was only recently created but has many followers. However, some projects become attractive very quickly and thus gain a large number of followers in a short time.
4. Project roadmap
A strategic plan should show the purpose of the project and the desired outcome. The plan should include the practical steps and milestones needed to achieve the goal. The roadmap should be clear and easy to understand; it must also be flexible and, at the same time, centered on the overall vision and the solutions it provides.
Having a well-defined roadmap is no guarantee of success. It merely reveals the creators’ goals and expectations for the project, and there is no guarantee that they will be realized. A strategy that seems too ambitious and a project that seems too good to be true could be red flags. It’s also not a good idea to invest in an NFT game if you’re not confident in its long-term viability.
5. Check the NFT
Using a blockchain explorer to verify blockchain metadata is one way to validate the authenticity of an NFT. A blockchain explorer like Etherscan will provide the details of an NFT. For example, it lets you view block mining activity, transaction fees, ownership history, number of uses, and total tokens issued. Additionally, checking NFTs in-game will help you differentiate counterfeits from originals.
Avoid NFT Gaming Scams
When checking the authenticity of a game project, you should not overlook anything. Take your time to study the project, the people behind it, and the goal, using all the methods we’ve shown you. As more and more NFT projects are launched, unfortunately, scammers are also developing new ways to defraud players and investors. With this in mind, you should stay on your toes and check the transparency of any NFT gaming projects you intend to invest in.