What is Gaming Token (Altcoin)
Definition/Examples
- Gaming token is a type of cryptocurrency or NFT (Non-Fungible Token) from a certain blockchain that were used in a video games to buy an in-game item or service.
- Most gamer will call this as an in-game currency.
- But this in-game currency can be trade for a real life money. For a game that is not based on a blockchain, gamers cannot trade the in-game currency but some game does allow gamers to trade the in-game item that was brought using in-game currency for a real life money.
- Some examples for gaming token is Nakamoto Games (NAKA) and Aliens World (TLM).
Usage
- Gaming token act like an in-game currency for a game that was based on its blockchain.
- You can buy item, perk and basically anything that was offered by that game using a gaming token.
- Gaming token can also function similarly like any other cryptocurrency. You can trade it, hold it, buy and sell it for real life money.
Pros and Cons
Pros:-
- Gaming token can help to monetize a lot of game via the sales of the token itself. Imagine if all games use some type of gaming token as the in-game currency, it will create a new type of monetization for that game because that token is directly can be buy and sold on any crypto exchange.
- The usage of this token also create a new competition for the gaming market. The Play to Earn feature that most blockchain based game have can really change how the whole gaming market work. It pretty much change the narrative of grinding in-game for achievement, perk and stuff like that to grinding in-game for earning crypto and selling it to get real life money.
Cons:-
- Gaming token price are sometimes prone to the game development. For a game that has an ending in its story plot (story type game with 5–10 years of updates), a gaming token that is related with it will increase in price during the early and mid storyline and once the story starts to reach the ending, there is simply no point anymore for the gamer to hold that gaming token and mass sell will begin causing a collapse. For a game that doesn’t have an ending it’s just depends on how the community grow.
- Gaming token price is also prone to a price manipulation. Imagine if an in-game whale buys a lot of gaming token, they can easily manipulate the price and cause a shortage in the token supply. Price goes up, other people start to buy more and once a certain price is reached, the whale will sell all of their holding leaving other people in a massive lost.
Other/Conclusion
- I think gaming token should be developed like a stablecoin because gaming token price can act in a really volatile way. So we will start calling it gaming stablecoin…On a more serious note, game developer that want to use gaming token should start considering that.
- If the price volatility issues is not solve for gaming token, both of the game and token will have a serious issues in between them.
- The implementation of a gaming token as an in-game currency for most game is not far from reality. It’s just a matter of time and solving issues here and there, then boom suddenly you can trade in-game currency inside your favorite game for real life money.
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