The Play-To-Earn token inspired by the hit Netflix show has nearly zero in value. Raising how risky investing in a new and hyped Crypto market can be.
The gaming business has grown at a breakneck pace during the last several years. Profitable development attracted additional developers, competition intensified, and industry expansion ensued. Nowadays, a model and promising approach called Play-To-Earn is gaining traction (Play2Earn).
Nonetheless, its beneficial aspects, many people are getting lost in the hype can get they rekt. The increasing number of Scams projects also serves as a wake-up call to the general public about today’s rampant projects in the crypto market. So, where to find trustworthy projects. We will discuss throughout this post
Recent project scams have targeted investors’ enthusiasm for hot GameFi projects and the NFT trend.
The developers of a crypto project based on Netflix’s “Squid Game” have left the project after the token they were working on was nearly worthless.
The SQUID token’s value increased by over 35,000% in just three days, but there were numerous red flags, including spelling and grammatical errors in the white paper and the fact that the project’s website was only created a month ago.
According to BscScan data, an address engaged in a “rug pull” unloaded SQUID tokens and paid out millions of BNB tokens.
CoinMarketCap data indicates SQUID’s price has fallen 99.99 percent in the last 24 hours. The nearly 130% increase in trade volume indicates tremendous selling pressure.
High APYs are broken – show old yield farming protocols offered massive APYs but within hours dropped to nothing (pickle farming, yearn finance, etc.).
What Are The Solutions For Investors?
Some factors to consider of Scam Projects:
- Yields Are Excessively High
- The Price Is Skyrocket In Short Time
- Anonymous Team
- Increase Significantly Extensive Marketing Strategies
- No Liquidity Lockup
- Confirm Team Credibility
- Review of Github, the whitepaper, and the team’s social media channels.
- Verify liquidity
- Check Holders and Listings on DEX
- Select the transparent projects
By choosing carefully and evaluating properly about GameFi projects, Dev Team, Roadmap, and the vision of the project. Investors may restrict the scams and gain more APY through Play2Earn Gaming Projects.
NFT-based Play-To-Earn games are being developed by several companies to keep players engaged on their platforms. One of among them is CRYPTO FIGHT CLUB (CFC)
What is CFC?
CRYPTO FIGHT CLUB (CFC) is a new NFT-enabled game that lets players compete in tournaments, chase chickens, or battle one another. It’s similar to popular trading card games from the 1990s, except that Crypto Fight Club items and fighters are constructed entirely of NFTs. The game is fueled by its own cryptocurrency ($FIGHT).
CFC allows players to invest their native currency in a non-fungible fighter token (NFT) on BSC (Binance Smart Chain). In order to earn more tokens, players can compete against each other or complete training objectives.
Each fighter requires a specific amount of time for $FIGHT to be staked to improve their stats. 1 year to be exact, for a 20% increase in attack, defense, and technique. The fighter’s stats are fixed upon acquisition and later based on delayed gratification and BEP1155 wearables. Longer and larger stakes not only help the fighter but also reward you with more $FIGHT. In order to acquire an NFT fighter to play and stake, during the NFT drops, players will exchange $FIGHT for the NFTs. While the $FIGHT does not go back into the treasury wallet, it is sent to the black hole smart contract address instead.
How does it work?
Users who stake their native tokens must lock their $FIGHT BEP20 inside their NFT fighter. The user sets the duration, stake, and reward using the proof-of-wait function. In this case, the NFT proves they can later claim their staked capital from the NFT’s owner.
The native currency $FIGHT has a natural inflation rate of 1%. Those who staked coins in the NFT will be paid for the inflation. This APY rate may change based on other players contributing to the same staking pools.
If a staker cancels their stake due to an emergency, their stake is divided among the active staker pool. The 1% annual natural inflation is split into two reward pools. 30% of newly minted inflation goes to users staking $FIGHT inside their NFT, while 70% goes to LP providers who provide liquidity for the Dex trading pair and stake their LP token inside of their NFT fighter. The Dex will reward LP stakers directly for providing liquidity, as well as a larger share of the $FIGHT inflation pool.
Play2Earn Pros and Cons
GameFi and Play-To-Earn is a booming business. It’s a novel business concept that allows gamers to earn items they may sell on a marketplace. As players play the games, they earn an exchangeable currency that can be swapped for real money. As a result of the lack of central control, anybody may list a project. A project’s intentions are unknown. Thus rug pullers are used.
Like any new technology, unscrupulous crypto players will attempt to defraud others with less understanding and expertise. Many new ventures have exaggerated pricing, making it difficult to distinguish hype from reality.
- Easy to access
- Contributes to the widespread adoption of blockchain technology.
- Users are rewarded for their contributions to the video game industry.
- Contributes to the development of robust and devoted gaming communities.
- Provides a secondary source of revenue for players.
- Promotes the growth of the cryptocurrency industry’s NFT and DeFi sectors.
- Scam Projects
- It does not promote inclusion, as skilled gamers frequently sweep all contests.
- Allows for the exploitation of others by bad actors in the space.
- The dangers of NFT market oversaturation.
Even though Play2Earn and GameFi are new movements with low entry barriers and many benefits for users, they are gaining momentum. The growing number of projects also serves as a wake-up call to the general public about today’s rampant projects in the crypto market. Losing yourself in the hype can get you rekt. You must constantly monitor new projects to avoid scams and protect your high APY investments as an investor. Additionally, you must be willing to lose whatever you can at all times.