GameFi pulls in most crypto newbies: report; Animoca Brands Japan raises $45 million

Gaming is the fastest growing part of the global entertainment industry. Makes sense then, that GameFi is crypto’s biggest attraction.

According to a new study released by ChainPlay, three in four investors worldwide join crypto because of GameFi (where gaming meets decentralised finance), also sometimes referred to as play-and-earn gaming.

GameFi took off big time in 2021, albeit largely as a concept and investment opportunity rather than an industry that can boast captivating, fully realised games. That’s all still to come, according founders and project leads, such as Kieran Warwick (Illuvium), Kent Byers (Civitas) and Don Norbury (Shrapnel).

GameFi-related projects such as Axie Infinity (AXS), The Sandbox (SAND); Illuvium (ILV); STEPN (GMT); Gala (GALA); Immutable X (IMX) and buckets more saw huge gains and momentum at various times last bull run, leading into the peak of the market late last year.

In fact, the ChainPlay survey reveals that many of the 68% of GameFi investors who joined the market in the past 12 months got on board late last year.

Like everything else in crypto, things have cooled off dramatically since then, but here are some other noteworthy reveals from the report, which, incidentally took in answers from 2,428 crypto-gaming investors globally.

Profits, sure, but not without fun

• The “Fi” side of GameFi is unsurprisingly the biggest motivator for those investing in crypto games, with 51% of respondents citing profit as their number one reason for getting involved.

• That said… 81% said they would prioritise the fun factor of gaming over financial returns when it comes to future/developing GameFi projects.

• Respondents apparently believe that projects should prioritise improving game quality, with earning as a secondary goal.

• Again, that said… with 62% of these investors in the past six months experiencing more than 50% loss of their GameFi profits, the blame for this is put mainly on poor in-game economy design.

• “Poor in-game economy design” is the number one reason for declining GameFi profits, according to 58% of respondents.

• GenZ crypto investors allocate on average 52% of their net worth to GameFi, while 43% of female investors said they participate in GameFi out of curiosity.

• Some 44% of investors believe the entry of traditional gaming companies into the crypto space is the key driver for GameFi’s growth in 2022.

Animoca makes inroads in Japan

Animoca Brands, as Stockhead has mentioned almost too many times to count, is a crypto and NFT gaming investment powerhouse. The Sandbox owner has fingers in GameFi pies all over the space, across various ecosystems and countries, particularly in the Asia-Pacific region.

It’s attempting to make a dent in the Japanese market, too, through its subsidiary Animoca Brands Japan.

The firm revealed it’s raised US$45 million at a US$500 million valuation, to help its focus on all things metaverse, as well as web3 infrastructure.

The metaverse and GameFi have heavy correlation, with many crypto games intent on building vast digital worlds.

BR3AKING: The largest bank in Japan, MUFG, has become a new Animoca Brands Japan partner with a mission to increase Web3 adoption.

Animoca Brands Japan has raised $45M at a $500M valuation.

— Metav3rse (@themetav3rse) August 26, 2022

According to the announcement, Japan’s largest bank, MUFG Bank and the parent company Animoca Brands (which is valued at about US$5.9 BILLION last we checked) both supported the funding.

One of the Japanese outfit’s aims will be to help grow the Japanese NFT ecosystem, which will presumably place some focus on GameFi – one of the largest current use cases for NFTs.