GameFi Investors Now Value Fun Over Profitability: Survey

Eighty-nine percent of GameFi investors succumbed to Crypto Winter 2022, despite the fact that about half of the investors first entered the GameFi area in pursuit of profits.

GameFi, the marriage of gaming with decentralized finance (DeFi), attracts a group of investors who select projects based on their use case rather than their potential to generate revenue.

The GameFi ecosystem is attractive to GenZ investors and gamers.

Therefore, it serves as an entrance point for a large number of first-time investors.

A ChainPlay poll of 2,428 GameFi investors indicated that 75% of respondents entered the cryptocurrency industry because of GameFi alone.

89% of GameFi investors succumbed to Crypto Winter 2022, with 62% of them losing more than 50% of their profits. Initially, nearly half of investors entered the GameFi market in pursuit of gains.

However, investors think that poor design of the in-game economy was the primary cause of their losses.

In accordance with this sentiment, the poll indicated that global investors spent an average of 2.5 hours per day on GameFi in 2022, a 43% decrease from the previous year's 4.4 hours.

Fear of rug pulls and Ponzi schemes, as well as inferior visuals, are among the most significant factors impeding investments in new GameFi ventures.

Consequently, 44% of investors believe that the participation of traditional gaming firms can be crucial to GameFi's development.

Moreover, when it comes to future GameFi initiatives, 81% of GameFi investors are abandoning the traditional approach and preferring pleasure above profit as they seek pleasant in-game experiences.

A DappRadar research confirmed that blockchain gaming and the Metaverse were the least affected ecosystems by the Terra (LUNA) crisis.

In addition, sustained institutional investment was observed in both blockchain gaming and the Metaverse, indicating that many leading corporations foresee strong economic growth in both areas in the foreseeable future.

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