At the intersection between video games and crypto trading is NFT gaming. The NFT market skyrocketed over the past year with a projected value of $1.3 billion by the end of 2021. Amid this rapid acceleration, crypto games have become one of the gaming industry’s fastest-growing segments. Unsure of what this new online gaming development entails? Keep reading for the full breakdown.
What are NFTs?
Non-fungible tokens (NFTs) are unique digital assets that can be bought and sold on online marketplaces. NFTs can represent any digital items — art, videos, gifs, music files and even memes. Each NFT has a digital certificate of ownership that is stored on the blockchain under strict security protocols. NFTs can be purchased on a growing number of online marketplaces via a digital wallet that can store NFTs and cryptocurrency such as ether (ETH).
NFTs are increasingly being incorporated into the online gaming industry. The unique value of each NFT enables a degree of rarity that influences its value. Since NFTs cannot be duplicated, deleted or traded for another identical asset, unlike fungible assets such as bitcoin or other monetary currencies, gaming developers can control the availability of each token. An increase in rarity creates a higher demand, which in turn chases up the price and increases long-term value for investors.
How does NFT gaming work?
NFT gaming is based on a play-to-earn paradigm, uniquely combining online gaming experiences with finance and blockchain technologies. Presented on blockchains like Ethereum and Binance Smart Chain, NFT games allow users to earn cryptocurrency while playing games online. Through the use of NFTs, gamers can prove ownership over in-game items, which can be resold on other platforms.
Although some players approach NFT gaming as a way to make a quick buck, the opportunity to earn cryptocurrency does not take away from the fun of playing. The difference is that players can now enjoy the game and win prizes. The technology associated with NFT gaming provides players with even higher quality gaming assets and customisation tools to enhance the overall experience.
Players can claim ownership of in-game digital items in a number of ways, depending on the nature of the game. Some NFT games use collectable assets such as characters or relevant accessories, while others use collectable player cards. Players can then obtain NFTs by creating new items, purchasing items on native or third-party marketplaces, or unlocking new items through gameplay. Once claimed, a player has full ownership rights over the NFT and may choose to resell it for a profit.
What is NFT fantasy football?
The crypto fantasy football space has experienced major growth in recent months. Sorare is the largest sports-based NFT gaming platform by sales volume, now valued at $4.3 billion. The game allows participants to manage their own fantasy football teams through digital collectable cards that represent real-life players. The NFT player cards, which are released in limited quantities across four levels of rarity each season, are traded on the open marketplace. Sorare participants, known as ‘managers’, can enter teams into a series of weekly in-game tournaments to win prizes in the form of NFT cards and ETH.
While some participants on Sorare primarily engage the platform as an investment opportunity, it is vital to in-game success to have extensive knowledge of what is happening in the real-life football world. In this manner, this NFT game not only merges online gaming with crypto trading but also creates a unique community space for football fans to interact with their favourite teams while earning prizes.
At present, Sorare is involved with its first large-scale auction in partnership with Bonhams. A single edition NFT card of the football player, Cristiano Ronaldo, has been minted by Sorare and is being auctioned by Bonhams until 11 November. The estimated final price of the NFT is between $800,000 and $1.2 million. This auction marks a move beyond the native Sorare marketplace, where NFTs are traded at predetermined prices. Auctions have been prominent in the NFT art space with the record-breaking $69 million sale of work by the digital artist, Beeple.
The Sorare platform currently has partnerships with over 200 officially licenced football clubs across the world with plans to expand the game to other sports in the future. The company recently confirmed a partnership with the Spanish football league, LaLiga, which is one of the world’s top five leagues. This partnership has added major value to Sorare’s gaming offering and supports the platform’s goal of partnering with clubs from the top 20 global leagues by the end of 2022.
Sorare also announced the launch of traditional card collections of legendary football players who are no longer actively participating in the sport. Another exciting development is set to emerge from Sorare’s new partnership with the German football league, Bundesliga, with the introduction of NFT video moments from match highlights that can be traded on the marketplace similar to the NFT cards.
SorareSharp is a leading mobile app for crypto fantasy football managers on Sorare. With auction alarms, player news and projected lineups, SorareSharp helps players achieve better trading results while saving time and easily tracking profits. The app is available for download on Google Play and App Store.
