Gaming NFTs: what they are, who owns them and why?

As the web3 gaming ecosystem continues to grow and evolve, it’s important to understand who the various stakeholders are and how they all play a role in shaping the ecosystem and driving (or not?) the adoption of NFTs.

From game developers and players, to collectors and investors, there are many different groups who are participating in the growth and appeal of the web3 gaming industry and NFTs at large.

Today, we’ll take a closer look at the role of those who buy, own, sell and trade gaming NFTs in this ecosystem, who they are and their motivations towards those assets. We’ll also discuss some of the challenges and opportunities that NFT owners face as they navigate this rapidly changing landscape.

But before we dive in, let’s take a moment to refresh our understanding of gaming NFTs, what they are and why they’re here.

Let’s go!

Gaming NFTs: what and why they are?

For those who may not be familiar, NFTs are unique digital assets that are stored on a blockchain and represent ownership of a specific item or asset.

In the world of gaming, NFTs can represent a wide range of things, such as in-game items, characters, artwork, skins, or other virtual assets, which usually have proper utility inside the game but can also have value beyond the game itself.

Gaming NFTs are being used by game developers for a variety of reasons. Some of the main reasons include:

1. Community and player engagement: NFTs can help to foster a sense of ownership and community within a game, as players can collect and trade NFTs with one another. This can lead to increased player engagement and a more active and dedicated player base.
2. Monetization — One of the primary reasons game developers are using NFTs is to monetize their games and create new revenue streams. By selling NFTs, game developers can generate income from players who are interested in purchasing and collecting these digital assets.
3. Scarcity and rarity — game developers may use NFTs to create a sense of scarcity or rarity within their games, which can increase the value of the NFTs and make them more attractive to players. This can be achieved by limiting the number of NFTs that are available or by creating NFTs that are unique or hard to obtain.
4. In-game benefits — game developers may use NFTs to provide in-game benefits or perks to players. For example, a game developer may offer NFTs that provide special abilities or access to exclusive content within the game.
5. Branding and marketing: NFTs can also be used as a branding and marketing tool, as they can help to increase the visibility and awareness of a game or gaming community. By creating unique and valuable NFTs, game developers can attract attention and drive interest in their games.

Given the various motivations for game developers to issue gaming NFTs, it’s not surprising that there are many different actors who are interested in buying and owning these assets and that for very different reasons.

Gaming NFT Owner: who is you?

When it comes to gaming NFTs, there are several different types of owners, each with their own motivations and interests when it comes to buying, investing and trading gaming NFTs. These types include:

1. Players — These are individuals who are interested in NFTs and gaming, but who may not have the same level of resources as the other types of NFT owners. They may be more selective about the NFTs they buy. These NFT owners actively play the game with their NFTs and value appreciation of NFTs is usually of low importance to them as their main ROI comes in the form of entertainment.
2. NFT funds or other institutional investors — These organisations are primarily motivated by the potential for financial returns on their investment in gaming NFTs. They may be looking to diversify their portfolio or to take advantage of the growing popularity of the gaming industry. These investors are generally not actively playing the game and are more likely to hold the NFTs as a passive investment.
3. Investment DAOs — Like NFT funds, Investment DAOs are primarily motivated by the potential for financial returns on their investment in gaming NFTs. They may be looking to earn returns for their members or to support the development of the gaming industry. These organisations are generally not actively playing the game, although some have a pool of available players, and are more likely to hold the NFTs as a passive investment.
4. Web3 Gaming Guilds: These are groups of players who come together to play and progress in a game together. Some guilds have decided to invest in NFTs as a way to further their in-game progress or to support the development of the game. These NFT owners are actively playing the game with their NFTs.
5. Whales and NFT Collectors — These are individuals who have a large amount of capital to invest in NFTs and other digital assets. They may be individual investors or part of a larger investment group.

Overall, gaming NFT owners are attracted to NFTs for a variety of reasons. Some may be motivated by the potential for financial gain, while others may be more interested in the intrinsic value of the NFT itself, such as the opportunity to own a rare in-game item or virtual real estate.

Regardless of their motivations, NFT owners play a crucial role in the web3 gaming ecosystem, as their purchases help to fund the development of new games and support the growth of the industry as a whole.

However, there is a downside, as there are a lot of unused gaming NFTs out there, which is less than ideal for the ecosystem to flourish. As a significant portion of the owners does not want to sell their NFTs due to the aforementioned motivations, we believe that lending and borrowing of gaming NFTs can be the solution to bridge the gap between the interests of NFT owners, game developers and players.

If you would like to deploy and optimize the utilization of your gaming assets as an NFT owner or rent from a list of thousands of gaming NFTs and start playing web3 games immediately as a gamer, check out our website!