How One Crypto Game is Spearheading the Evolution of NFTs
Despite the fact that many people still don’t understand what they are or what they do, the fact remains that NFTs have taken the Decentralised Finance (DeFi) sector by storm, creating more than a handful of millionaires along the way. This asset class is still in its infancy, with the first NFT ‘Quantum’ being minted by artist Kevin McCoy only as far back as 2014 (and since selling for $1.4 million). However, in the seven years since their inception, the NFT scene has exploded, with sales racking up to over $2 Billion USD so far, and the most expensive piece, artist Beeple’s ‘Everydays — The First 5000 Days,’ selling at Christies auction house for a staggering $69 Million.
So what exactly are they?
For the uninitiated, NFT stands for Non Fungible Token. What makes it unique from its cryptocurrency counterparts, is quite literally that — uniqueness. Unlike regular currency, digital or otherwise, an NFT cannot be exchanged like-for-like and therefore only one true piece can ever exist, much like there can only ever be one original piece of artwork, such as the Mona Lisa. The legitimacy of the minted NFT is stored on a digital ledger that uses blockchain technology to establish proof of ownership and establish value as well as any other pertinent information. They can then be purchased, traded and sold on dedicated marketplaces, and the price is largely dictated by demand. As with everything that involves the internet, NFTs have quickly evolved to encapsulate almost any form of digital expression that can be uploaded to the internet. Things like music albums, videos, articles, and soon — thanks to a growing interest in metaverse technology — other assets such as backgrounds or digital recreations of everyday objects such as clothes and lamps and sofas, will all be mintable as NFTs. In that sense, due to the ease of piracy on the internet, the only real value is the blockchain proof that someone owns the original copy.
Much like meme culture, the ‘hot-cake’ explosion of NFTs and what prices they fetch seems to be inherently random, making collecting them high-reward but also high-risk by their very nature. Many investors have secured original pieces that have gone on to be worth thousands of times what they paid mere weeks later, while many have dropped to almost zero in the same timeframe. However, the truth is that the surface of NFTs and their true value is only now just being fully scratched, and there is one central aspect now being applied to ensure future stability.
Utility.
The real NFT value beyond bragging rights is actually held within the information that can be assigned to them. Although the digital asset itself cannot be altered once minted, the added information can, allowing elements to be included that can retrospectively benefit the holder in a variety of ways. For example, one future application of NFTs is that of agnostic and anonymous healthcare data, which patients could offer to research companies hoping to work together to create cures for deadly diseases. In return for their data being used, the owner of the NFT could earn royalties in perpetuity for life, whilst helping to fix real world issues. On the entertainment side, the adaption of the information can allow for more interaction with the NFT and how it could possibly be used in the growing number of metaverses being created. In particular, one sector is really pushing the envelope when it comes to this high level of interoperability.
GameFi.
Cryptocurrency gaming is even more in its infancy than NFT technology, but both are growing organically together in exciting ways that will see genuine utility added to many new NFTs. An example of this would be an NFT version of clothing that could be applied to the avatar of a player character. For example if a person had a favourite pair of sneakers, a jumper, or a hat that came included as a digital version alongside a real-world purchase, they could have their character wear them whenever they played online, allowing them to express themselves in unique ways. Many games are looking to add metaverse hub worlds to their titles too, meaning that there could be social areas such as houses, where these assets could be stored and interacted with, much like a person would in real life. Paintings, music, clothes, and even pets could be added and placed in whatever manner the user sees fit as these worlds grow, leading to more individuality and expression as the field evolves.
Mobile gaming, which already accounts for over 50% of the entire video game industry is beginning to merge with cryptocurrency to create this GameFi industry, which will allow for even more options, giving players access to their NFTs at all times, on the move. These titles also usually include a Play-To-Earn models too that allow individuals to earn native cryptocurrencies by playing the games themselves, which could then be used to purchase more NFT assets, creating a thriving ecosystem. There are other, even more unique ways emerging games are allowing NFTs to drive their user experience model and creating exciting new opportunities. One title in particular is using unique non-fungible technology as a gateway for players to earn a genuine and sustainable income, whenever and wherever they want. Its name?
League of Ancients.
League of Ancients (LOA) is a Massive Online Battle Arena (MOBA) game inspired by its popular forbearers, League of Legends and Dota2 (120 million active users and counting). It bears many of the same hallmarks (namely that it is an 5v5 battle, which sees each player control a unique avatar with a variety of specific skills, in the aim of destroying the opposing team’s stronghold and securing victory), however it differs greatly in that it gives back to the players themselves in the form of genuine financial rewards, mainly accessed via NFTs. The game employs a Play-To-Earn mechanic, meaning that those using it can earn a nominal amount of $LOA (the title’s native cryptocurrency, which can then be traded for Fiat currency) simply by participating in battles. However, if the same player purchases NFT skins of the available iconic heroes, they can access a secondary tier of the game, which vastly increases earning opportunity.
Furthermore, with a clever crafting system known as Fusion, those skins can be upgraded to higher level versions. The topmost of these is known as the Immortal Skin, which allows anyone using it and winning games to earn a serious income. In addition, the project has allocated 8% of its $LOA token value to yield farming, which means that an individual can stake their NFT skins and earn a secondary passive income as an annual return on investment, simply by holding the asset. The more the $LOA token increases in value, the more that can be earned, and the rarity of the skin would also have a large impact on potential earnings. If someone were able to get their hands on an Immortal Skin and stake that for a year…well then things could get very exciting. If the project value keeps increasing — which there is no reason it shouldn’t — then the sky truly is the limit on potential passive earnings. Given that the eSports industry — which LOA hopes to establish its own version of as it evolves — sees competitive players earn millions of dollars in LOL and Dota2 games, it should come as no surprise that there is serious earning potential to be had in LOA too, for those who are prepared to commit to it.
In addition, the aforementioned data built into the NFT skins will provide players with access to other titles on the fly that share the same metaverse (which it is growing with the immensely popular project Monsta Infinite), using the same avatar and continuing to earn the entire time. This will only increase as more projects join the metaverse that the two projects will share, allowing for more freedom of play. It is therefore understandable that LOA project has attracted a great deal of hype and attention since it was revealed six weeks ago. The social media groups — specifically Telegram and Discord — have over 150 thousand combined community members, and the official Twitter account boasts 129,000 followers too, which goes to show just how much belief people have in the upcoming game and its unique NFT system.
Indeed, the project doesn’t launch its own cryptocurrency for a few weeks, but already both its private sale has been maxed out and its whitelist registration is vastly oversubscribed. League of Ancients is continuing to grow both the interaction of its NFTs and streamlining the game itself ready for a Q4 launch next year. If it can deliver on its promise of a fun and engaging gaming experience, whilst giving those willing to dig a little deeper a genuine earning potential, the project could well end up becoming one of the most successful GameFi projects in history, and for good reason.
And the media said NFTs were pointless.
If you would like to find out more about League of Ancients, visit their website at www.leagueofancients.com, and join their Discord at https://discord.gg/loa or Telegram at https://t.me/leagueofancients.
This article was written by the Wordsmith. Please note that the Wordsmith is not a financial advisor and nothing written above should be taken as financial advice. Always do your own research and due diligence.
