GameFi, which is the combination of gaming with decentralized finance (DeFi), appeals to a certain kind of investor that chooses projects more on the basis of the use cases they can support than on the possible revenues such projects may generate.

Investors and players who are members of Generation Z flock to the GameFi ecosystem. Because of this, it acts as a stepping stone for many people who are just beginning their careers as investors. A poll conducted by ChainPlay with a total of 2428 investors found that 75 percent of respondents joined the realm of cryptocurrencies exclusively because of GameFi.

In the beginning, around half of the investors entered the GameFi market with the intention of making a profit. However, during the crypto winter of 2022, 89% of GameFi investors lost all of their money, and 62% of those investors lost more than 50% of their gains.

Investors are under the impression that poor in-game economic design was the primary reason for their financial losses. According to the results of the survey, in 2022, investors throughout the world played games for an average of 2.5 hours per day, which is a 43% decline from the 4.4 hours they spent playing in 2021.

One of the most significant issues that discourage investment in new businesses is the widespread concern about Ponzi schemes, rug pulls and other fraudulent practices. As a consequence of this, 44 percent of investors believe that the participation of conventional gaming enterprises will be essential to development.

In addition, when it comes to future GameFi initiatives, 81% of investors are moving away from the traditional strategy and prioritizing pleasure over profit in order to provide excellent in-game experiences for their customers. This shift away from the traditional strategy is necessary in order to provide excellent in-game services.

In addition, institutional investment in blockchain gaming as well as the Metaverse has been maintained, which indicates that many of the world’s most successful businesses recognize the potential for both sectors to see tremendous economic development in the years to come.

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