Crypto: GameFi Collapses, 2000 Projects Have Gone Bankrupt
The crypto speculative fever around GameFi has abruptly subsided, leaving behind a devastated landscape littered with abandoned projects. A recent study reveals that between 2018 and 2023, no less than 75.5% of GameFi initiatives have gone bankrupt. Of the 2,817 games launched, 2,127 did not survive more than a year.
The Mirage of Easy Fortune
Enticed by the success stories of 2017 such as CryptoKitties and the promises of quick gains through “play-to-earn”, thousands of crypto developers have rushed headlong into the GameFi adventure.
A thoughtless rush that resulted in an unsustainable oversaturation of the crypto market. In 2018 alone, no fewer than 422 new projects were launched, only to plunge into the abyss of oblivion at a rate of 72.7%.
While the year 2021, buoyed by the general euphoria of the crypto market, limited the carnage with “only” 45.9% of failures, 2022 will remain as a veritable Via Dolorosa for GameFi investors. With no fewer than 742 stillborn projects, the failure rate skyrocketed to 107.1%, a historic record, as reported by Coingecko.
2022, the Dark Year of Crypto GameFi
With 2000 projects swallowed up in five years, or 3 out of every 4 initiatives, it is clear that the GameFi mirage has dissipated as quickly as it appeared. Admittedly, the mortality rate seems to be stabilizing around 70% since the beginning of the year.
But under such conditions, it is difficult to envisage a bright crypto future for the survivors, condemned to struggle in an ultra-competitive environment.
In conclusion, it appears that the naive enthusiasm of the years 2018-2022 is giving way in 2023 to a form of realism, if not disillusionment. It remains to be seen whether investors will learn the lessons of this painful episode and will now take a more critical look at the fantastic promises of some GameFi projects. The time of excessive ambitions seems to be truly over. Welcome to the era of consolidation while Wall Street prepares for the great upheaval!
Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.