Investment Thesis on Play-to-Earn (“P2E”) Crypto Games
Is P2E a truly sustainable model?
Blockchain technology is changing our lives significantly. Its wide use cases and implications are transforming how we interact, how companies operate, and how people sustain their lives. Indeed, it is hard to keep up with the latest blockchain trend given the overflow of information and fast-paced nature of these changes happening every second. To list few examples, NFT is changing how digital assets are traded and how artists/creators interact with consumers; DeFi protocols are changing how people engage in finance through lending protocols, marketplaces, and payment mechanisms; people are joining DAOs to voice their opinions on certain topics. While this list can go on and on, I would like to specifically focus on the “P2E (play-to-earn)” games in this article.
P2E (Play-to-Earn) Model
“Play-to-earn (P2E)” is a business model, in which players can make real money from playing games — commercialization of video/mobile games. A more technical definition is that players partake in the game platform by being able to reap rewards from playing game but also having a say in future directions of these games.
Play-to-earn model has been around for quite some time, but in a different format. In the past, famous MMO (Massively…
