Problems in P2E Gaming
I want results when I fight - Frank James
High barrier to entry
Costs price many players out of the market and create a need for a constant flow of new money entering the game.
As the game succeeds, its NFTs rise in price as investors enjoy high ROIs on their original purchase. However, as prices creep up, fewer and fewer players are joining the game
As the rate of new money entering the game begins to slow, prices of assets begin to come back t earth. This lowering in the rate of growth ultimately reaches a precipice.
A Minsky moment takes place causing asset prices to begin to fall. Falling asset prices cause a panic as investors rush to sell at an ever lower price. Eventually the bottom falls out after the buyers dry up. At this point, everything becomes worthless.