COMPLEXITIES OF THE INDUSTRY
After conducting an industry-wide analysis of the behavior of the target audience and the competitive environment, we find that the number of complexities and problems present in the industry hinder its development to a certain extent. In particular, cases of fraud damage the credibility of the industry. Other project flaws lead to lack-luster interest from participants, resulting in their exit from the market. Some projects fail to satisfy the demand of a sophisticated audience, mainly due to the accustomization of high-quality projects offered by the classical gaming world.
Cryptocurrencies are a popular target for scammers and various dishonest individuals. According to Reuters researchers, scammers' crypto wallets have received billions of dollars. A significant share of blockchain-based gaming projects are hidden traps, whose purpose is to misappropriate users' money, according to CoinMarketCap analysis. Ultimately, the token price of projects like these decrease until they eventually reach zero. You can see the dynamics and price rates of some GameFi tokens on CoinMarketCap and how they can instantly drop to 0. Given below is the case of OVERLORD GAME. At first we observe the growth and success of the project, which is followed by its ultimate collapse in value.
Chinese crypto addresses sent $2.2 billion to darknet scams 2019-2021 - Reuters research
Last modified 8mo ago