HomeCryptocurrencyCrypto and Gaming: How Crypto Presale Events are Influencing Game Development

Crypto and Gaming: How Crypto Presale Events are Influencing Game Development

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Cryptocurrency and blockchain projects regularly announce their market debut by launching tokens targeted at interested early adopters. Many of these projects use presale events to create buzz around their platforms and raise funds for research and development. On the buyer's side, presales provide an investment channel for crypto enthusiasts in the sector for profits.

In addition to buying and hodling established assets, the average crypto user can invest by checking through a presale crypto list that features new assets and highlights particular perks, including rewards, annual percentage yield (APY), and specific information on tokenomics.

Alan Draper writes that another benefit of investing in presales is that doing so allows investors to become a part of the core community, giving them the opportunity to engage with like-minded individuals and foster a strong community. 

While presale events are already a popular method used in crypto, game developers can also use them to raise funds before a market launch. This way, these projects can sidestep many of the usual problems plaguing the traditional model of fundraising.

The Problem With Traditional Game Development Funding

Traditional gaming projects rely considerably on funding from high-net-worth publishers and relevant venture capitalists. Since research, development, and design are expensive, these developers require external financing from interested giant companies looking to contribute to gaming.

For instance, decentralized tactical card game Gods Unchained expanded its development and marketing plans after receiving a $15 million investment from Naspers and Galaxy Digital.

Unfortunately, this funding centralizes game development, with the publishers and venture capitalists wielding a little too much power in the sector. Sometimes, developers end up losing control of their projects, relinquishing authority over timelines, budgets and creative decisions.

The situation is especially bad for independent developers who eventually have to compromise artistic or design integrity.

To solve this problem, developers began using crowdfunding platforms to access potential investors directly.

These platforms allowed developers to showcase their ideas to the general public, hoping to win a strong group of supporters through direct interaction.

However, this method proved problematic because of concerns surrounding uncertain funding, limited publicity and reach, as well as fees charged by the crowdfunding platform.

Using Crypto Presales for Funding

Crypto presales offer a much better solution to funding problems. Like traditional crowdfunding, they allow developers to interact with their community and receive funding directly from interested supporters. However, presales have no hidden charges tagged on received payments.

Developers can also fully own and direct their projects as preferred without worrying about undue pressure from centralized publishers or venture capitalists. This means that project owners no longer need to compromise on quality and artistic direction.

Furthermore, a crypto presales event impresses a sense of ownership and community among early adopters and funders. 

Another major advantage is that developers can enjoy funding from interested people across borders. In most cases, crypto presales do not enforce any restrictions, which opens developers to a global selection of investors. This also increases the chance that developers get as much funds as may be necessary.

When creators have the funds they need, without any stringent or difficult conditions, they are more willing to experiment with various models and fine-tune their products to create the version with the best chance of success, measured by longevity and player retention.

For instance, eco-friendly crypto project Green successfully raised more than $1 million in a presale, despite incentivizing long-term hodling via staking.

Generally, crypto presales in gaming are equally advantageous to the developers and players. They allow developers to raise funds while giving players the opportunity to invest in the success of a game right from its early days.

Players may also enjoy voting rights as well as the opportunity to earn from an eventual increase in the token's price.

Challenges of Crypto Presales to Developers and Gamers

Unfortunately, both sides of the gaming divide must understand that while crypto presales offer many perks, there are quite a few challenges as well:

  • Regulatory Uncertainty: This is a common problem with the crypto sector regardless of the industry. Whether gaming or finance, the lack of robust regulations for classifying or regulating cryptocurrencies is problematic. For instance, regulators may classify a platform's token as a security, automatically subsuming it under stringent rules. On the other hand, other rules, such as regulations surrounding cryptocurrency promotions, may stifle developers.
  • Volatility: The value of crypto tokens is very unstable. Consequently, players who spend a lot of money on heavy purchases at a presale event may lose some or all of their investment.
  • Scalability: Many blockchains cannot simultaneously process a large number of transactions. This congestion reduces transaction speed and increases fees, which could be problematic for players participating in a crypto presale event.
  • Security: Blockchain technology provides good security for crypto assets and transactions. However, the decentralized nature of the network makes hack attempts common. Developers looking to raise funds or launch via tokens via presales events must apply robust security measures to protect their projects and investors.

Conclusion: Is a Presales Event Great for Gaming?

Although crypto presales for gaming are a good idea, developers must be well-prepared before launching such an event. The allure of raising funds in a decentralized manner is generally attractive to the average developer.

In addition to raising funds, it guarantees that there is already a community of prospective players waiting for the launch. However, developers who do not take adequate measures to protect their projects and players' funds can do a lot of reputation damage to their games.

Also, market trends, such as a plunge in sales last year, can negatively affect related projects. Nonetheless, Carefully taking advantage of the perks of decentralization can considerably cause a paradigm shift in the gaming sector, influencing everything from fundraising to game design and community building.

TheRiz
TheRiz
Lives a life of heavy metal, crypto, and gaming. Comment on these and you will get a response.

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