Jack Lu, the co-founder and CEO of Magic Eden, the well-known NFTs marketplace on the Solana blockchain, spoke in an interview with Decrypt on 21 September that he believes NFTs “unlock something completely new for gaming developers to build an economy and build a new business model on.”
Many Things to Unpack Around Gamers’ Perceptions of NFTs
It is “so much to unpack” regarding gamers’ perception of NFTs, including bad actors in the industry and digital assets being increasingly monetized, according to Lu.
Additionally, as a nascent technology based on a decentralized architecture, it isn’t surprising that many early NFT-powered games were simplistic, not meeting players’ expectations.
Among the biggest success stories in this space is Ethereum-based Axie Infinity with over $4 billion in NFT trading volume and millions of active users.
While the game was gaining popularity, its play-to-earn economy had fallen apart, and its monster-battling gameplay had been condemned for its repetitive nature. Furthermore, the Ethereum bridge of the game was hacked for over $600 million.
Waiting for a Great Game to Emerge
He said the team is “waiting for a few diamonds to come, to shine”, that is, games that use NFT capabilities to encourage wider adoption.
“Great games take a long time to build—it takes vision, inspiration, and a lot of dev time to build that much content,” said Lu.
“We are effectively waiting for the most promising game studios to have that time to build out their content, and then work out what is the secret sauce of how to use NFTs in that,” added him.
If some of those so-called diamonds succeed on the market, they will serve as a “case study” to motivate other developers.
As he explained, it is a potential “tidal wave” that follows similar paradigm shifts in the gaming industry.