Many experts predict that in 2024, Bitcoin and other cryptocurrencies will reach new price highs. Over the past month, the attention toward the cryptocurrency market from large capital and retail investors has noticeably increased. This is reflected in price charts: for example, Solana token was trading at less than $9 at the beginning of the year, and today its price is above $50 per token.
However, the most significant profit in the anticipated bull market may come from not traditional cryptocurrencies (BTC, ETH)—but rather, from tokens representing the new domains of the crypto landscape. We observe this growth pattern in every bull run.
In the upcoming market surge, one of the types of crypto assets to play this role might be the GameFi sector tokens. These gaming crypto projects are aimed at a mass audience and can potentially show maximum profitability when the market skyrockets. But how do you choose a token to invest in? When picking an investment, there are several critically important aspects to consider to minimize risks and increase potential profits.
4 Things to Look Out for While Picking a GameFi Investment
The key problem for many GameFi projects is their Ponzi scheme-like financial model. There are many examples where players easily made significant profits in hyped projects, but later, the tokens plummeted as rapidly as they surged.
Here’s where the problem lies: if a project lacks a solid foundation, the flow of money is generated solely during a media buzz. Unfortunately, this is not a single case in the crypto industry.
This is precisely why, when choosing a GameFi project to invest in, special attention should be paid to the following:
- Project’s economic model. The game should be based on unique technology, have a strategic development plan, and involve real economic activity. The tokenomics should be transparent and sustainable. Examine how the token supply is managed, how it is distributed, and what mechanisms influence its price.
- Development plans. Consider the project’s long-term plans outlined in its roadmap and the tangible steps taken to achieve them. Pay attention to plans for expanding functionality, strategic partnerships, and potential market impact.
- Team and community. Find out who is behind the project. The presence of an experienced and transparent team with a good reputation in the crypto community can significantly increase the chances of success. Users’ and investors’ support is also a significant indicator of trust in the project.
- Technical security and infrastructure. Check how well the project successfully passed security audits and reviews, and resolved all the identified security threats.
Before you invest in any crypto token, make sure to do your own research. It’s necessary to check both the current state and long-term potential of the project. This will help you make a balanced thorough decision.
A Sustainable GameFi Token
One example of a project that meets all the criteria mentioned above is MetaTrace, a GameFi platform that merges metaverse experiences with the real world. In this game, the player physically visits “points of interest” in their neighborhood, collects in-game NFTs including digital pets, and interacts with other players. For engaging in all these activities, players receive TRC tokens as a reward that they can further exchange for any other cryptocurrency.
MetaTrace builds an economy that promises to be sustainable and scalable in the long run. To achieve this, the team has created a number of revenue streams coming from players, partners, advertisers, and investors.
- Ad platform. The team has created a marketing platform TraceAds on top of the MetaTrace environment. It has already proven demanded by businesses internationally.
Let’s say you have an offline store and want as many people as possible to learn about it. You enter your TraceAds account and order targeted advertisements. Your store appears on the MetaTrace map, and the players start to constantly visit it to collect NFTs and earn rewards. By connecting advertisers and their potential audience in the MetaTrace environment, the project’s team is creating an entire PartnerFi economy that serves the platform as a stable revenue stream.
- Partnership launches. Another possibility open to businesses in MetaTrace is the launch of partner quests, mini-games and NFTs. In MetaTrace gameplay, users are incentivized to collect as many in-game items as possible — a goal that mini-games perfectly serve. MetaTrace partners pay to start those games, and this income is used to maintain the project’s economy.
- NFT sales, commissions, and subscription. Every MetaTrace NFT offers its own utility. By exchanging them on TraceMarket, players pay fees that support the platform’s economy. Users who buy a subscription can enjoy enhanced gameplay and other privileges.
The MetaTrace app is now in beta, and will be released soon. The platform’s governance token TRC has already been listed on numerous crypto exchanges. Since its first listing, TRC has gained over 500% in price — remarkable growth in a bull market.
Before listing any token, exchanges conduct thorough audits to make sure they boast enough financial stability to fulfill their obligations. The fact that exchanges have already listed TRC indicates they agree that the token meets the basic reliability criteria.
In the project’s roadmap for the coming year, listings on several even larger exchanges are planned. The greatest investor benefit can be gained by purchasing the token before those events, as listings are typically followed by a significant surge in token prices.
Work Out a Balanced Strategy
Certainly, it’s not advisable to invest all your money in just one GameFi project or token. Investing in cryptocurrencies always bears an increased risk. It is generally recommended to build a diversified portfolio, so it might be wise not to abandon such popular assets as Bitcoin and Ethereum.
However, it may also result in greater profits if the portfolio contains assets with potentially higher yield rates (but meeting the reliability criteria mentioned above at the same time). TRC and other tokens from the GameFi domain can be of interest to those who believe that the assets from the emerging fields can demonstrate great results in the upcoming bull run.
Ultimately, crypto games will become the gateway to the realm of cryptocurrency for millions of new users. This happened 1.5 years ago during the first GameFi wave, and the same is expected this time. Those who “own this gateway” may be rewarded for their choice.
