NFTs were Collins’ Dictionary’s Word of the Year last year, as the use of the term experienced a meteoric 11,000% rise in 2021. Initially, much of the mainstream struggled to comprehend why the cryptographic tokens, often pixelated or depicting absurd images, were being sold for thousands of dollars. However, the potential of NFTs has since been realized as they’re predicted to have valuable future uses, such as tokenizing important documents and preventing fraud. Consequently, major corporations have been racing to get in on the traction and the likes of the NFL, Taco Bell and Nike have released their own NFTs. However, when WWF UK attempted to fundraise with NFTs representing 13 endangered animals, they faced extreme backlash resulting in the charity ending the sale. Using the successful cases of NFTs in popular cryptos HUH Token (HUH) and Axie Infinity (AXS), should companies like WWF stay out of the NFT business?
Axie Infinity (AXS)
Sky Mavis, a Vietnamese gaming studio, created Axie Infinity (AXS), an NFT-based game. The game is based on the well-known Nintendo franchise Pokemon. The game contains its own environment, which includes a variety of Axies, which are little monsters. Axies can be bred, raised, traded, and battled with other players or teams in this game. The game’s gameplay loop is likewise comparable to that of the Pokemon franchise.
Every Axie in this game, as well as the in-game accessories and items, is an NFT character. On the game’s marketplace, players can trade Axies for real money and profit. Axie Infinity contains a virtual economy as well, with players using two cryptocurrencies: SLP (or Smooth Love Potion) and AXS (or Axie Infinity) (or Axie Infinity Shard). These coins can also be used to buy Axies, land, farms, and other items.
In June 2021, Axie Infinity’s fame skyrocketed. Several gamers made money from the game, which brought in approximately $780 million in sales in just thirty days. The earning potential of the game is what draws people in – in the space of a week during July 2021, Axie Infinity produced more fees than Bitcoin (BTC) or Ethereum (ETH)!
During COVID-19, the game became popular in developing countries. Axies produce a lot of money for players in markets like Vietnam every day. In fact, some even play the game to cover their living expenses.
The use of a play-to-earn concept is a distinguishing feature of NFT games. Players receive unique NFTs or crypto for playing and earning achievements. The players can convert these prizes into real money and make a profit. There’s also the play-to-trade concept, in which players earn a token that they can sell or exchange for widely used currencies.
Because of the unique nature of NFTs, blockchain technology embodies the concept of digital asset ownership. Players in NFT games have complete control over their digital assets. Players in traditional games spend money on digital assets, therefore if the game server goes down, players may lose their assets. NFT games, on the other hand, avoid this problem by giving players asset control. It allows gamers to trade their assets with other players, sell them for cash, and use them on other gaming platforms.
NFT games are an appealing investment opportunity as well as a source of income. Players can make money by playing games under this concept. This approach introduces a novel monetization model that has the potential to transform the way free-to-play games make money. Thus, NFTs fundamentally underlie Axie Infinity (AXS) and are transforming the gaming industry to give real-world benefit, particularly in developing countries.
HUH Token (HUH)
HUH Token (HUH) emerged onto the crypto market on December 6th, 2021 after it was released on popular exchange PancakeSwap. HUH had already garnered hype prior to its release following a successful presale marketing campaign. Within a month of its release, HUH exploded 6000% and investors enjoyed a tenfold increase in their investments. HUH’s early success has been attributed to its uti-meme model, which is the first of its kind and is a hybrid between the popular meme coin and utility token, which offers real-world value. Thus, HUH garners hype via social media antics and then implements advanced tokenomics to facilitate long-term holding resulting in a higher return on investment.
Recently, HUH released their first NFT collection, PixelHUH, which is intended to have a valuable purpose in its ultimate goal, which is its decentralized metaverse project, the MetHUH. The NFTs take the form of pixelated avatars, inspired by CyberPunks. According to HUH’s NFT website, they grant holders exclusive benefits in the HUH ecosystem. Furthermore, HUH is planning to launch a MetHUH app, which will have its own social media NFT marketplace. In the marketplace, holders can list and sell their NFTs, which are expected to boom in value by the time the marketplace launches.
NFTs also play an important role in the MetHUH. Hundreds of social media influencers have already flocked to HUH in anticipation of the upcoming metaverse, as they will be able to interact with one another and with companies interested in working with them without a third party. Additionally, influencers can make their own NFTs using their own content, choose their price and auction them on the marketplace. Users can buy, collect and resell these within the MetHUH.
HUH will also assign Influence Points to every influencer, which are generated through analysis of the likes and comments on their content across various platforms. Influence Points are used to calculate their NFT value. Thus, their NFTs will have a higher value if they have high Influence Points. This enables users to instantly realize the value of influencers’ NFTs. HUH is predicted to revolutionize the way social media works by allowing both users and influencers to gain from the data they generate. Influencers won’t be the central focus of the MetHUH, as with Instagram and Twitter, because users are ultimately in control of their value with their buying power.
The Verdict
When cryptos release their own NFTs, they often perform a significant function in the community and offer investors genuine opportunities to maximize their profits. On the other hand, it appears that corporations are trying to appeal to customers by offering NFTs as well. As WWF has shown, some don’t do thorough research before deciding to go down the blockchain route. WWF received criticism with some customers claiming to have canceled their monthly donations, as blockchain technology tends to consume a lot of energy. In response, WWF stated:
“We recognize that NFTs are a much-debated issue and we all have lots to learn about this new market, which is why we will now fully assess the impact of this trial and reflect on how we can best continue to innovate to engage our supporters.”
Regardless, some corporations have utilized NFTs productively to add a valuable addition to their product line. For instance, fans were pleased after the NFL announced that it would be giving away free NFTs to commemorate their tickets and serve as digital keepsakes. Yet crypto and NFTs are blockchain brothers, cryptos have undeniably excelled in their creation of NFTs.
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