Navigating NFT games: Spotting the gems in a crowded market

The trenches of nonfungible token (NFT) based gaming are littered with ambitious projects that promise revolutionary gameplay and sophisticated digital economies. However, many of these ventures fade into obscurity, victims of underdevelopment — or worse — planned obsolescence by nefarious creators.

 

Amid this tumultuous backdrop of ambitious projects that often don’t deliver on their promises, it’s important for gamers and investors to focus on sustainable development and genuine utility in blockchain gaming offerings to identify projects with potential. Recognizing the situation, we have created a quick rundown of what to look for (and look out for) when analyzing new projects.

Identifying a dedicated community

A vibrant community is often the lifeblood of any successful GameFi project. Prospective gamers should look for active engagement on platforms like Discord, Telegram and Twitter, where passionate discussions and frequent updates indicate a healthy connection between the developers and their audience. You’re looking for honest and real conversations, not just shilling or sh*t posting. Community teams should also keep their servers clean (orderly and well-categorized) and up-to-date.

 

Size is not always an indication of health either, as many projects can use bots to fill out numbers, but an active community helps to sustain interest and presents free organic marketing through word-of-mouth and social sharing. There might not be new news on the project but the teams are in the ‘trenches’ helping and getting to know their flock. 

Evaluating past performance of NFTs vs. Game Tokens

The historical performance of NFTs can be extremely informative. Successful collections like CryptoPunks and Bored Ape Yacht Club need no introduction, of course, but in the space where NFTs intersect gaming, there have been others that have done well, too. Recent successful NFT game collections offer insights into the attributes that contribute to their longevity and value. Just don’t focus on the price as an indication of long-term success. Consistency and longevity over FOMO (fear of missing out) or volatile token prices.

What you want to look at is:

1. Has the team been consistent over a long period — say, over the bear market?
2. Have they delivered or over-delivered on their promises? Or even just delivered on time.
3. Have they released any previous mini-games to keep communities interested and engaged? This could be a web-based CG game, leaderboards or other fun activities that tie back to the main project.
4. Are you seeing regular periodic updates? Are they always bringing out more?
5. Do their social accounts grow more steadily (usually means they haven’t bought followers)

These are great starting points, let’s keep going!

Professional presentation across platforms

First impressions matter, and for GameFi projects, this extends to how well everything is expressed online through various platforms. A well-designed website, active social media accounts and informative blog posts can signal a project’s legitimacy and professionalism.

In contrast, a lack of transparency or poor presentation (spelling mistakes, expression of personal opinions, bad UX and a lack of informative content) can be huge red flags, indicating inexperienced or uncommitted developers. After all, if the creators of a game project are willing to cut corners on outward-facing aspects that are literally designed to attract attention, potential gamers should think carefully about how much attention is being paid to other crucial elements. 

Analyzing token price volatility amid announcements 

In the volatile world of blockchain gaming, fluctuations in-game token prices can serve as a barometer for a company’s health and the market’s reaction to its activities. Potential investors should track these price movements in response to company announcements or shifts in broader market conditions. Stability and sustainable growth in token prices are generally seen as positive indicators, while sharp fluctuations and deep slumps may signal underlying issues.

When a token launches, you will see the market price correct. If done correctly, an equalization of about half of the launch token price is an indication of stability. This means the team had the foresight to ensure stability and corrections in the market. Watch these tokens — if you can see the project releasing more news, announcements and progress, then the token price will more than likely increase over time. Slow and steady wins the race.

Traditional games vs. Web3 games 

I don’t see a divide between the two, they are all games with different features. But just to highlight the key differences between the two schools of games:

Besides these key components, games are games.

By analyzing how token prices respond to news and market trends, potential gamers can gain valuable insights into the company’s ability to manage challenges and capitalize on opportunities within the ever-changing cryptocurrency market. This analytical approach is essential for assessing the resilience and strategic understanding of the management team.

The role of strong leadership

The success of a blockchain project is often tied to the strength of its leadership. Visible, communicative leaders who are transparent about their strategies, challenges — and themselves — can foster a sense of trust and stability within the community.

In contrast, those who hide behind pseudonymous avatars and refuse to share proper information is a major warning sign. Effective leadership is crucial, especially in crisis management and steering the project toward long-term goals, as this supports the token’s value and the project’s sustainability. In short, always pay close attention to those in charge and how they act.