The Rise (and Fall?) of Insanely Predatory NFT-Based Games
Updated: Jan 23
Over the last few years, we've seen a fascinating shift in the gaming world with the emergence of NFT-based games.
These games aren’t just about playing and winning; they're about owning a piece of the game itself, whether that's a unique plot of digital land or some rare in-game gear, all thanks to the power of non-fungible tokens, also known as NFTs. Even big names in the gaming space like Square Enix and Ubisoft have thrown their hats into the ring, doubling down on their commitment to NFT technology.
This move certainly turns heads and begs a bunch of questions—are these NFT games really going to take off? Can they be profitable and still be fair to players? And what about the ethics of it all—how do we balance innovation with integrity in gaming?

NFT-based games represent a unique and revolutionary intersection of gaming and blockchain technology, where the unique assets players acquire and interact with in games are encapsulated as NFTs. On top of all of this, these games also prove to be quite profitable, too.
Drawing on data from a 2023 report by 360 Market Updates, the worldwide market for play-to-earn NFT games was appraised at $3.3 million in 2023. They’re forecasting a substantial growth trajectory for the sector with expectations for the market to expand to $8.8 million by the year 2030.
An NFT, distinct in its non-fungibility, is a digital token on the blockchain that represents a unique item or asset. Unlike cryptocurrencies like Bitcoin, where one unit is interchangeable with another, each NFT has a unique identity and cannot be exchanged on a like-for-like basis.
These games utilize NFTs within their core mechanics, rules, and player interactions. For instance, a character or avatar in an NFT game could be an NFT, offering a unique identity within the game world.
Similarly, items found or earned in-game—be it land, weapons, or attire—carry distinct, verifiable ownership, allowing players to trade, sell, or use them across various game environments, particularly in the metaverse. This deepens the gaming experience while also introducing a layer of economic interaction, with the play-to-earn model enabling players to gain real-world value from their in-game achievements.
Some NFT games even offer a "free-to-play" model that lowers the barrier to entry. For example, games like Gods Unchained provide players with initial NFTs at no cost, allowing them to start playing and potentially earn more valuable NFTs over time. This model democratizes access to the game while managing to introduce players to the NFT market gradually over time.
Several major players in the gaming industry are exploring this new frontier, with companies like Ubisoft, Square Enix, Sega, Nexon, and Electronic Arts investing in NFT and blockchain technology to develop games that leverage these emerging innovations. These studios are venturing beyond traditional gaming formats, creating everything from PC shooters and mobile games to multiplayer experiences in expansive metaverse settings.
When it comes to NFT-based games, certain titles have come under scrutiny for practices that many consider predatory, exploiting players' desire to compete and excel by encouraging continuous spending.
One such example is the game Evolved Apes, an NFT-based fighting game that became infamous for its aggressive monetization along with a significant scandal where the developer vanished with $2.7 million in investor funds, leaving players and investors stranded. This early incident highlighted the risks associated with the lack of regulation and transparency in NFT games.
Another case to take a look at is Axie Infinity, which, despite its success, has faced criticism for creating an economic model that potentially resembles a pyramid scheme in practice.
Looking at it a little more closely, players invest in purchasing Axies (the game’s in-game creatures) to battle and earn rewards. However, the game's reliance on continuous new player investment to sustain its economy has raised questions about its long-term viability and fairness, especially after significant drops in player earnings following an initial market saturation.
There’s also the CryptoZoo project that was spearheaded by influencer Logan Paul, which had attracted considerable controversy and claims of fraud, especially after an investigation by YouTube's Coffeezilla branded it a scam after uncovering alleged deceptive practices being implemented.
The backlash from the gaming and investor community was profound, prompting Paul to pledge $1.8 million from his funds for investor reimbursement, a gesture aimed at mitigating the fallout and restoring trust. Despite this, delays and reports emerged that investors had yet to receive the promised refunds, further tarnishing the project's reputation and Paul's credibility.
The backlash from the gaming community over such practices has been steady since the inception of NFT gaming, with players and critics alike raising potential concerns about the ethical implications of these monetization models. They argue that many of these games prioritize profit over player experience, exploiting the allure of earning real money and the novelty of NFTs to encourage continuous financial investment.

The discourse surrounding NFT-based games is rich with varied perspectives, especially from those at the helm of the gaming industry.
Leaders like Yosuke Matsuda, president of Square Enix, have been vocal about their bullish stance on NFTs and blockchain in gaming. Matsuda envisions a future where NFTs play a pivotal role in offering "new experiences and excitement to players," suggesting that these technologies could redefine user engagement and monetization in games.
Conversely, some critics within the industry argue that the incorporation of NFTs might detract from the core gaming experience, turning attention toward profit rather than player satisfaction. Some gamers and critics express concerns over the potential for NFTs to exacerbate predatory monetization practices, fearing a future where games are designed more for financial exploitation than entertainment.
Despite the criticisms, many within the industry defend NFT-based games, highlighting the potential for creating more immersive and personalized gaming experiences.
For instance, Enjin Coin (ENJ), a prominent player in the blockchain gaming sector, saw a price movement to $0.331966, marking a 3.25% change. This token is integral to the greater Enjin ecosystem, which provides a platform for creating and managing virtual goods across numerous online games.
Companies like Yuga Labs, the creator of the Bored Ape Yacht Club, have encountered their own respective challenges as they expand into new ventures like NFT games.
Despite the overall success of Dookey Dash, Yuga Labs' CEO Daniel Alegre admitted to facing difficulties with their game development overall, particularly with the HVMTL-Forge project. “While Dookey Dash was a fun game and experience, we have fallen well short of expectations with Forge,” Alegre posted on X late last year.
These situations help illustrate the complexities and hurdles even successful companies face when venturing into the innovative yet unpredictable world of NFT gaming.
The trajectory of NFT games continues to remain a topic of vigorous debate among many in the gaming industry.
While some view them as a fleeting trend, amplified by the novelty of blockchain technology, others see them as an integral part of gaming's future. The key may lie in how these games evolve to balance profitability with player satisfaction against potential ethical considerations.
Sustainable and player-friendly NFT games would require transparent mechanisms that allow players to genuinely understand the value and rarity of their purchases.
For example, look at Zcash, a privacy-focused cryptocurrency that has rapidly risen in value—jumping by as much as 30% in a single week.
Zcash offers enhanced privacy for its users through shielded transactions, and incorporating these privacy-focused features into NFT gaming could significantly enhance user trust and security. This type of integration may help attract a broader audience to the space by offering players and investors discreet transactions and ownership while setting a new standard for privacy in the gaming industry.
Thought leaders in the industry propose that for NFT games to be part of gaming's sustainable future, developers must first prioritize transparency, fairness, and player agency to ensure that games continue to remain enjoyable and engaging without coercing players into endless spending.
The rise of NFT-based games has certainly stirred up the gaming world, mixing excitement with a fair share of skepticism. Big names like Square Enix, Ubisoft, and Nexon are all betting big on this trend, yet there's a lively debate about whether these games are just a flash in the pan or have a real future.
At the heart of this discussion lies a key question—how do we actively balance this potentially cutting-edge tech with the need to keep things fair and fun for players? By now, it's pretty clear that as this new gaming frontier expands, the call for clearer rules and a strong ethical compass will only get louder over time.
With all of this in mind, game makers and industry insiders alike are being actively urged not to lose sight of what makes games great in the first place: the joy of playing them.
What are your thoughts on NFT-based games and NFT gaming as a whole? Have you invested in or played any of these games yourself? Let us know your thoughts and experiences in the comment section below.
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