Crypto airdrops have become a staple for GameFi executives eager to establish a large player base. Despite their popularity, these strategies increasingly face scrutiny due to their limited impact on enhancing gaming experiences.
These initiatives highlight the critical challenge of aligning player incentives with sustainable game development.
GameFi Founders Discuss the Challenges Around Crypto Airdrops
Kieran Warwick, the founder of Illuvium, candidly shared in a recent interview that crypto airdrops are a very easy way to get market share. However, Warwick quickly noted a significant flaw in relying heavily on these tactics.
“The problem with that is if you’re using it as a marketing tool and you don’t have a good product to back it up, then your retention is abysmal,” Warwick said.
Read more: What Is GameFi?
GameFi initiatives, such as Illuvium’s recent release of 200,000 ILV tokens—valued at approximately $25 million—for its Play-to-Airdrop initiative, underscore the scale of these efforts. Yet, these approaches often fail if the gameplay doesn’t capture long-term player interest.
Shi Khai Wei, founder of LongHash Ventures, echoes Warwick’s sentiment, emphasizing the importance of fun in games.
“Crypto is very good at acquiring users because of incentives — we have airdrops, play-to-earn mechanics and speculative elements, but to keep the players there, you need to have fun gameplay,” Wei stated
Furthermore, GameFi is still in its infancy, believed to be roughly 14-15 years behind traditional gaming. Nonetheless, Warwick is optimistic about the rapid innovation within blockchain, which he believes outpaces traditional gaming.
Warwick emphasized the influx of talent from mainstream gaming studios to blockchain projects, which aids in the rapid development and potential maturation of blockchain gaming.
Additionally, platforms like Saga and Pixels are attempting to redefine the role of crypto airdrops. Saga’s “Power-Level Over 9000” campaign and Pixels’ recent 20 million PIXEL token airdrop are strategic moves to engage users more deeply by incentivizing participation with potentially valuable rewards.
Read more: Top 7 Metaverse Games to Play in 2024
Since its Binance listing on April 9, Saga token has been down by over 44%. Some airdrop beneficiaries might have also contributed in the selling pressure.
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