In April this year, when Dream Capital – the investment and consolidation and acquisition (M&A) arm of Dream Sports – invested in a cricket non-fungible token (NFTs) platform, Rario, set the tone for the next level of growth in the gaming industry. According to Deloitte’s 2021 report, the Indian online gaming industry is expected to grow at a compounded rate (CAGR) of 40% to $ 2.8 billion in 2022. Through NFTs, gamers gain ownership of in-game resources through use. Ramkumar Subramaniam, co-founder and CEO of blockchain technology, told GuardianLink, an NFT start-up, FE Digital Currency. “In addition to the option to trade in-game assets, NFT-based games reward gamers with a play-to-earn option. Web3.0 games are more progressive than Web2.0 games, ”he said.
Note that NFT games are much more than just a crypto-collectible collection in a wallet. These games are back through player interaction, avatar and weapon purchases, and the play-to-earn model. This model allows gamers to earn money from NFT games. According to industry experts, NFT is in its infancy in the gaming industry and is expected to grow in the coming years as blockchain-based gaming projects are built. “We expect revenue growth from NFT games to increase in the next three to four years. As far as India is concerned, I believe it has the potential to build an industry around NFT games, “said Abhay Agarwal, founder and CEO, Colexion, an NFT marketplace.
According to industry observers, NFT gaming is expected to capture 10-20% of market revenue in the coming years. The Indian NFT gaming industry, which is still in its infancy, is expected to grow at a CAGR of 40%. The report found that young people are looking to invest in games that earn a living as a source of passive income. “Certain exchanges allow users to convert their NFTs into cryptocurrencies, which is expected to contribute to the growth of the NFT gaming market,” said Gaurav Mehta, CEO, Catax, a tax consultancy firm.
For Internet business expert Sridhar Prasad, NFTs in gaming will be the most complex, difficult to control, yet the most transformative development in the near future. However, according to him, it requires clear control and transparency for a large country like India where there is an inherent fear of losing (FOMO) in adopting new models among digital youth. “The value of a developer and a gamer’s creative element can go to the real world for trading outside of the game. With almost anything capable of becoming an NFT, there will be a greater attraction for gamers to take it as a serious financial model, only in the case of game shopping and commerce which was the previous model, ”added Prasad.
Industry experts expect that the NFT gaming industry in India will have around 500 million users in the next few years. These games are usually built on the back of a play-to-earn model. This gives players the opportunity to earn money while playing. Additionally, gamers can monetize in-game purchases by buying and selling in-game NFTs or by meeting targets in exchange for cryptocurrency rewards. Usually digital currency is used to trade in a blockchain marketplace, which acts as an auction house. It is believed that as a business, NFT games are a win-win for both developers and players because it allows the former to earn from their creations while the latter earn cryptocurrency by playing the game. “The Indian market can be built around NFT games. In terms of population, which consists of the younger generation, I think an economy can be built around the online gaming industry. Since these games do not require high internet bandwidth, Indian gamers can access the servers without any problems, “says Subramaniam.
Probably a factor as to why they’re doing so poorly. Rario has raised $ 120 million in one round led by Dream Capital. The strategic alliance is expected to give Rario access to the 140 million user base of Dream Sports and its partners Dream 11, DreamsetGo and Khelmore.