Senior Crypto Official Explains Why GameFi Is So Popular Right Now – And Lists 2 Reasons Why Play To Win Games Like Axie Infinity Are Taking The Market By Storm | Currency News | Financial and business news

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Winning games like Axie Infinity allow users to earn real money by earning tokens, creating NFTs, and selling them.

Infinite Axis

“GameFi” could transform gaming business models and fuel the digital economy, according to Jeff Mei of Huobi. Investors are motivated by the rapid use of decentralized finance and the enthusiasm for making money with NFT games like Axie Infinity. With a $ 10 million fund, Huobi aims to evolve startups working on GameFi – or blockchain-based games embedded in DeFi mechanisms.

GameFi is one of the hottest technologies in the crypto ecospace, and early investors can expect game-related collectibles to fuel virtual economies, according to Jeff Mei, director of global strategy at the Huobi crypto exchange.

“Users want the most popular, innovative, creative and promising assets in the market,” he told Insider in a recent interview.

GameFi, the intersection of decentralized finance and the gaming industry, is catching the attention of the crypto community and the industry’s biggest gaming guilds.

The business model allows players to get a share of the dividends generated by the development of the game, their most common characteristic being “play to win”.

Mei explained two reasons for its rise: the evolution of financial mechanics in games and the fact that users like to make money while playing.

He said Huobi, which has a $ 10 million fund dedicated to emerging GameFi projects, is invested in mentoring and incubating several early stage projects because “it’s going to be a very dynamic industry.” .

Huobi’s fund will support GameFi early stage projects to make an impact in the blockchain world, through marketing and PR support, financial and legal advice, and presentations to potential partners.

“Our investment teams and our research teams are working tirelessly to find these products,” said Mei. Supernova, Immutable and Rangers Protocol are some of the first projects funded by Huobi’s investment arm.

Jeff Mei, Director of Global Strategy at Huobi.

Huobi

“We want to help users find the best projects that could be of value, the best projects that could have some type of innovation, some type of rapid adoption,” he said. “There are so many projects out there that are ‘vaporware’ – they’re bogus. They just want to make money and get away.”

Huobi, which was founded in China in 2013, no longer operates in its home country. The exchange is now looking to expand its presence in countries with high crypto adoption rates and a large base of retail traders, including India, Vietnam and Turkey.

Mei explained that the rationale for Huobi’s expansion strategy, which appears to be concentrated in Southeast Asia, is that GameFi has huge potential in the region. “We’re going to be focusing a lot on more retail uses,” he said. “For example, in Vietnam right now, one of the most popular GameFi projects is Axie Infinity.”

The Ethereum-based game, created by Vietnamese developer Sky Mavis, saw its daily active users surpass one million for the first time in August, just three years after its launch.

The main characters in the game are axolotls called Axies, which are non-fungible tokens, or NFTs, which can be sold or bought.

NFT collections have grown this year, driven by the growing demand for games to be won, or as some call it – GameFi. The NFT market reached a record revenue of $ 2.5 billion in July 2021, down from just $ 13.7 million in the first half of 2020, according to NonFungible.com. Huobi is expected to launch its own NFT marketplace in November.

This boom comes from the emergence of Layer 2 scaling solutions for ethereum, which allowed crypto enthusiasts and Web 3.0 players to trade and create NFTs without exorbitant transaction fees.

“The game has always been hot in Southeast Asia, for example Korea and Japan. It’s the kind of region we want to go,” Mei said.

While Huobi himself builds unique projects, he primarily tests the waters with new, cutting edge players.

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