Gaming company Animoca has achieved a record in its Q1 revenue, which may have something to do with its introduction of blockchain to its platforms
Blockchain gaming company, Animoca Brands, recorded an unaudited revenue of $7.34 million in the first quarter of 2020, thanks to record-breaking support from its customers
By incorporating blockchain technology into its game through non-fungible tokens (NFTs), the company may have created additional appeal in the market. By the end of the first quarter, Animoca Brand has been able to save up more than $6 million in fiat and crypto.
The use of NFTs in gaming is still new, but with this success, more companies may be willing to incorporate the technology into their platforms.
What is a NFT?
A Non-Fungible-Token (NFT) is a special kind of crypto. Each token holds unique information that only it will ever have. Unlike traditional cryptos, which are fungible, any token of a specific type can be substituted with one of the same type.
CryptoKitties was one of the first games to test this concept – it involves breeding, collecting and selling virtual cats or Cryptokitties. Each cat has a specific identity and genetics that are coded into an NFT, and then sold to other players. Ownership and transactions for CryptoKitties are tracked via the Ethereum blockchain.
The evolution of blockchain trading games
Animoca took the NFT gaming concept and ran with it. Next, they developed The Sandbox (TBS), a game where players could purchase ownership of unique play areas through a token called LAND using ETH.
Players reacted extremely well to the new technology. The presale of LAND in March was over in nearly 30 minutes and completely sold out 5 hours later with 12,384 pieces sold.
So far, three TBS LAND presales have happened with overwhelming support from the crypto community. The gaming community appears to be eager to use blockchain technology, and there may be more projects in the pipeline.
The excellent implementation of blockchain into gaming by Animoca Gaming caught the attention of many prominent gaming companies, most notably Square Enix.
Square Enix seems to have recognised the potential of blockchain gaming, reportedly invested in Animoca Gaming.
Sebastien Borget, the COO of TSB Gaming, commented:
“The Sandbox is a pioneer in the space of blockchain gaming, NFTs, and true digital ownership, and we are thrilled to have Square Enix with us as a strategic investor, supporting our ambitious vision of building the Metaverse where Creators can make games on their LANDs and trade ASSETS on our marketplace in a totally decentralized manner.”
With companies like Square Enix backing this technology, we will likely see not only investment by large gaming companies, but also the implementation of blockchain into popular titles.