The craze of NFTs has seen digital art pieces sell for millions as a growing number of investors seek to invest in non-fungible tokens. Online blockchain-based games have utilized NFTs as a method to draw gamers in.
A recent example of this success is found with My Neighbor Alice ($ALICE) who’s token price rose 60,000% on Monday after being listed on Binance. With the token’s surge in price, the market cap of the ALICE token exceeded $1 billion. Currently, there are 17 million tokens in circulating supply and a supply cap of 100 million.
Today the token has lost some momentum, now trading at $17.16. The point here is to discuss how this team is using NFTs and DeFi to drive success for their game.
My Neighbor Alice allows players to buy and own virtual property in the game, similar to another game known as Decentraland. The design itself resembles that of the popular Nintendo game, Animal Crossing, where players care for their property, craft items, trade, and interact with other community members.
The difference here is that all items and assets purchased are NFTs, meaning they can be traded outside of the game. A major benefit to owning NFT game items is that the item(s) are completely the player’s property. They’re free to do what they wish with it even when they aren’t logged in.
Players can use ALICE tokens to purchase in-game assets and participate in platform governance. This gives the game’s community the power to vote on development decisions and proposals. ALICE tokens can also be staked giving stakers a percentage of platform revenues as a reward.
Your friendly neighborhood NFTs
The way My Neighbor Alice utilizes NFTs to power the revenue system of their game is unique. Not only are individuals the owners of digital items but they can rent them out to earn interest.
As an exclusive promotion, the game’s team held a campaign where 255 farm animal NFTs were up for adoption. More NFT-focused promotions and community events are likely to come in the future.
With NFTs playing a major role in the game’s ecosystem and promotion, My Neighbor Alice really knows how to use them to leverage their marketing. As NFTs continue to grow in popularity you’ll likely begin seeing more companies use similar promotional tactics.
Is this a worthy investment?
Investors should keep a close eye on the tokenomics and business plan of any blockchain-based project. Ultimately, a project’s purpose should be to help fix an existing problem in the world.
ALICE is an in-game token that is native to the game. These tokens can only be spent on digital items in the game itself. So there aren’t too many usages for the ALICE token outside of the digital world.
On the other hand, the NFTs in the game might be worth your time. My opinion is that NFTs are here to stay and that means there’s a chance this game’s NFTs may appreciate in value.
Plus, the items themselves can make for nice little collector’s items.