They're really just ponzi-schemes built around staking NFTs. They go like this.
- Game 'developer' sells $1m vs of NFTs - pockets $.
- Game developer creates a token, where he holds 40%, presells 10%
3)Developer takes proceeds from token 'presale', and uses it to create a LP. LP includes 10% of the entire token supply, against about $10k.
- Token 'launch', pelbs FOMO in, pumping the token up 1000%, because the LP is tiny compared to total supply outstanding.
- Game either launches or does not. Either way, the developer dumps entire stack of tokens wherever they perceive to be the 'top' (which is pretty easy considering no one else holds such a massive amount that could harm the market)
- Selling just half of their tokens into a LP with now just 5% of the total supply of tokens (pelbs fomo'd in - injected cash, took the tokens) = crashes the token value by 90%.
- Everyone wonders what happened. Developer says, "I dunno, only sold half our tokens to fund development".
- Updates slow to a halt over the following months.
I researched and invested in games when it was popular. A lot of the BNB games. I would never try investing in a bnb or polygon or any game besides HIVE anymore. Either going to be a scam, or if legit, way over-priced. Even if it is legit, there will be disappointments. Only people issuing the token will make $ next time around.
People with the bots are even keen now. They 'snipe' launches. I was told these people actually own like nodes, and they basically front-run. When a token with hype is released, they get in first lol..
I remember unlike terracore so many games with 0 proof of any ability to make a game. Anonymous devs. No product. A white paper filled with hope. An awesome website. They were selling dreams with cool looking websites.
I couldn't believe what people bought into. So many pumped 'games' where the ones doing the token sale didn't even know how to program. They were going to be the 'boss' of development LOL
90% of the time, they paid someone to make the website for them...it was insanity!
