Billionaire Shark Tank star Mark Cuban considers how blockchain-based play-to-earn (P2E) games can boost their economy.
In a new interview with Bankless, the Cuban investing in Axie Infinity (AXIE) says the game needs to find a business model that generates enough revenue so that it can incentivize its users in a sustainable way.
“I told them if you can’t create enough economy, you can create productivity, which means you have enough users to sell ads, sponsorships and NFTs [non-fungible tokens] and earning income from all these things to buy the SLPs and the tokens, the Axie tokens from users, which means it’s earned to buy them, then you will face problems.
In Axie Infinity, users breed, trade, and fight creatures called Axies. The game supports two crypto assets: AXISthe game’s native token, and Smooth love potion (SLP), this is the token needed to breed new creatures. Both AXS and SLP have both fallen massively from their all-time highs.
At the time of writing, AXS is trading at $17.63, down almost 90% from its all-time high of $159.76. Meanwhile, SLP is currently valued at $0.004, down 99% from its peak of $0.36.
Cuban says there’s still hope that play-to-earn games like Axie Infinity will revitalize their economy.
“So we went from play-to-earn as this great thing, and it’s helped people in the Philippines to be like, ‘okay, it’s barely holding out.’ And as far as I know, no new play-to-earn platforms have become successful.
If Axie had gone in, and they still can, and I hope they do — even though I’m an investor, I don’t really have that kind of connection with them to tell them what to do. If they’re out there selling ads and sponsorships and taking that money and buying tokens from the people that are playing to make money so the economy gets replenished, that works. If I buy one of these NFTs, you take my money and buy some SLP.”
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