Since Axie Infinity exploded around the world in the summer of 2021, the GameFi (or NFT game) development craze has never exploded in Vietnam. From long-time game studios, or even teams with no development experience, are aggressively calling for investment capital and recruiting personnel to launch “made in Vietnam” GameFi projects in the second half of 2021.
“Although there are no complete statistics, the number of GameFi projects launched every month from game developers in Vietnam often accounts for a larger number compared to projects implemented by foreign game developers. That’s not to mention the foreign projects that the Vietnamese are behind. It can be said that just doing GameFi will definitely make a profit, even a huge profit if it attracts many users and investors. Therefore, more and more GameFi Vietnamese projects are born“, Nguyen Hoang L, an experienced GameFi investor in Hanoi shared.
Besides Axie Infinity, Vietnam can be considered a “cheeky” country in terms of developing GameFi projects in 2021.
Worth mentioning, besides very successful projects, there are still a large number of Vietnamese GameFi projects that have encountered a series of scandals in operation. These include tricks such as secretly ‘stealing’ a large number of tokens to the market in a short time, drastically reducing the value of the token. More seriously, some development teams even show signs of fraud by withdrawing liquidity (rug pull) and fleeing, causing investors heavy losses.
This not only worsens the image of Vietnamese GameFi projects in the eyes of domestic investors, but can also affect foreign investors from countries such as China, Korea or other countries. South American country.
Foreign investors are fleeing from many GameFi Vietnam projects?
According to data from PooCoin Chart, a series of prominent Vietnamese GameFi projects belonging to the click-to-earn line (click to receive tokens) similar to CryptoBike are witnessing a very strong sell-off wave of investors in recent days. this.
For example, the value of CGAR (the token of the CryptoGuards project) is currently ‘deeply sinking’ when it has plummeted 5.3 times compared to the ATH (all-time high) mark set on December 27. Like CryptoGuards, the other 2 projects, CryptoCars and CryptoPlanes (both belonging to a large project, CryptoCity Metaverse) have both decreased by 15 times and 14 times in token value compared to the ATH mark. Some long-time investors believe that these projects may have been ‘spoiled’ from CryptoBike, which is said to have ‘followed’ the name of this trio of projects while not at all related in terms of developers together.
The price chart of CGAR (the token of the CryptoGuards project) is currently ‘deeply sinking’ when it has plummeted up to 5.3 times compared to the ATH (all-time high) mark set on Dec. screen)
Similarly, CryptoShip, another click-to-earn GameFI project with a similar name, is also experiencing a sharp drop in token value (CSHIP). From the peak of ATH $ 1.3 on December 22, 2021, the CSHIP token is currently trading at $ 0.16 today on January 4, 2022 – which has decreased by 8 times in value after 2 weeks.
According to some experienced investors, the domino-style plunge of a series of Vietnamese click-to-earn games can be traced back to the CryptoBike incident.
“The event that the CryptoBike development team performed a trick to appropriate $1.4 million and then disappeared is creating a FUD (Fear – Uncertainty – Doubt) psychological effect to come. majority of investors put money into similar projects developed by Vietnam. Among these, there are a lot of foreign investors“, an unnamed employee at a GameFi project in Hanoi shared.
Of course, this only stops at speculation, when there is no clear evidence or data that foreign investors are actually withdrawing capital from Vietnamese GameFi projects. In fact, except for some click-to-earn games, some of the top GameFi projects that are carefully invested in gameplay and gameplay are not affected too much by the CryptoBike incident.
However, it is cases like the above that are invisible, causing some “real business” blockchain projects in Vietnam to be significantly affected in terms of public opinion.
“The fact that a number of GameFi projects from Vietnam has caused a loss of confidence in public opinion is significantly affecting the communication campaigns of a number of blockchain projects developed by Vietnamese people, which are invested very seriously. Although these upcoming projects aim to bring the greatest value to users and are not after short-term profits, pre-existing prejudices can make the international community feel shy even when the investment decision has not been made“, said Mr. Canh Ho, Vietnamese co-founder of VerseHub, which is developing a Metaverse-oriented 3.0 social networking project called NextVerse.
GameFi (short for Game + Finance) is a term that refers to blockchain games that incorporate a financial element. Information about cryptocurrencies (cryptocurrency), commonly known as “virtual money” has not been recognized by law in Vietnam. The information in the article is for reference only and has no investment recommendation value.
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