Recently, the Web3 gaming sector has been extremely hot. To explain what blockchain games are, simply put, it's about transferring traditional gameplay to the blockchain, allowing players to earn while playing. But many people still don't quite understand how to invest, what to invest in. So I’ll help clarify the ideas.

First, let's talk about the ecosystem composition of blockchain games. The entire sector revolves around a few core components. First are the game public chains, like IMX and Ronin, which provide infrastructure support for blockchain games. Next are the blockchain gaming guilds, which initially were just player communities. With the rise of the play-to-earn model, they gradually evolved into profit-making organizations, engaging in NFT rentals, game boosting, skill training, and other services. Examples include YGG, GF, and Ancient8. Some have even grown into investment firms. But ultimately, the core of blockchain games remains the game itself.

Currently, blockchain games come in all types. RPGs and FPS games are the absolute mainstream, with the most intense competition. Many AAA productions fall into this category, requiring large teams, AAA-level experiences, and substantial funding to enter, which makes it easier for hit titles to emerge. Examples include RPGs like Seraph and Bigtime, FPS games like Matr1x Fire and Shrapnel, all following this logic. Strategy and sandbox games have fewer players, with titles like Heroes of Mavia and Pixels, which have relatively smaller market sizes. Simulation and card games are even more niche, with the lowest explosive potential. If you're looking to make quick money, focusing on RPGs and FPS is still the way to go.

So, how do you judge whether a game is worth participating in? I’ve summarized three core indicators. First is the funding scale: if a project has raised over $10 million, it indicates decent fundamentals and enough capital to ensure game quality. Second is the founding team: since most blockchain games are copies of Web2 gameplay, lacking innovation, the focus shifts to storytelling and execution. Ideally, the team should have over five years of game development experience or have achieved significant success in Web2. Third is the game quality itself: for games without a strong background, quality must reach AAA standards to attract players. Such projects are difficult to run away from because they require high development difficulty and large capital consumption. If a game has any two of these factors, plus good playability and community buzz, it generally has the potential to become a hit.

Next, let's talk about investment methods. The simplest is directly buying tokens—waiting until the project’s tokens are listed on exchanges to enter. The risk is moderate, but keep in mind that over half of blockchain game tokens are generated within the game, so secondary market buyers are essentially speculating on the game’s player base. Buying NFTs might seem to have larger upside potential, but liquidity is poor, and if the project fails, they could become worthless. Plus, NFTs are limited in quantity, with high investment thresholds and scale restrictions. In terms of cost-effectiveness, buying tokens is generally better than NFTs.

The most interesting method is participating in “gold farming” (playing to earn). This offers the highest expected returns with the lowest risk, especially during testing phases when player numbers are low. Early participants can often earn dozens of times their investment, through token yields, NFT appreciation, airdrops, and revenue sharing with the project team. But high returns are always for a minority. Participation difficulty increases proportionally with expected gains. You need to assess the project’s prospects, develop a gold farming strategy, and finally invest enough time and gaming skills to execute it. That’s why some Layer 2 chains can have hundreds of thousands of active users early on, but blockchain games only attract a few thousand participants—most investors lack the research ability, don’t know how to play, or simply don’t have the time.

So, what is blockchain gaming? In essence, it’s a multi-dimensional, highly participatory investment field. It’s not just about buying and selling. To truly profit in this sector, you need to put in effort to research and practice.