According to Yat Siu, co-founder of Animoca Brands Corp., which owns the majority of the digital game, The Sandbox, a blockchain-based virtual world, is doing well.
Despite a report that the platform had only about 500 daily active users, this is the case.
The Sandbox, which has considered raising capital at a valuation of more than $4 billion, would be surprised by the small number of users.
Siu stated in a Thursday interview with Bloomberg at the TechCrunch Disrupt conference in San Francisco that the CoinDesk report was based solely on blockchain transaction data.
He stated that these transactions, which can include the sale of nonfungible tokens representing virtual land, do not indicate how many people are using the platform as a whole because more people are keeping their NFTs in order to use them in the game rather than selling them.
Comparing this metric to the population of the United States, he said, would be like saying “the number of traders on Wall Street is the size of the American population.”
He stated that more than two hundred thousand people use the Sandbox each month.
According to Siu, the number of jobs created on the platform and the revenue generated by the game are better indicators of how engaged users are with the platform.
Additionally, Siu discussed the Animoca-backed virtual game Axie Infinity.
The game developer Sky Mavis’ blockchain-based platform, which allows players to breed and battle monsters represented by NFTs, was hacked for $620 million in March.
Since then, both the price of the game’s crypto tokens and the number of its users have plummeted along with the market for digital assets. There have also been negative comments made about how the game makes players feel.
Siu asserts that many gaming companies are likely envious of Axie Infinity’s position, particularly given the company’s billion-dollar reserve.
Nevertheless, he claimed that Axie Infinity was comparable to Angry Birds, a Finnish mobile game that became immensely popular in the early 2010s.
Even though Axie Infinity demonstrates how blockchain gaming could be utilized, similar to how Angry Birds demonstrated how mobile gaming could be utilized, he does not believe that it is the future of blockchain gaming.
Siu stated that blockchain games have been less affected by the crypto winter than the rest of the cryptocurrency industry.
The recent $110 million fundraise for Animoca, in which Temasek Holdings Pte., Boyu Capital, and GGV Capital all participated, was a flat round, whereas other crypto companies are seeking funding rounds at lower valuations. In addition, he mentioned the possibility of beneficial new Hong Kong regulations for the industry.
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