How Games Die & How to Protect yourself

Play2Earn is very new, it is just a few years old in fact. Over the last year many new Play2Earn games have come out and many more are on the way. Here at IncomePlayer we study the Play2Earn Universe and try and find the best games that have the highest earnings and best future potential. The main trend that we are seeing in these Play2Earn games today is the pump and dump nature of these games. Let me explain.

In the beginning when a p2e game comes out, lots of new players start to join. They put up their hard earned money and buy NFT’s these NFT’s allow the player to get some kind of coin in exchange for playing. This play action can be pressing a button to mine, farm, or fight a PVP battle with the winner earning a coin. As more and more players join the game more coins are given out. In the beginning of the game, if it is popular, the prices rise. This is because the supply is still low and many new users are joining. At some point the supply demand flips and prices crash. The initial surge in new players will eventually stop or slow down. This happens in ALL games. Any Play2Earn game that requires new players to join to keep prices going up or from falling will face a problem. No game will grow forever. At some point the game gets a stable user base and just stays going along. But if these players keep crafting and mining, eventually the amount of resources will rise very high, and the price will fall. Most of the time this will happen fast. This price crash drives prices to zero creating massive losses for players that purchased NFT’s at higher prices, getting them wiped out and loosing lots of money.

The risks of loss in Play2Earn is very high. Most players loose money and it can be very hard to earn high profits from these games. If you get in early and are white listed or are playing on the first few days the game opens and the game does well, then good profits can be made in the first few months of the games launch before prices crash.

Buying hundreds of dollars worth of NFT’s is very risky because you have no idea if the game will do well and if prices will rise in any significant way in the first stage of its opening.

Anyone that wants to play any play to earn game should only play with money they know they can loose. These games can earn crypto coins and they can be fun, but remember the risks are very high and the returns can be very low. Luck 🍀 makes only a handful of games come out on top and earn players profits. The long term of those profits is also limited. Right now most games need new players to keep prices stable and stop prices from going to zero. The best way to stop prices from crashing is for the game to have a strong burn method for the coin, a second outside demand for the coin that uses or burns up as much of the supply as is being mined or created. This burn is part of the game play and is not connected to new players joining.

When looking for a game to play, look first for what plan the game creators have hey for burn mechanics and how well thought out the plan for burning extra coins are. If the game project have no mention of burning coins or no mention of some way to balance the extra coins that are being created, it is best to stay away. ( No Burn = Cash Grab) If the game does not have a strong burn mechanic the prices of that coin will always drop to zero. A good example of this is the popular Farmers World Game.

As you can see from this price chart of wood, ( FWW ) in the Farmers World game, has had a nice run in the early stage of the game. This was because many new players were joining and supply was low. At the time there was less then 1,000 chainsaws creating 1,200 FWW wood per day each. Today at the time of this post players have crafted 110,900 chainsaws pumping out 133,080,000 wood per day. The market has no way to absorb that much new wood or crafted chainsaws every day so prices fall and fast. They keep falling every day now. Farmers World dev team can save the game by creating new token economics and changing the game play to burn these extra coins, but for now that is not what is happening. Most of the players we know who play this game have lost money in some cases very large amounts of money. Only a few players are playing near break even or earning smaller amounts. As prices keep dropping their earning keep going down so it get harder and harder to earn even if you are lucky enough to be in profit in the game.

We tried to reach out to the Farmers World team on Discord and try and talk with them about their plans for the game so we could tell all of our readers about it and help to support them, but they banned us ! Typical bad behavior seen mostly in scam projects. The creators of the game make money off commissions so they have no big incentive to change the economy of the game as long as it still makes them money. The only incentive would be to support the players who try and earn a living from the game or who have lost money. There are unfortunately many games just like farmers world at the moment that have seen massive price drops down near zero. Please be very careful with these game.

On a positive note there are many new game coming out trying to solve these problems. They have good plans for burning and creating a long lasting stable price for their game. They are new and risky, but we think these problems will be solved someday. We will be following them as these new games grow and we will be reporting back to you here. Stay safe out there and keep playing. 😎

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