What happens when an NFT game ends?

As the crypto and NFT industry has grown exponentially over the past few years, new niches have opened up in the market including NFT or play-to-earn crypto games. And while it may seem like a dream come true to win and have fun, there are several risks associated with these new types of games.

One of the most worrisome possibilities is the possibility of an NFT game shutting down completely. So are the players left empty-handed in this case, or is there a more hopeful alternative?

What is an NFT game?

Before we dive into the specifics of shutting down an NFT game, let’s recap what they are.

NFT (or play-to-earn) gaming involves the use of NFTs as an in-game currency. While many traditional games have in-game currency that is entirely fictional and has no real-world value, NFT games offer players the opportunity to make money by buying and selling non-fungible tokens as they progress.

These games often have their own native tokens as well. Take Axie Infinity for example. This hugely popular play-to-earn NFT game has two native tokens, Smooth Love Potion (SLP) and Axie Infinity Token (AXS). SLP is earned by farming in the world of Axie Infinity, while AXS can be earned by climbing the player leaderboard.

Additionally, each character in the game (known as Axie) is an NFT in their own right. These have different characteristics and prices and can be bought and sold on third-party marketplaces such as OpenSea. But there is a significant risk that every player takes when investing money in an NFT game like Axie Infinity. As with all games, there is always a chance that a specific NFT game will be shut down.

The instability of NFT games and projects

At the moment, the NFT gaming industry is still in its infancy. Mistakes are regularly made by developers and players alike, so it’s not surprising that a number of NFT games are shut down or canceled even before launch.

Given that NFTs are quite controversial, many companies have received significant public backlash after announcing a new NFT game or adding NFTs to an existing game. For example, British game developer Team17 received a lot of buzz in early 2022 after announcing its new NFT project MetaWorms in conjunction with its hit Worms game series.

As you might have guessed, this wave of backlash caused the developers of Team17 to abandon the MetaWorms NFT project, and it may be some time before we ever see them delve into the world of decentralization again.

Thankfully, while canceling projects before they start can take a chunk out of a company’s wallet, no players or customers are left in the dark. However, when an NFT game already has a player base and then pulls the plug, things can get a bit messy. We saw that in April 2022 with Formula 1’s Ethereum-based NFT game.

The official F1 NFT game is shutting down

In 2019, Animoca Brands, a Chinese game software development company, launched F1 Delta Time. Of course, F1 Delta Time incorporated racing into its gameplay, but the cars themselves came in the form of NFTs.

As the game grew in popularity, so did the prices of the NFT cars. In 2020, an NFT produced to celebrate Formula 1’s 70th anniversary sold for a whopping $265,000. Another sold for a staggering $288,000, although it’s believed the price hike was fueled by the fact that the proceeds would be used to help Australia’s bushfires. In any case, it is safe to say that the F1 Delta Time NFTs have become valuable assets with players pouring huge sums of money into the game.

But it is important to remember here that Formula 1 did not develop this game itself and it is a different product than watching F1 live. Animoca Brands had to license the F1 brand for the game and all licenses have their expiry dates. It is the expiration of Animoca Brands’ F1 license that led to the announcement of the game’s closure on March 16, 2022.

The closure of a popular game is always unfortunate, but things get much more complicated when players have already invested hundreds of thousands of dollars of their money into the game. Because the value of NFTs is subjective and often dependent on exclusivity and demand, the closure of F1 Delta Time put its players in a very risky position.

By the time F1 Delta Time closed, all of its NFTs became worthless as their value depended entirely on the game itself. So what should players do after sinking thousands into something that is now worth nothing at all?

Well, Animoca Brands knew they couldn’t just pull the plug and move on. Compensation had to be given to players to avoid widespread backlash and potential legal action. So the company announced that they would “ensure that current owners of F1® Delta Time assets are rewarded for their loyalty and support”. But what exactly is it all about?

Well, Animoca Brands has listed a few ways their players are now being compensated, including issuing spare cars to be used in other games, exchanging your NFT car for airdrop access or a “Race Pass” and exchanging others Delta time properties for proxy assets. These assets can be used to purchase future NFT products within Polygon REVV ecosystem.

Of course, most players would prefer compensation in the form of a refund, but it doesn’t seem like that’s part of the Animoca Brands process. In short, the closure of F1 Delta Time is a lesson in how unpredictable the NFT world really is.

NFT gaming can be lucrative, but it’s not a sure thing

Everyone has read stories about ordinary people who became millionaires overnight by buying and selling NFTs, and NFT games make that process so much more interesting and interactive. But the NFT market is not on solid ground. There are still many opportunities to lose money in this industry and NFT games are not exempt from this risk. This is why it is so important to be extremely careful when investing money in an NFT game.

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