Web3 Gaming Projects Using Airdrops as Band-Aids for Lackluster Products

Web3 Gaming Projects Using Airdrops as Band-Aids for Lackluster Products

Non-fungible token (NFT) gaming project Illuvium (ILV) founder Kieran Warwick believes "Web3 gamefi projects are using their token airdrops purely as a marketing tool because they don't have a good enough product to back it up. When the hype dies down, it's difficult to retain interest generated by the airdrop." Despite some pushback from gamers, game studios are likely to continue using airdrops and play-to-earn incentives to attract players. However, only games with sustainable tokenomics, transparent vesting schedules, and organic user acquisition will survive in the long run. Previously on April 22, 2024 - "Non-fungible token (NFT) gaming project Illuvium (ILV) founder Kieran Warwick told Cointelegraph that “Web3 gamefi projects are using their token airdrops purely as a marketing tool because they don't have a good enough product to back it up, and when the hype dies down it's difficult to retain the interest that was generated by the airdrop.” He added that “There is some pushback from gamers around tokenomics but it’s likely that game studios will continue to use airdrops and play-to-earn incentives to onboard players because it's one of the easiest ways to gain market share in the early days. Ultimately though, games that aren’t fun will still fail.” Furthermore, Shi Khai Wei, founder of blockchain-focused crypto investment firm LongHash Ventures, told Cointelegraph: “The crypto industry is used to subsidizing users to adopt. Now GameFi projects have airdrops, play-to-earn mechanisms, speculation, etc. Ultimately, only games with sustainable tokenomics, transparent vesting schedules, organic user acquisition and incentives aligned with good gameplay will survive."