The dApp ecosystem is growing day by day with many dApps built on various blockchains. Ethereum, EOS and TRON are the most popular platforms for dApp development.
Blockchain games are popular types of dapps in which users play the game and own crypto collectibles. Just like cryptocurrencies, users can buy and sell crypto collectibles and make quite a bit of money by trading them.
Well, what is the difference between cryptocurrencies and crypto collectibles? How to value crypto collectibles?
Crypto collectibles vs cryptocurrencies
Just as most people are interested in coins and fungible tokens because of their large movements in price, the first thing that attracts many people’s attention to the blockchain games is the value of crypto collectibles.
Since the value of most coins and fungible tokens are set by the market through supply and demand, owners of those digital assets don’t need to care about valuing their assets.
On the other hand, as each crypto collectible is a unique, non-fungible token, the valuation process is not that simple and automatic. It requires many different factors to be considered by the owner of the collectible before putting them on the market.
There are solutions for difficulty of pricing as well. For instance, all crypto collectibles on OpenSea are biddable regardless of whether they are on sale or not, so sellers don’t always need to price their items.
How are crypto collectibles valued
Without considering any specific blockchain game, there are basically two main factors for the valuation of crypto collectibles. One is rarity and the other one is utility.
For crypto collectibles, the most important attribution today is obviously rarity. Rare collectibles of blockchain games are valued at much more higher prices than non-rare ones.
Considering traditional, centralized games, rarity seems to be among the most important factors in terms of the value of crypto collectibles in the future as well.
From this point of view, being one of the first adopters of blockchain-based games or participating in presales of the games to get rare genesis collectibles can be a good move for both players and those who are only interested in making profit from collectibles.
Of course, this is also a risky decision. If the game does not succeed, that how rare items you have in that game will be of no importance at all.
Besides, it is not that simple. Once you get a rare crypto collectible, it does not mean you can sell it for a high price or it will sustain its value in the long term.
Several factors such utility of the collectibles, that is, how you utilize a specific collectible in the game and even the community of the game can cause some rare collectibles to be less or more valuable.
CryptoKitties, one of the first and most popular blockchain games, is only one year old. Many other blockchain games such Blockchain Cuties are very new.
But they are developing and growing quickly considering Blockchain Cuties’s integration with TRON after EOS. Therefore, the main and sometimes only important factor regarding the valuation of crypto collectibles is rarity.
However, rarity can be a misleading factor. If a rare collectible does not have a significant advantage in the game or such fact is realized later with the launch of the game, its value may drop significantly (may not as well).
Today, before the launch of a blockchain game, rarity is the most important feature because there is no other factor that can be taken into account for the valuation of the collectible.
Why are some crypto collectibles rare? Because they are probably more useful, but rarity may not be associated with the utility. A collectible can be valuable just because it is rare depending on the game.
As blockchain games evolve and go mainstream, game dynamics may dictate the value of collectibles, but rarity will no doubt remain one of the most important factors for the value of collectibles.
Therefore, focusing on the game rather than crypto collectibles and being a good player can be a better strategy for long-term success in blockchain games.
Check out the article below for the most popular blockchain games and learn how to make money with dapps:
The best cryptocurrency wallets to store crypto collectibles
You can view and manage your crypto collectibles (ERC-721 tokens) on cryptocurrency wallets such as Coinbase Wallet, MetaMask and MyEtherWallet (MEW).
The best way to securely manage and transfer cryptocurrency wallets is using a hardware wallet like Ledger Nano X or Trezor Model T.
Both Trezor Model T and Ledger Nano X can be used in conjunction with MetaMask and MEW, which allows you to manage your crypto collectibles.
Check out the article below for the best 6 cryptocurrency wallets you should use: