CRYPTOCURRENCY
“BY USING NFTs , GAME DEVELOPERS CAN CREATE UNIQUE AND RARE ITEMS THAT PLAYERS CAN COLLECT , TRADE , AND SELL ”
JAMES RODD HEAD OF MARKETING , GAMESTA
This obviously improves the gaming experience for players – but NFTs can prove to be a valuable new business opportunity for the makers of games as well . Rodd explains that developers can sell virtual real-estate as NFTs , allowing players to buy and sell virtual land within a game , or they can use NFTs to crowdfund game development and steer player behaviour – such as encouraging players to participate in certain in-game modes or features , or rewarding loyal players for reaching in-game milestones .
Legal implications of NFTs in gaming Despite the obvious enthusiasm that exists around the growing use of NFTs in gaming , the technology ’ s nascency gives rise to some legal and compliance concerns .
“ A range of potential legal issues need to be navigated ,” Burges Salmon ’ s Tom Whittaker continues . “ These include gambling , advertising , privacy , and IP , to name a few . If financial services brands want to use NFTs , they will also need to navigate financial regulations about what digital assets they can sell , how , and where .”
The legal implications are not reserved to regulatory considerations for brands , though . There are risks to players who purchase in-game NFTs as well .
In March 2022 , a hack on the NFT-based online video game Axie Infinity saw $ 600mn stolen from the game ’ s digital economy – something that S & P sees as being “ the key factor behind the market ' s decline in 2022 ”. There ’ s a saying in the world of digital assets :
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