$50 Million NFT Drop Makes For Huge Growth Opportunity
The use cases for blockchain technology were heightened from cryptocurrencies used solely as investment opportunities to a new form of the digital revolution. The deployment of smart contracts has allowed various blockchains like Ethereum the opportunity to build countless decentralised systems like Non-Fungible tokens (NFTs), DeFi protocols, DApps (Decentralized Applications), to name a few.
Yet, one of the biggest use cases of blockchain technology is still in its development phase. With Web3 proving to be a version of the internet that is entirely decentralised, many virtual environments that use blockchain technology applications are being created. These virtual environments, which mainstream media has decided to term as the ‘Metaverse’, is arguably the most ambitious plan that will be taking place via cryptocurrencies and blockchains.
With many fearing an incoming correction on the Metaverse-based tokens that have soared to insane levels, this upcoming ecosystem is a tremendous growth opportunity in 2022. With the Metaverse and Web3 being in the development phase as we enter a new phase of the digital revolution, this NFT-based platform is already generating hype with a $50 million revenue from their first-ever drop. Why should you invest in this project, and what is the chance of a potential upside in the years to come? Let’s find out now.
Legacy, by Gala Games
Gala Games is an NFT-focused gaming startup that has just announced the launch of its latest game, ‘Legacy’. The game is being described as an innovative move that will push the boundaries of blockchain gaming by deploying NFT and Metaverse-based in-game protocols to enhance user experience and reward investors simultaneously.
The Legacy announcement came soon after Gala Games launched a $100 million blockchain gaming fund with the crypto-investment firm; C2 Ventures.
“The joint fund will invest in game developers and emerging projects building with blockchain technology, including but not limited to play-to-earn, GameFi, metaverses, and other decentralised gaming solutions”, the Gala Games press release states.
During the company’s Galaverse event, which was held on December 11 and 12, Peter Molyneux, the creator of Legacy, officially announced the game for the first time.
In order to participate in this game, players are required to purchase a ‘Land NFT’, which will allow them to open a blockchain business association in the game. From the initial purchase, players can create digital buildings and other products, which can be traded back and forth with other participants on the Legacy ecosystem.
Throughout the game-play, players will also be able to enter into a variety of in-game competitions and events, which will test their design skills and town management abilities.
Players and investors will be one and the same on Legacy since you can participate as a virtual business owner with the opportunity of making real money.
How to make money through legacy
The promise of associating a monetary value to a metaverse-based game is nothing new, but Legacy has already made huge developments a year before the game’s expected release. The game has already sold the NFT land plots for nearly $900K a piece, with total revenue of $53 million being generated. The limited land sale which is powered by non-fungible tokens was advertised as “every creative entrepreneur’s dream come true” since Legacy allows players to build their own business in the ecosystem from scratch. 4,500 land pieces were sold for a whopping $53 million, making it a huge success for the first-ever NFT drop.
During the Galaverse event, Molyneux described the importance of the Land NFTs. “Owning a land NFT allows you to start your own in-game blockchain business association in Legacy. You will be able to play Legacy while earning and owning your gameplay. Crucially, as a business association owner, you will have access to Legacy Keys. These items can be lent to other people who want to start an in-game business, making them your in-game Business Partners.”
While the NFT-drop on its own is an early investment that exists in the games ecosystem, Legacy has given users another way to earn and share portions of the earning among the involved users.
The second way to earn money on Legacy is with LegacyCoin. The coin is a currency that allows the entire virtual environment of Legacy to exist. Built on the popular blockchain Ethereum, LegacyCoin complies with an ERC-20 token standard. Through the platform’s native coin, players will acquire Legacy Keys for lending and trading among the community. Legacy claims that the token will have a variety of exciting and innovative utilities, with a majority of the announcements and use-cases yet to be announced. Competing against other players will be heavily promoted through an array of ecosystem-based tests, which will be tracked through a leader board position. Winners have the chance to win LegacyCoin along with other big prizes, which will come to light when the game moves closer to its release date.
Negatives of LegacyCoin
While it is an ERC-20 powered token built on the Ethereum blockchain is one of the most popular crypto-based token protocols, it has also garnered disapproval from anti-Ethereum critics.
The Ethereum blockchain is host to more than 3,000 different decentralised apps (DApps). Most of the top DeFi projects, DEX, DAOs and NFT marketplaces are built on the Ethereum blockchain. However, 2021 has seen the rise of a variety of alternatives — Polygon (Matic), Decentraland (MANA) and Solana (SOL) becoming a growing threat to Ethereum’s native network.
Ethereum still controls most of the Metaverse and NFT-based projects, but their hefty gas fees and low transaction throughput are making many investors look for better alternatives.
Solana is a layer 1 blockchain protocol that has garnered much attention in 2021. Its native token, SOL, has soared by a monumental 14,900%, trading from $1 in January 2021 to almost $200 in December 2021.
More so, Solana has witnessed a rapid increase in its native NFT sales. Secondary sales volume for Solana-based NFTs reached almost $500 million from 348,000 transactions. With an average transaction price of $1,500, the cryptocurrency will be a key player in the NFT space in the coming years. More importantly, it is an excellent alternative to Ethereum’s ecosystem due to the cheaper transaction fees.
Secondly, Solana’s network can handle up to 75,000 transactions a second. Ethereum, on the other hand, manages only 15–20 at the same time.
Another criticism of the Ethereum network lies with its use of the Proof-of-Work (PoW) consensus. PoW is very energy-intensive and is a huge cause of concern among environmental experts. Bitcoin faces scrutiny for the same reason. The alternative to this is Proof-of-Stake (PoS), which requires users to stake their crypto holdings in return for potential token rewards by contributing to the ecosystem, its functioning and security.
Ethereum will be able to solve all these issues with Eth2.0, an incoming update on the blockchain that will change the consensus to a Proof-of-Stake. This is expected to reduce gas fees and increase transaction throughput up to 100,000 per second.
Future of Legacy and LegacyCoin
While Ethereum can successfully reduce transaction prices and fees with Eth2.0, it will only have a direct effect on LegacyCoin if the game manages to attract real value. Gala Games have made a few promises to ensure that the game is well-received by the general public.
Firstly, in response to the environmental harm that an Ethereum-based token can lead to, Gala Games has the following to say. “We are committed to the health and safety of our planet and committed to becoming and staying Carbon negative. To that end, the company promises to plant a tree every time you make a purchase on the site”.
Secondly, the game has already made significant monetary benefits pre-launch. While the success of similar gaming start-ups like Axie Infinity has shown the increasing potential and success involved in a play-to-earn game, user adoption is the key. In attracting a significant audience, Gala Games has already managed to complete a successful NFT-based drop, acquiring over $50 million from thousands of interested players.
Finally, the in-game monetary value is a huge reason why investors will want to participate in this ecosystem. Legacy’s creator, Molyneux has promised ‘self-balancing mechanics’ to prevent the in-economy from becoming too inflationary. This will also make it easier for more players to make money, which will hopefully drive user participation.
LegacyCoin and Legacy await a major launch in the coming year. The token’s added value could be a make or break for the game, so at this point, it is a 50–50 chance for success. With a few successful in-game developments combined with the much-awaited launch of Eth2.0, users could be in for a treat if they manage to invest early in LegacyCoin.
On the other hand, a possible failure is very much on the cards since the game is far away from launch. It is important to keep a track of the game’s developments and only then decide on your investment strategy.