Game NFTs Are Gaining Strong Support in South Korea
Experts in South Korea believe that Crypto will play a crucial role in the gaming ecosystem, with a majority of global games expected to integrate crypto into their in-game economies within the next three years, marking a true shift towards NFT gaming projects.
South Korea Moving Towards Legalizing NFT Games
South Korea, ranked as the world's fourth-largest gaming market and one of the biggest proponents of blockchain technology, has historically banned play-to-earn (P2E) game projects due to cryptocurrency integration.
However, the country's new president, Yoon Suk-yeol, has shown strong support for cryptocurrencies, hinting at lifting the ban, although the government has yet to make significant strides in this direction.
In early March, during his presidential campaign, Yoon Suk-yeol released an NFT collection featuring images and videos of himself, aimed at attracting young voters in the final stages of his campaign.
South Korean President Yoon Suk-yeol
Anthony Yoon, managing partner at blockchain investment firm ROK Capital, highlighted in an interview that GameFi is a natural fit for South Korean game publishers. Yoon shed light on the current state of GameFi domestically and how game companies are exploring blockchain integration during Korea Blockchain Week 2022 (KBW).
Yoon explained that Web2 game companies are transitioning to Web3 and blockchain games in two main ways. Some are focused on deriving value for their projects and building their ecosystem on blockchain from scratch, with token integration as the final step. Conversely, other companies prioritize token launches without strong product development, leading to negative perceptions within the NFT gaming community.
What NFT Game Projects Need to Do
Comparing the global popularity of blockchains like Solana and Polygon to local South Korean projects, Yoon stressed that popularity isn't solely driven by capital investment but also by the infrastructure and ecosystem they establish.
He elaborated: "From a feasibility standpoint, it's about what these game studios also look at – their users on this chain. Is there an ecosystem on this chain? Is there blockchain infrastructure?"
Yoon further noted that while blockchains play a vital role in ecosystem development, game studios' primary task is to build a global ecosystem.
In another discussion, WeMade CEO Henry Chang shared current trends in GameFi, its potential future, and WeMade's new blockchain gaming platform, Wemix.
South Korean Game Company Wemade's Stocks Rise 400% Due to Blockchain Technology
Chang mentioned that despite South Korea's ban on integrating cryptocurrencies into blockchain games, digital currencies certainly offer utility within the gaming industry.
He added: "Cryptocurrencies will undoubtedly find a strong foothold in most games in the years to come. To make crypto games successful, they must have a formidable in-game economy."
Conclusion
In the future, South Korea's ban on blockchain games is expected to be lifted, paving the way for widespread adoption and advancement of NFT games.
South Korea is heavily investing in the metaverse and GameFi will be the bridge that facilitates the easiest access to the metaverse space for everyone.
