Gaming Giants Poised for Crypto Adoption Following CLARITY Act
The advancement of the CLARITY Act through US Congress is expected to pave the way for major gaming companies to adopt cryptocurrency, according to Robbie Ferguson, founder of Immutable.
Ferguson anticipates a surge of companies introducing programmable loyalty and incentive schemes that will be significantly more efficient than their current systems. He stated during an interview on TradeTalks, "I expect to see a ton of companies to come out of the woodwork with ultimately programmable loyalty and incentive schemes that are far more efficient than whatever their existing system is using."
He further revealed that Immutable is already in discussions with multi-billion dollar public gaming companies interested in launching tokens to incentivize their players. However, these companies require complete clarity and certainty regarding the lawful execution of such initiatives. "Were already in conversation with mult-billion dollar public gaming companies who are considering launching tokens as incentives for their end players, but what they need is complete clarity and certainty on how they can do that in a lawful way," Ferguson said.
The CLARITY Act is designed to establish a clearer and more defined regulatory framework for the crypto industry, including a better understanding of the oversight responsibilities between the US Commodity Futures Trading Commission (CFTC) and the US Securities and Exchange Commission (SEC).
Immutable recently announced a partnership with global gaming giant Ubisoft, known for franchises like Assassin's Creed and Far Cry, to launch an original strategy card game called Might and Magic: Fates.
Ferguson believes the CLARITY Act could be the most transformative piece of legislation for crypto, as it would create a lawful route for assigning value to compliant crypto tokens. He noted that the crypto industry's regulatory hostility over the past four years has made it exceedingly difficult for companies to launch tokens with genuine economic value.
"That's what these tokens can be at the end of the day for these companies, and doing so in a way that comports with the CLARITY Act," he explained.
In addition to expanding its relationships within the traditional gaming industry, Immutable is forging partnerships with major blockchain networks. In October, the company collaborated with Polygon Labs to launch a dedicated gaming hub.
Crypto Games Should Not Solely Rely on Crypto Markets: Illuvium CEO
Kieran Warwick, founder of Illuvium, asserts that a successful crypto game should possess inherent value independent of the crypto market's performance.
Warwick stated on X, "A successful game that properly obfuscates the crypto experience has the potential to generate insane revenues without needing a drop of liquidity from crypto investors." He added that market conditions, whether bull, bear, or sideways, are irrelevant for such games.
This is the allure of a gaming investment. If you get it right, and the timing is there, it can outperform your entire portfolio.
However, Warwick cautioned that this principle does not extend to on-chain games that depend on crypto market liquidity, such as play-to-earn and risk-to-earn models.
He explained that these games' revenues are susceptible to market downturns. Warwick proposed that the ideal approach is a hybrid model, balancing crypto-native assets and potential upside with elements that are entirely independent of crypto markets.
Off The Grid, a successful title distributed by Epic Games, serves as a recent example. It functions primarily as a traditional AAA shooter and can be played without any cryptocurrency interaction.
While Off The Grid features non-fungible tokens (NFTs) such as weapons and skins, their use is optional and not required for gameplay.
The game's revenue model aligns more closely with traditional gaming monetization strategies, while still offering crypto elements for interested players.
In October 2024, the game garnered significant attention from the crypto community following the announcement of its launch on mainstream platforms, including PlayStation and Xbox.
Ronin Network Aims for Mainstream Adoption Beyond Niche Audiences
Ronin Network is planning to expand its reach beyond blockchain gaming, focusing on consumer applications designed to attract a broader, everyday user base, according to co-founder Jeffrey Zirlin.
Zirlin stated during a recent podcast interview, "Not like nerds, not computer people, but everyday people," as the network prepares to broaden its scope from Web3 gaming to various consumer applications.
Zirlin acknowledged that many blockchain companies claim aspirations of global onboarding as a marketing tactic, but he highlighted Ronin's demonstrated real-world traction.
"We've actually done this millions of times," Zirlin said. "The Ronin Wallet has been downloaded 17 million times, we're massive in places like the Philippines, and in certain countries in South America."
Ronin Network, built on the Ethereum blockchain, is recognized as the blockchain developed by the team behind the popular crypto game Axie Infinity. The Ronin Wallet facilitates users' ability to send and receive cryptocurrencies and NFTs while minimizing high gas fees associated with blockchain-based games.
Zirlin indicated that the current focus is on scaling to achieve the next phase of adoption.
He expressed increased optimism about broader adoption, citing a more crypto-friendly policy stance in the US. "It will take some time," he added.
Ronin Network is not the sole Web3 gaming company looking to expand beyond its core focus. Keyvan Peymani, chief strategy officer at Animoca Brands, recently announced the company's intention to explore new investment sectors next year, with a particular interest in AI, stablecoins, and Decentralized Physical Infrastructure Networks (DePIN).
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