Animoca bought Eden Games, but can they be trusted with NFTs?
Earlier this month, booming games company Animoca Brands shut down its game known as F1 Delta Time, which used NFTs and the play-to-earn model. The game model allows players to earn tokens that can be exchanged for real monetary value.
Not all of the loss in value prevents Animoca from suing another racing game developer.
Animoca acquires Eden Games
A surprising act from the company that has just shut down its own game after losing the license to retain the Formula 1 racing brand has taken place. Animoca Brands has acquired Eden Games, a France-based game publisher best known for working on titles such as Gear.Club and the Test Drive series of games. The deal was priced at $15.3 million, in which Animoca now owns 96% of the entire business.
The deal will allow Animoca to bring back and enhance their REVV Motorsport (REVV) ecosystem which is embodied in their racing games such as MotoGP: Ignition, Formula E: High Voltage and Torque Drift. All of these games are connected to the Ethereum blockchain, primarily with the Polygon network.
Yat Siu, co-founder and president of Animoca Brands, said in a statement that their acquisition of Eden “will add value to the REVV community and the racing metaverse.”
Should we trust Animoca when it comes to NFTs?
Now, with all the above events taken into account, the question is quite simple. If you want to invest in one of their games, is trusting Animoca still worth it?
For those who have invested in F1 Delta Time, it’s already hard to do. Making all investments worthless and not getting their return on investment proves that you should not take this decision lightly. While everything that happened was legal, these indirect all-in pulls are really disturbing and may not be exactly healthy for the booming world of crypto and NFTs.
An example other than the shutdown of F1 Delta Time is what happened with the Filipino NFT and play-to-earn project known as the now infamous “Surf Shark Society”. According to the founders of the project, the developers ran away and stole all the money from the investors, which was almost $345,000. Not only has this made the money of these potential project investors worthless, but it has also affected the entire Filipino NFT community as a whole. Rather than positively boosting the already negatively seen world of NFTs and crypto, it may just do the opposite and might even cause more doubts or misconceptions about it.
We’re not sure why Animoca lost their license for the F1 series, but we can’t be sure they won’t lose more licenses for their other branded series either.
It’s up to you whether you want to risk investing to play future Animoca games. Factors that could be factored into stopping NFT or play-to-earn projects include slow or negative response from the community as a whole. It could come from some form of aversion to the game mechanics, a loss of interest in the gameplay or the project, or it just didn’t work out the way it was supposed to.
In the case of F1 Delta Time, it was rather the licensing issue that was the problem. Yet there is an underlying reason why the supposed license renewal did not happen.