The Bitcoin market had a roller-coaster week, with prices falling below $29,000 on Wednesday and ether dropping towards $1.9K. Billionaire investor Elon Musk’s comments on Twitter and the UK’s inflation index played a role in the events, according to the online broker Forex.com. The recent dip in prices comes after a two-week rally, where Bitcoin was trading at around $30,000 and ether topped $2,100.
Exploring Web3: Square Enix’s Final Fantasy Gamble
At these high valuations, many cryptocurrency investors are looking to Web3, the nascent gaming sector that uses blockchain technology. It’s estimated that Web3 games could soon be worth more than the lifetime revenue of some successful traditional gaming companies, such as Grand Theft Auto and Halo. But one thing lacking in Web3 games is excitement, with many players not yet convinced by their potential.
This is what Square Enix, the studio behind Final Fantasy, hoped to fix. The company released a trailer for its first Web3 game, hoping to create some much-needed enthusiasm. Unfortunately, the reaction wasn’t the one they hoped for. Players, instead of being encouraged, responded poorly to the trailer, with comments on YouTube suggesting it could be the “final fantasy” of the series.
Exploring Web3’s Potential Amidst Market Volatility
A survey conducted by DappRadar had only 48.6% of respondents stating that blockchain games “seem interesting”. With so many negative reactions, Web3 will need more than just tech innovation to really explode. Markus Levin, co-founder of XYO Network, argued, “The UK’s higher-than-expected inflation numbers seem to be hitting a bit too close to home”. This suggests Web3 may have to wait until higher, stable market prices are seen again.
Equity markets traded roughly flat on Thursday, with the Nasdaq Composite rising 0.03% and the S&P 500 dropping 0.01%. Companies are currently struggling with the Alameda “gap”, due to the collapse of one of the market’s largest makers, Alameda Research. This has caused a liquidity squeeze, pushing many startups to delay their token launches.
Bitcoin Soars, Hong Kong Stimulates, Web3 Lacks ‘Wow’ Factor
Analysts remain optimistic, with Bitcoin prices currently pushing above $24.5K. Positive developments in Hong Kong are viewed as a bullish sign for the market, as stimulus from recent vaccine rollouts and accommodative central banks continue to buoy the global economy.
Perhaps in the future, Web3 will live up to its potential, with gamers more willing to give blockchain games a go. For now, it simply lacks the “wow” factor of the traditional gaming world, and unfortunately Square Enix may have to go back to the drawing board.
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