The pop-culturalization of video games has turned them into a formidable entertainment market. Exciting features such as tournament live streaming have captured the hearts of many gamers, pushing this sector’s market size to $203.12 billion in 2021.
This sector’s market size will cross the $545.98 billion mark by 2025. In it are lucrative investor, gamer, event organizer, and influencer opportunities. One area that remains unexploited is the sale of game collectibles.
To illustrate this point, the global collectibles market is worth over $370 billion. It comprises gaming, sports, art, toys, collectibles, and other rare items. Today vintage sport collectible cards sell for millions of dollars. Sealed video games sales are soaring and the demand for 1980 Mega Man, Link, and Mario games is at an all-time high.
The Cons of the physical collectibles market
Amid these developments is a rising risk of illegal and unethical trade. These vices are distorting the market as more people try to game the system for more profit. These risks affect not just the sale of collectibles, but the trade of vital in-game assets as well.
As an illustration, the purchase of in-game assets such as the upcoming New World by Amazon Games can be a challenge. It will take you a lot of time and cost you tons of money to amass a good stash of gold from the MMORPG’s donations or trading post.
Purchasing gold off the New World’s in-game boundaries is the only option that most gamers have. Unfortunately, this alternative can make you prey to deceitfulness. Luckily, you can purchase your New World Gold cheaply in trusted third-party marketplaces such as Eldorado.
Eldorado is a reputable in-game assets trading site that accepts crypto payments and protects all stakeholder interests via its TradeShield feature.
Fortunately, such risks will become a thing of the past as digitalization turns the collectibles market upside down. Digitalization has spawned a digital collectible market, as evidenced by the rise of the non-fungible token market.
The nonfungible sector had $338 million in sales volume in 2020. It is 1000x smaller than the $370 billion traditional collectibles market. However, as digitalization takes over, the NFT market could grow by a 1000x value in this new decade.
Nonfungible tokens (NFTs) and blockchain technology support transparency and will create a sane digital collectible industry. NFTs are cryptographic tokens that represent unique or rare items. Coupling NFTs with blockchain technology is a game-changing strategy that secures data on blockchain ledgers.
To this end, NFTs will help prove ownership and prove these items’ scarcity. The beauty of NFTs creation standards is that they support interoperability. In-game asset traders and battle chests lovers will access an open industry where they can trade various assets in one marketplace.
As the gaming collectible market goes mainstream, professional classification and grading system services are stepping in to provide assessment services. The presence of these intermediaries, while useful, will only move the trade of the gaming collectibles market further into the hands of high-profile auction houses.
These middlemen will dominate the collectibles market and take a chunk of its revenue. Blockchain technology smart contracts support the trustless and secure trade of digital collectibles on peer-to-peer networks.
It will support peer-to-peer trading between collectible enthusiasts, creating a decentralized, trustless collectibles market for all. Decentralized autonomous organizations (DAOs) will give players autonomy, rescuing them from the selfish interests of tournament organizers and managers.
In a DAO, gamers can vote and determine the gaming platform’s governance, eliminating the wanton capitalization in the sector and creating a rewarding gaming scene.
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