Mad Lukas
@bull86
The experience of investing in play-to-earn games (gameFi) is as follows: 1. The most important thing is that the minimum amount of money needed to play the game must keep increasing. Otherwise, the cash flow into the game will gradually decrease.
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Mad Lukas
@bull86
2. The gameFi mechanism is similar to investing money into a DeFi project to "farm" tokens. To profit, the money from selling earned tokens must be more than the initial investment.
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Mad Lukas
@bull86
3. If the minimum amount required to play the game decreases over time, it is a sign the game is declining, so one should withdraw money before losing it all.
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Mad Lukas
@bull86
4. Another red flag is when a game starts giving "passive income" without playing, like staking tokens for interest. This signals one should urgently withdraw before losing everything.
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Mad Lukas
@bull86
In summary, when investing in gameFi, choose games with healthy mechanisms, and gradually take profits when hitting targets rather than "HODLing" endlessly.
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