There are many Metaverse or GameFi tokens that hold millions of dollars in total value locked and the market capitalizations are on the first page of the coinmarketcap. Even though they may not look different from the previous years' market cycles, this time they are called as potential security tokens.
When the play2earn tokens are accepted as securities, the case will be even worse than the other Layer 1 issuers because the mechanism of gaming is built upon "selling" the security to make them more money as the other new players are eager to buy your coins or your Non-Fungible Tokens. When you look at the case by changing your perspective, the security tokens issued by the blockchain-gaming projects can be the at the risk of creating a Pyramid scheme, too.
In federal court documents, the SEC deemed the following tokens securities: SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI. The SEC refers to these ten tokens and others as “crypto asset securities” in its complaint.
by blockworks
SAND, MANA, AXS = Top 10 of Metaverse & Play2Earn
The case of these tokens might be investigated in a different direction because their use cases are totally different from Layer 1 or Centralized Exchange tokens. Yes, this is just a possibility but everything is possible. Especially for Axie Infinity, which had a doubtful hack case of Ronin bridge, it will be quite stressful.
Will it effect GameFi?
I do not assume such a possibility because GameFi is independent from any work of developer groups. MOBOX built a new game for PancakeSwap, new Play2Earn blockchains are popping up and there are really strong and well-known games like Splinterlands.
There is no necessity of reliance on AXS, SAND or MANA even if they are carrying the other projects up as a whole. When you look at the launchpads, almost half of them are based on GameFi projects and blockchains do their bost for scalability issues.
I will not be surprised if I see Alien Worlds, Illumium, Thetan Arena, Splinterlands, League of Kingdoms in the top 5 over the next 2 years.
The marketcaps may varry depending on the Daily Active Users the games will catch but their operations are solid! Unless these great games do not break the chain of trust and decentralization, they will never be harassed by the SEC as it happened for the top coins that are mentioned.
The projections of gaming industry is unbelievably high. If GameFi grabs 1% of that money, which is almost half of the current total market cap of crypto ecosystem, just imagine the prices of SPS, TLM and other tokens!