The coming of play to earn ( P2E) has revolutionized the gaming industry, getting them the audience they lost to economic crises. Some years back, people spend hours playing different games just for fun. We saw the likes of Sega, PlayStation, Xbox, etc. As the economy began to change and tread down the slope, people started to spend less time playing games for other activities that can fetch them money.
When Play to Earn games came into the picture, many people got their gaming spirit renewed because they now have the opportunity to derive both joy and funds. Many people were made millionaires by some play to earn games like Splinterland. However, most of these play-to-earn games do not last long enough, offering gamers continuous good earning opportunities. Their in-game token usually pumps for a while especially when there are marketing activities and an increase in the number of players but only to dump dip afterward with little chance of getting back to its all-time high.
The question then is thus, Why does this Play to earn Games experience a huge drop in their in-game token after a pump?
For me, it starts with the mentality of gamers. Most gamers usually withdraw more than what they have invested in the game, especially when it's a free-to-play game. The only games that sometimes maintain their token price are those that are not free to play and have a mechanism that rewards gamers in proportion to their investment.
The Second reason is when the game developers are not in the business for the long run. They most times dump on players through anonymous accounts.
The third reason is that the game is built to take more from gamers than it gives to them. Players at some point have to stop investing in the game because they are not seeing the reward for their investment.
Nevertheless, Play to Earn games are still the best and have helped a lot of people financially, especially during this bear period. They have revolutionized the gaming industry. We just need to make proper research on any game we want to play, monitor how the project is going, take out profits at some point and be ready for whatever comes up