YGG, is web3 gaming community, started from the success of the game Axie Infinity. The game's play-to-earn (P2E) concept allowed players to lend out assets to other players and earn a portion of their in-game gains. YGG recognized the potential of this model and became one of the major players in this league.
YGG is focused on finding the next gem, even if it still in development. This would allow them to enter at a low cost and start using their assets as soon as the game is launched. However, the problem is that most of the games are not ready and have no gameplay yet. Triple A games normally take 3 to 5 years to develop, and many developers are doing this with the money they earned from sales of tokens and NFTs. Which means the community is taking the financial risk for the initial development.
I expect that this is the minimum before we see real revenue in YGG again.
Many investors thought they would be able to hold their insane revenue they had during the Axie hype or would find a next gem in months, instead of year.
When a game does succeed to launch they will need groups like this that are focused on the production of asset and taking a profit doing so. Most P2E games are selling limited in-game items and want the community to grow the game.
Furthermore, many Western gamers may not embrace the P2E concept, which is crucial for its success. Without new money being spend inside these games, for example to reach the top and them enjoying being amongst the highest ranks in the game, the P2E concept will fail. With too many players trying to profit, the game's economy will suffer and the asset holders inside these games will have a hard time getting back their initial investment. Show Less