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Making sure integrated NFTs deliver utility | Rafael Vivas from Applovin
Key insights
6 takeaways- 01The industry is moving away from speculative hype toward using blockchain technology to formalize and secure existing player behaviors, such as the trading of virtual items.
- 02NFTs in mobile gaming succeed only when they provide immediate, tangible in-game utility rather than serving as speculative financial instruments.
- 03Developers should model NFT integration after established virtual economies like the Steam Marketplace or MMORPG secondary markets to ensure long-term sustainability.
- 04Data from 15 to 16 active mobile game integrations shows that players prioritize assets that offer functional benefits, such as exclusive content or unique cards, over investment potential.
- 05Successful NFT price points are modest, typically ranging from 50 cents to a few dollars, which encourages engagement based on gameplay value.
- 06Negative sentiment surrounding NFTs is largely attributed to bad actors and a lack of clear value propositions, rather than the underlying technology itself.
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Transcript
foreign [Music] how are you doing today doing great fantastic loving the show it's it's been a good one so far and we're just happy to be doing it again after last year was the first year back and now we're uh we're feeling like we hit our stride a bit after easing everyone back into it folks who aren't familiar with that loving what is it that you folks are all about sure so uploading is one of the largest mobile odd platforms uh in the space today uh we also uh have other lines of business I specifically focus on our new initiatives unit which means I get to build fun and new products for our customers and clients now I've been talking to a lot of AD Network providers and obviously we we ask a lot of questions surrounding what's the best way to Market a game and you know data privacy and all that kind of thing but you specifically the new initiatives what does that mean in terms of uploading what are your new initiatives
yeah definitely so uh a new initiatives is we're going out there we're trying to find new businesses that we can build that would be complementary to what we have today uh our first initiative that we built is vessel vessel is the first compliant nft Marketplace uh we went live last year across Iowa and so that's been our main focus we also have some other things in the pipeline right and how's that been because I know the nft market was a kind of a big exciting thing for a little while a few folks got very excited then it kind of dipped down a little bit and you know interest has been kind of up and down ever since so how have you guys weathered that and where do you see it going in the future great question our Marketplace is a lot different than a lot of the traditional nft marketplaces because we actually from day one we're focused on a player-centric Marketplace we actually didn't release a cryptocurrency and instead we had a virtual currency which users could buy and use to trade all the marketplace I would you know compare us more to like a steam Marketplace than a traditional NFC Marketplace and so with the bear Market that's hopped in in the crypto space uh
it hasn't actually had much of an issue for what we've been doing and where do you see it going forward like for the utility of them initially people saw them as something where you can kind of basically buy them flip them make a profit like you talk about the angle of it whereas long-term people have been looking at the idea of no no these are assets that you can build into games move between games and that way they kind of stay with you and have an actual functionality over a long period of time we speak to one of the folks around here who does living nfts and the idea is you can not only sell them and move them between games you can change their attributes and they can evolve over time where do you see the functionality of the energy Market as a lifelong game right where I look about nft functionality and as someone who's building vessel we really focus on making sure that the nfts are able to deliver value inside of the games the users are playing so right now we're alive in about 15 to 16 games last time I checked and we've seen incredible engagement by making sure that the entities that are integrated delivery utility inside of the game and for some of our games it's an emblem that gives users access to additional content and
also sometimes it's just a card inside of a game which they couldn't get through traditional gameplay as well we've seen great results through that and so I see a lot more implementations of that occurring and I think as long as it continues delivering value to the user and continue to see the space grow is it more the the player value or the perceived player value do they enjoy the fact that they feel they take a stake or an ownership in what's going on within the game or is it the idea that they can move it between different games and kind of keep an investment going forward throughout their gaming life like what's what's the draw from the players yeah so it really comes down to the value of the ass I can deliver inside of the game our nfcs are quite different than what you see on traditional marketplaces because they train anywhere between 50 cents to several dollars the highest we have an entities for about 300 and so for us what we've seen is that users are really buying these nfts so they can get value inside of the game they're not focused on the capability to look at as an investment or to or interoperability
across several games Russia what about the skepticism surrounding it I mean part of the the dip in the market has been a result of people so seeing it there was a lot of talk around it and then it kind of got a little bit rejected in the kind of public forum but obviously they're still existing they're still bubbling under that do you think it's a case of people not quite understanding what they are or do you think some of the skepticism is valid some of those skepticism is definitely valid anytime there's a new market a new technology that's released which we end up seeing is that there's some Bad actors that come and they use it in a way that isn't really valuable to that to the masses so that's what we've seen with nfts what I can say on our side is that for us a lot of users have seen value in what we've been doing and so as long as we continue down that track I think we'll continue seeing that market grow and one other thing to add there is that digital Marketplace is a business that does billions of dollars annually but not the traditional nfts the same Marketplace is a good example or other hardcore memo RPGs where people have been selling services or gold these things have
already been happening just nfcs and new technology that's allowed people to do it in a different way sure and new initiatives I noticed there's a plural on the end of that are you working on other things as well anything you can talk about we are we are nothing I can talk about yet all I have to say is that we have some fun things that we're going to be releasing this year and I'm excited to bring them out to the market last night [Music]
Summary
The integration of non-fungible tokens (NFTs) into mobile gaming succeeds primarily when these assets provide tangible, immediate utility within the game environment rather than serving as speculative financial instruments. By prioritizing player-centric functionality over traditional cryptocurrency-based models, developers can insulate their platforms from the volatility of broader crypto markets. This approach mirrors established digital economies, such as the Steam Marketplace or the secondary markets found in hardcore MMORPGs, where players have long traded virtual goods and services to enhance their gameplay experience.
Current industry implementations demonstrate that NFTs function most effectively as accessible in-game assets, such as emblems that unlock exclusive content or unique cards unavailable through standard progression. Data from active integrations across approximately 15 to 16 mobile titles indicates that users prioritize the immediate value these assets provide during play. In this model, price points remain modest, typically ranging from 50 cents to a few dollars, which encourages engagement based on utility rather than investment potential or cross-game interoperability.
While the broader NFT sector has faced significant skepticism and market contraction, much of this negative sentiment stems from the presence of bad actors and a lack of clear value propositions for the average consumer. The industry is currently transitioning toward a more sustainable phase where technology is used to formalize and secure existing behaviors—such as the trading of virtual items—rather than relying on hype. Moving forward, the growth of this segment depends on the ability of developers to deliver consistent, meaningful value that enhances the player experience, effectively moving beyond the speculative phase that characterized the early adoption of the technology.
