While the world of cryptocurrencies is getting serious and boring, a sector that promised to be the endless party of video games is going through an identity crisis. But watch out, there are those who are stepping up.
Will YGG's focus on 'casual degens' survive the natural selection process of the GameFi sector? 🤔
If the GameFi industry (games that pay with crypto) were a video game, the current level would be called "Extreme Natural Selection." The euphoria of a few years ago has deflated: more than 27 Web3 games shut down just in 2025. This is like if a franchise you love closed all its branches overnight. 😭
In the midst of this chaos, Yield Guild Games (YGG), which was previously known for grouping players, decided to make a 180-degree turn to avoid drowning. They transformed from a "guild" to a "publisher" with their division YGG Play, launching gems like LOL Land.
What is the master move? They have anchored the utility of their token ($YGG) to these new games through a Launchpad. This means that if you want benefits and rewards within the newest games, you have to use (and therefore demand) the token $YGG. Pure utility! Furthermore, to give its price a breather, the team is activating 50 million tokens from its treasury to increase liquidity and staking rewards (locking your tokens to receive more).
Here is where things get interesting and dangerous:
The Good News (Internal): Games like LOL Land have already generated over $4.5 million in revenue. This shows that people are indeed willing to play and spend in their ecosystem. The Launchpad is an engine that gives them their own traction. 🚀
The Bad News (External): Fear dominates. The Fear and Greed Index of the market is at an alarming 21. And the most concerning thing is the potential dilution: 82% of the tokens $YGG will be unlocked this 2025. It's as if the market is waiting for a mountain of coins to be released, which could pressure the price downwards. 📉
And what does this matter to you?
If you have $YGG or are thinking of entering GameFi, you must understand that YGG's survival depends on one thing: that people keep playing. It doesn't help that they buy the token once; there needs to be retention. YGG's bet is on "casual degens" (casual but enthusiastic players): if they manage to keep thousands of monthly active users in games like LOL Land, the demand for their token could withstand the sector's pessimism.
The market no longer rewards promises; it rewards measurable results. YGG is doing its homework, but it is rowing against the tide of a sector that is bleeding out. It's a battle of utility against panic.
The lesson here is that in the crypto world, innovation is the only insurance policy against being forgotten. Now, it's time to see if people prefer the new game in the block or continue to think about the unlocking of tokens.
